Forum Replies Created
reno's are pus and pain. Unless you buy a house for less than market value forget about it
The project builders would have it finished quicker. They help you with council and speed the red tape along. It will save you lots in rent and you should get a good finished product. If you have time on your side and are happy to take 2-3 times as long to build the house then you could save yourself $20-$30K
Trying to pick the bottom of the market is difficult. It isn't going down where I am. Prices have fallen over the last year by 5-10% but people are buying houses again. Waiting for property to come down in value may be overly optimistic. I remember in 1983 in the recession we had to have that people were expecting prices to plummet. Let history tell the story. Property has had the dip in value and although spectacular gains are unlikely for 5 years, the trend will be slowly up again. The world goes on. Inflation will take the prices up. Never look a gift horse in the mouth
Get into it
1st homebuyers have never had it so good.
No stamp duty less than $500K
21K for a brand new home. 14K for your first home. I wish I'd had this opportunity when I bought my first home. This candy won't last. It's expected to be removed in June 2009. If you don't take this opportunity you're crazy. Rent and wait is crazy if you can afford the repayments. The bottom of the market is nigh. The government is giving you 21K for a brand new house. I bet your parents can't afford to do that? Get on the gravy train. This won't lastThe alternative is to rent and watch the property market reverse and live in regret for the rest of your life. It's a deal, it's a steal, it's sale of the century
There is lots of negativity around property at the moment
Most of the richest people in the world made it in property. Property is always a good investment (always a few exceptions of course)
Property should be viewed as a long term investment.
If you can afford to cover the repayments if you have no tenant you're OK. Could you afford 12% interest rates? Who knows what might happen in this crazy world?
Location, location, location. Your exit strategy will be resale. Will people want it? eg views, close to ammenities, holidays etc.
If the ATO is paying your repayments, what's the problem?
Negative gearing is a shitter if you'll need to sell it especially in a falling market. It could lose 10% value over the next year or two. If you are happy to sit on it for 5-10 years it should be a good investment.
Positive gearing is always best but harder to find.The only people getting rich from these sermons are the people running them. However, I think all information is useful. Everybody has different circumstances and attitudes to risk. Not everything will work for you personally. It is however useful to study other peoples success and how they made their fortunes. It's a bad day goes past when you don't learn something. The reason many of these courses don't work for people is because they go home and say…………."I can't do that" or "that won't work for me" or "that's impossible" or "you need money to do that" or [ add appropriate excuse for not taking action].
Nothing works if you don't get started
You don't go bankrupt if you can afford to pay the mortgage. If you can afford the debts you have, it will only get easier as interest rates go down. If values go down, you only make a loss if you sell. Hang in there. The wheel turns around. Property will eventually go back up. There is no denying a recent downturn but you only lose if you panic and sell. Buy up, hold tight…………the light is at the end of the tunnel. There are some good bargains around. With all the speculation, don't over extend yourself at the moment. A reserve of cash would be wise in current climate. Some people will make their millions out of this downturn…………..they always do. It could be you
You will be rejected many times. Don't let it bother you. Keep sending resumes and doing follow up calls. If they are impressed they will file your details for when a position is available. It's like cold calling. You will get 999 rejections for every 1000 calls. Don't take it personally. Build a bridge and keep going
1.You could sell both properties and buy your PPOR and owe little or nothing depending how much CGT you have to pay and how much you spend on your own house. With the equity of your own home you could buy one or two properties to negative gear and have only "good debt". It depends on how badly you want your own castle.
2. One property is +ve geared I think and the other is fairly neutral. You could buy another property to gear with your cash savings and continue to rent. This would help you grow your portfolio. With $50K cash you might even be able to find a +ve cashflow deal somewhere depending on the prices.
3. With your equity and cash deposit, you might be able to buy two properties to negative gear if you are still able to pay the rent.
4. Move into your unit where you only owe $72K. The repayments are probably cheaper than your rent. Use the $50K to buy 1-2 more IP's.
I think it depends on how much you want your own place. With your low debt, cash savings you can't lose. Take on a bit more debt and risk to lleverage your portfolio a bit further. That depends on your attitude to risk. It seems you are quite comfortable.
