Advise the agent that if they don't do something about the problems within 7 days you will be taking the matter to the Dept of Fair Trading for an order.I have found the agents managing our properties have advised us of issues (regardless of how trivial). If they have been within the abilities of the handyman to repair this has been done…[Read more]

Alasdair, do your complete due dilligence on the site – if it stacks up, take out an option over it (yes, you will have to fork out some hard earned $ yourself), undertake preliminary design (to DA), submit & get your DA. When your DA is approved exercise your option. Condition your option subject to DA & Finance, prepare a DCF & IRR based on the…[Read more]

Pos, super funds can't borrow they must invest so as not to put the funds at risk. SMSF Property is achieved through a JV with yourself ie 50/50 etc but the borrowed portion is yours not that contained within the fund. Generally speaking, you cannot put residential property into the fund – it must be a commercial proposition eg retail ($50k won't…[Read more]

Firstly, if you haven't already, get your accountant to apply for a reduction in your rate of tax on your PAYE income – at least this way you might get a few extra dollars in the hand before the end of the financial year.Secondly, did you not understand the meaning of 'negatively geared'? Use it to reduce your tax not your lifestyle.

That is, if the ATO will take the money back.

Geez, no sooner had the previous tenant moved out but a new mob has moved in.

If I was spending $500 then I wouldn't be seeking advice, but property investment is worth a lot more than that. The advice provided not only relates to your purchase but also to your exit strategy – you may have to sell, sometimes unexpectedly. If there are some issues which may affect your purchase (and you are unaware of them by not having…[Read more]

Age is a good indicator – but no certainty (if you can inspect the back of the sheets, 'asbestos free' should be stamped on them). Generally anything predating 1987 or thereabouts when its use was banned in bonded asbestos products – the use of loose asbestos was banned earlier (I think).Without testing for chrysotile, ammosite or crocidolite…[Read more]

Rus is this a case of 'who diess with the most toys wins' regardless of the fact that you will also be the one with the most debe (ie net asset value = $0)?As Foundation points out, there may be some long term capital growth (positive thinking), however as you continue to increase your leaverage (way ahead of capital growth) you are dramatically…[Read more]

With regards to the first point, if all investment properties changed hands simultaneously at a premium, it does not hold that rents would increase to reflect increased prices – firstly properties may have transferred on vacant possession leading to increased competition for vacant premises prior to the settlement date, then after settlement there…[Read more]

I'd recommend a subscription service like RP Data, Residex etc. Alternatively, you may have to go to one of the online providers (after working out the lot & dp) and getting a title seach done through Legallink & others (emailed to your PC). Then, you will have some leg work to do – white pages, ASIC etc to find business address/directors, Water…[Read more]

If you haven't recieved full documentation as to the inclusions, how do you know what you are buying? Is there any way of incorporating the council approved house plans, spec & schedule of finishes as an attachment to the purchase contract? is there a copy of the builder's home warranty insurance attached as well? A lack of these documents will…[Read more]

Foundation, I come back to a couple of points that I raised earlier but you have not taken into account:1) changing demographics – lower earning people will be priced out of inner city areas, those who can afford to buy prime locations will continue to do so, it is not based solely on wages. 2) development will lead to greater densities in the…[Read more]

Aaron, you are considering spending $175k without advice – hmmm. GST – specialist tax area, might just be worth getting an accountant (& a solicitor) – it'll save you $17.5k in one foul swoop (are you purchasing the property as a 'going concern & will it pass the test?).11 seconds to carry out due dilligence????? It took me longer than that to r…[Read more]

A couple of options present themselves – a dual rental (retain existing PPOR), live in one/rent the other + rent (or sell) existing PPOR.You will need to check how large a duplex you can build on the site considering that the block is only 450 m2 – there probably won't be much site left over once you take into account setbacks and private open…[Read more]

It may not be a direct correlation however it is closer than any relationship between wages, cpi and rent. That is, as an investor would you be happy that ROI is dropping? (regardless of whether you consider rent in isolation or as part of the combined capital & rental returns)

foundation wrote:
I've given a rambling explanation of my concerns over using simple extrapolation of recent trends to predict house prices over long-term over on this thread as part of a debate with one of our most prominent property analysts. Let me know what you think. My proposition is that house price movements are driven primarily by debt,…[Read more]

Foundation, which graph? Rent v Interest or Rent v CPI – neither of these equate house prices to yield. If rents tracked wages (and were linked to cpi) then property prices would grow at the same rate ie at cpi and yields would remain constant.What you fail to take into account is that land (in the major centres) is a finite resource, demand fo…[Read more]

Yes and No. The offset decreases the amount of interest that you are charged in the current month, thus putting more money from your normal repayment back onto the principal ie building equity.The term of your loan remains fixed, the time it takes for you to repay the loan will decrease.

KRudd will have to weave some magic if he is to look good (& not be playing the blame game over the next 36 months). Firstly, he will have to contend with a weakening AUD which has been making the rising cost and extent of our imports including rising oil prices.Secondly, once new workplace laws are passed, how will he address the lack of growth…[Read more]