Forum Replies Created
Westan,
Yep,Portland has got a lot going for it.I don’t mind admitting I probally paid a little too much for the prop there,as there has been a fair bit of action and prices have moved up sharply, but I am comfortable with my hold stratergy.Vacancy rates are extremely low and rents are quite high.
Methinks you have been quietly sitting on a little known investors paradise in the western districts for last few years and I think there is still some value to be had.
Joffbbruham,
That last post was fantastic.I’ve worked it out.
You have nothing what so ever with property investing have you? You are one of the writers for the Miccalef program on the telly.
I bet you and your fellow comedians are rolling around the floor with in howls of laughter at the thought of all these well meaning people on this forum taking you seriously,right! You had me for a while I must say. Any way keep up the good work, we all need a laugh.
JoffHi all,
Welcome back Westan,sounds like a very fruitful trip to NZ.I was pretty busy down your way while you were away.Bought in Ararat and Portland.
Checking out regional areas has been a real eye opener plus a lot of fun as you get to have a holiday while working.
I agree with the sentiments being expressed in this thread.Lots more investors around now while less renters.The rising market of the last few years made it easy for just about anybody to buy investment ip”s and make a profit.
So I reckon the next few years are going to sort the men/women from the boys/girls in the investment market.The deals are still there, but it will take a lot more diciplined and buisiness like approach to investing to not get your fingers burnt.The Melbourne apartment market is a classic example of the herd mentality at work, even when the warning signs have been so obvious for so long.Just watch the smart investors sit back for a while and then start to buy up at all the fire sales that are sure to start in the next couple of years.
On that cheery note, bye
JoffFW,
Hi,
“What’s wrong with thinking like a switched on prop.investor?”. Well,nothing if you want to, she just does’nt want to HAVE to.
I happen to love investing and have done very well out of it and secured my future,but there are people who would rather direct their energies else where and who would be happy with cheap affordable housing that’s not down a rabbit warren.
JoffSooshie,
See what I mean though,she’s being driven out of town into a dump.Away from her work, family and network.She’s being made to think like a switched on property investor just to put a roof over her head.
Actually if I may digress a little, when I posted this thread, i was really exploring the ramifications for future investing given the way the market has developed in the last few years.My sisters situation is a by product of the surge in investing.I think I’ll go and have a cup of tea and a lie down now.
JoffEZ-RENT
Hi,
I downloaded the spreadsheet last night and am impressed.However i have a question.Can you generate reports linking multiple profiles/properties for an overall portfolio snapshot?
Thanks for offering it for use.Very nice!
JoffBrendan,
Decisions so often come down to lifestyle v goals
But here’s my thoughts:
Keep your unit at all costs.It’s in a terrific area and will grow in value no question.
A “lovely” home in Sth Frankston is also worth keeping as this area is still Melbourne’s best kept secret.
So what about the problem? Well, without knowing your financial cicumstances,can i suggest
1.put your mother in your unit and give her cheap rent.
2. borrow on your mortgage, do your exstention and use your mothers $100 to help pay it off.Joff
Hi Brendan,
2 questions:
how much do you owe on each property?
Where in Frankston is the unit
(I too live in Frankston,I also own 2 ip”s in the area.)
Bye
JoffHi all,
Property investing is very much a people driven activity. One transaction relies on the interaction and coordination of many people.Indeed, once the sale is made the buyer and seller in a sense become mere observers of a complex set of arrangements that culminate at settlement.
It is only recently that I realised that deep down I enjoy the process as much as any profits I make along the way.
Recently I purchased a couple of properties in country Victoria.I spent a week travelling while researching and found that in most cases the local REA had been in the job long term and saw themeselves as an integral part of the community providing a valued service and not just there for the quick buck.In just about every case it was a pleasure to spend time with them and listen to their wealth of knowledge of their own market.
I actually bought one property on a handshake because the local solicitor was on holidays and the section 32 had not been done.
I know i am rambling here but my country trip just reminded me that you can still do buisness where integrity and a win for both sides in a deal are the main issue.
Bye
Joffnghia76
From a legal point of view I dont think you have much to worry about.You are not actually selling your unit so CGT wont be due.This is just a simple refinance. Your accountant should be able to answer this for you over the phone.
One thing I would say, be up front with all parties (bank/ accountants/solicitors) concerned as to your intentions/requirements along the way.There may be better ways of doing this than you are aware while still staying legal.
Bye,
JoffSteve M,
Pure politics at work.First day in the job for Mark Latham.What does he doe for some profile?
Jumps on the issue of the day.Makes what he knows is a contentious statement and sits back and enjoys.Silly Democracts fall for it and help him get more press.
Dont worry, more liberals vote labour than liberal party.
Bye,
JoffTassie investor,
having read your last post I can see you have given this a good deal of thought.So that means I change my attitude a little.
The traps i was referring to are the notion of living off equity and forgetting the old maxum, that there is no such thing as a free lunch.
You dont mention your age, and that obviously effects any future planning issues.
I have been investing in property for about 6 years now and while i am happy to say i have done pretty well out of it, I really believe my success has come from prudent,well researched,and patient planning.I have purchased 1 property per year and each one has been very good to me.My portfolio is returning me an average of 9.5% plus capital gains, which for 2 of them has been fantastic.
