Hi to all,
Well, have only just finished 0-130 Properties in 3.5 years and loved it, I have this burning desire now to go forth with all this info and buy buy buy, my partner and I are in a position where we have 2 properties at present. These properties are 1. the family home, and 2. the investment property (negatively geared).
What we are considering doing is selling the Investment Property and useing the proceeds to fund the purchase or 2-3 Positive Cash Flow properties, we live in Darwin and at present there is a BOOM on here, as there is every where else in Australia and positive Cash Flow Properties are as rare and Rocking Horse….. well you know what I mean, I have a mate who is a property developer and he is of the opinion that the market will have a down turn in the next 12 months so sit on the money made and wait, What do people out there think of the idea and is there any sugestions for other cash flow properties and howto find them??
Your comments would be appreciated.
Regards
Dan and FiThere has not been a BOOM in NSW, VIC and other States for almost 12 months. The market is very flat and in decline.
In any case, you do not have to sell your investment property to use the equity to buy more if you can afford higher levels of debt.
Robert Bou-Hamdan
Mortgage Adviser
http://www.mortgagepackaging.com.auFREE Finance-Related Newsletter – Click Here
Comments made are of a general nature and should not be construed as individual advice.
© 2004 Mortgage Packaging Pty Ltdi think you’ll find that the recent ‘home north’ buyers limit went from $180,000 to $240,000, in Alice this ment that any place worth $200,000-$220,000 is now worth $230,000-$240,000. It also meens home affordability is quite good in the NT.
You need to get your mits on Steve’s newest book as it is much more up-dated (cheap at kmart). It’ll answer your ‘where are these + properties question’ but not in the way you think.
Can I ask, is there anything you can do to your neg geared house or even your home to make it posative cashflow? if not perhaps selling would be the best option.
Good Luck!Have a think about what sort of investor you wish to be.
A property trader or a buy and hold investor. I see myself as the second and will only realise any loss in a downturn by selling – I also believe that property will trend up in the medium term.
I personally would access the equity and buy more during any downturn. I suspect that i ten years time we will all lament it if we sold anything.
Just my opinion – not advice!
All the best for this glorious new year!
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985Todays Hot Rate
***3 year fixed – 6.49%***Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
If there is a boom on, why sell? You will probably make more money negatively gearing than with a cashflow positive place (unless it too is in a booming place!).
Terryw
Discover Home Loans
Mortgage Broker
North Sydney
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Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Hi All,
Thanks for the input, thanks Femaleage20, you are right about Home North, it has infact gone up as much as you say. The new book, does it have a title????
Robert, thank you for your comment I think you are right, I was going on the dvice of others and after some research there is infact a flat spot in the market at the moment, I am lead to believe that a downturn is on the way, it appears that property in Darwin is priced rediculously high at the moment and that cant last, I guess with the Train, more Defence peronell and the Gas Pipe line it was bound to happen, we have decided to sell the Neg geared Prop to try to captilize on the high prices at preent, with this in mind it will return us approx 50K after expences which we will put into 2 Positively Geared Prop’s in due course, 12months or so.
Thanks to Simon, we will be buy and hold investors, I feel this is the right way to go for us. Selling this property is the brides idea as there is some history there for her that she would rather get rid of.
Thanks all again.
Dan and FiDanandFi,
he he, yeah for the title, just hover over the link in your own post… [biggrin]
Cheers,
Michael.Hi DanandFi,
I feel you are probably making the right choice to unload the -ve cashflow property, especially if you can take the cash gain and turn it into 2 or more +ve cashflow properties.
I prefer a buy and hold strategy myself, but (from experience) I also know it does you little good to hold a property that is costing you money each week. In the hope that a property may eventually increase in value, you can actually decrease your borrowing capacity through -ve cashflow property.
The ideal to aim for I think is +ve cashflow immediately (your borrowing capacity may even increase by a bit) with some possibility for capital growth – maybe through a reno, or because the area is growing.
Cheers,
Cameron [biggrin]
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