A knowledge of the industry helps. Read as much as you can about what it is you want to do. Research famous people to see how they got started and what made them. The squeaky door gets the oil. Send potential employers resumes. Ring them up a week later to see if they got it. Keep annoying them until they at least take the time to interview you. You'll piss some of them off but if any of them are looking for a go getter they might at least give you an interview. That's when all your reading and research will be invaluable.
or
Start your own. Start with a small deal and keep going bigger. That's how they started
Time in the market is more important than market timing. If the right deal comes along, get into it. Haggle a bit off the asking price. Go to auctions. Research foreclosures in the areas you are interested in. Get into property. Australia's richest people have no regrets
What are your building costs?
What are the earthwork costs?
What are the demolition costs?
What are the subdivion/strata title costs (if any)?
What do you owe?What do you estimate the value of the buildings will be worth if the market drops 5%? ditto 10%? Does the value post construction put you in front following the costs that will be required to build the duplexes? It's all about the numbers not the theoretical value in the next boom. You must have an exit strategy where you break even as a worst case scenario.
With falling interest rates it may be a good time to develop however, building costs have gone up a lot recently
hbbehrendorff wrote:But how is that possible ? Property only goes up…My advice, Chill out for another 2 years, Get some more equity, Upgrade your 6.0 SS to a 4.0 Typhoon, Buy a jetski and think about how rich you will be in 2010 because property doubles every 7-10 years Thats means your property will now be worth $860 000 then in 2017 it will be worth $1,720,000 wait how about I just make a table for you.
2024 – 3,440,000
2031 – 6,880,000
2038- 13,760,000
2045- 27,520,000
2052- 55,040,000
2059- 110,080,000
2066- 220,160,000WOW by the year 2066 you will be like a 200 millionare you will be able to employ 100 servants and you will have your own personal space rocket in your backyard, And you never even had to work for it !
I love you magical money, your the best
When I was a kid I used to listen to people like you. I wish I hadn't
If you need to sell drop the price. If the repayments aren't killing you, hang in there at $370. Can you do anything to make it more desirable? Sell the dream. A bit of bling. A bit of paint? Rent/borrow some classy furniture. Some nice wall hangings. Make it look like a display home. If you have tenants get rid of them. Some tenants that don't want you to sell it will leave it looking like a tip when people come to see it.
Attitude to risk is the answer
The conservative approach is to hold cash and wait at the moment.
There is some bargains in the share market
There are some bargains in the property market. Many people turn to property in these times and with falling interest rates, it may get even better.
Location, location, locationIn Perth there is a crane shortage in the CBD due to the building boom.
What recession?
Interest rates are falling
The share market is probably about to bottom out
Investing is always risky but with falling prices and interest rates, it hasn't been this good for years……..if you take a medium to long term look. Certainly not a great time for flips or renos.The RBA knows what's going on
Kevin Rudd has no clue…………one term wonder. He may graduate from sock puppet to muppet in this turmoil. It's embarrassing watching him on TV.
1% reduction was to stop us plunging into recession.So that millions of people don't start defaulting on the loans?
The main reason is so that banks can do business with each other. When the money dries up between banks, the economy stops deadThe internet is global/national and local.
Most small business cater to one postcode. The internet brings the world to you. Your market is potentially billions.
Only you know how good your product is. I would suggest you get a professional website building company to build the site for you. Sit down and have a long think about what you want. Explore the web to look for similar web sites to get some ideas. You need to get words that come up in search engines.
Once it gets started, you will pick up referrals if you do a good job. Send all your clients a small gift of appreciation like a scratchy. It costs you a dollar but there is the hope it may produce a bigger windfall.
Trolling websites to attract a few gullibles isn't going to put food on the table. A professional website and an excellent marketing campaign is what you need to get started. It doesn't hurt to provide a good service or product howeverScamp wrote:CHIS wrote:Other countries in the world are on a totally different economic cycle to America. America sent itself broke on needless wars and ridiculous lending to sub primers.Russia is booming
Asia is booming
Australia is boomingoh.. wait a minute.
Russia is booming : Is that why they stopped trade on the sharemarkets twice because they were crashing worse than USA ?
Asia is booming : oh… let's just ignore their 50% sharemarket crash.
Australia is booming : oohh… is Australia booming ? Last time I saw the ASX was down about 50% also.Yes, it seems the USA is the only one in trouble.
Wake upPutin is turning Russia into a new super power. There sales of gas and oil have the economy cranking.
The share market is a a poor barometer. Mum and pop investors are bailing. So what? BHP is selling millions of tons of raw materials to international markets. Big business in Australia is kicking arse. You see doom, I see opportunity
