Blowie, you might also struggle with a loan dependant on the m2 of the unit.
Several banks would require a higher LVR if the unit is below 50m2 thus increasing your deposit to purchase.

Chris

I looked into this a while ago but to purchase in South Africa where interest rates were around 14%, by taking out a line of credit against a property over here i could then use the money for a purchase over there.

I never got in contact with the banks in SA.

I was basically looking at what you are thinking but in reverse, by using our intrest…[Read more]

Bondi is a HOT area.

A few months ago semis were actually selling at auction for around such price.

Pisces133

>> am no expert, but I would suggest sacrificing one of your properties to pay back the other debts in an effort to create +c/f in the remaining props. You should then easily be able to use this +c/f to fund more purchases.<<

How does that work Shnook ?

Would a refinance not be a better way to go ?

Pisces133

The best way to be able to sleep at night instead of worrying about whether the tenants will stay on or not is to realise that security doesn’t lie in a tenant but in the location.

If the location is first class and you lose a tenant it is the location which will fill the vacancy quickly.

If you think that prime locations are too dear I suggest…[Read more]

Gee Mini, that book you are thinking about writing (‘How to make friends and influence people’) will be a best seller judging by the response to your post.

What a difference a day makes.

Not so long ago many people condemned you for
asking a simple question [] [] []

Cheers,

Pisces133

Accidents are natures way of removing the idiots from our society.

I always think of this one when I see someone doing something totally stupid. It controls the road rage.

There’s heaps of ways to make money out of property besides capital gains and rental income. Landscaping contractors, interior decorators, handymen, property spotters, real estate agents, relocation specialists, rental agents to name but a few. If someone can induce another person too risk averse or lazy to invest on their own account to part with…[Read more]

I’ve found the ANZ not so positive on the income side of things as either Westpac or the Commonwealth. I agree not to give the bank security if you don’t have to, but not at the expense of having to pay more interest than strictly necessary. Having a good bank manager is worth having. Ours has told us about financial products I wouldn’t have known…[Read more]

Positive gearing is better than negative gearing. If you had to choose between scenario 1, where you netted $1,000 a week, but had to pay 48.5% tax on the entire amount (so assuming you were already on the top rate of tax) or lost $200 a week, so gained a tax advantage of $97, for a net lost of $103 per week, which would you prefer?

Even taking…[Read more]

Talking of new property owners, what is good on the outskirts of Melbourne to buy (areas like Hoppers Crossing, Cranbourne, Pakenham, Croydon, Coldstream, Lilydale, Narre Warren) for rental is brand new housing. You can get house and land packages out here for as low as $240,000. I personally think they lack character. I’d hate to live in a new…[Read more]

Hi Mel,

Cross collateralising is only a temporary situation. Once the IP has increased in value sufficiently, as per the bank’s valuation, to give you a 20% equity in the IP, the bank will unlink the securities, releasing your PPOR. Borrowing via a second product like asset builder is typically half to one percent (for the extra borrowings) more…[Read more]

It is probably worthwhile getting to know the real estate agents in the areas you are interested in, so if something comes up they can let you know. Our place was sold to people on the agents books before the ads came out. He put up a sign but just to advertise that they had sold the property.

I’m sure there are places in the capital cities with relatively high vacancy rates, including parts of the North Western suburbs of Sydney. And there will always be tenants who are prepared to move rather than pay more rent.

Talking of Pyrmont, I rented a place in Jones Street, Ultimo in the early 80s for about $130 a week or so, and was vaguely…[Read more]

I reckon renovating floors is a great idea. We did it in this house – pulled up the carpets and stained then sealed the existing floorboards, and also in a flat, where we laid floating floors onto a concrete slab. My partner also built a courtyard out the back. The wierdest thing – when we sold the house, the people who came through all raved to…[Read more]

Hi Redwing,

For decent properties well located, the rental market is always good, and when interest rates rise, they are akin to gold.

I’ve got a friend who has just spent 4 weeks – 4 weeks mind you – trying to find a two bedroom flat in the inner northern suburbs of Melbourne to rent. He kept missing out because heaps of other people were also…[Read more]

No, all that happens is that the higher interest rates go, the less people are able to borrow. So you have banks which will lend you, based on your earnings of say $36000 pa, $173K at 6.5% but only $154K at 8%. So the problem then is, if the house you want to buy costs $210K, you’ve gone from needing a $37K deposit to needing a $56K deposit all…[Read more]

Hi Mini Mogul

Thanks for the links to the Rich Mastery sites. They were great. Not something I would do – I’d prefer to invest the finders fee by going to NZ for a month and looking for myself, but it’s a great idea.

Kat []

Hi Rugby Fan,

When you buy an investment property you can borrow everything, including all the costs. You just need to link your principal place of residence as collateral to the mortgage for the investment property. Provided you buy well there should be no risk. For example, say you have PPOR that the bank’s current valuation for is $400K, with…[Read more]

I don’t know that I would want to do this myself -Year 12 is a terrible year to be doing work as well as study – but how about something like tutoring maths? It pays reasonably well.
Also, door to door deliveries can be quite lucrative and keep you fit at the same time. 20 years ago, this paid $90 per 1000 drops. I’m sure this would pay much…[Read more]