I agree with the four properties.

As Richmond and Pelican mention you spread risk and have potential over time to renovate.

Its always easier to rent out median priced properties than expensive ones. Thats my strategy.

I invest around Mentone/Frankston not St Kilda or Middle Park. But one day as my portfolio grows I would love to invest in…[Read more]

Put it on Red!!!!!

Bec

Have you read any Peter Spann or Jan Somers Books? Before you act it will be worth your while in the long run.

Good Stuff Doug.

Tread with caution and make sure you read Spann as well as Mcknight and decide what you reckon is the best strategy for you.

With your approach, eventhough it may take some time will succeed in the end.

Just had a notice of order made at the Magistrate Court.

Now it should appear on their credit record or something like that.

A question for the mortgage brokers – to get this removed from a credit record – what do these people need to do to pay the outstanding rent to me.

Do they need to contact me to pay outstanding rent?

I am a big believer in Frankston. I have properties in Sth Frankston.

I have not touched Nth Frankston but I think over time people will be pushed out of this area.

If your interested look around Sth Frankston, even if you have to pay a little extra.

Do you live in Dunedin? Renting to students is fairly labour intensive. Are these rented by the room to students. Renting 4 rooms gains a better return than renting a 4 bed house to a family.

But the higher return cames at the expense of requiring more effort in getting the rents.

Why would anyone want to spend $430k on a 2 bed unit when you can buy others from $200k in the same area.

As an investor, I would rather buy 2 apartments for $430k than the one you have on offer.

Looks like you need to reduce the price to make it more appealing to investors as owner occupiers seem to be out of the question as its rented. Try…[Read more]

<<<<<I personally think that people can’t afford much of an increase in rents, so this (to me) means that house prices will continue to fall instead of rents rising.>>>>

I agree. Incomes have not increased over the same period that property prices have boomed. The increased property prices have resulted from a decrease in interest rates. As…[Read more]

Do you have an income to support these? If so, and you are still a little worried – fix the interest rates for 5 yrs. You then know what your costs are and sleep well at night knowing these costs will not rise.

If possible keep them. But I know nothing about Mackay. But I assume they are good properties why else would you have bought them.

<<<<<’11 second ruke’ >>>>>>

I did a search and cannot find anything under that ruke.

I seem to recall some time ago (I turn 40 next year) a period when property prices were falling and interest rates were rising.

Many people who got in over their heads lost money etc. It was also around a time when there was a property boom. I cant recall the time but it may have been around late 80’s.

I reckon the same will happen here wihin…[Read more]

I have landlords insurance for the public liability side of things. eg. if the tenant electrocutes himself or something like that I am covered.

I dont have rental insurance. I always employ a property manager and its their job to ensure we have reasonable tenants. The only rent I have ever lost was from my brothers ex-girlfriend and you can…[Read more]

I reckon this baby boomers thing is overstated.

Interest rates is the main driver of real estate.

However there are some effects from baby boomers. These are as follows;
1. They have the retirement money to invest eg super and have bought property. Herd mentality.
2. Some have bought second homes on the coast.
3. Some have downgraded their…[Read more]

I can now see why you had a good day. Good luck with it.

Not sure a person with money is prepared to let a newbie run with their hard earned cash while the newbie is learning.

But hey you never know if you never ask.

Why dont you work it out for yourself and we can check the figures to see if your right.

That way you can learn from any mistakes instead of being spoon fed.

Just went to the local Magistrates Court. They would not accept my application till I had a certified copy of the order. The Order i have was a faxed copy from the real estate agents.

So I went home and rang VCAT – residential tribunal. Now I have to wait for the certified copy.

The joys of Beaucracy (spelling)?????

<<<<<It amazes me how people who bought a home for $40K 20 years ago talk about making a loss if they sell the home for $500K rather than their asking price of $540K! How does that work!>>>>

Its probably got something to do with compounding and the time value of money.

And $40k is a years salary for many people.

<<<It’s not a +ve cashflow property but it has huge capital gains potential (bought below market value)>>>

Congratulations – bought below market value – you thinking in 2003 prices or 2005 prices.

What you bought now in fact may be worth less in 2005 hence the vendor accepting your small deposit.

And what you bought now may appear to be under…[Read more]