Yep, this ones been discussed a few times now – O for a time machine eh? SOme people still claim you can guy properties like this, but not so. They are in piddly rural towns, mining towns, or require a lot of renno work, or are rented room by room. When this book was written, the yield on places like that would have been 50% probably! THe…[Read more]

See what you think of POSH+. I am quite happy with it, and it does more than I need. P&L, depreciation, and tracking of individual properties etc is great. Cheers.

If it did not involve anything illegal or dishonest, and did not cause anyone else any suffering…….no brainer. Go for it. Just do it Who dares wins etc etc.

Hi Prusli. It is not so much the LVR, but the fact that the mortgage insurance companies stipulate some of this type of thing, although there is some flexibility. The lenders you mention however, (rams anyway) have mortgage insurance regadless of the loan LVR, but you only pay it for LVR over 80%- as with any lender. Unfortunately this way you are…[Read more]

hschmid wrote:
1.Wonder about what! 2.You think developing property is a stupid idea?3.There is more to property than just buying and sitting for 20 years.4.Or, as per your suggestion put together a kitty fund. Yep 10 years from now @  $100 p/w I'll have my deposit. Woohoo!5.A lot of people just do not find this interesting or exciting.6.Ever c…[Read more]

hi Dr. Spock,I think a lot of stuff has been covered her with the other posters, (other than the one with the development suggestion……you' just gotta wonder sometimes!)  True, it is critical to have your partners support whether it be in business or investment among other things. Just a thought though, you mention you 'lost your home for the…[Read more]

madproperty wrote:
Any opinions on whether to fix at 3 or 5 years. Potential for inflationary pressures to be around for some time to come with Aussie mining boom, drought etc and the effects of world economy and volitility in some major old school markets. Any thoughts on this as just looking to refinance myself on PPOR and new IP.Cheers

Hi…[Read more]

[/quote] well I signed up at 6.25 for 5 years, 5 years ago.. so my payments will go up soon (on 2 IPs anyay)I wish rates were still at 6.25 The experts were wrong about today 5 years ago Cheers[/quote] Makes you wonder what hope us peasants have in guessing eh?Seriously, that is not too bad – you can get 3yr fixed now for 7.69 or so with a couple…[Read more]

Great Feedback there HGwells – good to know of a real example like that. I toyed with the idea a year or two ago, but they are great at pricing them and structuring the rent so that it just does not add up in my calculations, especially as you have no say really while the properties are leased, and neg- meanwhile. That said, when they had units…[Read more]

Good question. 10+ years is a long time, and true, at best what rates will be like then is only an educated guess. Fixed interest loans work a little bit differently, but even so, many lenders will not offer one for more than 5 years.One rough guide used to be to compare the rates for 2,3 and 5 year fixed rate loans, which gave a bit of an idea…[Read more]

pjk1966 wrote:
a loan for an investment property is different to your home loan becuase lending institutions allow you to have a loan where you only make repayments for the interest charged each month. Where as your home loan, I'm sure you understand, you are required to make princilpe AND interest repayments each month.

Sorry to disagree with…[Read more]

Hi Wishful – A no doubt traumatising time for the parents, and excellent (and natural) your partner and yourself would try and help. As mentioned though, not without possible issues. Still, I will stick to dealign just with your questions.A nice and simple method is to accesse some of the equity in your own home – for ease of doing so and common…[Read more]

If you are looking long term, and have been happy to fund the difference with the neg gearing, it makes sense to hang on to it – as you have obviously done the 'hard yards' and bought it in the first place. If you do hang onto it, and are looking long term, once you have finished reading this run out and find a good fixed interest loan for a few…[Read more]

Yes – I would rather slam Simons parts in a car door too – Seriously, commission only is bad enough for a 'legitimate' operation of finace/broking services, let alone a questionable sales operation that will still put pressure and quotas on you, who are putting up everything, while they risk nothing, and then spit you out and move onto someone…[Read more]

Use it wisely!  Just another point in addition to the above, if you buy a property outright for 'cash', which of course gives you some serious negotiating power, you can always borrow against this later, (up to 80% would be my max suggestion/preference) and as long as you only use the borrowings then for income generating/investment purposes you…[Read more]

yeah, tempting as it is ego or privacy wise to go for the no sign option, it is much more effective to have one – even if it is only to help potential buyers locate the property. All the best with your sale.

A great example of win win Lisaa – thanks for sharing that with us, and a BIG congratulations. I'm sure this will go well for you in the future. Cheers

Yup – if you have to state an income, that is 'lo-doc', not no doc. There are indeed some true no-doc products that are not much (if any) more interest rate than a lo-doc, but you will need to be very careful applying for a no-doc loan IF you have previously applied for a Lo-doc and quoted an income figure. A 30% deposit will be a walk in the…[Read more]

It certainly is a bit of a vicious circle – On a valuation requested by (and ordered by) a lender, the valuer essentially has to be able to show that the property is worth at least the sell price – this is done primarily based on comparitive sales figures. So……..if someone was to buy a house that supposedly was worth say $400k (it may have…[Read more]

Unfortunately a lot of people simply never get around to filling out warranty paperwork. That said, with things like some brand air con and HWS, if they have a 5 year warranty (anything less is irrelevant to you I guess- and I don't know of any ovens with 5yr wtys) as long as you can prove the purchase date and place you should be OK with…[Read more]