Have I missed some basic prinicple here? Rent tracks wages. What happened to the arguments of ROI & yield ie rent reflected as a % of the property price – whose growth far outstrips CPI or wages growth.Sure there are dips in yield when property prices take off and rents are lagging however in times of a tight rental market, yield plays catchup at…[Read more]

Mick, is there any chance of rebuilding at Paddington whilst you still rent elsewhere? – minimal disturbance to yourselves and you get a well located house without the costs of stampduty & agent commission etc?Alternatively how are Milton, Bulimba & Hawthorn stacking up at the moment?

Well at least he will have your interests at heart.

hleung – what is the basis of the valuations? Mortgage purposes or sale? Two different objectives considering who is paying for the val to be undertaken.There is no difference between the bank's valuer and your own, only the purpose of the valuation. They will rely on the same data and undertake the same process however the bank's valuer may not…[Read more]

Why pay someone else when you can fly down (even on a weekend or take a day off)? This cost will form part of your asset base anyway.Big risk considering all of the unknowns. As highlighted above – what don't you see in the pictures? A site visit by yourself or partner who knows your criteria will be well worth it.

I'd agree with 5% + gst & postage however this is based on 2 or more properties in the same area. I'm getting commercial rates around the 4% as well. 

Looks in the Hills district – close to M7/M2 and T Ways. Has been major spending on infrastructure in the area and is primed.

There is no harm in trying. When faced with either a 'no sale' and loss of all the marketing momentum you can negotiate your own terms to the vendor. After all, they are trying to sell the property and if your offer is just about the timing & deposit then you may be able to get the deal done as long as you aren't asking for something which is…[Read more]

An external (drive-by) valuation will not establish the condition of the house internally. For the valuer to fully appreciate the property he must undertake a thorough inspection – externals will reveal the age and assumptions will be made based on the external appearance of the property – eg 1970's b/v 3 bedroom with slg, 1 1/2 bathrooms – this…[Read more]

cu@thetop, commercial property does have more risks associated with it compared to residential however I don't see any of the LPTs investing in houses & units. Depending on the type of investment, IRR will vary anywhere between 15% &30%+ depending upon the risk of the property/project. Modelling of returns is much more detailed than 'back of the…[Read more]

Prusli, what were the instructions given to the valuer (if any)? Were they directed for mortgage valuation/lending purposes? Sale of Propertty/Divorce Settlement? Building insurance/Replacement Value?The valuation will be based on actual sales of comparable properties, unlike commercial property which will be valued on yield and the secondary…[Read more]

As I noted Astrawan, Willing Buyer & Willing Seller – unfortunately it sounds like you were too willing to listen to your agent (who's only real concern is getting his $ at the end of the sale – no sale meand no $).Consult your solicitor however I don't believe that you can get the agent for misleading or misrepresentation if you have agreed to…[Read more]

An auction is just that – certainty of a sale at or above an agreed price. Willing buyer & Willing Seller etc. In NSW there is a Section 66W (or something along those lines) which allows a purchaser to waive the cooling off period however this does not apply in the case of an auction.There would be bedlam if an auction didnot provide finality.…[Read more]

Seriously guys, do you actually understand the scope of work or the cost of a loaf of bread today or are you happy paying Coles & Woolies the $3.60 ish each day when you can pick up the identical no frills loaf for a dollar less? Are you happy about paying $6 for a dozen free range eggs or do you prefer $3 from the farm gate?Sparkies & Plumbers…[Read more]

Consider the following scenario: Build a side by side duplex on the block on the Central Coast, live in one, rent out the other. Both will have the water frontage & command premium rents. Downside: not subdivisible (also need to check with council about allowing you to build duplexes), you won't have an income on that property whilst you rebuild…[Read more]

It has as much chance of flying as a combined NZ/Aus economy.

All off the plan deals are based on assumptions – lots of them, the further out/longer the project the riskier those assumptions become. There are projections for future market value, future rental, depreciation etc. Your only known items are the upfront purchase costs (in today's dollars).Get familiar with your target market (if it is Byron -…[Read more]

I'd agree with terry on the latter. You will need to capitalise any costs relating to your research on a new ip and add that to the cost base. If you can, investigate another ip near your existing one and claim the cost of the trip on your existing ip.

In NSW the vendor is legally permitted to make a single bid. This is a tactic used either to stimulate bidding or to bring the auction closer to finality. This is allowable in order to stamp out 'false bids' which are elicited from passing traffic, dogs, signposts or non-registered buyers.In the first instance, if no-one will start the bidding or…[Read more]

As far as I know, tenants in common are permitted to independently sell their own portion of the property. This sounds good in theory however who wants to buy only 75% of it? Not many. Consequently it will result in a lower price being achieved for the parties involved – hence the other parties wanting you to join in the sale of the entire…[Read more]