Forum Replies Created
By the way, I don't believe the rate rises is going to end soon.
Although I am not an economist or expert, it is easy to understand that more demand on the limited supply will push the price up. The Labour Gov't has already indicated that they are keen to keep their election promise in big tax cut and spending.
Rate rise together when inflation rise. Inflation rise when people have more money to spend. How could you expect rate will stop to rise when gov't putting more money into people's spending pocket.
On the contrary, if the gov't suspend the cut or use the money to encourage Australians to save money, that may help to ease the inflation and rate rise may slow. However, I cannot see this is going to happen soon. Therefore, rate will rise until people cannot spend more or recession hits home.
Cheers,
FrancisHello, all.
I am not an experience investor and may not be qualified to advise. However, when I start investing in property, I know price will go up and down in a cycle. Therefore, I am ready to ride the cycle and let time do it ticks on properties.
It is good to hear price growing. But, when downturns come, people start to question their believe and understanding. That may be the reason why so many people considering selling their portfolio. I think Steve suggested in his book that we should take profits when the property is not performing or there is better opportunity.
I am going to get myself ready for the coming storms. If succeed, I may even grow my portfolio with some bargains in the next few years.
Cheers,
FrancisThank you all for your experience in Century 21 and Barry Plant.
I am not an experience investor so I don't think I am qualified to advise on the prospect of Clayton South. However, below is my experience on this property.
I bought the property from the developer who rent it back as a display home. It appears to be alright on maintaining the property so far. It is a 2 years lease with 3 years option. I expected it the lease will last for 4 years. Unfortunately, the developer finish the project early and want to hand it back to me when the 2 years lease expire.
During the period as a display home, I don't need a property manager because the developer has property manager to look after all display homes. I am happy to save the fees and commissions for a property manager. However, when the lease expire, I need to take it over and rent it out. Therefore, I need a property manager.
My experience is that we should pay out more of its mortgage during the lease. Obviously, I haven't. How stupid I am. The area seems to be an old area with a lot of industrial properties. However, its location close to a few attractive infrastructure such as railway station, schools, highways, etc. Therefore, I am expecting it has good potential in capital growth. Right now, I need to focus on getting it into +ve so that I can sustain the coming downturn and rate rises.
What is your opinions on the area? Please share.
Thank you.
FrancisDear Marc,
Thank you for your advice.
The last rental review was in Dec 2006 and rent has been raised by $5 to match the market. The tenant is currently on a month by month basis after the last lease expired. I am unsure whether I can increase rent again at this stage.
Regards,
FrancisDear all,
Thank you for your suggestions.
I have done or considered the following:
1. Claim depreciation. I have purchase a Depreciation Schedule which give me about $1,000 claimable amount in the first year.
2. Small renos to increase value. But it needs about 36% increase in rent to make the investment breakeven.
3. Reduce loan amount. It needs to reduce the loan amount by about 30% to make the investment breakeven.
4. Provide Vendor Finance. I know only concept, but not legal and setup details.
Regards,
FrancisI am only a beginner in the investment game.
However, I don’t think it is positive to just believe the bright side. That’s blind and dangerous. All investment can go up and down in a cycle. The only difference is time in and size of the cycle.
From history, the crowd and majority are usually wrong at the turning point in investment. That may explain why over 90% of people are losing.
Currently, many people refuse to believe that the market can crash, even inflation and interest rates are moving up. They choose to believe the market can only go flatten and that’s the worst. This actually remind me those disasters in the past. Moms and dads were crazy in and winning from stock market. I am not sure how crazy are moms and dads currently in property and share markets. But, I agree with Steve’s latest newsletter that we should get ourselves prepared for the worst to come.
In fact, I wish to the worst to come because the worst is the only sign for the end of current boom and beginning of next boom. Wealth is usually created most at the beginning of a cycle. That’s positive.
I hope I have not annoyed too many people. [tongue]
Regards,
FrancisDear All,
I am only a beginner in investment. Hope my opinions doesn’t sound too stupid.
