buying house – The Interiors Addict

PK Gupta, a second generation immigrant, shares how he acquired 12 properties worth $8million by the age of 32 and had most of the deposit for the first property saved while still at university.

After PK’s parents moved to Australia from India so he could attend university, he met his now wife. They shared a goal of not wanting to be trapped in 9-to-5 day jobs and dedicated themselves to raising funds. During holidays, they worked picking fruits or doing summer internships with major firms. They saved every cent, even after entering the finance industry.

Despite being Brisbane locals, a lot of research led to a three-bedroom house in East Gosford, NSW catching the couple’s eye. PK says they bought it for $320,000 without ever seeing it. Instead, they had a property manager inspect several homes for them for free.

PK continued to apply his analysis to unearth other opportune markets. He says that first property went up $40,000 in value in the first year. They now have properties in Brisbane (QLD), Frankston (VIC), Newcastle (NSW), Cairns (QLD), Burnie (TAS), Gold Coast (QLD), and Townsville (QLD). The most lavish might be a home near the Taj Mahal, purchased for $480,000 (now valued at $600,000).

“Investing in markets across the country is entirely achievable for the average
Australian,” says PK. He is now keen to educate others on the investment game and shares his top five tips to break into real estate:

Set goals and focus on achieving them: Have goals and drive towards them wholeheartedly. Their first deposit was hard work but the commitment paid off in huge dividends.
Treat all of Australia as an opportunity: Don’t limit yourself to investing where you live. Apply your analysis to every location in the nation. You’ll get the chance to select from the very best suburbs for gains.
Invest by numbers, not emotion: The most important thing is understanding how to analyse the available data. Using the right metrics and applying them correctly will have areas of opportunity for growth and great rental returns reveal themselves.
Ask property managers for help: Local property managers are professionals who are happy to help you if you give them your management. They are an extraordinary pool of untapped guidance.
Get educated: Being educated in a systematic, data-led way is crucial so you aren’t led astray by misinformation or biased agendas.

These five points can help you build passive income by remotely acquiring properties interstate with minimum fuss.

Find out more about PK’s self-paced online property investing course

Check out PK’s YouTube channel

How to find hidden value in your next investment property

If you’re on the hunt for your next investment property, don’t discount the ‘diamonds in the rough’ AKA existing properties…

The nine experts you need before investing in property – The Interiors Addict

By Bradley Beer While property investing is one of Australia’s favourite pastimes, it doesn’t mean it’s always an easy ride.…

When you find a dream property to purchase within your budget it can be happy days indeed. Once that offer is accepted though, you may not be aware of additional expenses when buying a house. The upfront costs can vary depending on where you live in Australia and the conditions of your loan and size of your deposit. But here are the eight additional expenses you may not have considered.

Additional Expenses When Buying a House

Building and Termite Inspection

The moment your offer is accepted for a property, a building and termite inspection is often conducted before the sale becomes unconditional.

If you intend to buy a property at auction, these inspections may need to be done before you intend to bid as an auction sale does not allow for a change of mind due to results of a building and termite inspection.

There are building inspectors who can offer both a building and termite inspection in one, but for peace of mind, a separate termite inspection can offer a more thorough inspection. Generally, a termite inspector will have more expertise and specialised equipment to detect termites than a standalone building inspection.

Termite damage can cost thousands to rectify, so paying for this separate inspection will not only give you peace of mind, it could save you losing your hard earned dollars to fix unforeseen termite damage.

Plumbing and Electrical Inspection

Its common knowledge for a building and termite inspection to be completed before a sale becomes unconditional. But it’s becoming more common to get a separate plumbing and electrical inspection too.

It’s wrongly assumed a building inspection will check all the electrical and plumbing work of a property. Yet, plumbing and electrical are licensed trades. These areas of a home can be costly to rectify if there are any hidden problems. It’s a good idea to get a plumber out and put a camera down the drains to check for obtruding tree roots or damaged sewer pipes which could cause problems to you later down the track. Checking for a safety switch and unlicensed electrical work can also offer peace of mind for safety too.

Lenders Mortgage Insurance

The cost of lender’s mortgage insurance (LMI) will vary depending on the size of your deposit and the amount you have paid for your property. LMI is added to your loan if you don’t have 20% deposit or more for your property.

Loan Application Fees and Bank Charges

Fees for loan applications and setting up bank accounts can also come as a surprise when setting up the mortgage for your new property. Speak with your financial consultant or bank provider to understand these fees.

Conveyancing Fees

A solicitor or conveyancer is needed to manage your contract and the fees can vary for this service. A conveyancer focuses on property law and helps facilitate the contract from start to end. They can also do additional checks on the property to ensure all renovations, new builds and add ons to the property have been lodged to council or have been approved for installation.

Stamp Duty

Stamp duty can range from state to state and it can be another additional expense when buying a house. It may not be applicable to your purchase and the way to check this is to look at what concessions are available in your state for stamp duty. There are online calculators that can estimate the stamp duty you will pay for your property to give you an idea on the costs.

Home and Contents Insurance

Insurance is important to protect your new asset from any risks. Ensure you get the right insurance for the intent needs of the property. For example if you intend to rent the property, landlord insurance may be needed. Often it is a condition of the loan to have insurances set up and the financial institution to be listed as a financial interest on the certificate of currency.

DISCLAIMER : Any information in this article is provided for general information purposes only. No legal, financial and taxation advice is given and the reader accepts information in this article may not be applicable to their circumstances. Independent professional advice from an advisor in legal, financial services and taxation are to be conducted by the reader for their own personal circumstances. We do not hold an Australian Financial Services Licence as defined by section 9 of the Corporations Act 2001 (Cth) and we are not authorised to provide financial services to the reader and we have not provided financial services to the reader.

What can you do when you buy a house and realise you hate it?