Hi all, this thread could be a dud, it may be a winner, who knows ?? [
]Lots of talk lately about equity, and cash is king etc etc, just wondering how people are thinking at the moment…
I’m considering cashing some equity (let’s say 150k) and going on a spending spree… Problem is i’m a bit wary about buying several properties at once in the current market.
Now before anyone gets excited you can’t spend it on a new BMW, and we aren’t going to the Casino… [
]But if you were “gifted” 150k today what would you do with it ??
* Pay it off your PPOR ??
* Buy half a dozen cheapies in rural Victoria ??
* Buy a unit in Brisbane and a few cheapies further north ??
* Head over to NZ and raid their cheap IP’s ??
* Wait and see ??For what it’s worth i’m tossing between paying off my PPOR and buying say half a dozen 100 to 150k properties in Far Nth Queensland… Probably around Townsville, Mackay and Rockhampton…
You don’t have to be specific, but give us a rough idea – ie. 2 Nth Qld and 2 W.A or something similar. I’m interested to see the difference between those people think they can get good value in the current market and those who want to be cashed up and ready to buy in the next say 18 mths to 2 years… [
]By the way, this thread is just designed to see how people are thinking, not about people being right or wrong in their thoughts – so friendly debate is fine, just don’t go abusing those who are thinking about buying my bus-stops off me ok ?? [
]Cheers,
Paul…“I want to be rich, and stupidly happy – so far i’ve only managed to achieve the stupid part…”
Dear Paul… yum- 150K *licks chops*
As for me, I am over checking out the uber-cheapy ones. I don’t wanna buy myself some trouble and stress myself outthinking i have to buy a new oven, and new everything else for the place. Also, because I am not the renovator-type, I want a fairly lomo (low maintenance) place that I can not tend to too much.
Hence, I’ve decided I want apartments built after 1985 (for the depreciation allowances available) and I want then under 200k. I reckon I’d still go with SE qld for a while, as I think the area is gonna still go mad.
3 post-1985 apartments please [
]kay henry
Hi Paul, for me personally i would take the option of buying half a dozen cheapies, as long as they are low maintenance and have +ve cashflow and in the meantime, i would be workin out which property i would be selling, that i already have that has gain some capital gain, this way i have more +ve cashflow properties, i have liquidatie and access to real cash at the same time.
cheers
s.i.sG’day Paul….
Diversify
Send me half and I’ll write options for you?
Cheers
Bill
ps I want 20% of profitsBill O’Mara
Real Estate,Mortgages, Option Writing & Forex. [email protected]bill
are you happy to cover all loses as well?
fatboy i’d be off to the “land of the long white cloud” while there are still opportunities there. i wouldn’t touch Oz, although interest hasn’t wained in my part of the world (Vic Country) i think prices are still rising, they are certainly selling fast.
westanPersonally I’m not in the housing market, still learning and I don’t think it’s the best time to buy.
I’ve bought into the biggest circus in town; the stockmarket.
Josh
Hi Josh,
One last chance .. would you please start a new thread under “General Investing” ?
You mentioned in another post that you are having way too much fun in the stock market.
I am keen to hear your thoughts, in general terms of course, so that we can converse with no fear of being locked out. Just refer to houses occasionally to continue a link of some sort.
Kind regards, Phil
Ok Phil, I’ll put ‘house’ a new post in general ‘house’ investing.
Josh ‘house’
Hi Paul, how the hell are ya?
Good post mate.
Thoughts:
1/ Cash attracts no interest charge .. cash is pure 100% .. look at opportunity costs and the cash-on-cash return
2/ But, as no cost deductible ..
3/ Pay it off the PPOR, then reborrow
4/ Determined usage cost of redraw might then be claimed against IP’s or other choice of punting
5/ If a perceived downturn in house values is generalised across Aus .. then diversify funds in the mean time .. or look at NZ
6/ Consider .. will this leverage your position now, for when those other opportunities arise?or ….
7/ Buy lottery tickets
or
8/ Do all 5 points in the precise order you listed. Reduce the PPOR, borrow again, select your own mix of diversification and property, VIC, QLD and/or NZ.
Like you said, just thoughts .. and akin to Bill’s idea .. Brainstorming.
The answer will come from the simplest point least expected.
