Both can be great and both can be terrible. The trick is to know what you are doing. A lot of people think both are easy to do which they are definitely not.

I do like diversification though. 

Regards

Shahin

You can add Macquarie to that list. Westpac do it for some brokers and CBA do it at a reduced fee of $99. 

Regards

Shahin

Since you live in Sydney I would be making some time on the weekend and checking out houses in Western Sydney (around Blacktown). Go to the auctions, get a feel for the demand, demographic, transportation, business, medical centre, shopping centre, etc get an idea of vacancy rates and do the cashflow analysis on these properties. 

That way you…[Read more]

First and foremost be extremely careful renovating fibro homes as many are full asbestos. Here is what I would do with a $10k budget:

1. Bathroom – $3,000
2. Kitchen – $5,000
3. Painting – $500 (if you know a builder you can get trade prices rather than retail)
4. Replace all internal and Front Doors (if needed) – $500
5. Upgrade light fittings…[Read more]

I hear where you are coming from. Maybe start with half a dozen strategies and research them, understand their pros and cons and start eliminating the strategies that do not work for you. 

Also start understanding the tax and finance side of things as these are very important aspects of any of the strategies you choose.

Regards

Shahin

I have plenty of clients that rent in the city (due to close proximity to work and/or lifestyle) and purchase properties in areas which lets just say they wouldn't live in. This allows then to live in the area that they want whilst purchasing property that is earning them CG (hopefully) and can claim negative gearing. 

I would try looking at…[Read more]

Re the IO – that definitely doesn't sound right. 

Regards

Shahin

Have a proper long term IP strategy in place. Do the cashflow analysis and see what the numbers look like. Do plenty of homework on each type of property type – i.e. Serviced Apartments, Studios, Metro vs Regional, subdivision, etc. 

Let's start with Service Apartment – they have excellent net cashflow however I feel (not based on personal…[Read more]

I don't think that tenants would view it has high risk (I personally dont) – you think they would be laying rugs on the floor anyway. I know Bamboo is hardwood but I think it fine. Noise will not be an issue since its a townhouse or do you have people living above or underneath?

Also if its strata you will need permission from the strata manager…[Read more]

Bamboo is great too – I have installed them in another IP. Is the IP a unit or house?

Regards

Shahin

I did a pure wool install on a 3 bedder for an IP in Wenty for $1,300 – that's for the carpet and install. Install was $300 and the carpet was about $1,000. I did it through the Kruger girls.

Regards

Shahin

It doesn't sound like you have a firm long term strategy. Have you done a cashflow analysis on the potential purchases such as the one in Gold Coast? What do the yields look like? What do they look like against the potential for CG? 

Also you can easily find decent houses in Sydney around the $350k mark that also give you good yields. I had one…[Read more]

Contact the girls at Kruger carpet in North Parramatta. They are on Church St just before the turn into Bunnings.

Go darker brown but not black. 

Regards

Shahin

Which city/state are you in?

Regards

Shahin

I second Engelo Rumora – he is got the runs on the board and is very approachable.

Regards

Shahin

It may be a good idea to align yourself with someone who is actively involved in the market and has the runs on the board.

Regards

Shahin

It depends on a number of things, i.e. if you are disciplined with the cash that is building up? Long term strategy? PPOR vs IP, etc.

Its a good strategy but doesn't work for everyone.

Regards

Shahin

I had a client use Mr Attic and she had good feedback but a little pricey. Having said that you want quality when doing extensions – I have seen my share of really poor jobs.

Regards

Shahin

Like any lender Firstmac has pros and cons – so its really dependent on whether they will suit the investor. Their rates are good and they do non genuine savings to 90% (like a few more lenders) but their servicing is very conservative. 

Regards

Shahin

Ok lets firstly start with the studio – have you calculated the net profit or loss? If so how have you calculated this? Studios are usually in high strata complexes so they usually kill the gross income. 

Regards

Shahin