Dear All,
If you have 4 negative gear properties (all standard land+house property) and LVR is about 60%. what sort of property investment you would do if you have $60K cash ready for down payment ?
1. Country/Regional investment with + or neutral cash flow ?
2. buy multiple units for cash flow investment ?
3. more -ve gear property in rising market state ?
4. buy off the plan properties?
5. buy units/apt ?
6. etclooking forward to hear from guru out there to share their valuable experience and knowledge? Sad story, we only start to wake up to expand our investment portfolio after reading Steven Mcknight 1st book. (0 to 130 properties in 3.5 years). We want to get the maximum out of what we have or what we can to invest as we are not young anymore.
All your valuable sharing is much appreciated.
thanks and cheers !
MingHi Ming, by what you wrote, it seems you already know the answer, all the options you wrote would be great investment strategies, however which one will get you closer to your Goal?
Improving your cash flow in times of uncertainty is always a sure bet.
Happy Investing
Hi Ming,
It depends on what your plans are – how long can you keep servicing the negatively geared properties? Are you closer to retirement and therefore need some cash flow from the properties?
The other thing is, at 60% LVR, your properties should be getting close to cash flow neutral to positively geared. Make sure your are getting market rent for your existing properties.
Personally, I will go for a cash flow positive property next. This could be a block of units or some property in a growing regional town.
Alternatively, you can look at investing the $60k into high return fund (>20% return) and use the returns to offset the negative cashflow from youe existing portfolio.
Hope this helps.high interest rates, financial market concerns, what's wrong with debt reduction?
Play it safe, reduce debt, this will increase your cashflow, less interest to pay.Hi Jon,
We are very conservative investor and NOT experience in investing.Todate we still do not know which of the following is the best option for us. Our Goal is to have 10 IP in our investment portfolio ie wait for 10 to double and pay off 5 and leave 5 debt free IP for retirement OR Aim to have 5 debt free IP for retirement. That is our goal. We have 10 years (starting from now) to archive this. WE try to find out more detail about each of them.
1. Country/Regional investment with + or neutral cash flow ?
I spend lot of time to read out all the past thread about country investment, so far most of them are negative. Thanks indeed for the valuable sharing by those who invest in Country region.2. buy multiple units for cash flow investment ?
All the while we have interest in this investment in view of multiple income. But this kind of properties mostly are in the regional area. Recently there is 4 units under single title at Cowra asking 400K+. Have a mix feeling whether should we put 400k+ into regional or 400K+ into capital city especialy in view of rental demand. Yet to confirm whether is there a rental demand at regional area.3. more -ve gear property in rising market state ?
We are trying to invest more in Mel as Mel's properties are still affordable to invest.
At the same time, we also looking at Sydney. A few consultants that we met reckon we can still wait for another 18-20 months (meaning wait for another 18-20 mths before we invest in Sydney.)4. buy off the plan properties?
yes, have seem a few consultant about that and there are many projects to invest. including oversea.5. buy units/apt ?
Yet to breakthrough our mindset of investing in units. we do not like to pay maintenance fee or sinking fund.In conclude we are no risk taker, no concrete decision yet, which of the above item are the best option. still doing research and all of your feedback are valauble to me, thanks indeed.
Hi PropertyPower, thanks for your sharing.
Hi Ming,
It depends on what your plans are – how long can you keep servicing the negatively geared properties? Are you closer to retirement and therefore need some cash flow from the properties?<Ming> We still can service 10 yrs from now to those -ve geared properties.
We are targeting to retire in 10 years time (from now).
We do not mind some cash flow from properties. As a matter of fact, one of our consultants who review our investment portfolio suggest us to invest something to reduce our debt. one of the method is buy off plan and sell it for Quick profit and help to reduce debts.The other thing is, at 60% LVR, your properties should be getting close to cash flow neutral to positively geared.
<Ming>yes, u r right.
Make sure your are getting market rent for your existing properties.
<Ming> I am not in Aust to monitor the market rent. I have to leave it our proprty manager to manage for us. thanks .Personally, I will go for a cash flow positive property next. This could be a block of units or some property in a growing regional town.
<Ming> Thanks for the sharing. We have been looking for block if units since begining of this years. Todate yet to get one. We have to be selective, this is because the bank will lend low LVR, meaning we have to come out more cash.Alternatively, you can look at investing the $60k into high return fund (>20% return) and use the returns to offset the negative cashflow from youe existing portfolio.
Hope this helps.<Ming> thanks for sharing another option to us. We have Null idea/knowledgw about fund. Too scare to lose the hard earn $$ in fund or share. It is more stressful than property investment.
cheers !
Hi Regina,
thanks for the idea. yet to digest your sharing.
cheers !
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