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August 26, 2008 - 12:44 am

 thank you again for your help!

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August 25, 2008 - 10:33 am

hi elkam

thanks heaps for your post!

i always thought the way to use the offset was depositing as much money as possible in it, however still having another seperate account for private expenses. This way the balance in the offset accumulates and never declines.. whilst the other account fluctuates with everyday spending etc… looks like i have this wrong!

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August 21, 2008 - 11:27 pm

ok that makes sense.
thanks heaps for the reply!

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August 21, 2008 - 10:53 am

Hi Richard
Thanks for reply!

But using the principle figure of $245.80 you derived.
$450k/245.80 = 1830 months = 152 years? versus P&I which would mean u would have repaid $450k over 30years?

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July 24, 2008 - 9:41 am

does something smell in here?

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July 23, 2008 - 3:29 am

Scott No Mates wrote:

Do the short owner builders course at TAFE (a couple of days) gives you a background in what is needed to project manage construction & trades works. How do you intend going about the work – owner builder or project home? Project home builders specialise in standard design on the block, getting approvals and getting it built – probably the easiest way to go for first timer.

Project home builders – like Jim, davis homes, Australand etc? would u still need that course?

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July 14, 2008 - 3:50 am

thanks for the reply tracy.
We're looking at buying a PPOR at rousehill, but looking at the some of the prices im thinking they're abit high? not sure if myu expectations are correct.

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April 8, 2008 - 7:37 am

Thanks for the replies.
in one of my previous posts, people had mentioned to use an experienced or qualified broker etc which is common sense. But is it appropriate to ask them to show their qualifications?

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December 30, 2007 - 11:52 pm

interesting feed back! thanks for the comments everyone.

Hate to open a can of worms… but here it goes….. Anyone have any recommendations of a good MB? lol?

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December 18, 2007 - 4:49 am

HI L.A Aussie.

i have the same problem as others ie. i can mainly find ip's that provide only 4-5% rental yield.

This 'own backyard' mentality is an interesting concept. Can i ask then, if this mentality suggests a person buys only within their state? eg i live in NSW and therefore only buy in NSW>

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December 13, 2007 - 4:11 am

had the same question as vyaw2003…. ie.. commercial or residential?

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December 13, 2007 - 3:52 am

Thanks for the replies. Its been interesting to see the different perspectives.

another other quick one:

1) does the 'on average properties double every 7-10 years' rule apply to all properties alike? eg,  duplex/houses/villas? just curious on why theres a house vs duplex/unit debate

2) just keepign on track with original post: say if a potential ip was $350k, rents of $300p/wk. would roi then be 4.5%

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December 13, 2007 - 3:44 am

thanks folks

completely didnt realise the cross collateralising part until i read your posts. Now im really glad i asked a basic question.

Will let you know how i go with things as im in the process for ip2.

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December 12, 2007 - 9:50 pm

hi  – excuse the ignorance but could someone help explain:

1) ignoring capital yield, what % rental yield would a person seek when searching for a potential ip? if in the current market the cost of finance is approx 8% ? i assume anything less than this would look unfavourable.

2) following on from question 1, assume then we accept nothing less than 8% in rental yield for a property, by doing the sums this would mean for a standard $450k property, you would expect a weekly of rent of no less than $692 p/wk. Im no expert, but that to me sounds highly unlikely.

3) For arguments sake, lets assume now then, 4% rental yield and 4% cap yield. Even at these rates, you would expect weekly rent of $346. However even these rental rates, from what ive seen in the papers etc is extremely high and unlikely?

4) Then theres the notion that property values will double every 7-10 years. Assume then a $450k property will double in 10years to $900k. Are we then, therefore saying that the salaries of the country will also increase in a manner relative to this rate? and at the same time, so will costs of fuel, etc basic commodities.?

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September 3, 2007 - 8:23 am

Hi Hutch. thanks so much for ur post, those were exactly the type of 'generic' questions i was looking for.

merryc – with ip#1 – well.. i think it was a bad choice?    i learnt alot from it, but i feel that i lack the real fundamentals and dont want to do it again. I think my mistake was buying it in the high period. So im tossing up now wether or not to buy another ip, or rennovate ip 1 in return for a higher rent.. but i dont think the numbers will pan out ?

Anyways, thanks for your posts folks.. its a starting point for me

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August 29, 2007 - 2:39 am

no one ?

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August 29, 2007 - 2:37 am

Hi Marc

So how would you go about taking the next step? assuming u cant find any cf + properties. do u just wait to see how quickly u can pay off ur existing ip so its cf + then buy the next one?

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August 23, 2006 - 1:18 am

thanks folks, ill look into those.. has anyone used AAMI ? they have a new landlord / tenant protection insurance.

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August 23, 2006 - 12:40 am

just as others said, theres alot of steps involved.. remember this is a PROPERTY you are buying not a pair of shoes… its one of the biggest / most expensive things most people buy in their life. so be prepared !

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August 22, 2006 - 6:26 am

Agreed on a good mortgage broker they will take care of all those things

make sure ur solicitor checks that any outstanding land tax has been paid for on the property (assuming its tenant occupied already) before u buy it.
solicitors usually do this, and also a building inspection report (right name?) where they check for things like termites etc.
get them to interpret the contract of sale for u.. or even better, read it urself

make sure ur 100% aware of the dates involved with cooling off period, settlement date etc. depending on the contract of sale, if u dont have the finances ready by a particular date, u can loose ur deposit (depends on the contract).
Banks can take a while to approve ur finances so be wary of this.

thats all off the top of my head for now.