Forum Replies Created
Hi All,
First car was a VW Beetle because my father thought it was a safe car absolute rubbish and those people who have driven one would know what I mean. Current cars EL falcon 97 station wagon gas doesnt miss a beat 2 nd car EL Fairlane 97 just as good.Martin[biggrin]There are 3 types of people:1. People who make things happen.
2. People who watch what happens.
3. People who wondered what happened.Hi Celivia,
I too hope things turn out right its a big step. But one thing I can be gateful for is that my wife and I started out in this property investing cycle approximately 11 years ago after being university students paying other peoples rent. We were totally into this negative gearing thing which at the time was in. After reading books and going too seminars (not paying much of couse we we just out of Uni) we continued too purchase properties and through sheer accident definately not planning we were hit with the property boom before then we were scraping too make ends meet. With the property boom and two children and property sold we now live in our dream home a little bit wiser in property investing. Guess what the opportunities we had several years ago have gone and thus we are now looking further afield which is even more scarier which led me to post this. I’ve researched and it looks good I to hope it works out what are the other options other too stay in the job where I am at for the next 23 years.MartinThere are 3 types of people:1. People who make things happen.
2. People who watch what happens.
3. People who wondered what happened.Hi Liz,
I dont have the Defence House any more I decided to sell as the market was continuing to go up. I think I made approx $75000 profit on it in just over a year. As mentioned before I purchased the property off a real estate agent not through Defence Housing. Defence Housing value the property in regards to rents yearly and just before I sold it they increased the rent another $15 per week.$30 per week total increase for a property I had for just over a year is good.I guess you need to do the figures as to whether its a good investment or not or whether there is a big upside for capital growth.If you like post the figures and where the property is located. Good Luck anyway. Martin[biggrin]There are 3 types of people:1. People who make things happen.
2. People who watch what happens.
3. People who wondered what happened.Hi Maria,
If you purchase a property for $225000 this is how I calculate whether or not to continue.
Purchase $225000 plus set up costs of approx $7000= $232000
7% interest only repayments = $312 pw.
Rates $25 pw.
Body Corp= $50 pw
Ins = $14 pw
Grand Total $401 pw best case scenerio ie no repairs interst rates going up etc.
Rent received $275 pw
=loss of minimum of $126 pw.
Of course I havent taken into account depreciation. But in the end it is up to you. Good luck[[cap]There are 3 types of people:1. People who make things happen.
2. People who watch what happens.
3. People who wondered what happened.Hi Tina,
It sounds as if you are getting the idea.There is no wrong way or right way to invest in property everyone has their own style. Some people mix it up, some people stay with the same plan. As long as you are well researched and have thought things through and are comfortable with the course you are about to undertake go with it.Another book I would recommend is Rich Dad Poor Dad it certainly provided me with inspiration to get into property investing.Use this forum as a way of gaining different ideas on how to invest, also the members will help you with problems that may arise, bounce ideas off them but remember there is no right or wrong way and anyone who pushes their views as the be all and end all are not to be listened to.[biggrin]There are 3 types of people:1. People who make things happen.
2. People who watch what happens.
3. People who wandered what happened.Hi Daaussie,
he properties I have sold have risen a great deal in capital growth but not so much in rental, most of them were costing me money each week to service them. Now I have cash in the pocket debt has been reduced considerably and I’m in the strongest position I have been in years to purcase property. The property I have kept is either cash flow neutral but in a great position or is putting money into my pocket each week. The strategy of keeping the properties that earn you money each week is a sound one providing you can see that there is going to be capital growth there. ie I dont believe keeping a property that is putting $10 pw into your pocket with little chance of further good rates of capital growth not on the horizon, when you could sell it now and take a good profit from it and reinvest in other areas or markets to get better return and growth.[biggrin]There are 3 types of people:1. People who make things happen.
2. People who watch what happens.
3. People who wandered what happened.Hi Jenny,
Must agree with Junkers, all we did was paint over it with 3 in 1 and painted it a light colour it came up well.Good Luck with whatever you decide to do.There are 3 types of people:1. People who make things happen.
2. People who watch what happens.
3. People who wandered what happened.Hi Del,
Good Luck with the new project.Is this your first development?[biggrin]Martin
Hi Tina,
Hope you are still reading this thread,the last 2 entries are from people who know and have been in the game (Mini and Don and Liz)they wont sugar coat it they will tell you how it is, these are the type of people you will benefit from.As you continue to be part of the forum you will recognise the people who have something to offer and those that dont.Love your response Mini.[biggrin]Martin
Hi,
Back again,agree with Marc 100%. My father used to tell me that there were 3 types of people in this world :1.People who made things happen.
2.People who watched things happen.
3.People who wondered what happened.
