Property Investment Q&A

  • Q: I am in the midst of purchasing my first property but, with all the talk about interest rates possibly rising in the long term, I am stuck between choosing a fixed or variable interest rate loan. Am I likely to pay more for my mortgage in the long run under a fixed interest rate loan set-up, than if I choose a variable interest rate? read more

  • Q: I'm buying a turnkey/completed brand new house, with no body corporate complications. The developer of the estate built all the fencing and I’m wondering if it is necessary to do any checks on these boundaries or encroachments – and, if so, is this only possible if we purchase or arrange a boundary survey? read more

  • Q: I’m looking at financing options for property investing. My income is $80k (pa) and I’m looking to purchase around the $500,000-600,000 mark. I’m told cash flow positive properties are less risky, but would it make more financial sense to negatively gear my investment? How can I make money if it is negatively geared? read more

  • Q: I have bought two IPs in my local area and, while they’re not performing outstandingly, they do ok and I feel safe that I know the area. However, the more I read about property investing the more it seems that I should be investing in multiple areas/states. Is it really worth the effort to make my portfolio ‘diverse’? Am I really that much at risk if I stick to my local area? read more

  • Q: I’m about to sell my property and am looking for help on my capital gains tax situation. The problem is that I have had people paying board in my own property to bring in some extra cash and need to work out how much of my capital gain on the house is now subject to CGT. read more

  • Q: The reno bug has bitten and I want to improve the look of my investment property. Is it necessary to use a professional or could I just do a budget renovation myself? read more

  • Q: My husband and I are in our early sixties and want to retire in 10 years. We haven’t invested in anything for our retirement, other than compulsory super. This scares us. We’d like to invest in property, but one doubt hangs over us: have we left it too late? read more

  • Q: I own an investment property valued at $500,000 and I’m looking for more. The property has a large backyard area and a friend has suggested subdividing the land and building a two-three bedroom house behind the one already there. I’ve almost paid off the mortgage and have estimated the costs of building and dividing the land to be around $400,000 to $500,000. Is this likely to be a good long-term investment for me, or would I be better off buying a new property altogether? read more

  • Q: My father owns one-third of a property and wants to transfer his share to his two sons. What steps are required to transfer his share into his sons’ names and what are the fees and costs involved? read more