Forum Replies Created
G’day Luckyone..
I very much doubt it. In 1995 many home owners in areas like Banks etc, owed more than the house was worth. The Banks knew this of course. But could you imagine the panic if they had called in loans or looked for Mortgagors to reduce debt?
They simply sat it out. That is not to say, that if you are heavily exposed with a LOC, that you may not get a friendly call from the bank. But to answer your question…I think you’ll be okay… not like a margin call on Shares.
Cheers
Bill
Bill O’Mara
Real Estate,Mortgages,Share Market Strategies.
[email protected]G’day Akyboy…
Canberra is a good place to purchase a family home and hold…but don’t expect to buy in the last legs of Bull Run and make a quick profit. The time to have invested in Canberra recently was when nobody else was game to…’94/95.
Family home, you buy when you need to provide long term security for yourself and family.Are the prices inflated in Canberra?… Very much!
Are there areas to avoid in Canberra?… All ACT
Are there areas to pursue? …………Not in ACTIt would not take much research to confirm the above. Canberra is a volatile market and runs to the extremes in Bull and Bear Markets.Even the top suburbs will come off 10%. Others 15% to maybe even 25%… just as it did in 1994/95.
You have little choice but to wait 2-3 years for Canberra to be a good Investment again.That will include Qbn and any town within an hour or two of ACT, as that is the market that feeds the others.
Be patient…Hold if owned for a year or more, but don’t buy for investment Today!
Bill
Bill O’Mara
Real Estate,Mortgages,Share Market Strategies.
[email protected]G’day…
Not massive, but keeps the place tidier, a sign on letterbox…
………….No Junk Mail……………………
Bill
Bill O’Mara
Real Estate,Mortgages,Share Market Strategies.
[email protected]G’day xyzzy….
Just as long as ya moderate in moderation..okay?
See ya
Bill
Bill O’Mara
Real Estate,Mortgages,Share Market Strategies.
[email protected]G’day to all that have responded…
There is two types of research that you can do.
(1) Talk to like minded people, Developers,Brokers
Real Estate Agents,Sellers… if you are looking for confirmation that your purhase or intending purchase is a good idea….OR(2)Talk with those that don’t have a vested interest in Real Estate. If you are considering a purchase in Regional areas or a Country Town or anywhere for that matter… get dirty, don’t just ring Agents or get on the net. If you do ring an agent, tell them you’re considering selling and you are worried about the market and you want a realistic saleable price… ask them is the market a bit softer or if you can sell for the same price today as 3 months ago, talk to the locals at the Pub/Club, talk to the trades people doing repairs on rental properties.
Keep records of anything that will tell you what direction the Market is heading, Auction numbers, clearances, time on the market, sale price compared to original asking price. Rental Vacancies by the number of Properties, number of columns, number of pages etc.
Only in doing (2) have you done any genuine research…(1) is loooking for someone to tell you what you want to hear.
Am I suggesting you sell? No
Am I suggesting you buy ? NoI am, suggesting that you do genuine research, so that you can really “feel the market” and in your heart you will know. You will get that “gut instinct” that tells you that “this is right” or there are “warning bells”. Your research will not only tell you what to do, but where and when.
Cheers
Bill
Bill O’Mara
Real Estate,Mortgages,Share Market Strategies.
[email protected]Diclem…
Did you mean Wife or Life?
Bill
Bill O’Mara
Real Estate,Mortgages,Share Market Strategies.
[email protected]G’day Peter…
As I suggested the bank won’t lend for the reason I suspected in the first place.You won’t get into any argument with me or Prop16 even though they have proven, not be what the title of the post suggested. I don’t think you would pay $80k for a hotel room just because it is cf+ for the reasons you said.
The 15% is by way of Bank rate plus % of income the investment generates. Historically(20+ years)the returns are staggering, and the suggested return is about a 25% of traditional returns. Nothing to do with what you have suggested like 2nd 3rd mortgages with someone without the capacity to service or secure.
You don’t all have the facts Peter, I do and that’s why there’s no argument from me.
Cheers
Bill O’Mara
Real Estate,Mortgages,Share Market Strategies.
[email protected]G’day Carmel…
Sounds as if you are talking to a Financial Planner that is tied to an Insurance Company.
In selling your Manly property where were they suggesting you invest the proceeds?…maybe into something like “Portfolio Care” or some other innocent sounding plan, but with big fees again
and small returns to go with it.If it was me I would keep the Manly property and utilise the $150,000 for “Option Writing”. If you’re not sure what that is…… it’s the opposite to what most “punters” do in trading options…the difference is, I sell Exchange Traded Options and receive the premium that generally returns me 10-15% per 90 days or less.
Obviously not without it’s risks, unless you know how to substantially reduce and manage the transaction.But…that’s for me and maybe not for you ?
Cheers
Bill
Bill O’Mara
Real Estate,Mortgages,Share Market Strategies.
[email protected]G’day Michael…
In 1992 I “systemised” our property Mgt. It took 12 monts…Wow..what a difference. I differentiated our services and as the Landlords “interviewed several competitors including us…the opposition didn’t stand a chance.
You are right when you say that $$ was never the major consideration. Those that sell themselves short on fees cannot to give a satisfactory level of service. We set a standard for both Landlords and tenants at the outset…got rid of lousy landlords that wouldn;t keep properties up to scratch… We one out ” Because we could verbally “describe our services as a process”,, Fees never an issue… Landlord,tenant & Agent were a team. It Works.
