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November 10, 2010 - 5:53 am

Thanks again for your reply, Scott. You've been a great help.

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November 7, 2010 - 9:05 pm

Thanks Scott, we'll do the building & pest inspection separately but the issue we have is to determine the cost of a future project.

For example, we saw an old house on a large block of land in inner west Sydney and we're hoping to either renovate it and rent the house out or tear it down in a year or two and build a dual occupancy home (we can't build 2 homes on it as the land falls short of minimum lot size for 2 separate title properties). However, we don't really know how much it cost to renovate or to rebuild a home. Hence, should we call up a builder randomly and bring him to the inspection and ask for a quote for renovation or rebuilding? Is this the normal approach for investors with little knowledge in renovation & rebuilding?

Obviously, having an idea what can be done on the potential site will help us determine how much to offer for the property as well.

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July 21, 2010 - 10:54 pm

Yes, my strata is all up in arms about it after we recently saw their driveway that they are almost completing. So far, after our letters of complaints, the builder has agreed to meet with us but I'm worried that they may drag their feet to solving the issue until everything has been completed and they go off, leaving the new tenants to settle it with us.

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July 21, 2010 - 3:07 am

Thanks, crj. Where can I get a copy of the deed title? From the NSW planning office?

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December 1, 2009 - 8:47 pm

crj wrote:

I'm sure that you are not expecting anyone to recommend that you break the law

Of course not., was half asleep writing it… 

It doesn't really matter if I continue renting out or not (although I'm aware that I should declare any rent received to the ATO),  as the rent received + tax claims are not looking too attractive now. I've managed to payoff my loan faster than expected, and would prefer to minise my potential CGT. Not sure if I'm missing anything?

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November 26, 2009 - 10:32 am

I agree, I think your son is just not ready… no point forcing him. Also, why can't he apply for the loan under his name only to qualify for the FHOG?

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November 17, 2009 - 9:52 am

Thanks Re Lax & Scott, my partner just bought an IP and the strata manager there seems quite OK. Have yet to talk to the committee to get some feedback, but fees & running cost all seem pretty low, and the building seems well kept.

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November 14, 2009 - 12:01 pm

Not sure if you're currently renting or owning a unit, but you could consider buying a 2 or 3 bedder unit first, rent out one of the rooms. After a  few years, you could consider turning it into an IP & get your house. I know of some ppl who started with units & slowly upgrading.

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November 11, 2009 - 1:59 am

TCLinvestments wrote:

Most of them have rich daddies with very deep pockets.

That is a really bad generalisation. Some overseas students maybe rather well-off, but the many (I would think it's the majority) comes from middle income families who have sold/mortgaged their assets back in their home country. 

If economic situation in Asia takes a turn for the worse and/or Aussie dollars continue to strengthen, that might put a cap to number of international students. During the 97 Asian crisis, many Asian students returned to their home country and many more prospective students choose to study in less expensive countries (you'll be surprised by the number of twinning programs Australian universities have in other countries).

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November 7, 2009 - 10:10 am

crj wrote:

What's the problem if the person passed away in the house? 

Asking whether the person passed away in the property is a common question asked by many whenever I go for inspections at deceased estates.

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November 6, 2009 - 9:39 am

Property prices isn't the only factor that RBA looks at when deciding on rates. You could see how other factors affecting economic outlook  are in the next few weeks, if it's mostly bullish & rosy news, then you can almost be assured of a Dec hike. From what I've heard, even if RBA do hike rates, it'll probably be in small steps of 0.25 each time.

Like Joel said, best to factor in a few % hikes.

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October 23, 2009 - 11:45 am

Thanks for the tip, Sonya.

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October 19, 2009 - 5:41 am

Thanks for the advice Terry. Should I make an offer first and then get the strata & building inspection done, or the other way around?

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October 19, 2009 - 2:23 am

Hi Terry,

Good point but I would assume that most lenders wouldn't bother with a site inspection?

I was hoping to get some filler to patch the cracks & repaint the unit.

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October 18, 2009 - 11:05 pm

So, I guess I should still do a building inspection?

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October 18, 2009 - 10:11 am

Scott,

How could I determine if the cracks should be covered by the body corp?

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October 18, 2009 - 8:29 am

Hi Suchy,

I personally would only read property investment books written locally, as not only would the tax system be different, but mortgage and real estate rules are also different. Even in Australia, different states have some different rules.

You can search this site for some recommended reading, but I've read books by Michael Yardney, Ed Chan & Tony Melvin, and Paul Do, and have learnt something new from each of them.

All the best.

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October 18, 2009 - 7:06 am

Hi Richard,

Many thanks for the Kingsford report. Your response time and help is really excellent.

Cheers,
xya

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October 16, 2009 - 3:29 am

We're trying to replace our current strata and have got quotations from GK and Premium Strata. One of them is on the more budget concious side while the other is more expensive but have disbursements capped.

Some committee members are keen with the expensive quote, although I prefer the cheaper one, unless their quality of service is really bad.

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September 29, 2009 - 3:11 am

Thanks for all the comments. You guys are great.

I'll digest all the advice and will likely to be back with a few more questions….