Forum Replies Created
I don’t ever buy based solely on returns – it’s a factor in my decision making process, but not a big factor. It depends on growth prospects and a myriad of other things so I don’t have a cut-off point I won’t go below.
For instance was looking at a group of properties that were returning about 3-4% which didn’t bother me as the potential was unlimited – best area possible to buy in at prices that were okay. Shame it hasn’t worked out so far.
Wow – another thread sinks into name calling and acrimony. What a surprise this is.
Is there something that has fundamentally gone wrong for this to keep happening. I don’t see this happening on Somersoft.
You may have difficulty getting finance under 50sqm. 5% for a serviced apartment is pretty crap returns, and they do not have a good history of capital growth. If you can’t find a more traditional IP returning 5% put your money in an ING account at 5.25% and you are already in front.
A.
Actually getting back to some classics at the minute. Reading “Crime and Punishment” by Fyodor Dostoevsky
Keep it! You seem to be able to afford $100 a week, so don’t panic. Clear your head of all this must be cashflow positive or else rubbish.
CF+ has a place in investing in real estate but it is not the be all and end all. Investing in real estate is still about the basics like location, development, proximity to services, potential for growth, returns.
Do yourself a favour (if you haven’t already) and read books by many different authors – build a well rounded knowledge base, rather than relying on a single investing idea that by default pushes you towards the lower end of the spectrum.
A.
Originally posted by AusPropQuote:Saving our butts??
The Jap’s took care of saving our butts when they bombed Pearl Harbour, if not I am sure we would be speaking Japanese at Fairfeild Mc Donalds,A foreign language being spoken at Fairfield McDonalds – surely you jest.
For non-Sydneysiders this is sarcasm as you do not hear English as a language more than 10km out of the CBD. [wink]
I’ll give a disclaimer first – I think chasing CF+ property is a poor strategy. That out of the way I’d say if you intend to hold the property long term for it’s cashflow then the fluctuation of value has no effect on you unless you wish to use equity to fund future purchases or banks get into a margin call situation if values really dive below loan balances and they get nervous.
I’d forget about searching high and low for CF+ and continue down your current path of buying existing property on large parcels of land and sub-dividing. I think you will do much better in the long run that way.
A.
Kay – agree that CF+ is mainly about cash flow and not CG. My point was more that the value of many properties in towns of several hundred people have been pushed far beyond true value – and that pursuers of CF+ do not automatically make property prices reach true value equilibrium and stop rising as the Dalai Llama has suggested.
If CF+ values sink does it not still affect your ability to borrow – equity drops even though cash flow may still be there.
Originally posted by dalilama:
Buyers of +CF properties do no artificially raise prices, they just raise prices of underpriced houses to their proper level.Dali
I have to disagree wholeheartedly with this statement. People desparate for CF+ have driven very ordinary property way over it’s true value. Wait and see what happens in the next 2 years to the value of the CF+ house in a town of 200 people you were so happy with in 2003.
I think it is because it is basically the same questions or opinions being stated over and over. How many times can you reply to “Where are all the CF+ properties..” or similar.
This forum doesn’t have the variety of Somersoft, but has a lot more active posters – you don’t see forums here without posts for several weeks. If you could somehow combine the two it would be great.
I think there are at least 2 distinct residential markets with their own patterns and perculiarities. The unit market and the established housing market.
The unit market is in major trouble, and there will be blood in the streets. The established housing market is starting to soften but I can’t see any disasters befalling this sector, just small price yo-yoing.
Martin,
I’m pretty sure that the today tonight program hasn’t failed – there seem to be several participants who still post here and are doing quite well. As for the details of what the program was trying to achieve, and whether it was really a challenge, that is another story altogether.
I don’t follow Steve’s ideas in the least but this forum is quite handy to share ideas etc with like minded individuals. It is a far more agressive environment now than it was 6-8 months ago.
You are just going to piss people off by coming in with your big stick saying this can’t be done, that can’t be done, he’s a liar etc etc etc, especially when people are still successfully using these methods.
I saw the book as more of a story than a guide btw, a re-telling of what was achieved and how it was done, rather than a Tony Robbins style, guru swami, do as I do or be poor forever presentation.
Perhaps if you just presented your argument a little less self righteously you may get more level headed answers. Call me a dickhead and I’ll call you one back – challenge me constructively anf I’ll give you my views and we can have a debate, not an argument.
A.
Hi Kay,
negotiating on five at present. This was a deal I couldn’t pass up on, but apart from that no plans to invest in Australian or New Zealand property for the coming year or two.
O/S is another story all together[biggrin]
Originally posted by 1HotValuer:Who cares ! Is it positively geared?? Then whoopee good for you ! Don’t listen to the doomsayers.
Takes a bit more than just being CF+ to be a good investment. CF+ isn’t always important anyway.
Have you ever been to Queenstown? [blink]
As for Tasmania boomin it started around 2002 and is really hitting the top in prices now.
We have several properties in Lton and Hbt but not outlying areas or mining towns like Queenstown.
Originally posted by Pelicaninvestments:If the contract has expired, then the agent had no leg to stand on…. The potential buyer can do as they please….
If Neil Jenman wants to be so idealistic, he can start by donating the millions of dollars he makes each year from his franchising system, to people who can’t afford a home of their own…..
Sounds like Mr. Jenman now is changing his tune to protect his own business first, instead of the consumer….
My oh my, what a tangled web of deceit……………
Little bit bitter Pelican? Starting to lose count on the amount of times you’ve had a go at Jenman. Give it a rest for a while.
I don’t quite get the point of this thread. There are many different opinions and strategies employed by contributors. I personally don’t follow Steve’s ideas very closely, but I enjoyed the book.
Perhaps there is more money in developing a good loan product for people to use for o/s purchases that remove exchange rate risks, but have the necessary legalese to protect all parties.
Sorry Craig but you are a bit late to the party. You’ll need to look harder and further to meet the 11 sec rule.
Don’t get suckered into thinking this is the only rule in investing in property – it’s not even a rule, it’s a guide for returns exceeding costs.
Still doesn’t mean a place is a good deal.
