Get a copy of API (Australian Property Investor) – around $9.00, and in the back it usually has all the postcode / suburb / prices for medians in each area. Use that in conjunction with a map to figure out the area’s you can afford and where they are.

Once you know where you can afford, then you have to figure out:
House or Apartment
New or…[Read more]

Hi.

I’ve rented to both friends and family (Am I CRAZY!?!?!)…..

Experiences….
Family – Looked after the inside fairly well, but no better than any other tenant would… Didn’t look after the outside much at all, and we’d done the landscaping and irrigation etc nicely. Paid the rent for the most part on time, difficult (impossible) to raise…[Read more]

These can be good, but make sure you do all your Due Dilligence. Remember – you’re buying this on the strength of the lease. Otherwise, it’s just a very small apartment.

Recall the late 80’s / early 90’s when Banks were selling their properties. With nice long leases. Which they didn’t renew. Many got burnt.

You need to find out why they’re…[Read more]

Would be nice, but you may have a hard time getting a vendor to take a house off market on that basis.

You could do it if you had say 2 weeks, then it’s just like a finance clause. Up to the last minute, I doubt it.

Good luck anyway.

Simon.

Using equity in his own home.

eg. House worth $500,000, $100,000 owing.

80% lend (Line Of Credit) gives $400,000 limit, with $300,000 available.

$280,000 house, 10% deposit, 11% closing costs (incl Mge Ins)= $58,800 each.

5 Houses = $294,000

Note: You still need money somewhere, just that it can be in your existing home.

Regards,

Simon.

Hi Trying.

According to the ATO, you only pay CGT for the period it was an investment property.

eg Rental for 1 year, private for 2 years would mean 33% of the total CGT would be payable.

Check with your accountant though – there may be ways around this….

You’re correct (nearly) – once you live there, all expenses are private (and…[Read more]

OK, Here’s my tip.

Especially for the first IP, buy in an area you know VERY WELL. If you know that area of Qld, fine. If not, stick to where you know.

You should be able to look at any house any know pretty much what it’s worth. That way, you’ll only pay what you should. It can take a while to catch up on an overpaid purchase price.

Having…[Read more]