Can somebody explain something to me? If the Central bank's interest rate is close to 0% and the cashflow from the property is +ve (assuming that the gross yield is around 20%). Why would the bank still provide a lend at 70% with interest rate near the 7%, rather than at 3%? Is it because:

1) they don't like the tenant?
2) they don't like the area that the property is in?
3) something wrong with the bank's appraisal system
4) all of the above?
5) none of the above?

Thanks for your feedback

Its a single dwelling home. Any thoughts?

Hi Martin,

For residential apartment in an area that will attract quality tenant, does it yield close to 10% net (after all expenses) and what is the borrowing rate based on LVR of 70%? Thanks in advance for your help.

Cheers
John

dear all,

Just a question. If the population in Japan is aging as reported in the press, wouldn't it make sense to look at the retirement housing sector within Tokyo? I am not talking about buying individual units but rather buying a multi-retirement housing that can potentially generate good cashflow?

This leads me to my next question. I currently own 2 IPs in Oz, both of which are generating minor +ve cashflow (however not at a level where I can retire yet). I am currently based in Hong Kong and would like to build my portfolio of +ve cashflow properties in the following four countries, being HK, Japan, Singapore and China. What I am asking is should I start small or should I look at large-scale acquisitions (quite a bit of those in HK and Singapore now with prices dropping) and seek external investors?

Welcome anybody's comment.

Cheers
John

Hi Hawes,

I may be interested in +ve cashflow properties in Panama. However, just a couple of background information, what is the trend of population growth, how much of population is renters compared to owners for residential apartments?

Also, did you buy single condos or mulit-family condos which made you attractive returns?

Cheers
John

Thanks everybody for the comments. However, with global credit crisis and slowdown in property prices. Isn't now a good time to look at Japan, assuming the current govt has 10 years of managing recession?

Would appreciate any comments

Cheers
John

Hi Andy,

There is some very good comments and I am going to add my two cents to this discussion.  Firstly congratulations on your savings when you are this young. When I started four years ago when I was 24, I had a small savings (more like $10k) but the first thing that I did was to chat to a good accountant to get my structure right, because I knew my long term strategy is to buy and hold, hence requiring the right structure to support this strategy. That was a big outlay back then to set up the right structure but it was the best decision that I've made. With this structure and a good team behind me (including lawyer and property managers in different states), my portfolio has expanded from one to four (increasing to five within the next six months).

P.S. I purchased my first property in south east Qld 4 years ago for around $100k.

whatever your decision is, good luck and ensure you have a panel of loyal and capable team behind you.

Cheers
John

Make a sunset clause, if the vendor takes too long to consider, then move onto next one. When I bought my 1st IP, I bought it sight unseen but after only putting hundreds of offers with sunset clauses.

That’s just one of the strategy, read plenty of books and ask plenty of questions.

Good luck

Cheers
John

Dreaming about financial freedom is all about taking some action TODAY. I am building my own successfully PART TIME business whilst still working in a Bank. If you want to know more, PM or email ME.

I think the most important thing is to make a win-win situation, find out what builder wants and if you can refer more business to him/her in the future, that may enhance your chance of price negotiations and create a lifelong relationship for your future property investment portfolio.

Cheers
John

Dreaming about financial freedom is all about taking some action TODAY. I am building my own successfully PART TIME business whilst still working in a Bank. If you want to know more, PM or email ME.

I have heard that if in your contract, the name of your purchase is yourself and/or nominee, I think it is possible. Regardless, talk with the vendor and the Bank and find out what other alternative is available.

Cheers
John

Dreaming about financial freedom is all about taking some action TODAY. I am building my own successfully PART TIME business whilst still working in a Bank. If you want to know more, PM or email ME.