I have read most of your threads and i find that they are reasonable, balanced and practical. Basically, you know your sh!te.
My question o guru is
I am 30 and like my job,live in Vic, wont retire for a long while even if im a millionaire. I like the idea of CF +ve but potential areas are now in high risk areas and property quality is mostly questionable.So i would like your opinion of what you would do in my situation over the next 12- 18 months.
Do you think growth areas with <200K props will still have reasonable CG becase this is what people can afford now, go to regional areas <100K to get slightly CF+ve houses, or just sit it out a while and see what happens. Where do you see the trend in props overall; i classify them into 100K, 200-250K+ and 300-350k and above. Any opinion apart from westans will be appreciated also
WESTANNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNn
Try to PM him, it may work quicker
‘Eat rich food, barbeque a yuppie’
Or possibly the mice powering the South Island power station have gone to sleep[:p][:p]
‘Eat rich food, barbeque a yuppie’
Did you get an answer fjficm?
I’d be interested in hearing the response [
]thtas why i ask on the forum so that everyone can benefit from his wisdom
Fjficm
If you still haven’t got an answer, try rewording your initial post.
Regards
JudiHi all
i think you guys might be expecting more from me than i can give.
to start with i don’t like to make predictions of where the market is going, but since you asked i feel the market will go flat in Oz for a while and as i have said often on the forum i’ve sold over half my oz properties over the past 6 months.
As far as the market you are talking about, i don’t have any idea. Apart from my own home in Australia the most expensive property i have ever bought (out of the 40 or so for myself) is only 75k and that was in Horsham, Vic and is let at 155pw perhaps one of my lesser performing homes. It was not long after this purchase that i really felt like i couldn’t buy properties that meet my criteria of about 13% return in a city of over 5000 people and having the strong potential to increase in value. thats why i started buying in NZ around the middle of last year. and finally moved here in Dec 2003.
Hey fjficm i like your comment about keep working even if you were a Millionaire. I used to say the same thing but something happens in the old brain when you realise you don’t need to work anymore (maybe i was just tied after 7 years of working as a school chaplain). I gave my employer 6 months notice and they were a very hard six months to keep motivated.
If i was to start buying again in the Australian market i would buy close to Melbourne perhaps Ballarat or Bendigo and buy properties that i could do something to to add value. I’ve had dreamcastle dreamer staying with us for 4 days and he/she has been doing a great job with Reno’s in a major Australian city. i’ve always tried to buy properties that can be improved but castledreamer has challenged me to refine the reno’s to gain maxamine capital appreciation.
sorry i can’t help you more.
regards westanI find +ve cashflow deals in New Zealand which I sell to other investors. To be on my database send an e-mail to [email protected]
well it was worth the wait westan
i guess my ambitions in property investing isnt as limtless as yours
i have 4 props and my best performing one is $180K purchase for $250 rent now prop median is $420K in that area
could you pls PM me at some stage re NZ props. I’m interrested in possible investments thereThanks again westan
Cheers
FJFICMWestan,
Are you still buying in NZ?
Warm Regards
ChanDollars
[The bridge between where you are right now & where you want to be tomorrow is knowledge]hi Guys
sorry for not replying i’ve been in Queenstown (a fantastic place) last weekend and helping my son’s school camp this week.
Chan to answer your question am i still buying in NZ? yes i am. the last one I picked up is in Waimate that initially i bought for a client but in the end they were unable to able to buy it so i added it to my portfolio. i have bought 4 all up since Jan and may buy another that i’ve purchased for a client if he doesn’t want it(only 18k plus repairs needed of 7k. So yes i’m still buying. For myself i’m buying a few that need work. i was fortunate to buy one in Dunedin for 62k it needs a bit of work say 15k but will be worth 100k then. opportunities are not as available in NZ as they were last year but you just need to look harder.
it’s been great to catch up with some of you guys and ladies from the forum over the past month.
regards westanI find +ve cashflow deals in New Zealand which I sell to other investors. To be on my database send an e-mail to [email protected]
Dear Weston,
I would be very interested to know how you are able to keep borrowing to buy investment properties without a job.
We have a few negatively geared IPs but have reached a point where we cannot buy more due to serviceability. I to wish to resign and concentrate on investing so how do you do it.
PeterG
Originally posted by westan:hi Guys
sorry for not replying i’ve been in Queenstown (a fantastic place) last weekend and helping my son’s school camp this week.
Chan to answer your question am i still buying in NZ? yes i am. the last one I picked up is in Waimate that initially i bought for a client but in the end they were unable to able to buy it so i added it to my portfolio. i have bought 4 all up since Jan and may buy another that i’ve purchased for a client if he doesn’t want it(only 18k plus repairs needed of 7k. So yes i’m still buying. For myself i’m buying a few that need work. i was fortunate to buy one in Dunedin for 62k it needs a bit of work say 15k but will be worth 100k then. opportunities are not as available in NZ as they were last year but you just need to look harder.
it’s been great to catch up with some of you guys and ladies from the forum over the past month.
regards westanI find +ve cashflow deals in New Zealand which I sell to other investors. To be on my database send an e-mail to [email protected]
Thank you for your replied much appreciated. It’s good to see that there are still a lot of people are buying!
