Unfortunately your HECS debt is not tax deductible nor classed as an investment for the purpose of increasing the debt on your IP. If you roll your HECS debt into your IP loan, the interest on this portion will remain as unclaimable. The HECS debt is adjusted by CPI which is alot less than your rate of interest (moreso depending upon your marginal…[Read more]

My data (survey Aust. Property Institute) gives Melbourne sitting at 9.00 for April 2010 and only 10.00 for 2011 and 11.00 for 2012. So by its reckoning, there is at least another 2 -3 years growth however you'd be looking to get out by mid/late 2011 so you don't get stuck in a turning market.

FYI read some of the litigation against various banks in the 1990's which did this – borrowed at very low rates, then the dollar dropped through the floor. Borrowers were stung in a big way because the banks did not inform them of the additional risks due to the source of funds being subject to currency fluctuations.

DWolfe wrote:
LOL*Blamed*Nice blog Scott No Mates. D

More like my rant for the week.

Hi Sri,

I am aware of some reasonably good investments down that way (in one of the areas nominated). Are you limited to this budget or can it be stretched? Will you cross state borders for the right deal?

Generally, a BA is paid by the buyer hence ‘buyer’s agent’. A BA must be a licensed agent.

PM me for details.

Why would the vendor (seller) have sought an extension to the cooling off period – it is not in their interest to have the house still 'hot'. The cooling off period is for the buyer not the seller, the seller has to agree to extend or have the buyer withdraw.The contracts have been exchanged, this triggers the cooling off period.Any offer received…[Read more]

you’re talking $1000/m2 & that’s just the building area.

Now that’s $250k/dwelling, add your extras & land value & deduct from sales price. Does the gross profit meet your requirements?

If it is not a project home, it sounds reasonable but check it against a QS website like bmt etc who have a free online construction priceguide or get your…[Read more]

I'll add to my previous diatribe (thanks to the later posters):10: Blame the renters – they expect too much!11: Blame the investors – who, because they cannot buy where they want to live, will rent where they want to live & buy investment property elsewhere locking others out of the market.…[Read more]

You wouldn't necessarily put it straight back on the loan but might consider putting in in a 100% offset against your home.

You can’t go to market without a contract. So the searches won’t go to waste.

good to hear.

paulie, there are plenty of different software available eg posh, property manager pro, rentmaster etc, they’ll set you back around $150 so not a big expense.

Tips for young players: the managing Agent is not entitled to commission unless you have signed a management agreement!

For the sake of the exercise, get the agent to carry out the…[Read more]

You are creating a new block.

What are your compliance issues? Are the two dwellings fire separated? Does each property comply with the BCA? How is the house currently wired? How can you achieve separation of services eg power (will require 2 lots of meters & separation of power to each unit), water – (may need to replumb large sections of the house to separate supplies), gas…[Read more]

Xarp – the Internal Rate of Return is defined as 'the discount rate which causes the Net Present Value to equal zero'. The two terms are not mutally exclusive. If you use a zero discount rate (ie no discounting for time effects) you will get your gross return, when you show zero return (ie NPV=0) then then you will have your rate of return for the…[Read more]

you buy it warts & all. If it is not shown on the water board plans, it’s illegal. If the buyer does not exclude it or place a requisition on the contract about providing certification or a price reduction to remove illegal works, then it’s the buyer’s problem.

Probably not too out of the ordinary – there may have been a sweetheart deal with a strata manager who was appointed or there may be legit reasons like high expenditure on insurances, concierge, lift, pool, air conditioned lobbies or major maintenance items which have cropped up. Then again, some good Sydney buildings have levies exceeding $5k/qtr…[Read more]

the crown actually guarantees all property created under the torrens titling system. If you are concerned contact the land titles office in your state.

NSW has recently imposed a new levy on the transfer of titles to make it even more secure.

unfortunately you’ll be liable for cgt & possibly gst on the ‘newly created parcel of land’.

All that glitters is not gold.

PP just like the ‘fly in the soup’, don’t tell anyone or they’ll all want one!