Forum Replies Created
- Quote:Originally posted by padmaa23108:[/i
At no point in my post was I suggesting to go and buy 10 properties outright. I was merely pointing out how much equity you have and how you are not using it to your advantage. I am saying this with great trepidation, but at the moment seems to me you are making everybody else richer than yourself (taxman etc.,).Padmaa – I didn’t take that comment too literally, and appreciate the point you made about what are our possibilities. For a newcomer to property investment it seems overwhelming – but slowly I am getting my head around it. Just when you think you’ve got something worked out, someone puts another spin on the idea. I suppose that’s when you have to decide what is best for you.
The taxman is certainly getting richer through us and I am keen to keep as much as I can in our own pockets. I am looking forward to the day that I claim more than just my drycleaning and calculator!
[evo]
I am taking all this in, so thanks for your comments.
As “luck” and I emphasise “luck” would have it, we bought our first home in 1985 and second in 1997.
I think at this stage we will use the time wisely and really take our time looking for the best deal(s). We are certainly not considering using debt to live off (I’d rather use an income derived from working to do that). Also 10 properties in this market seems a bit unwise IMO, too.
BTW, we have also looked at commercial properties. I suppose the same principles apply to commercial as they do for residential?
I agree, of course, that interest rate rise is a huge factor as it can turn a CF+ into a CF-+ instantly. We are using an extra 2 percent in our financial analyses of properties.
Comments over the regional areas scare me a bit as these are places that we’ve been looking. Does the same apply for coastal/coastal fringes?
BTW, as I am very new to the forums, how do you add the “blue quotes” to your postings. Is it a cut and paste thing?
BTW I am a she and hubby is a he.
Det. [snitch]
Derek
Our Goal: We are in our early 40’s and don’t really want to work until 60, if we don’t have to, so passive income and early retirement is a goal. If not early retirement, then we would like to be able to travel and enjoy retirement without relying on super only). We both enjoy (but not love!) our jobs, so we are not looking for a quick escape by investing. We are also very interested, and always have been, in the property market. We’ve subdivided before and bought and sold over the years to put us into the situation we are currently.
Timeframe: We would like to achieve this in approx. 10 years, although would like ongoing investment returns when we have retired.
Risk: We are both not big risk takers, but not totally adverse to a little risk – as long as it is calculated and well-researched.
Cashflow: Own home, cars etc. and have no debt (inc. credit cards) so any cash coming is either saved or spent. We’ve got two boys with expensive interests which manages to take care of any surplush cash flying around.
Since paying off our home, we said we would have a few years off without a mortgage – enjoying what we earn and taking it easy. Surplus money made through subidivision was put in bank – looking back now, we should have put it straight back into property.
Det.
“If You never never ask, you’ll never never know”
[/quote]Thanks everyone for their input. Yes, indecision doesn’t get you too far and mostly I am a very decisive person. Knowledge is power, so thanks for your “expertise”. Much appreciated.
Det. [evo]
Yes, there are more ways to invest than just property. I suppose it’s about educating yourself and choosing the one you are most comfortable with at the time. Thanks for the thought.
Det[suave2]
Thanks Foundation and Smethem
Maybe it’s wise to just sit and watch (and use the time doing a bit extra due diligence). We would really like to buy an IP (we feel like we have learnt so much already, perhaps have a lot of things ‘doing’ but haven’t actually ‘done’ anything. I’ve sent my husband all over the countryside and we’ve recently put offers in on a few places and had one accepted (total cost would come to approx. $650). This was before the interest rate rise. Personally I thought that it would be putting all our eggs in one basket and if we really needed to sell something, then we would have to sell our entire portfolio! We have decided not to go through with this one.
I agree with all three points. Personally, I like the idea of buying and holding (probably because it’s easy!) so that is a criteria that we’ve been looking for too.
We are also nervous about using our beautiful home that we have worked so hard on as security. We know that is the way to move ahead, and I think we have to acquire the courage to get past that.
Foundation, we might join you on the sideline for a bit. Sounds a bit more relaxing anyway.
Det.
Simon, I was going to ask if anybody had dealt with Hunter House Hunters before. They seem very professional from the info on their website and as we too are time poor, it seems like a great service. I am now prompted to give them a call. They also cover most of Australia, I think. Thanks.
Det.
Hi
We subdivided in Sydney a few years ago. There is more than meets the eye when it comes to subdividing. First there is council approval to see that subdivision is actually a possibility for your block. All councils have different block-size requirements – it depends whether your are going to do a strata or torrens title. There is water (we had to underground bore across the street which was very expensive) sewer, drainage, services (electricity, telephone), conceptual building drawings by an architect, putting in a driveway (to nowhere as there was no house actually built at this stage) – all council requirements. Water detention basins needed to be excavated and the list goes on. Best to contact your local council and they will have a booklet on what the initial requirements are.
It took us 12 months (our engineer was a little slack though, it could have been shorter I expect).
Good luck.
Det