Kind regards, Phil
ps .. then buy 77 Bus Shelters .. sit back and contemplate Squatter’s Rights !!
G’day Westan..
At 50/50… yes… both ways
At 20/80…no
Cheers
Bill
Bill O’Mara
Real Estate,Mortgages, Option Writing & Forex. [email protected]Wow, this thread took off !! [8D]
I was only gone a few hours and all the big guns have showed up !! []Ok, where to start –
Kay: 3 post ’85 apartments, nice choice if you can get them at the right price… Do you have any concerns over strata fees though ?? I worry a bit about capital growth with apartments as they don’t have the land content that a house/villa would have… Still, plenty of people make a killing with units, so thanks, not a bad response…
Still In School: Half a dozen cheapies – ok, how cheap and where (roughly) ?? Vic, NZ, Mars ?? [
]
Low maintainence and cheapies don’t always go hand in hand but hey, if you know where to look… []Bill: I was looking forward to your response… [
]
I think i mentioned to you i am a fish out of water when it comes to the stockmarket – That’s what you meant by diversify right ??
I’m guessing you are spot on, but i have problems investing in something i know very little about…westan: Thanks mate, i’m hearing you !! Looks like i’ll be over there in late January, put the kettle on will you ?? [
]Josh: I’m with Phil on this one – tell us more !! [
]Phil: Hey mate, things are going well… holidays coming up, so life couldn’t be better !! [
]
Not sure on the lottery tickets though buddy… []
You wouldn’t believe it, but i got an email the other day asking how many bus stops i own and if i was finding them to be a good investment. I thought it was someone taking the mickey until there was an offer to buy and a mobile number attached !! []Cheers,
Paul…“I want to be rich, and stupidly happy – so far i’ve only managed to achieve the stupid part…”
Hi all,
I would pay off the PPOR, extend the L/C, and keep looking. May sell a couple of cfp units in NQ as well, and put surplus into another house – looked today in our area at one which is not cfp, but a good buy – next door to one we own. Do like the SEQ area and think it will continue to do well for a while yet, but I think it would take some research & travelling to find property at the cheaper end of the market.
Often find properties that would make a good profit after reno and sale, just need that extra on the LC.
Anyway, always looking and thinking.
Anna
Hi Anna, thanks for your reply… [
]
If i remember rightly you are from Mackay, or am i mistaken ?? Just curious, i need to ask someone from Mackay a few questions… []Cheers,
Paul…“I want to be rich, and stupidly happy – so far i’ve only managed to achieve the stupid part…”
150K? I would buy 5 duplexes or triplexes on the Eastern seaboard between Noosa and Cairns. $20K down payment. 10K costs.
PS. FATBOY. Do you ride one or do you have a bit of a beer gut?? [
] I have an XLH 883. Just had it painted purple. Nice little girlie bike.
Fibejebe.Fibejebe: I had one in the past – ’99 Fatboy, custom electric blue, it was one of the last of the Evo’s – it made way for a circuit racing car (Mazda RX-7) which i thought would be cheaper (i was wrong !!) [
]Although come to think of it the gut has expanded a little in the last few years… so the nickname is still pretty appropriate !! [
]Cheers,
Paul…“I want to be rich, and stupidly happy – so far i’ve only managed to achieve the stupid part…”
How could you go from 2 wheels to 4?? Sacrilege!! [
]Too many d1ckheads on the road – i almost got killed by a red light runner and sold the bike two days later – when you start to worry about riding it’s time to give it away… [
]Of course, i bought a YZ250 dirtbike to compensate as well… [
]
And circuit racing rocks – my website is http://www.paulbartolo.com if you want to have a look at the RX-7… []Cheers,
Paul…“I want to be rich, and stupidly happy – so far i’ve only managed to achieve the stupid part…”
Most Disappointing moment: In racing terms it was running out of fuel with just two laps to go at Wakefield Park when in a very strong position in the Sunday morning points race.OUCH!!
[]Hi Fatboy
I agree with Phil and Annaw2 in that it would be better to pay down your PPOR mortgage first and then borrow the money back before you invest. You will be saving interest and increasing your tax dedcutions if you do.
Terryw
Discover Home Loans
North Sydney
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
No question for me – pay off the PPOR.
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