Hi Bell,

-Firstly get in touch with a broker, Jamie is a really good operator and I highly recommend him.

– Doing some figures, correct me if I am wrong, be time you pay your loans, property management fees, council rates and other charges both IP would be cash flow negative every month?

If this is the case, do you think taking more debt on one income is the way to go? How about build your foundations on what you have already!????

From my point of view precession is the key to investing successfully, Sit down  create a strong foundation and then build on from there!!!!

Hi Rick Sta, I have to agree with you.

When we some times state an "opinion" some people see it as being negative "etc" but not all bad news is negativity, its some time just stating how things are.

I think preparing your self is a great proactive thing to do.  

There will still be allot of opportunity out their but in different forms.

My biggest concern is the amount of personal debt people are carrying

Hi Steve,

Hope you are well?

Anything is possible but it all depends on the following, how much equity you have, cash and investing experience.

For the time being, ask you self this why do you need to buy 10 in one year? Why not start with one or two and then build from there.

Investing takes allot of hard work, patience and precession.  

For me personally I have a small property portfolio that is doing quite well for me and over the last two years my goals have changed, My PPOR is almost paid off and my other IP has a very small loan of 130K and the house has been valued at 400K.

Some would suggest access equity any buy more property, but for now I would rather have a low loan to value ratio.

There are allot of ways to invest, so have a look at all the possible ways and choose a strategy that fits you.

Also looking at your numbers this is why I am not buying property at the moment, Most people talk about high yields but to me if your rent does not cover your repayments and property cost why would you invest your money in a assets that just breaks even or makes a loss?

What a crappy article..

I dislike people who make rash decisions and expect others to feel sorry for them when some thing goes wrong.

I read an article the other day where a couple who knew nothing about the share market borrowed 100k+ on their house and they end up loosing all of the money.

because a "adviser" gave them some advice…

I bet if they made a profit they wouldnt be crying out poor.

Also their argument would be this, if you are close to going over your limit then why use it again anyway?

I think we are heading into a mess!!!

When the government needs to provide handouts to any business, its sends out mixed messages.

1) If a business like Holden or ford (or any other business) cant break even or even make a profit then why  are they in Business any way?. Spend the money in other industries that are growing….

Australia has allot of issues in terms of manufacturing and business in general.

1) Population is to small for to much competition – So many other industries are being effected by this population being small 

2) Cost of doing business in Australia. Pay roll Tax, OH&S, Super, Holidays, wages, income Tax and many other tax's make it to costly to do business.

3) Rent, Electricity, rates, out goings etc to expensive again….

Also the biggest issue Australia faces is this, Overs ease countries are building better quaility products at a fraction of the rate.

Hi,

I have had a couple of properties in Werribe and Hoppers crossing in the past and just sold the properties about two years ago.

I wouldn't touch the area for the following reasons:

1) area has high vacancy rates as per Jac M

2) Limited growth

3) Allot of land still avaible, there are plenty of blocks being sold in werribe, tarneit, wyndhvale

Rates are going to increase every where and by double digits per year…

Federal and state government have cut down on local funding and the cost of councils have increased.

– Waste cost have increased

– cleaning cost have increased

– wages for various jobs in the council have increased.

So the only way to maintain a sustainable business is to increase the cost…

I know a few people in the Caroline springs area and there rates have increased to point where they would rather sell their IP then keep it.

WA is already in a recession, I working for a shipping company and we move allot of freight for three large mining companies and I can  tell you allot of these companies are shedding jobs and export volumes have slowed down.

Australia is going to be in a bad shape for quiet some time