Forum Replies Created
HI,Michael.
Yes my properties are p@l. I am still not convinced that interest only loans are the way to go. Yes, I know, interest only loans free up cash flow, but unless you are very disciplined and working to a strict budget the bit extra you get i would rather put back on the loan. when i get a bit older and start wanting to really up my lifestyle is when i will go to line of credit structure.
I will consider fixing in my loans if things get dodgy but i will continuen to plan on that old maxim “THE PROFIT IS MADE IN THE BUYING ,NOT IN THE SELLING”
You are right though, at the moment risk aversion is the key statement. But that is why i will keep investing, because i have both eyes open at all times,and just because we are coming into a changing market, means i will just study harder to stay ahead of the mob.
Joff.I am sorry but i just dont get it with interest only loans.i have only invested in property that is cash flow positive and capable of paying itself off as a stand alone entity.then you get (hopefully)
reduced debt,tax advantages,and capital gains.
negative gearing just doesnt make too much sense.if companies did it it would be called trading while insolvent.negative gearing has been promoted in rapidly rising markets where capital gains outweigh the loss.I reckon we are about to see the results of some very dubious investing stratagies marketed to the inner city apartment sector.
joffcrikey!dump the accountant!90% of all that stuff you can do yourself.i am on my fourth ip,and what i usually do is research my location/price/return/growth,do rough calculations of viability and if i decide it is a goer i book one hour with my accountant to confirm or modify my plans.for this she charges nothing.she reasons that it comes back at tax time.her bill for my tax each year is around the $800.00 mark.
joffWestan,
thanks for the reply. your points about locations pretty well match what the local agents are telling me.I am very interested in the correa crt house.it is advertised on the net.more info can be sent to [email protected].
JoffWestan,
Did some serious homework over the weekend and as you say Portland is looking good.
Questions for you:
generally speaking, what is the maximum distance out of town (Portland or Horsham for eg.) you would consider buying.? do small acerages with house rent well? Do they attract better rent?
thanks for all your help.Joff [8D]
Implementor!
sounds like you really enjoyed yourself at hk’s seminar.With all that info crammed in your head, where to start? I have attended a few (what we term GEE UP! seminars)at great expense to my employer.Everybody comes back keen to change things for the better, but after a few days, it’s back to normal.why?.Because, I believe the change was driven by somebody else and not ourselves.
I would be interested to know if you have a plan of attack re your investments and when you will start.Sorry to sound a bit skeptical but I have concluded over the years that only me will inspire me.good luck with your projects.
joff [8D]Westan,
I was in stawell last year for a night and thought it really nice place.You can always tell how country towns are doing by walking down the main street and looking for new cars, vacant shops and the condition of the gardens especially those maintained by council.Stawell reminded me of colac, everything was spic and span and looked prosperous.
Do you have any thoughts on the Portland area?
It seems to fit the profile of what we are talking about with the added bonus of being coastal,which believe me is all the rage here in melbourne.
regards
joff [8D]ah!thats’s what the caps lock is.sorry about that.
Westan,
you are right about ex ministry houses.we brought one in south frankston 2 years ago for 117k and it is now worth around 210 – 220k. the only downside is that our rental return is still 170pw the same ae when we bought.but we are happy to leave it that to keep our very good tenant,given the capital gains we have made.
we are now looking for only cash flow positive properties.we thought somewhere 60k-80k returning around 120pw.so far we have looked at far east gippsland around lakes entrance/orbost and western districts particularly the horsham area.thanks for your advice.it is really great to talk to somebody about this instead of boring our friends with it.
joff[8D]WESTAN,
THE STATS I WAS TALKING ABOUT CAME FROM THE REIV HERE IN VICTORIA.PROBALLY THE SAME STUFF THAT IS IN THE MAGAZINES.
QUESTION FOR YOU, HAVE YOU HAD LOCAL AGENTS MANAGE YOUR PROPERTIES?IF SO,HOW HAS IT BEEN.HAS MAINTENENCE AND REPAIRS BEEN DONE PROPERLY?DO YOU HAVE ANY THOUGHTS ON WHAT WHAT SORT OF PROPERTY IS POPULAR AS A RENTAL IN RURAL AREAS?
REGARDS
JOFFHI WESTAN,
THANKS FOR THE REPLY. I HAVE LOCATED SOME UP TO DATE STATISTICS WHICH POINT TO SOME VERY LOW VACANCY RATES IN SOME REGIONAL AREAS.ALSO WITH THE EXPLOSION OF PRICES IN COASTAL TOWNS,NEAR BY INLAND TOWNS ARE PICKING UP SOME OF THE BUISNESS.
REGARDS
JOFF
