Yack,

Your concerns are valid, some indicators show that the economy is starting to slow, the Gov. released figures just recently, retail spending is down 0.7% and new home approval’s have dropped 2.4%. We also dropped U.S. 1C on the Aussie dollar.

There is even a rumor that the Reserve Bank will in fact not raise interest rates next week.(Bigger news, maybe rate cut!!) Who knows? we will have to wait and see, this info was provided by mainstream media, so how much validity you hold in it is entirely up to you.

I guess the main thing is to stay informed.

Informatioin is power. Gather what you need and make an informed decision rather than just “jumping in”

Don’t be afraid of the uncertain, research, plan and enjoy the ride, but most importantly. Plan an exit strategy.

Hey Yack
I am living in my PPOR and paying it off.
My propoerties are in Midland and High Wvcomb. Both in the Perth Metro area.

No one is saying it is easy by any stretch of the imagination. The deals don’t just fall in your lap, you have to make them work.

Cash flow is what I am looking at presently, but as i said previously, if the figures tend to swing then you look at the exit strategy. If capital growth happens to a point to make it worth while to sell, great, off load it, pay the CGT and search for a better deal, or deals in comparison.(Divide and Multiply)

The trick is to continually monitor the situation.

It is all subjective, what I want may not be what you are looking for and vice versa.

I hope this helps.[biggrin]

Yack…

I am a newbie with two properties, only aquiring the second one recently.

Thanks for the warning, although I am wondering how much of Steve’s 2 books you have actually read.

It is explained quite simply that research is the answer, along with preparing for the worst case scenario.

Interest rates can be fixed for periods of time and along with creative thinking to “improve” the propoerty, not only in apperance, but cash flow are also explained.

Team this with an exit strategy for each property and you are well on the way to reducing your risk, not eliminating it obviously, but you can keep an eye on it.

Also the larger the deposit, the better the CoCR looks.

As far as fun goes, well that would depend on what you want from investing and where you want to be and in what time frame. I think the fun starts when the cash flow received is more than the expenses paid out, even in times when capital growth in stagnent.

It may pay for you to read the books again.

Just a tip from a newbie mind you.[cap]