Forum Replies Created
- blogs wrote:dreaming wrote:It's not that people are more educated know, but information is more readily available thanks to the digital age.
Yeah but how many people take any notice of it, instead wait for the 'news' to tell them after it has already happened….
My point was more directed towards researching property and stock deals. This forum is just one example of the digital age making it easier for people to make decisions on investments.
In the mid eighties when I brought my 1st property I basically trusted what the real estate agent said, pretty dumb hey.
Today I subscribe to online newsletters, I research local papers and council docs all from the comfort of my lounge. And the residex report dropped into my inbox.I'm not any smarter than I was 25yrs ago, but I do a hell off alto more research before I buy a property today.
It's not that people are more educated know, but information is more readily available thanks to the digital age.
I believe 08 will be a good time to buy property, the higher interest rates coming will slow down price growth, some areas will go backwards.
So in the meantime less people are buying houses, developers are building less spec homes.
People keep pouring into Australia in record numbers who need some where to live, it's like a pressure cooker.
Meantime it looks like the share market is in for a rough ride over the next year or two, this might intise investors back to property. BOOM.I dont subscribe to the notion prices wont keep rising, don't get me wrong I am fully aware prices rise and fall. But for the millions of people who own property price rises are like shifting sands. See I brought my 1st home in 1984 for 40K, 10 years later I sold that home and upgraded to a better home. At the end of the day I only had to put in an extra 100K on top of my sale price to upgrade to a better place.
Once your on board your properties are going up like every one elses so it's status Quo, the real issue is for 1st home buyers and people who brought at the top of the market and over committed. For the other few million owners it's a none issue.
Even 1st home owners are adapting to get on board, buiyng properties with others, when the equity builds up they will buy another.What happens if prices stop increasing? investors stop buying, builders stop building. Where will people live?
If the return isn't there people wont invest in property, and not all of the million odd renters want to buy a house.
All the talk about the US and their property troubles, today I read in the NY Times investors are comeing back into the market and buying multiple houses as rental demand is strong in the right locations.Hi Lostie,
- Shower head if there is a problem with it , get it fixed no question. Install a water efficient head while your at it.
- Get your property manager to check oven door, if there is a problem fix asap.
- Water proof garage? suggest to tenant you will put in a garden shed if you haven't got one for X amount extra per week.
- Install cat door, obviously you have agreed to allow cats, work out a dollar figure that works for you and the tenants if you plan to keep allowing pets. I allow pets, by not allowing pets it reduces the pool of tenants, as long as it is managed well it's ok. Well I've had no problems so far.
- The house should be clean and well maintained before your tenants moved in, including clean gutters. But once the gutters are clean it becomes the tenants responsibility to maintain the same condition.
- Your property manager should handle these issues and advise you.
When it comes to maintenance issues don't ignore them keep on top of things and it's no biggie and your tenants will appreciate it. hopefully.
L.A Aussie wrote:dreaming wrote:My Plans for 2008:
1. Get the bank to value my properties.
2. Get Finance in place
3. Purchase investment property in Brisbane area 1st half 08
4. If equity and borrowing limits permit, buy again 2nd half 08
5. Sit back and enjoy the ride
6. 2009 draw down equity from properties, use funds to significantly increase exposure to sharemarket.
7. Repeat step 6 each year.How long since you've had the properties valued Dreaming?
It would be intereting to hear how the cap gain has been for you since the last val.
Hi Marc,
Property one 18months since last valuation, second property brought last May, so it will be interesting to see what the banks valuation comes through at.
If I have enough equity I,ll look for a property otherwise I'll take out what I can and use the funds to increase my share portfolio.
I think it's going to be a good year to buy shares with all the volitilaty, when everyone is selling it's time to pick up some good shares at a discount.
I'm also renovating my PPOR, once complete I'll get that revalued.
I'll update this post once I get the valuations done, I'll be interested to see them myself.Thanks
Hi Lilyhutch,
I live at Port noarlunga which is two suburbs south of O'Sullivans Beach, I wouldn't live there myself. Althought the refinery is shut down it still is adjacent to alot of industry such as Hills Industries, it is also very much ex housing trust area. Unless you buy with sea views I'm not real keen on the area. I could be wrong though, have been many times before, I think Christies Beach and Port Noarlunga have more to offer.My Plans for 2008:
1. Get the bank to value my properties.
2. Get Finance in place
3. Purchase investment property in Brisbane area 1st half 08
4. If equity and borrowing limits permit, buy again 2nd half 08
5. Sit back and enjoy the ride
6. 2009 draw down equity from properties, use funds to significantly increase exposure to sharemarket.