There are a few things I found interesting from this news:
1. Westpac is crossing boundary into their loan client’s area. Does it mean that there is a new trend for banks? Or they are running short of profit sources?
2. I have checked DHA previously. However, their properties are overpriced and costs are far too high. It would be very difficult to become CF positive. How can Westpac fund attract investors if their investing assets produce negative return? Unless they believe investors have become mad on properties. If this is the case, is this a dangerous signal that the market is heavily overheat?
3. Westpac obtains this portfolio differently from individual investors. They buy in a portfolio that worth $10m. They may buy cheaper (average on each property) than most of us buy directly from DHA. If this is the case, that shows the bargaining power of large corporation.
Finally, it would be much appreciated if anyone can suggest how to make DHA investment CF positive.
Regards,
FrancisDear Simon,
Thank you for your advise.
Can estimated values by an estate agent satify the ATO rules?
Regards,
FrancisDear Scotty3,
What are the criteria for registration? Where to register?
Regards,
FrancisDear all,
I have visited the url from woodsman. However, could someone explain what is unimproved value of land. Thank you!
Regards,
FrancisHello, Landt.
Thank you!
Are they always deceased estate? Where can I find these auctions?
Regards,
FrancisDear Landt,
I am new to investment and have the following questions:-
What is State Trustee Auction?
Where to obtain information on these Auction?Thank you!
FrancisHello, dboddy.
I just start learning investment and not yet make my first deal. However, I hope my 2 cents thought may help.
1. There are a few mortgage brokers participating in this forum often. Why don’t you contact them? They have good understanding of property investment and may be able to help.
2. Have you tried other option like money partner or on sell the deal to other investor?
3. If you run out of options, why can’t you sell your home to release capital? It might be a smaller home, but we shouldn’t spend more than we could afford. Having a big home than we can afford is violating this rule.
Finally, please calm down, step back and look at the big picture again. There must be a way out.
Wish you work your way out quickly!
Regards,
FrancisDear all,
Thank you for your advises!
Now, I have some ideas. However, it seems most investors are using LOC. But, I have the following questions:-
1. When property price dropped, will banks change the LOC amount?
2. What is the advantages of using LOC instead of refinance the property?Thank you in advance!
Regards,
Francis
[laughing]Dear Philip,
Thank you for your reply!
Apart from ID, my computer is working smoothly. If it means to spend more $ into this machine, I would rather leave the $ for investment property. I know there are plenty of people still using W98 and are hesitate to change.
Regards,
FrancisDear Philip,
What technologies are used to build ID? What are the problems on Win98? Actually, I am using Win98SE. Does this made any difference?
Regards,
FrancisDear Shelley, Terry, Steven & Derek,
Thank you very much for your advise!
It seems LOC is a popular strategy used by investors since I found this term everywhere in this forum. I have spoken to a bank. However, I couldn’t understand how the home loan, investment loan and LOC tired together?
I would be very grateful if anyone could explain this. Thank you very very much!
Regards,
FrancisDear Zeallous,
I have read Steve’s first book and reading the 2nd book. I have put my plan together and determining following actions. I expect it is extremely hard in the starting up actions, but I believe they worth when I reach my final target of financial independency.
Hope this could help!
Regards,
FrancisDear JPD,
I am interested to know which of the world you are in.
Cheers,
FrancisDear Mr McKnight,
I am surprised and excited to see your answer in person. Thank you very very much!
I am reading your 2nd book ($1M in property in 1 Year) and have the following questions:-
1. Long settlement period is a strategy in bloom market. A bloom market is usually a seller’s market. How can a long settlement period can be achieved? A real example would be appreciated.
2. Where can I obtain those market indicators explained in the 2nd book?
3. It has been emphasized that property investment requires continuous monitor to ensure its performance. How can this monitor process be maintained after retirement?
Your advise are highly appreciated!
Regards,
Francis[cap]
