Howdy,

The things you describe are pretty normal for a residential property manager to charge.

From my experience:

Management: 6 to 10% of rent
Leasing: 1 month’s rent
Inspections: $100 to $200 per inspection

The cost, while important, is incidental to the service. A good manager – one who is diligent, attentive and responsive (proactive not…[Read more]

Hi and thanks for your post.

I’ll keep this brief: the more complex the deal, the fewer buyers you’ll attract.

Right now I see you’ve got two paths:

Eat Your Own Cooking

If you’re comfortable with the risk, use your own resources — sell or refinance another asset — to generate the cash you need. It’s usually quicker, cheaper, and gives you ful…[Read more]

And further to my last email, to provide more clarity, imagine:

Sam has a $500,000 mortgage on his home.

Scenario 1 – Sam has a mortgage offset account that has $200,000 in it. Sam uses that $200,000 to finance the purchase of an investment property. Is the interest deductible?

No – the money in the offset account is savings, so using it for…[Read more]

And further to my last email, to provide more clarity, imagine:

Sam has a $500,000 mortgage on his home.

Scenario 1 – Sam has a mortgage offset account that has $200,000 in it. Sam uses that $200,000 to finance the purchase of an investment property. Is the interest deductible?

No – the money in the offset account is savings, so using it for…[Read more]

And further to my last email, to provide more clarity, imagine:

Sam has a $500,000 mortgage on his home.

Scenario 1 – Sam has a mortgage offset account that has $200,000 in it. Sam uses that $200,000 to finance the purchase of an investment property. Is the interest deductible?

No – the money in the offset account is savings, so using it for…[Read more]

Thanks for your post. Here’s an example to flesh out the learning:

Investment property $1m
Loan @ 60%: $600k
Advance repayments: $50k (paid off loan, not offset)
Current loan balance: $550k

Redraw $50k for personal
New loan balance: $600k

Under the example above, $550k would be deductible, whereas $50k would not.

The main point is this:

To…[Read more]

Hi there,

You’re in a solid starting position but before jumping to a strategy, the key is to define your investment objective. What outcome are you aiming for: more cash flow, early retirement, long-term wealth building?

As I teach, “the clarity of your outcome determines the clarity of your input.” Right now, you’re mixing lifestyle and inv…[Read more]

Jenny,

You have two approaches: buy assets and get outcomes; or set outcomes and buy assets.

The former means you get whatever the asset provides. The latter is more strategic and ensures you buy assets that will deliver an outcome that is congruent with your goals. I have always preferred the latter, although when I started investing, I did the…[Read more]

I have a 1-day seminar spot locked in for Sat 16th August in Melbourne, which I plan to call the 2025 Property Summit. I haven’t worked out speakers and syntax yet, but I expect a spot on commercial property to be definite.

I will send out more information in due course.

– Steve

Hey Chief,

Long time, no hear! Glad to see you are still patrolling here to keep things safe.

Some thoughts about each option:

1/ I don’t see this working for residential where gross yields are 3% and lower. For commercial it might work, but the cap rate would have to be higher than the interest rate, and then how would you repay the principal.…[Read more]

Thank you for your post.

The question here is does the shoe shape the foot, or does the foot shape the shoe?

I prefer the latter, so I would make a list of what operational requirements are needed, and then set a budget to see what you can source.

ChatGPT might be able to provide some guidance for a checklist. Here’s what my prompt…[Read more]

Ah Dear Danger Mouse,

I see the trap hasn’t caught you yet! Long may that be the case!

Some thoughts for you:

Buyer Advocates

Go in with your eyes open. The usual ways BAs role is that they lock up the deal, then try to shop it around. I would want to know if they have an immediate buyer. Beware the re-trade too at the end of DD (where they…[Read more]

Ah Dear Danger Mouse,

I see the trap hasn’t caught you yet! Long may that be the case!

Some thoughts for you:

Buyer Advocates

Go in with your eyes open. The usual ways BAs role is that they lock up the deal, then try to shop it around. I would want to know if they have an immediate buyer. Beware the re-trade too at the end of DD (where they…[Read more]

Some general observations:

1/ Sometimes council officers talk about what they’d like, which is different to what the regulations specifically require;

2/ A chat with an independent town planner about issues, and how to overcome them, is usually money well spent on deals worthy of closer due diligence;

Bye,

– Steve

Some general observations:

1/ Sometimes council offers talk about what they’d like, which is different to what the regulations specifically require;

2/ A chat with an independent town planner about issues, and how to overcome them, is usually money well spent on deals worthy of closer due diligence;

Bye,

– Steve

Is it physically possible? It sounds so!

Is it legal? That will depend on compliance with planning and building permitting.

Is it financial? That will depend on the cost vs. return.

Is it smart? That’s your call as beauty is in the eye of the beholder. It sounds like a hard way to make money to me re: a lot of aggravation. Also, it sounds like…[Read more]

Hello Aaron,

I don’t see why not, provided it is on an arm’s length basis.

For instance, Z Company P/L can rent from X Unit Trust, notwithstanding they are separate but related entities.

That said, it would be wise for you to speak to your accountant / lawyer about this to ensure the terms are appropriate.

Good luck!

– Steve

Hi,

First, I would disconnect the cameras so your privacy is not at risk.

Next, was the camera includes in the sale contract as a fixture? If so, I would go back to the lawyer / firm who did the conveyancing and seek their assistance. If not then I’m not sure where you stand.

All the best,

– Steve