Portfolio mix and return (Sydney properties)

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s michie
Member
@s-michie
Join Date: 2007
Post Count: 3
August 31, 2008 - 4:28 pm
People are saying that investing in Sydney market is not such a great move. We brave it anyway. We have been investing since 2006. With return of a bit over 6.3%-8.8%, we are still on the negatively geared mode. We purchase all on 95% LVR.
My question is, what to do now? I know we have to wait until next financial year tax return, or we can lodge a variation form to tax office to have the funds for next purchase. But in the mean time I do not want to be in idle mode.
Any suggestion?
WJ Hooker
Participant
@wj-hooker
Join Date: 2007
Post Count: 272
August 31, 2008 - 10:14 pm
s michie,
I think you are very brave to jump into the Sydney market at the moment, but fortune can favour the brave.
I don't know your personal details or how you get your figures etc, but I personally would be trying to pay off some of your loan at the moment and get that 95% LVR down. I have worked on mine for the last 4 – 5 years and its now down to about 25%. I am now waiting to jump back in as the bottom is coming soon.
Try not to get too carried away with your investing, property is a slow as she goes, gradual growth over many years process, with some spectactular years along the way.
Good luck.
Wealth Accumulator
Member
@wealth-accumulator
Join Date: 2008
Post Count: 67
September 2, 2008 - 3:33 am
s michie wrote:
But in the mean time I do not want to be in idle mode.
Any suggestion?
If the interest rates down trend you will gradually gain more cashflow to be used elsewhere.
Maybe it is time to diversify into other asset classes (shares etc) or property in other states.
Need to ensure that any changed income situations don't blow a hole in the gearing strategy – eg : one income rather than 2 for a period of time.
You could consider an off the plan purchase – likely to become popular with the interest rate decreases predicted.
check out the units on this webpage – http://www.Brisbaneunits.com. You only have to make a small deposit now with the balance being paid when construction has finsihed.
Remember the aim is to accumulate enough NET assets to allow you choose whether or not you want to work for a living or have your investments fund your lifestyle.