4 A DD clause with specific issues eg: satisfactory building/pest inspections, finance approval – this way there is only limited recourse not open slather eg mum didn't like it.

Yes if the work was unlicensed, however there is nothing stopping your partner and yourself taking turns at being the licence holder.

Assuming that you are able to buy including costs for $250k, $12.5k deposit – $237.5k loan at say 9% interest only (you will be up for loan mortgage insurance). Interest: $21375Net Rent: $285 x 50 x .9 = $12825Shortfall: $8550 (or $165/wk)I'd suggest getting a quantity surveyor to provide a depreciation schedule (but as a guide you could probably…[Read more]

If the property is in a coastal/humid area – forget about it (water evaporates more slowly in a hmid environment). If you are away from the coast (the manufacturers have charts to indicate the best locations for evap cooling).Yes they are cheap to run, they are simple so quality does not vary much brand to brand (unit is comprised of a rotary f…[Read more]

You will have $200k equity between the total value of both properties. Your total borrowings will be $350k + $500k (the value of new premises). You don't mention any savings that you will be contributing (to cover legals/SD costs).Total Assets = $450k + $500kTotal Equity = $200kDebt = $750kLVR = 750/950 = 79%On the other side of the coin:Net R…[Read more]

Cutting down the cabinets is the easy bit, how do you intend to handle the doors? (unless they are plain they will need to be specials)

And even better, if you put down 10% ie $30k, you would be making 400% (4 times your initial investment).

There must be a reason that there is very little virgin earth in the CBD of any city – maybe, just maybe, that there is more to property investment than owning a scarce piece of land surrounded by improved properties.The lowest level of risk is possibly owning a vacant site (this also yields the lowest return ie land rent) however when you expose…[Read more]

Ask for a more senior accountant to review the tax return with you before it is lodged.

There are a few issues to consider – as pointed out above, if it will cause the loss of other tenants and greater vacancies your may decide against it, secondly – do you have a moral objection to this business? Will council permit the usage (severely restricted by location & zoning)?Generally go for a net rental – like brothels, they prefer…[Read more]

Sallyann, I'd add that you would have to capitalise the cost of transport as it would form part of your cost base (purchase).

Scamp wrote:
Fresh from the press ( not very surprisingly )http://www.news.com.au/adelaidenow/story/0,22606,24082209-5012798,00.htmlIn short : HOUSE prices fell in more than 60 Adelaide suburbs in the first six months of the year, new figures from the Valuer-General show.

VG prices for unimproved capital value cannot be used as a gauge of…[Read more]

Try your local council: get the LEP, zoning map and contributions plan.

Firstly, why take it back to bare render? Once you have stripped off the paint (WAFMAT) why do you need to wash off the grease? Light sand with sandpaper on a broom handle/pad, heavier to remove any loose material. Sugar soap to remove dust/grease etc. Patch & sand. Paint with compatible paint. Buy a few drop sheets (yeah the real heavy ones), buy…[Read more]

As MP said, if it is on another title then it is not your ppor.

I had a chat to one of my agents today, he noted that there were a few commercial sales by the banks and there were two sales listed in the local rag as 'MIP' sales. They are out there, just look for them. You have a better chance of negotiating if they fail to sell at auction.

You might need a combination of services ie a full-service accountant which incorporates legal, financial planning, estate planning and accounting that way the information you are getting is coming from the one common source which has your best interests at heart (it is not trying to sell you a product but to structure your arrangements now and…[Read more]

Check out the post in the heads up forum or contact agents in the areas which you are interested – some will actually tell you what is happening (they aren't all bad- it is in their interest to achieve a sale after all).My local advised that they have had the best and strongest month in July and there are still a few weeks to go!Unlike the US,…[Read more]

For a ballpark, use your median house price (really means jack) then deduct the cost of the house/improvements to establish a median land value. Then remember THERE IS NO VACANT LAND IN CARLTON!!! (you would be paying a premium for it if there were). LV would be approached on a property which would be considered a 'pull-down' provided that it does…[Read more]

As the others have pointed out – are the figures realistic? Are you paying a premium for a rent guarantee (if any)? Do the calcs take into account any depreciation?The answer depends upon what you want out of the investment – does it fit your profile? there are no right or wrong answers here, units or houses can be good or bad (it could be great…[Read more]