We have just walked away from a site that the vendors solicitor was unwilling/unable to provide full documentation for – a few particularities with the site for which we were well aware eg major power easement.I have to be sure that the exit strategy will hold up prior to tying up my capital – if it is made too difficult for me to buy, what chance…[Read more]

I should have picked them at at $13-$15 back in 2000 when I was in the know  Essentially a very tightly run ship, lease/tenant management is the toughest that I have ever seen. Very knowledgeable crew. Cashflow budgetting/modelling is extremely sophisticated (you'd sort of expect that).They are one of the few companies which have been able to pay…[Read more]

Just tossing up about using some of the windfall as a buy and hold – fundamentals still seem OK due to the asset backing (even after allowing for the level of debt). As for the vultures, Westfield, although they haven't shown any interest, would be barred from further investment in NSW by the ACCC, they might have some luck with The Glen and buy…[Read more]

A well located property wil appreciate regardless of whether or not it has 'land' attached. You are still governed by body corporate ie you can't do anything outside ie extend/add an extra room or flyscreens/burglar bars without approval.If it well located, it is easier to rent – having an additional level is seen by some as a disadvantage as you…[Read more]

Put it this way, there looks to be more of an upside if you are prepared to wait – an asx announcement this morning helped their outlook.If you seriously think about it, what are their assets? What is the quality of the assets? How much debt are they carrying? What is the nature of most of their debt (long term vs short term)? it is only the short…[Read more]

I thought that there was a rental shortage! The hide for the agent to claim they require a signboard. Any more than a week's rent for the letting commission is also steep on a 6 month rental (2 weeks for a 12 month lease). I'll assume that the figures include 10% gst.Will they reduce the cost for emailing the statement rather than postage?

Laughing – just walked off with about $60K on top of my $50k. Waiting on the final numbers. Thank goodness for etrade.

Unlike RAMS, which sold off the most profitable part of its business to Westpac, Westpoint (and the other developers) – Centro has 70% of its investors are Major Players in the property/investment markets ie ANZ, UBS, Citibank, AMP, National, HSBC, JP Morgan & QIC.It is not in any of these investors interests to see the company fail or $ wiped off…[Read more]

For your own protection (and for the family's sake/sanity) – prepare a standard residential lease agreement. It will not matter to the ATO if you have a lease or not but the dept of fair trading will. It will also serve to protect your rights if you ever want to have them leave the house in the future (they may not be as nice as they are today) -…[Read more]

My first question is "why can't the neighbour run the pipe through their own property?" Surely the replacement of some of their own paving/landscaping would be a better outcome for yourself. Is this the only solution? (other neighbouring properties, pump out system etc).Secondly, how was the subdivision approved if you are yet to agree on giving…[Read more]

Check whether the selling agent is also the managing agent or whether it is self managed. Get a rental history from the mng agent (going back as far as they will provide – most should give you 2-3 years sometimes more).Find out who manages adjoining buildings and speak to those agents as well to confirm vacancy rates, incentives offered etc.Have a…[Read more]

The main deterrent that I found when investigating this style of investment was the low nett return. A management fee of around 20% of gross rent regardless of how many DHA properties that you owned. Sure the rental is attractive, increases are set and forget, maintenance is a non-issue.The things that you must weigh up are the period of time that…[Read more]

That would obviously depend on a number of factors: quality of management, fees charged, level of maintenance, length of stay, occupancy rate both in peak and off season.Depending upon the quality & costs of management, the returns far exceed a traditional rental property.

If need be, have your accountant present at the audit (and prior ) to ask the purpose and extent of the audit. It may cost you a $ but it will also give you more confidence in your accountant/vice versa.

If the bank is willing to loan the additional $65k to cover the deposit/refurb costs based on capital growth, then there would probably be some peace of mind for yourselves that you only owe money to the bank & not your parents – you can call on this favour again later (if they are really nice, they might just let you keep the money, but make the…[Read more]

BreammasterWhat sorts of costs are there on the holiday rentals? Cleaning, letting fee, management fee, & how are these determined/rates increased?SNM

If everyone at your current accountancy firm is jumping ship, do likewise.

What are your chances of finding an equity partner for the deal? ie sell 20-50% of the development to another party who is cashed up. You can benefit in a couple of ways: lowered financial risk to yourself , realise profit on the DA/CC (may be able to sell the DA as part of a separate deal), share some of the risk & ownership with a 3rd pa…[Read more]

Adv: Owning more than one property spreads your investment risk eg if one is empty you are still getting income from the others, if one area is underperforming then hopefully the others aren't, lower management fees (if they are all managed by the same manager)Dis: Liability for land tax, more holding costs eg rates/strata levies on 2 or 3…[Read more]

Firstly, shop around for a new financier – take into account any costs for break fees etc for changing from your current lender.Secondly, make sure that the new bank has a personal lender/business banking section who you will deal with not the grunt from the back office.Thirdly, check your capacity to pay for the next property, include projected…[Read more]