BTW, did you ask repetitive newbie type questions when you started out on the road to your “incredible wealth” or where you just born with unlimited knowledge?

Check potential yields on this set-up. Sometimes the vendor has a slightly higher price on this arrangement. Tenants could possibly shy away from this (potential privacy issues, fighting tenants etc) and the only way to attract them is to lower the rent! Worst case you might have a situation where the yield equals a standard house in…[Read more]

I would seriously consider buying again once I saw prices starting to trend up which won’t be for a number of years yet in most areas.

In the meantime keep reading guys and improve that “unknown” bit.

I’ve been property investing since the mid 80’s and you only get to enjoy PI 2 years out of about 10 (the boom phase). The rest of the time is full of repair costs, vacancies, rent defaulting, damage, overheads, crappy PM’s, etc, etc, etc.

Sometimes you should look at the “smart guys” and observe what they do. The smar…[Read more]

Check with a few panel beaters as they deal with them everyday. Tight insurance companies usually “force” the panel beater to do a lower standard of work just to score the job.

I have found AAMI to be a good compromise between quality repairs and reasonable premiums. AAMI will also allow you to increase your excess and lower your pr…[Read more]

When the RE market’s not so red hot as it’s been in the last few years this issue may come back to haunt you. Buyers become very fussy when the market cools. If the new buyers get an inspection done repair work will be noted and they could try to negotiate a lower price or just walk away.

IMHO, repaired termite damage can be ju…[Read more]

What you have in place wont save you in the event of your defacto claiming non-financial contributions in the event of a break-up………

Purchasing a property between you should just be done as tenants in common to spell out the desired % you wish to hold.

With solicitors (and tradies etc) you pay for what you get.

Good Luck

Just had my domestic relationship agreement finalised about 2 months ago…….lucky you!

If you can keep your financial affairs seperate to you GF you dont need a DR agreement although, she can claim from you non financial contributions to the relationship. Non finanacial contributions are, for eg, her forgoing a career to raise your…[Read more]

My experience with kids is that once the first bub comes along the maternal instinct kicks in big time. Then number 2 comes along….[blink]
I had a lot of trouble getting my “career” wife back to work!!!

See you on the beach at North Narra some time. (BTW imagine what that caravan parks worth!!!!)

You can see why remote some vendors resort to dirty tricks to move ‘em because out of a boom he might be holding it for a mighty long time.

In my view the CG’s at the northern beaches has been way too hot over the last few years. I put it down to the baby boomer phenomenon. Well off north shore people are selling up and buying units/ townhouses down there for cash mainly (with a little bit left over to “party” with). These people are less affected by interest rat…[Read more]

Brothers IP at Sydney’s Northern Beaches. Late last year could get approx 1.3 mil (based on sales in the area) today agent reckons “high 900’s”.
Same brother same area has a property pursued heavily by developers. Last offer 2.3 mil. Market’s changed and the developers have lost interest. Street value today is $950k (if his lucky).

Your last post was absolutely spot on!

I have been paying land tax on my IP’s since 1987 and its a tax that isn’t easy to pass onto tenants. Although, over time, landloards do raise the rent to cope.

http://www6.sbs.com.au/insight/archive.php3?archive=1&artmon=11&arty=2004#

Or
…. there’s fear of further price softening in those areas…….

I know every successful investor is supposed to go against the herd to make the “real bucks” but sometimes the herd can be right!!

I’ve noticed in the past that when the economy is going bad these high ticket properties become difficult…[Read more]

Before you respond could you possibly run spell check and grammar check over your reply so it appears reasonably credible?

Who cares……… really!

Well, he did ask for people’s opinions………..

What’s your NET worth resi……..[biggrin][biggrin]

don’t worry only joking

Mate you can only rent out a place to somebody at what the market will pay not at what you think you need as a return![biggrin]

Bit of a no brainer that has worked for me so far.

What if their sell price to get out goes real low or yields for the area are trending up or its prior to a price movement? Would you be interested then?
Changing market conditions can certainly make someone else’s “dogs” look a whole lot better.
[biggrin][biggrin][biggrin]

I guess you’re right most people don’t like hearing the truth and prefer others to just agree with them.
Oh well, these deals will probably be the bargains we buy at a later date when they’re finally discarded.
[biggrin]

My accountant bought one of these homes and made quite a lot of money. This deal was done a few years ago though and the boom helped him considerably with his profits (he did sell after the builders lease expired).

As stated before check market rent for the area. It might be considerably lower than expected. My accountant solved his…[Read more]

IMHO I think we are seeing the development of a new class of investor. The new newbies. This class is the late, late entrant to the property market who has decided to finally give it a go especially at a time when the more seasoned investor is consolidating his holdings and looking towards other investments to provide better returns.

I…[Read more]

Lesson one
Never believe the selling agent!!!!!!!………

It’s all about supply and demand. Check to see if there are a lot of vacancies in the area your IP is located.
If your IP is fairly typical for the area and there is an oversupply you will just have to wait in line until you have a taker unless you take control and work…[Read more]

Tread carefully at this time in the current RE market.

I suspect this time around it will be no different…….

If something meets the 11 sec rule TODAY after one of the biggest booms we’ve seen I would regard that as a sure sign to stay away from it!!!

1) Every 10 years property doubles (A good –ve geared property should at the very least!)
2) Work out your NET holding costs over this period (estimate of course. Can’t predict interest rates etc).
3) Subtract 2) from 1)

Do you see a healthy profit? I would hope so! Don’t loose sight of the big picture w…[Read more]

1) Furnished attracts a more itinerant tenant.
2) Some doubt about the quality of tenants who cannot even accumulate furniture etc seeking furnished accommodation.
3) Furnished makes it easier for the tenant to do a runner.
4) Lack of care / faster replacement of furniture which doesn’t belo…[Read more]

Last boom everybody was thinking exactly the same as you. Many sold up their places in Sydney to pursue the good life in Qld. Most returned back to Sydney because they couldn’t find the high paying jobs they once had in Sydney.

Another chap I know who’s an agent said to me that Sydney people with cash in hand move to Qld with…[Read more]

He has also suffered the classic nightmare scenario with his commercial stuf…[Read more]

Just for anothers answers.

1) Correct. Unless it has been reno’d lately, then you can depreciate that.
2) Yes
3) Yellow pages / google it etc
4) I prefer brick, tile and aluminium windows. If you are a true buy and hold this set-up requires the least maintenance. Also, in say an area predominated by fibro a brick home might let quic…[Read more]

On your deathbed I bet you’re not going to remember the time you entered the market and reminisce about the money you made! More than likely you’ll recall the worthwhile people in your life and the positive (hopefully!) legacy you left behind.

Balan…[Read more]

If everybody was brilliant where would most of the business be?

Example
Brother thinks he’s a bit of a guru with residential so ventures into commercial. Gets hit with a 6 month vacancy and looses tons of sleep trying to solve his dilemma. Finally gets a tenant with the lure of a…[Read more]

Don’t deal directly with the banks anymore. Get yourself a good Mortgage Broker!![biggrin]

Example:
Boss at work is with one of the big banks. He deals with them directly on a regular basis because he’s building, releasing equity etc, etc. He feels he’s not getting a good deal so he sees my MB. MB instantaneously gets him the 0…[Read more]

Be careful. Say you pay it into your IP loan and want to draw on that $100k for a new car. There goes your tax deductibility.
If you put that money in an offset account against your IP loan you could draw out the money for a new car and that would be tax deductible.

Thanx mate[biggrin]

Also a solicitor I did business with a few years ago warned about self-managing down at Sydney’s northern beaches. He said that some tenants who have trouble rentin…[Read more]