C2 wrote:
If you can afford lifes hiccups then you may not need landlords insurance, but for peace of mind I would suggest getting some.Xenia, Have you read my nightmare swimming pool claim?  How would you have handled this situation without landlords insurance?Sometimes it doesn't matter how good your PM is problems can occur.

Yes I agree…[Read more]

zero! No wage or salary and we intentionally structure it like that to avoid paying this ridiculous money and time wasting scheme called superannuation!!!!

L.A Aussie wrote:
Depends on your focus. Recession or not, we don't buy take-away coffees (one coffee in the morning with breakfast, and thermos while out on the road on the road-trips; about 15c per cup) and we recycle our empty water bottles with the water out of those big self-serve machines at the supermarket for 35c per gallon (about 8c per…[Read more]

I think it is all state specific. Don't ask an agent, ask your conveyancor or solicitor whether it can be done. Generally, I don't think you need an agent you just need to assign the purchase contract and a solicitor can do it.

Did they end up selling the  house?

You need to develop specific goals for where you are going. No one can tell you what it is as it can only be specific to your own strengths and goals. I personally like the long term buy and hold strategy mixed with some positive cash flow trading schemes to help offset negative equity. This is not suitable for everyone!!!Only then can you decide…[Read more]

Being licensed and having indemnity insurance are essential. I would also ask if they are an ivestor themselves and how much of their total income is derived from investments versus from working as a buyer's agent. You want most of their income to be coming from their invstments. They shoud NOT be a selling agent at the same time, this is…[Read more]

I remember in the eightees when the news kept saying that we are in a recession. Nothing changed (my parents were investors) except for the fact that that period was labelled as a "recession". If you are cashed up and ready it should be the best time to buy properties!

That's Jenman for you always looking on the bright side of life We have had 6 rent to buy option contracts excercised by purchasing tenants in the last couple of months all with built in equity (the strike price of the option was below the current market due to an upward movement in the market and the ability of options to lock in a price) so not…[Read more]

You know if you become a full time property investor you will never have to pay off that hecs debt. Repayments are based on working in a job not money earned through capital appreciation in or cashflow in property. Nor is it dependent on money earned through a business for which you are a share holder and not self employed. Ours will be owed forever!!!!

We have a buyer's agency and I can definatly say that although we look at over 100 properties a week (in Adelaide), we don't come across any that are positive cash flow straight off the bat. You can create cash flow using various investor strategies (see our website below) or if you look in rural areas (I wouldn't touch them), but properties in…[Read more]

Corporation is AmericanCompany is a word used in Australia

Why not just own the property in a trust or your individual name? LEVERAGE is a key ingredient to growing a portfolio and super just seems to kill this concept. We have decided not to take a salary through our business and it is structured that we are only investor/share holders. The main reason is that we did not want to throw away money in…[Read more]

Yes, please check your public liability insurance you might find they do not cover you if you provide a car to the tenants.

TS pay property managers for referrals I hope that was disclosed in the management agreement! In saying that, they also offer one of the best policies because they don't discount down claims by the amount of bond there is for the property. They pay the full amount of the claim and you can use the bond for other things. Also consider whether you…[Read more]

I agree you're on the right track with all the above. I would not be giving all the loans to one finance company or bank. Banks are a bigger risk to investors than rising interest rates. We use a different loan or finance for each property that way each bank only has control over one property and not our whole portfolio.

Else wrote:
but i also asked the agent to give me the name of someone to do the building inspection.

Agents are not allowed to refer building inspectors to prospective purchasers, from an ethical point of view. Get your own independent person in you don't know what types of deals they have with agents. I have had a building inspector once give…[Read more]

Yes, IO will maximise your cash flow as Simon said

There is a $20,000 fine in SA for doing this without a real estate licnense and also no one has to legally pay you because you do not have an agency agreement with either the purchasor or vendor! It breaches section 4 of the land agents act! People have done it before and rely on trust and honesty from the people they are selling to but legally…[Read more]

I would never allow a tenant to do any repairs to a property! Are they a licensed trades person with public liability insurance? If not you are taking a risk! Not worth it!