Kind regards
Chan Dollars
[Retire Young, Retire Rich] [strum]hi Peter, although I am not westan, i’m going to have a crack because I think I know the answer to your question – how you keep your serviceability up is you buy positive cashflow properties. Then the income eventually replaces your job income. It gets better over time, too as rents increase. you are quite right that negatively geared properties by nature lose you money so you have to pay after-tax dollars in to keep them afloat, and stay in your job. And the bank won’t lend you any more because you can’t support another neg. geared property even if you have lots of equity. OK I know neg geared properties make you equity fast in a boom (and we’re not in one now, BTW) but that’s not cashflow and doesn’t buy you groceries or pay the rates, unless you sell. then you have CG tax. And if you want to retire you’ll still need an income.
There are blocks of flats available in NZ from as little as 60K up to about 250K with high yields around 14-15 percent or potentially more if you renovate first, and lower holding costs proportionately than 3 bedroom homes. Westan is an esteemed person I respect who could bird-dog you one.
cheers-
Minimogul(who by a strange and tacky coincidence is also a bird dog for NZ properties!)
Hey Minimogul. How do you keep getting the money together for deposits to keep going?
Castle Dreamer
(You’ll never go wrong if you never go anywhere – have a go!”
CastleDreamer, while not either MiniMogul or Westan (and yes Queenstown is nice!), I’ll have a crack at the Q [
], there are basically four ways: cash, equity, credit (personal loans/ credit cards/ LOC) or investors/family/friend monies/equity/credit.Right now I’m using a LOC (though more like a credit card – 17% interest, but no security, so fair enough), because although I have the money, I would rather buy a couple more properties.
Rgds.
Lucifer_auWow, Lucifer_au, who knew? Satan is an Aussie….
Castledreamer, I have been buying up the cheapo high yieldos in NZ as most of you know as I’ve been banging on about them with evangelical fervour for the best part of a year.
Anyway, I’m a dreaded self-employed freelance type who quite often manages to tax-deduct quite a bit of my life as I work from home, in an industry which makes it kind of doubly more likely that I’m the bank’s worst nightmare.
Having said that, I’m fully legit, have a good income, plus my 3 IPs which i own outright freehold. Then there;s no/low docs. So lu was right, a bit of an LOC is what I’m thinking. Probably have to cross-collateralise as my properties are so cheap. And they might want extra security because of the freak-factor as outlined above.So i should be able to get at least 50 percent of 80K (what I spent) and get a fourth one around 40K. Overall i will still then have 75 percent equity. then the rents of four properties (20k a year) minus holding costs of 4 properties (10 k a year) minus borrowing 40K per year (4k) leaves 6 k left over. So I reckon I can get a second one kind of almost immediately, i mean, a fifth property, then I’ve borrowed two, but own five.
it’s diluting the equity a bit, but still OK. I would still have 3/5ths equity. what’s that, like, 60 percent equity.
I am not accounting for capital gain here, because my numbers work out even if i don’t get any. if I do get some, well, that will just be a nice surprise, but then it will be more expensive to buy, so it’s all relative…So let’s say I have 5 rents coming in now, then the combined income is all going a lot faster now and probably it’ll only be a few months until the surplus can fund the deposit for a sixth property probably around the 50-60 mark.
And so on, I guess.
I came to a bit of a standstill because i took 8 weeks holiday ( no holiday pay for the self-employed!) over Xmas, and I did a bit of a ‘let’s pretend I never have to work again’ and just lived off my rents instead of saving them up to buy more properties which is what I’m supposed to be doing. So minor setback to plan that I didn’t buy a property every three months, I missed a quarter. But I’m going to catch that up and try to buy 4 properties this year. i think I will have a little more earned income anyway to fund some deposits.
I’m going to stick to the ‘small deals’ for a bit longer because I like them, they’re working for me, and I think they’re going to go up big time, to boot.cheers-
MiniPS westan, do you hate me? I’m SOO crashing your thread. hehe
where is westan anyway???
Castle Dreamer
(You’ll never go wrong if you never go anywhere – have a go!”
That’s the lifre of a retired property investor…
Always busy, hunting for deals still.. or relaxing with his kids [thumbsupanim]
REDWING
“Money is a currency, like electricity and it requires momentum to make it Effective”
Man these forums can get hectic – just so many my brain is going into verload mode – that means switch off mode
If You never never ask, you’ll never never know”
]
], there are basically four ways: cash, equity, credit (personal loans/ credit cards/ LOC) or investors/family/friend monies/equity/credit.
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