Hi Everyone, We are new at this and would like to know what kind of market we are heading for.
We have an opportunity at buying an investment with 72% CoCR and have just read that in a downward trend not to buy using loans. Is this opportunity too good to pass up? Are we headed for a downward trend? We would be grateful for any feed back. This would be our first property.
Thankyou SoranFreeJohn and Paula
John & Paula,
You will be lucky if anyone out there can tell you what the future holds. Most of the crystal balls were wired up for the last millenium and don’t seem to function correctly any more.
That said, all the information I’m hearing across the ditch (NZ) is that the heat has gone out of the Australian market. This does not mean there are not good deals to be had but the “hold it and hope” strategy might not be the wisest move. I suggest you pick up a copy of “$1,000,000 in Property in One Year” by Steve McKnight. This is full of good ideas and strategies for prospering in a cooling market.
Apologies for my earlier sarcism and best wishes.
Julian2Hi John and Paula,
Thanks for your post and welcome to the forums.
I’m not sure who told you not to use loans as leverage is important to access ‘professional’ returns.
Having said that, borrowing money has risks involved which need to be mitigated and managed rather than avoided.
As for a downturn… my own opinion is that it is likely, however, in the same token, not all properties will be affected.
Personally, on the face of it, a 72% CoCR deal sounds pretty good to me! Furthermore, if you focus on the income does it matter too much if your property loses some capital gains in the short-term?
Just avoid being placed in a situation where you may be forced to sell and bank your income in the meantime as the momentum to carry you through the flat periods.
If you feel comfortable, can you flesh out the nature of the deal in more detail? It would make for a good discussion.
Bye,
Steve McKnight
**********
Remember that success comes from doing things differently.
**********Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
Thankyou so much for your feedback. The property in question is a block of 12 units on one title for $320,000, leased out between $90 – $70 per week. We’ve just learned that it is considered commercial property being more than 4 units so the banks etc want 45% of the lending amount up front. The Vendor is open to Vendor Finance because he has found it very difficult to find people with this much cash on hand so has had the property on the market for over 12 months.
I have recently started a new job in Scaffolding. (I am the first woman to work in this industry with my place of employment) and find myself working with 600 men in a Refinery, just so I can make my dreams come true in being financially independant.
I am telling you this as I want you to see I am someone who will do what it takes to build my Postive Cashflow Property Investing Portfolio.
My question is this……. is there a person to contact, for me to talk to about my options in how to come up with a plan for me to buy these 12 units?
If the units arent quite in my reach as yet, I will post the details on this forum for other interested investors.
Thankyou for taking the time to read my message.From Paula
John and Paula
Hi again,
45% down seems a little steep. Shop around for a better deal as the commercial property we have done is on the basis of a 30% deposit.
It might pay to submit a finance inquiry at:
https://www.propertyinvesting.com/finance/ as see what comes of it.Cheers,
Steve McKnight
**********
Remember that success comes from doing things differently.
**********Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
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