I am interested to involved myself with property investment: esp in the area of positive cash flow/paying off loan in 5 years and importantly financial independence. I need help on how to achieve my objective, I know money isn’t everything but money can buy time and time is very important, life is just too short to plan everything on your own. That is why I am here to get help.
I found myself in burden just to pay off my home loan. My objective is to pay it off as quick as possible and live on positive cash flow and financial independence. But the question is how, where and when is the right time to start to move on and achieve your goal.
I am 27 years old. My partner and I owned a house that valued at $600K-650K and owing $350K, home loan over 30 years. At the moment I don’t feel secure esp on unstable interest rate movement.
I was thinking of selling the house this year but is it the right time to sell, what should I do?
I was hoping of gaining on the capital growth and go on buying another smaller home so that we don’t have high debts. Any suggestion?I am working with earning $40,000.00 and my partner earning $50,000.00 before tax. I have no other savings.
I was thinking on so many investment option and definitely not negative gearing.
Please give me some ideas and suggestion on how to achieve a better financial status and so I don’t have to work full time.
Hi Lily,
looks like you have ~$300,000 of equity in your current home that you can refinance and do something with. Why not put that towards an ip, instead of having it sit there and do nothing. I think your idea of selling your home, buying a smaller one and using the excess cash to purchase ip is a good one, your on the right track in your thinking.I would start off by seeing a finance broker to see what they can get you based on the equity in your home, then approach agents to see what your house could sell for.
cheers
Xenia
We buy properties in all conditions. Can offer Immediate Cash Settlements, No Real Estate Agents Required
[email protected]
phone 0412 437 582Now may not be the ideal time to sell, as the market is flat. What about buying a place you would like to live in now, and rent it out for a while, claim some deductions etc, then sell later on.
Terryw
Discover Home Loans
Mortgage Broker
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
Before you decide to sell and then purchase a cheaper property think about the cost involved in such a transaction.
Some of the costs will be agents commission on the sale of your property, legal fees for sale and purchase of new, bank fees and charges for set up of new loan, stamp duty on the purchase of a new property, etc.
Once you add this all up you could possibly loose around $30 000 or more.
Your better option is to draw down on the existing equity and purchase an investment property that will give you good growth prospects.
Or if you are game enough you can do what I am doing which is put around $60 000 of my money to build a duplex to make a profit of around $100 000. Thats a return of over 100% in less than 8 months.
Regards,
Sailesh Channan
http://www.developersedge.com.au
“Helping you select, develop and profit from property”
1300 73 5934
Quote terry: “not the ideal time to sell market is flat”
When is the ideal time to sell at the right price through your experience as broker point of view? I am a beginner and still learning to understand, how does the property market movement by comparing to the pass 10 years but I still can’t get good supporting informations.
Buying a property: I am quite keen on getting an IP but how do we determine the property is not over price and how to buy a lower market price property? any advise?
Would it be a good idea to test the market by placed the property for sale on the market at the set price that I preferred to sell and see the respond? Is there any good suggestion?
Quote Sailesh Channan: “if you are game enough you can do what I am doing which is put around $60 000 of my money to build a duplex to make a profit of around $100 000. Thats a return of over 100% in less than 8 months.”
Build a duplex: It is very interesting, I was thinking of building as well but a house instead of duplex, but it involve lots more money to build, which I am afraid of really high debts, high loan-to value.
How do you achieve the result by building a duplex and make $100,000.00 in 8 mths? How much it cost to build BTW? Where can I get all the informations? I am very intersted to find out the costing and the budget.
In Sydney, the ideal time to sell would have been about 12 months ago. Valuations are comming in low these days, eg $600,000 last year, $500,000 now. It seems to be pretty flat now, but should pick up again. Just wait for the pickup to occur.
Now is probably the ideal time to buy.
Terryw
Discover Home Loans
Mortgage Broker
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
thanks terry
That will help in my decision making. Can you give me some advice on queensland property market?Hi Lily,
There was an article in the Australian Financial Review about a month ago that showed what was happening to the housing market in the various states. From memory, there were only 2 states demonstrating continued growth and they were WA and I can’t remember now whether it was Tas or NT, all others had flattened or dropped.
In more general terms of developing passive income I found Robert Kiyosaki’s “Cash Flow Quadrant” most helpful. Interestingly his recommendation is to develop a system based leveraged business and then to use that cashflow for investing. I believe that Steve’s approach to property investing by developing a system is in keeping with this concept.
If you are interested in any further information please let me know.
Best wishes
pr
I would not touch most of the Queensland property market with a ten foot pool. I think those who purchased UNITS around Brisbane or the Gold Coast will be in for a huge shock in the coming years. Many other areas in Queensland have also seen the same type of over-developing as has gone on around Brisbane.
