Hi CJ,
I don’t think its a great idea to invest in land unless it is in very high growth area. You are better of investing in a small residential property where a large portion of your outflow is covered by rent. And if you do it right, you may even have cash flow positive investment.
I am assuming you have a negative cashflow of approximately…[Read more]

Interest only, definitely.

G’day Mark,
This sounds like a good opportunity. However, you should be aware of the following:
1. Make sure the lenders don’t treat this as a commercial investment and therefore only fund 60-65% of the purchase price.
2. While negotiating, make sure all outgoings (not just the rates) are paid by the developer.
3. If its a fixed term contract with…[Read more]

Hi Katie,
First of all, congratulations on your decision to buy a property this year.
With regards to your question on buyers agent/property managers. In my opinion, they perform different functions. A buyers agent acts on behalf of the buyers (obviously for a fee). You would typically use them at the time of purchasing a property. They will…[Read more]

G’day Paul767,
I would not suggest such an investment for the following reasons:
1. As you know, you have to come up with a substantial deposit. Using the 50% deposit on a purchase price of $125,000 (I don’t think you’ll find an apartment cheaper than that) means an initial investment of $62,500 plus closing costs (say another $7,000). You are…[Read more]

hey grossrealisation
What is the capital guarantee on your “short time money 2% a month 24% return per annum” investment. I have a similar set-up that returns marginally better than yours at 28% compounded.