Pre-approval is an indication, not a guarantee. Finance will always be contingent on the lender’s risk assessment of what is bought. If the valuation comes back lower than the purchase price due to initial repairs, you will need to chip in more cash. If the house is a knock-down job, they may only provide a land-valuation.

If you sign up but…[Read more]

Well, I normally do much, much better trying to buy at a fair price, rather than a cheap price.

A couple of times I have bought a bargain, usually because the property has been mis-marketed, its potential not understood, or just lucky. For instance, I once bought a property the next business day after it went to auction with no buyers making a…[Read more]

G’day,

Perhaps rephrase what you are looking for and seek tomorrow’s value today. That is, get ahead of the value curve, rather than trying to find a needle in a haystack, that is… it’s unreasonable shopping at ALDI and expecting David Jones quality. Cheap is as cheap does.

That said, assets are ALWAYS being mispriced (over and under) and…[Read more]

Oh golly. Now you are plumbing the murky depths of my memory.

I looked at this long, long ago in the hope of maybe picking up a cheap property, and here’s what I found:

a. Most of the things sold are personal effects (cars, household stuff, not real property)

b. I believe they must be auctioned, not sold privately

c. Auctions used to be…[Read more]

Thanks Steven. You bring a good practical perspective to the discussion about ways to get more timely and relevant data than a single broad measure.

Hi Benny,

Thanks for making the post.

Can I sit on the fence a little bit and suggest median house price information is ‘interesting noise’?

The challenge is understanding what median house price represents as a statistical measure (i.e. median vs. mean), and how the data is collected and analysed. As they saying goes: garbage in, garbage out,…[Read more]

After receiving a barrage of legal threats, it was just easier to remove the posts without prejudice.

– Steve

Yep – this old chestnut!

I suggest you search though the forums as plenty has been written on it.

Highlights:

> If you have maxed out your borrowing in your own name then you won’t be able to leverage your borrowing ability elsewhere. Maxed is maxed.

> As Terry has said, Trusts cannot borrow in their own right (they are not separate legal…[Read more]

Yep – this old chestnut!

I suggest you search though the forums as plenty has been written on it.

Highlights:

> If you have maxed out your borrowing in your own name then you won’t be able to leverage your borrowing ability elsewhere. Maxed in maxed.

> As Terry has said, Trusts cannot borrow in their own right (they are not separate legal…[Read more]

Yep – this old chestnut!

I suggest you search though the forums as plenty has been written on it.

Highlights:

> As Terry has said, Trusts cannot borrow in their own right (they are not separate legal entities as such), but the Trustee usually can (see Trust deed permissions)

> Trusts cannot distribute losses, so buying -vely geared property in…[Read more]

Hey Jeremy,

Thanks for making this post. Heck, you might just like staring at stats and spreadsheets more than me!

I agree with your points, especially:

a/ Real estate tends to not perform longer than it performs, but the growth period while performing are impressive.

b/ Transaction costs make it unfeasible to enter and exit the market, so it…[Read more]

G’day Jaxon.

Hmmmm. Seems like you are after a manufactured growth strategy.

Well, there are lots of them on offer, but the question is how many of them make profit at today’s prices, rather than rely on continued growth?

The best advice I could offer you is this: What will make you the most money, in the quickest time, for the least risk, a…[Read more]

I guess I mean a lawer usually makes a good lawyer, but that is not necessarily the same as a good business person.

And perhaps you and I see the use and role of an accountant differently. You seem to narrow the application to compliance. That would be the same as saying that a lawyer is really only a word processor, or a filing…[Read more]

Well, let’s agree on what we agree on: that accountant’s cannot give legal advice.

As for the rest: lawyers, in my opinion, usually run good legal practices (small businesses), but otherwise make poor accountants, business advisers, and financial planners.

Just look at government: beset by ex-lawyers who argue for the sake of arguing, while the…[Read more]

No. I wouldn’t, that’s true. I went to a lawyer and got good advice and a tailored document. But accountants don’t offer to do wills, as far as I know! Maybe that is an emerging opportunity for them.

Here’s what I’ve found happens pratically though re: trusts: accountants tend to work with a good lawyer (or major law firm) to get access to their…[Read more]

I think we’re just going to have to disagree on this one Terry.

Regards,

Steve

This might be one of those professional demarcation issues.

I’ve always used an accountant to arrange my new structures.

Whomever you choose, make sure they’re experienced and knowledgeable.

Regards,

This might be one of those professional demarcation issues.

I’ve always used an accountant to arrange my new structures.

Whomever you choose, make sure they’re experienced and knowledgeable.

Regards,

Amir,

Thanks for clarifying. If you go into a project with the intention of ‘turning it’, say a renovation or subdivision, then it is unlikely to qualify for a CGT discount, as you may hold it for <12 months, and even if you don’t, your intention is not to hold it for long term gain, but to buy-improve-sell, and so the profit is likely to be an…[Read more]

G’day Justin,

Biggest hurdles?

If you want to own that many properties you’ll need to get your structuring and finance sorted, or else you will reach a glass ceiling pretty quickly and not be able to keep buying. Of course, you’ll need your own capital for deposits too.

Here’s a conundrum: You’ll be unlikely to acquire that kind of property…[Read more]