In the long run to build wealth you need to purchase growth properties. Most of these tend to be negative geared properties in the first instance.

As time marches on they become neutral then positive.

The problem with too many negative geared properties is that you need an other income to support them.

So its probably best to have some of both.

<<<<<<Anyways this IP doesn’t have plaster walls.VJ’s tend to have a bit more give thankfully.>>>>>

What are VJ’s????

I had a similar experience with my property manager.

In my area all the agents have listings at the front desk. Therefore I dont believe in paying for advertising. Renters will go to agents and get their listings NOT look in the local paper as local paper only really has some of the available properties in area anyway.

I got a copy of the agents…[Read more]

I always do a pre-settlement inspection on the Thursday before settlement on the Friday.

In our PPOR there was a trampoline and other stuff. I said i wanted it gone or I would not settle. It was gone prior to settlement.

Its very important you always do a pre-settlement inspection. Usually solicitors insist on it.

The last thing you want is…[Read more]

Same all over Australia – Auctions are a thing of the past.

Yeah – but if I gave an email like that to me boss – i would be out on the street the following week. I aint got that much patience and I dont want to remember my business law days at uni.

Can you summarise the legal mumbo/jumbo? What is the upshot?

Jo

I have option D for you.

My brother lives in Shaftesbury Ave. He has a 3 bed house and a one bed unit. Back rented at $150 and house probably at $210.

He wants around the $300k mark.

All the work is done. He is a carpenter, so its all done professionally.

I have suggested he sells and buys something he can develop. For a passive…[Read more]

Restumping can also cause problems with plaster cracking and requiring fixing and painting.

My sister re did the stumping on her PPOR and there are cracks in the plaster everywhere.

Restumping is no easy task.

Thats one of the reasons I am not too keen on weatherboard houses unless its been restumped recently.

I believe a property agents fees are not deductible against income as its of a capital nature.

So its an acqusition cost and deducted from the selling price when working out your capital gain/loss.

My predictions (for what their worth)

Problem today is that house prices are historically too high for first home owners. Present property prices are not supported by current incomes and yields are low. If market does not correct government may intervene. Market has not corrected as baby boomers have seen benefits of property investing and…[Read more]

I tend to agree. I just sold my latest purchase which was made 2 yrs ago. Will bank a nice profit and now i can look forward to buying in the next year or two.

As the US economy recovers interest rates will rise and property prices may fall.

Interesting

<<<<<* serious investors will continue accumulating carefully selected properties as fast as they can (without becoming overcommitted, of course).>>>>>

I hope I am this. I sold a property last week as I felt i was starting to be overcommitted. I did buy it two years ago with no deposit but I did make a tidy profit.

Now I can sit…[Read more]

Ya gotta love that show and the people it showcases.

If you can make $1000 a month positive cash flow go for it. It should not be too bad to fix the mould. Worse case scenario would be to remove the bathroom ceiling, see where the leak is and get it fixed.

After purchasing you may even get the above unit to bear some of the costs or even the body corporate. You may even complain to the agents and…[Read more]

We are talking about their next one.

Your question is too general. You may need to see an accountant in the first instance and tell him/her what you want to do.

If its anything like the Ned Kelly film with Naomi Watts and Heath Ledger. I will use that $10k for something else.

And I also like to have control over my money. Its a bit like going to the casino and putting it on red or black – it could go either way.

My Guru is Jan Somers.

No high priced seminars, no wrappacks, no interstate rural properties. Growth v Cashflow balance.

Just good common sense. Her books are a MUST read. Follow here strategies and You cannot go wrong. Read the book on case studies. See how others have succeeded.

I wonder if any of those people are on this forum?

My reasons for why this is NO different to other Booms. I am not saying prices will come a crashing down all I am saying it that growth will be very low and may start to fall as we experience a soft landing. Therfore its not that good an idea to hold expensive negative geared properties at the moment . Dont Over commit.

<<<<<* The ease of…[Read more]