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Just have fun, improve as a person, improve my freedom to do what I want, to be what I want
I think its fair comment to say that investors add to buying pressure which must leave to increasing prices. It does not matter if investors want under market value.
Furthermore, taking advantage of things like ‘negative gearing’ makes it easier for investors to buy their 23rd house rather than a first home buyer buying their first.
Having said that, I wonder what would happen if negative gearing was taken away? Rental housing would be on the up,up
Hello Chris
Your thoughts on property are a little to logical and intellectual for this crazy website. Just joking
Regarding tourism=jobs. I don’t think Tourism is labour intensive compared with say manufacturing industry for example. So I’m not sure Tourism needs a lot of employee accomodation, but it is obviously positive for residential growth to an extent.
If you know the area and all of that infrastructure is coming, then perhaps it would not be unwise to offer some $$$ to an old farmer with lots of quality land
Sounds like you may want to go into the tourist business yourself
I’ve heard Townsville is booming as well.
Basically everywhere is booming. Who knows when it will end and where prices will go down to
Hey Dean
As an almost lawyer (final year law student), I did my own conveyancing using a Queensland kit about 18 months ago.
From my experience, I would recommend against. Sure, I saved a few $$ but my legal knowledge was of little use in a world of bureacratic crap and frustration.
It’s not difficult but it is stressful because the people you work with (beaurocrats, law clerks) are dumb and don’t care since they do their job every day of the year and have no interest in any transaction.
Maybe do it once to learn about the process but it’s not fun.
My advice would be to use a cheap “Conveyancing Works” type firm. You don’t need lawyers because its not difficult, but you don’t want to do it your self.
A Current Affair will surely follow now. Perhaps if Richmond sent this story to Channel 9 last week, Richmond would be Management material by now.
HK’s scams are beyond belief. Imagine selling investment advice to buy your own properties above their worth. Amazing
Paul, tell us more about it. Are you buying it off someone else who has already negotiated option or are you negotiating option to sell to someone else.
I’m almost a lawyer and my best friend is a lawyer and we are looking to put together some ‘option’ deals on property. I suppose its a no money (little money) down option for selling property
Hello, EnoughisEnough
I picked up a shitty unit in Westcourt, strictly designed for mall rats and transition divorced people. It listed in the early 40’s and I got around a 10% discount for cash. I didn’t see capital gains in its future but then I don’t want to sell it either.
I also picked up a reasonable two bedroom unit in same suburb for close to listing price of 65. It shall be more positive geared as soon as I hike the rent up
I envisaged an orgy of positive geared buying but now they are jacking up the prices unfortunately.
I agree. Relax. Interest rates aren’t going up that quickly.
You need to combine cash flow properties with capital gain kills like renovations or quick land capital gains. I guess the banks love turnover.
Financial advisors are overrated. They are usually paid to sell ‘investments’ or you pay them to tell them what you already know from http://www.propertyinvesting.com. DIY because you know your situation the best and as you work on your skills, you shall become better than most financial advisors anyway.
NB: A good accountant is worth its weight in gold however.
Hey Maximus
I think its fair to say that at least in inner Melbourne and Sydney (maybe Brisbane), some ‘corrections’ are in order. House prices have rose quicker than income. There will be some pain and desperation as interest rates firm.
Ideally, assemble some cash or even borrowability to make some low ‘cash’ offers to desperate people holding quality assets. ‘Vulture’fund.
Hey Stu
I believe the Rock Building society fixes lines of credit interest rates without taking away flexibility in other areas
Buying property in Canberra at moment is not a ‘investment’ and is not an ‘asset’. Prices have no relationship to earnings and somebody please tell me how it has any capital gains potential.
Don’t let them ‘fix’ the termites. How will you know if they do a dodgy, ‘veneer’ job that even a pest inspector won’t tell
Instead, take the risk on yourself. Get them to get many quotes on cost of fixing termites. Choose the highest one and take it off the price. YOU GOT THE POWER AND THEY GOT THE TERMITES.
Think of how foolish they feel like with them using a loan to get rid of termites to get rid of a house. What a weak situation?
Give them a low cash offer and take the risk on yourself. GIVE THEM A PAINLESS WAY TO GET OUT OF THIS SITUATION. Cash, no hassles
If you positive gear, you should have infinite borrowing power in theory. Secondly, make sure you get assets for less than they are worth. Infinite borrowing power again, in theory. Put everything up for security, the banks will seize unsecured property anyway if something goes wrong. Maintain a buffer
Cut your debts, assemble a vulture fund together for the storm to come in Sydney and Melbourne
Aussie rogue is right. They are getting desperate and will be more desperate. Get$$$$$ or at least pre-approval. And offer cash contracts at 30-40% below market value. Who knows, you might get a seller trying to rip off his wife in a divorse settlement or a potential mortgagee just waiting for the bank to evict them. Units will get ugly in Sydney and Melbourne. Just add time
Hello Fishoholic
You have a nice situation to turn that high capital gain asset into a massive income flow (positive geared property) as you say.
Basically, accessing equity is an alternative to selling your house to free up funds. The difference is that you are betting the bank that you can earn income with the equity exceeding the interest, and you retain your asset.
You are in a strong position so DON’T PAY ANY FEES TO THE BANK. Negotiate fees, get a fee free (reduced), flexible loan facility. Don’t assume you need a line of credit. They are beautiful but you may get a redraw/offset loan which does the same job for 1% less.
If you are serious about positive geared real estate as a living, you probably do need a line of credit. I would fix the interest rate and the only fees you should pay are the asset valuation and security transfer fees to underpin the loan. ALL FEES ARE NEGOTIABLE HOWEVER.
You should start thinking of property as just another form of money, just not as liquid. Equity is a way of accessing $$$ without disposing of assets (capital gains, transaction costs)
Gees, I got $110 000 of equity but no job. They still make it hell getting a loan. I can get one, but they love to charge feess for a lo doc!!!!!
Newbie Smart money. I’m now 24 yr old, almost uni graduate who bought my first house with a few grand plus home grant. In 18 months, I’ve made 320% just by living in and painting my house. Now I’m going for more with a subdivision.
It’s your first house, please buy small. Not 210 000, instead try 50-60 000. How much money you make depends on how flexible and smart your choice is. Do you have a job and can you buy somewhere other than Sydney or Melb. Don’t buy in Melbourne or Sydney but don’t buy a lemon either.
Right now, I know about numerous resort style units in a major regional (tourist) town which are priced between 40 and $65 000. They are major positive geared. Imagine, for example, if you moved to this town, let the government fund your 20% deposit, found another job and made $50 000 in the next six months (for example). Then you could jump into Sydney or Melbourne for the property slump.
Be smart, positive gear. Buy something you can add value too.