Good Luck. Martin[biggrin]Martin
Hi Westan,
I agree, stopped buying in Australia 2 years ago and have reduced property portfolio by 5 houses/units in past 24 months to reduce debt and look at other markets. Thats not to say if a good deal comes up in Australia that I wouldnt have a go at it, its just that its harder now to find good deals.MartinMartin
Hi Tina,
Congradulations having 5 properties at the age of 24, magnificent. My wife and I started investing at about that age and we certainly didnt have that many houses. One question I must ask you is how much equity have you got? Did you purchase all of the properties over 1 year or over several years? Where are the properties located? What is your ratio of equity to debt? Do you both work?Do you have children etc. The reason I am asking is that all these factors must be considered to decide what you want to do.My wife and I have owned a number of properties. we have sold some and have placed all of them on interest only to free up cash, sure the debt doesnt go down but have you seen how much it goes down wth P and I payments in the first 5 or 6 years not much. As for interest only for a short period of time my bank offers it for 5 years and then reviews it, thus you can negotiate it again.Go ask your bank, as to what rates and repayments will be if you do decide to go interest only.Another thing I hope you are getting a discounted interest rate due to your borrowings.All the things you have suggested can be utilised to reduce debt and increase income,so do a bit off all. Sell a property that isnt performing and reduce debt, refinance to an interest only mortgages, reassess your rents to see if you can increase,continue too look for bargains that would provide cash flow as well as capital growth, this may mean looking in other states or countries. Very important keep improving your knowledge and do due dilagence.There is always risk involved when investing but I believe it is more risky not doing anything.Another important lesson is to recognise that there are people out there including people on this forum that have a reason not to do things and will be negative, while they may have valid points they certainly dont talk about the positives of property investing.There are plenty of people out there that will give you helpful advice dont listen to a scaremonger.I’m married with 2 young children we have been on a single wage for 7 years I’m 36 and a nurse. Without property investing there is no way I could say I own my own house and own outright 2 rental properties,on my wage.Poor Torachan sounds very bitter.If you disagree please read his other threads.MartinMartin
Go Lions[biggrin]
Martin
Hello all,
Unfortunately Guzzi hasnt replied,have sent PM.Martin
Dear Johnny,
Markets go up and down, thats a fact. The important thing to do is ensure your not overly exposed ie that your loan to value ratio is in good check, that you can afford an interest rate rise of 2%-3%, you properties are in a well located position, attractive to tenants, you have some cash reserves. If you are not on top of all these things this increases your risk to outside forces. Unfortunately some people have left themseves exposed and may suffer the consequences.Any investing is risk taking but there are ways to minamise risk and damage.Good luck[biggrin]Martin
Scared of what?Guzzi[blink][blink]
Martin
Hi O’Sienna,
Lots of people were investing even when interest rates were at 10%Could you please tell me why you think that the property market would collapse if interest rates rose to 10%Thanks[biggrin]Martin
Hi Techhowse,
Get your degree, get a job continue to research property. Banks are more readily to finance a person that has a job than if you walk in and say give me money I’m an investor.Hecs is not such a great big deal, you have plenty of time. Most of the investors I hope started because of their love for property and finding great deals, most I hope do it because they love it. How else could you explain grabbing the whole family on weekends and looking at x amount of properties and then having your young kids pointing out the problems. Real Estate is not a get rich quick solution and those who quote it is have only been doing it for a few years, there are a number of investors who have been doing it for longer know the ups and downs, trust me my wife reminds of the not so good times.Good luck[biggrin]Martin
Hi Mini-Mogul,
Sorry Ididnt understand what you were saying in Maori can you please translate? One of the things that I do miss about New Zealand is the great food in particular going to a Hangi(Hope I spelt that right)best food.Hi Kiwi-Fulla like the reply must remeber to use it some time.Last visited North Island approx 7 years ago must say the scenery was fantastic.[biggrin]Martin
Hi Damian and Tam,
I was lucky enough to start investing 9 years ago and have since purchased a number of properties. First I started in my home town, as deals became rarer I looked to various parts of QLD, now I am looking overseas wheter it be USA or NZ. It is very difficult at present (in my opinion) to find cash flow positive property with little money down at present in areas which have a good chance to increase in capital growth. This means you need to be creative in finding ways to make the property return a positive outcome for you. If I had the magic solution I dont know if I would be sharing with everyone at least not for free[biggrin]. My suggestion is to research, research and research. Have a read of Steve McKnights latest book there are a few ideas in there. As for finding well located positive cash flow property just wait cycles come and go. Interest rates will rise and those investors who have not prepared themselves for changing cycles will be caught out, and those investors that are ready and cashed up are waiting for that to occur.Good luck, if I were you, I would just hold off and wait and see what happens, keep the cash handy and be on the lookout for good deals.Martin