Cheers…sounds like yourwife does similar.
Our fees..7% of rent + first 2 weeks letting fee
Bill
Bill O’Mara
Real Estate,Mortgages,Share Market Strategies.
[email protected]Hello Huey…
I think of Vietnam some days and most nights.
Most good but some sad thoughts too. Didn’t mean to be pushy sorry. Just keen to exchange info,Yes I will help you. I am doing a fund raising Motor Bike Ride in 2004 from Hanoi to Binh Ba… a Battle ground ..June 6th 1969, I managed to take the only photo of that Battle in the middle of it all, Could I send you a couple of links from my old Battalions web site…couple funny incidents and a sad one?
I support a family in Quang Nam Province…this year I have bought..push bike, clothes, school stuff chickens, pigs a cow and roofing material for the families shack… more later..lots more
Let me know if i can send links to yoy please Huey… My heart is still in Vietnam 34 years later.. Cheers Bill
Bill O’Mara
Real Estate,Mortgages,Share Market Strategies.
[email protected]G’day Normie…
Received your email and will advise over the weekend. Just make sure you don’t lose your equity on some hairbrained scheme.
Talk later
Bill
Bill O’Mara
Real Estate,Mortgages,Share Market Strategies.
[email protected]G’day Picard…
I suggest you talk to a lender that knows what they are talking about. It is a FHOG not FIPG.
You were always right.
Cheers
Pte. Bill
Bill O’Mara
Real Estate,Mortgages,Share Market Strategies.
[email protected]G’day Enveeus,
Any chance of capital gains, as experienced in the past 3 years, is highly unlikely to continue
for some time.If anything a decline in prices together with interest rate rises is a more likely scenario.
Your accountant is obviously not qualified in Real Estate and suggest you do not take his advice.Steve and other Investors started several years ago, and what has applied over that period probably doesn’t apply today. All states have experienced massive increases in price, as have the US and Great Britain… nothing this good lasts forever.
To get in now…in my opinion, would be financial suicide as you don’t want to blow the equity you have built up. You may end up losing $2 to save $1 in Tax…
If you were fortunate to find a property at say $50-$80k it may be cf+ but that will be at the expense of any CG. Rarely do the two go together.
In a nutshell…for now, you have missed the Boat!
To give yourself any chance you will have to be patient and wait a couple/three years to buy into the next cycle.Sorry I know it’s not what you wanted to hear.
Cheers
Bill O’Mara
Real Estate,Mortgages,Share Market Strategies.
[email protected]G’day Huey…
Well…email me and tell me where in Vietnam you were from etc.
Bill
Bill O’Mara
Real Estate,Mortgages,Share Market Strategies.
[email protected]G’day Peter Bear…
1) Why complicate it… just get the vendor to agree to discount by your costs. Yeah..I know what you are trying to do!
2) Don’t do it
Cheers
Bill
Bill O’Mara
Real Estate,Mortgages,Share Market Strategies.
[email protected]G’day Fudge & Wizzard…
Wizzard….Absolutely…Like minded people for all of us, or it won’t work out in the long term.
Fudge…you got it…like a credit card..no interest until you use it, but there when you want it. Let me have a look at your spreadsheet please?
Bil
Bill O’Mara
Real Estate,Mortgages,Share Market Strategies.
[email protected]G’day Deborah….
You keep asking my favourite Q’s.
If they are Strata Title…keep them.
If Company title SELL.Please clarify as to title, location etc
Bill
Bill O’Mara
Real Estate,Mortgages,Share Market Strategies.
[email protected]G’day Fudge…
LOC …is a Line of credit.
Best way to understand…it’s just like a big bit a plastic “credit card” ….not a $5k limit but $50k maybe $250k or somewhere between.
Fantastic if used for investment… but in the wrong hands could be, and is,
an absolute nightmare.If you like I’ll send you a sheet with boxes on it, and over the phone show you how to structure your mortgages..
Cheers
Bill
Bill O’Mara
Real Estate,Mortgages,Share Market Strategies.
[email protected]G’day Deborah…
I am aware of the structure you are speaking of and if you check around you will find that their is little to no after the deals done service. Suspect you are speaking of about $4,000 fee.
The reason I am so aware of the Program is that ALL Mortgage Reduction Programs in Aussie are a copy of my original version, now 10 years old.
All you need is to have your financial details input into my Program and it is without any cost.
I will thern email back to you your completed 9 page plan…. but there’s a few in front of you at the moment. Next week ? Many from the Forum have already had theirs done and another 6 on my desk as I try and type my response to you.Forget the groups you are speaking of or to, as it sounds like a “One Stop Shop” to me, that is, they control the lot…in house valuers, solicitors etc etc…………Stay well away.
Cheers
Bill
Bill O’Mara
Real Estate,Mortgages,Share Market Strategies.
[email protected]G’day F&B…
Mel is spot on. In structuring your finances in this fashion, you achieve much better control of your borrowings and increase your capacity to borrow more and if you do it right your Ip’s will be “stand alone deals” You become your own Banker.
I strongly recommend anyone with equity, that you arrange a LOC now rather than later. Even if you don’t use it on property for the next year or two it can be used for any Investment you wish. If not used there is no interest cost to you.
Just don’t blow it on a slow horse or $5-$10k seminars/Bootcamps.
Cheers
Bill
Bill O’Mara
Real Estate,Mortgages,Share Market Strategies.
[email protected]