Investing is like any buisness,in that there is a huge learning curve and success does not come overnight.Dont get distracted by shortcuts and “clever ideas”, just be smart and invest wisely.
This gets back to the statement of the “get rich quick” thing.That is precisely why all these gurus who charge for the knowledge are doing so well. Nobody wants to do the hard yards, they want instant wealth.
Well, it ain’t going to happen.Believe me I tried and I wasted a lot of time.
Anyway Tassie, sorry for jumping down your throat but i guess i saw a bit of the way i started and had to put my bit in.
JoffSheesh people,
Get a grip.The only sense in all that was from theENJOlady.They are the sort of get rich quick attitudes that send people scurrying off to expensive seminars hoping to do it all overnight.
My strategy is to build assets and reduce debt simitaneuosly and retire early .
(and i am bang on target at the moment.)
Tassie, your plan while technicaly feasible is so full of potential traps i am suprised there hasn’t been more feed back here.
JoffMala,
Well,all that advice you won’t get at seminars.
The retirement units I mentioned are available all over Melbourne and what i said about them is true,but you still need to do your own research.Try visiting your local Real estate agent and tell them exactlywhat you are looking for.Write down your requirements first(based on your exaustive research!) and do not deviate from them.Let the agent do some of the leg work for you.If they suggest you look at properties that do not fit your strategy, move on to another agent.
As they say “The profit is in the buying not the selling”
Bye,
JoffMala,
You can’t go past the advice offered by peterb.
My experience has taught me that most of these courses are GEE UP sessions designed to make you feel that you are suddenly the next Warren Buffet.
All the info you need is right in front of you.Free!
He’s a bit.1.Get friendly with a real estate agent that you won’t be buying off.Good for impartial advice.
2.Get a good accountant.dont ask the accountant for advice they are not trained to know.Let them stick to the tax and money side of things.
3. Remember that property investment is a game of numbers with a bit fortune telling thrown in.If the sums dont add up on a deal walk away from it.
4.Reasearch,and research.You can usually find any info for free and this is usually better than stuff you paid for because it does’nt come with conditions.
5.This one is purely a personal one, but don’t get involved in any investments that are expensively marketed, or any finance offers that rely on capital growth to make them sustainable.
6 A good way to start might be to take your 15k and look at unit in a retirement villiage. These are ususally reliable, trouble free and easily managed.If you buy one “off the plan” you save stamp duty and have good depreciation schedules.
You can buy them in eastern Melbourne for 135-150k, returning 150-165 pw.I have one in Carrum Downs and it has been a set and forget investment.
Just keep asking the questions.
Bye,
JoffHi Roslyn
I just did much the same thing with my bro inlaw.
We went halves in a retirement unit in Carrum Downs.We both have our own property portfolios but did this one together for reasons we now both can’t remember.Any way we set up loans for half the purchase price each (which in my case was a top up of my rocket investment account with BOM)
We both drew down our share of the deposit and from then on you are required to pay interest only on that amount until you draw down the balance at settlement.
Something to consider if this is your first IP is that the title will be in two names and that means you would have difficulty using it as security for your next loan.
There are ways around this so talk to your accountant.
bye,
JoffHi Louise,
Well, you cetainly got your monies worth here today.Lot’s and lot’s of good advice and most of it correct depending on the angle the advice is coming from.
But 15k!!!!sheesh, buy me dinner and pay for the taxi home and i’ll explain all.I had purchased 3 ip’s before i even discovered this or the other forums and have not attended any “seminars”. Dont get wrong,I know some people have gained immensely from them, but it’s all there for free if you look hard enough.Property investing at our level(1 at a time and in most cases under 500k) as distinct from property development is really pretty simple.you do the sums ie.return on investment/vacancy rates/capital gains/add your own due diligence/research and presto. If it does’nt add up it does’nt add up.There is quite a few checks and balances along the way from people like your accountant/financier/conveyencer/friendly agents
( every one should have an real estate agent mate for impartial advice).
So grab your 15k and go and do it.
JoffChark,
By now you are probally already aware there lots of variables in investing, all according to your goals.However,in my humble opinion,the bottom line should always be return on outlays first followed by capital gains.set yourself minimum returns you are prepared accept in order to stay positive geared, then look and look till you find
a property that also shows potential for future gains/renos/development/sub.div.
good luck,
joffHi Westan,
Horsham eh,I just returned from a study tour/holiday through the western districts.Had a look at the property in Portland you mentioned Westan, thanks anyway, but it didn,t quite fit my stategies.We also purchased in Horsham and consider ourselves lucky to have found the property that we did.
For anybody who is interested in getting out there into the rural areas for investing,be very careful.
While it seemed to me that the whole south western districts are going through an upsurge in activity particulary towns like Portland,Horsham,Stawell and Ararat, there has been a fair bit of investment money flowing in buying up cheap properties. This has obviously driven prices upward.In one major town we visited, one agent did not have one house for sale
There are bargains to be found and returns can be quite good and like the major cities, regional centres have their prefered areas of town that you need to be aware of.
JoffGIDDAY,
I have commission homes in melbourne. they have been exellent investments because of the purchase price.I have had no trouble with renting them and thanks to a good agent they have been trouble free. However, make sure do your sums, cause the bargains in this type of ip are harder to come by than a couple of years ago.
If it doesn’ give you the return you are after then it is no better than any other investment ip.
Joff.