For those who purchased Torrens Title homes, not Community Title or similar, will not be affected so badly in my opinion. I think these house prices will be dragged down a little bit as a result of the unit prices dropping.
If history has shown us anything it is that anywhere that a lot of units are being built is a bad long-term investment. Only young people really want to live in units and then only until they can afford a house of their own or have a family. With the population ageing so rapidly and the bulk of our population being an older generation, does it not make sense that demand for high-density units will only reduce over coming years????
Robert Bou-Hamdan
Mortgage AdviserWow, thanks for everyone contribution and I really learn so much from this forum. I am really new to IP. So anything would help me in my decision making on IP.
Yes, Pete r I am very interested for further information on those housing market you mentioned. Please provide me more informations?
So, Robert, do you think is not an ideal decision to purchase an unit, apartment or townhouse what about duplexes or houses in queensland? The reason I am asking, I am really keen on doing something this year since the market has flatened and I guess is not the right time to sell my house, at first I thought I could test the market to sell my house this year and any profit can accumulate into the next house so that I have low loan. It seems like doesn’t work that way, so, I have changed my mind of keeping my house and was thinking to do something esle on IP, either to buy a house or etc? Any suggestion? Thanks again for the contribution on your expert knowledge. really appreciate!
I would suggest sitting down with some experts before making any decision. Get some different ideas and options and make an informed decision instead of one you may regret. You might find you can keep your home and purchase an investment property.
Regarding buying houses, I don’t think you can go wrong buying the right house. There is always going to be demand for the right house in the right area.
Robert Bou-Hamdan
Mortgage AdviserHi LK
In my experience, the “fear of debt” you say you suffer from is your biggest obstacle. When I was 27, I suffered from the same malaise. Now I know better.
If you do not take immediate action to educate yourself to overcome it, I predict:
1. You will keep buying IP’s till you reach your comfort level
2. Over the next 30 years or so you will achieve a modest level of assets and financial security.In other words, you are dooming yourself to mediocrity. Is this what you really want? Is this why you visited this site?
The good news is that there is a much, much better way.
But before I offer my suggestions, I hope you appreciate the collective wisdom behind the quality people who have ALREADY responded to your post. Some extremely experienced operators have given you the benefit of their experience. I hope you will honour them by acting on their suggestions. Here’s what I would do:
~ Log onto http://www.navra.com.au
~ Click the dropdown menu under “Articles”
~ Print out every single article in that link
~ Put them into your “self-education” folder, and treat them like the “investor’s gospel” they are.Also, log onto http://www.somersoft.com.au
~ Click the Search function
~ Type in “Steve Navra” and read all 18 pages of the threads Steve has contributed to. Exhausted yet?You should also read Peter Spann’s 2 books “Wealth Magic” and “How to Build a $10 Million Property Portfolio in 10 Years”
Now it’s up to you. Just act on all this advice, okay?
And by the way, I have never met Peter Spann or Steve Navra, and I have absolutely no affiliation with either gentleman. I just know quality when I find it.
Cheers
Gregthank you so much greg, yes I have too many special folders for all the notes printout. I will definitely read through all the materials suggested and will come back to you and update you what I am going to do.
Of course I appreciate everyone input, I have mentioned many thanks to every replied. I really appreciate it, god bless everyone.
Please input more. thanks
Hi greg
After listened to your advice I have print out every single article and have file in a special folder.
Thanks for the website info.quoted robert ” You might find you can keep your home and purchase an investment property”
I have act on your advice, and have been doing research looking for buying a IP. I’ve been looking on the net and newspaper for some property.
Today, I found a property which is located in Ashmore, gold coast. The asking price is $380K, But I was thinking to offer for $280-300K, there reason for that is two doors down was selling at $320K last month and plus including a pool whereas not this one.
The rental is appro $340- $365/=, mostly rented to student from griffith Uni which is 10 mins distance.
Again, I am really interested but then I am not sure whether this is a good decision or not. I have calculate the positive cash flow which I am making loss of $120 p/w because I estimate my expenses really high ie stamp duty, legal fees, other fees because I am not quite sure how much exactly they cost but I will find soon and will re-calculate my cash flow.
Please advice.
thanksOriginally posted by LKGK-88:
Hi greg After listened to your advice I have print out every single article and have file in a special folder. Thanks for the website info. [email protected]Hi Lily
Glad you like the websites & articles. There’s a heck of a lot of reading in there, but it’s crucial you read a fair bit more before you put ink on another contract (without falling victim of “analysis paralysis”)
My tip on Ashmore is to read the chapter in Peter Spann’s “Wealth Magic” where he teaches determined investors how to use median house statistics to choose:
1. Which suburb to buy in
2. What year to buy into particular suburbsGood luck
GregThanks that would be really help, as I have raised that question but not sure where to find the solution.
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