7. Repeat step 6 each year.I work for an Electricity company, I wouldn't buy near transmission lines thats for sure. Besides the unkown of EM fields the transmission lines can be very noisy when moisture is in the air.
Linar wrote:If the vendor has already accepted an offer then there is a valid contract in place with a special condition that the contract will become unconditional once the buyer has sold his place. The vendor cannot accept another offer until the contract on the first offer has fallen through. That is, there cannot be two valid offers on the one property at the same time.
The vendor cannot put a clause in your contract saying that buyer 1 has a set timeframe to make the offer unconditional. A contract can only bind the parties to it. The clause you are suggesting would bind buyer 1 (force him to make his contract unconditional) and he is not a party to your contract.
Cheers
K
I sold a PPOR a couple of years back (big mistake, I no longer sell the goose that lays the golden eggs), Anyway back to my story. We had an offer put to us subject to the sale of another property, with the advise of our real estate agent we put a clause in the contract saying if we receive a better offer the first party has 48hrs to make the contract unconditional otherwise we will cancel the contract. It turned out to be good advice as we had a better offer put to us after 4 weeks and the first group where having trouble selling their house.
Hi Jambv
I read an article not so long ago saying that soon every 10th person in Japan will be over 75yrs old. They also went onto say that Japans population will start to decline soon.
I'm not saying don't invest in Japan because there could be some good money to be made, just make sure you do your homework and buy a product in demand.foundation wrote:dreaming wrote:for my technical advise I'll read books by well educated people like Ed Chan, Micheal Yardney and Steve for foresight into the future.
That's a real knee slapper!Oh wait, you're not serious about Ed Chan and Michael Yardney are you? If so, apologies; it might look as though I'm mocking you. I'm not, I really thought you were joking.
Cheers,
F. [cowboy2]Your comments show your immaturity or arrogance , these very experienced property investors who are incredibly successful in their own right and have earned great wealth investing in property, a great deal more than yourself I would imagine.
I choose to spend time educating my self and learning from their experiences, I also read Warren Buffet and Donald Trump books to expand my knowledge but you probably discard them also.
By the way I'm not mocking you, just expressing my opinion.You see I have been investing in property since 1981 and continue to learn from others and educate myself. The greatest success I have had are the properties I brought and held onto. My 1st investment property was a beach side shack in Seaford SA that cost me 41K, today it is worth 290K and I still own it. I hold other properties and have also brought and sold properties, each of those properties are worth more today than when I sold them. So your buy low and sell high doesnt hold water to me. I believe in buying low but I no longer sell. Instead I redraw surplus equity from my properties and invest in shares.
I know some people will go into great detail why my theory is flawed and that's OK as I believe in investing my hard earned cash into property and shares. It works for me and I'm not advising anyone to invest in anything, I'm just participating in a open forums on real-estate. See if you think property prices cant be sustained because of the debt levels the same must be said for shares, as companies rely on people buying their products to increase profits which lifts share prices. So you have a dilemma you don't buy property and you don't buy shares so you put your money into government bonds or a Internet bank account. and invest your super contributions into a conservative account. And if that's what you choose that's good but It's not what I choose.
I'll stick to property and shares thanks, and for my technical advise I'll read books by well educated people like Ed Chan, Micheal Yardney and Steve for foresight into the future.
All of the technical analysis doesn't calculate human emotion and the fact people want their own home and piece of dirt and will do anything to achieve this.
We can debate this for months but time will reveal the truth, 10 years from now lets see what price people are paying to own a bit of inner Brisbane?The first step for anyone getting into the property market is the hardest one, so yes first home buyers have to lower their expectations. It gets easier after that, so what I mean to say is 10 years ago I brought a house for 100K PPOR. Today that house is worth 250K, I'm a little older and a little wiser and my pay packet is a little fatter. So I decide I want to move to a better suburb and better house, new house costs me 500K. Not a problem as my first house is paid off and I can easily afford a 250K mortgage on my current wage. Fast forward 10 years, my house is worth 1 million, I want to sell my house to buy a better one in a better suburb. So a person who brought a house 10 years ago for 350k now has a house worth 700K and likes my house so they sell their house and refinance to buy my house. Iv'e just sold my house for 1 million but still owe 150K on it, but my wages have increased so I can easily afford to borrow 500K. So I go and find myself a little better home, fast forward 10 years I'll sell my home take the profits and down size to a smaller unit and live happily ever after. In the meantime Australia's population has increased exponentially as we are a lucky country, so there are plenty of people needing some where to live.
Phil,
I was just wondering if capital growth in the above equations was calculated using compounding growth?
When you calculate profit and loss statements, rough enough is not good enough. Minor exclusions create huge variances in the results. As a general rule using compounding growth, a property that increases 10% per year will double in value every 7 years compared to 10 years at 7% growth per year.Phil visit http://www.knowledgecentre.com.au/ I can recommend reading How to achieve Wealth for Life Today!
But at the end of the day each of us need to make our own choices, I believe in property and invest as much as I can afford into growing my portfolio. I also buy shares and only pay interest only on all of my loans including the one on my PPOR. So far the returns I have generated have made my efforts worth while.
What ever you choose good luck but read lots it might just change your view.bardon I agree with you 100% in regards to SE Queensland being a no brainer.
For investors who already have properties look to the future , what will Aus be like in 2017? another couple of million people to house and feed? As long as investors buy wisely and have a buffer built in then don't focus on the now but the future.
All that said and done I'll look for opportunities created by the raising interest rates, because one thing is for sure the interest rates will fall. Then I reckon look out, the pent up demand and low interest rates will fuel wonderful price growth.
Mortgage Hunter wrote:buy your home.This home will probably be modest and like many couples you will prob upgrade as your family outgrows it. Or you will move chasing opportunites. It would be quite a minority who buy a house for their whole life as my grandparents did.
So planning for this I suggest you buy with a 20% deposit. Get an IO loan and put your savings into an offset account. Continue to save in that offset account.
So you now are a bit more experienced. If you still wish to invest in an IP then start looking for one. I wont discuss what to buy, that is up to your research.
Buy this next IP with a 20% deposit. If your PPOR has risen in value then draw this deposit and costs from an LOC or split loan attached to the PPOR.
If it hasn't risen in value then reduce the PPOR loan from your savings and draw your IP deposit from the LOC or split loan as described above.
Repeat.
The object of the above is to maximise your investment debt.
Your PPOR debt is virtually reduced via the offset but you have preserved the PPOR loan so that when you do upgrade to another home you can use the offset savings to fund the new PPOR deposit and retain the maximum loan against the exPPOR which is now deductible.
Too many folks end up needing to sell their first PPOR as they had followed the old advice to payout the home loan ASAP. Having done this they now have all their equity tied up in an IP and a large nondeductible debt against their new PPOR.
There are other ways to tweak this strategy but this is where I would start if I was in your position. This strategy can be used for other investments such as shares or managed funds. Don't discount these out of hand as many property investors do.
I have a longer article I wrote on this that I can email to you if you like.
Cheers
Simon I would like to read that longer article you have written on finance if that's ok. Thanks
I'm like the universe at the moment trying to expand my knowledge every which way I can.Before you sell your property visit http://www.knowledgecentre.com.au/
and read HOW TO ACHIEVE WEALTH FOR LIFE THROUGH PROPERTY INVESTING.
I've done a few renos, sold them, I wish I kept them. My 1st reno was in 1985 one stree from the Esplanade in Seaford SA. I paid 40K for the house and spent 10K renovating, I sold it 3 years later for 70K and thought great. That property sold last year for 280K, that could of been my capital growth.
Now I buy and hold and use the capital growth to fund the deposit for the next one.I tend to read the latest news from the RBA, almost nerd like I know. But I have faith that the folk down at the RBA are pretty smart.
wealth4life.com wrote:Yes I agree and I believe the whole Queensland market is fueled by property marketing companies selling to mum and dad investors and getting paid 40,000.00 commissions.SEQ is a rental pitt … stupid people should be buying 1 year old properties for 50,000 cheaper … houses are selling for 380k and renting for 300p/wk … go figure …
D
The Queensland market is being fueled by 1800 people each and every week moving to QLD. Not to mention fabulous weather and enormous growth in resources. Add a 30 Billion infrastructure program and you have everything a well educated investor could want. I have two IP,s in Brisbane and are looking for my third. I believe QLD will be the standout performer over the next 10 years. Hell when I retire I'll be joining the crowds and warming my aging bones in the warm QLD sunshine.
