Forum Replies Created
hehe Celivia
) If I didn’t know you were such a genius, I would say it would have taken ages for anyone to write that message. Yer cute.kay henry
Thanks Jaffa, and I didn’t mean to pry
So you have to have it on land sometimes? So I guess people on houseboats would either have to have their own land; “rent” to stay on someone else’s land; or receive permission from a friend to stay on their land.It sounds like an exciting journey Jaffa- qwill you be working as a fisher dude on the boat? Or is it a lifestyle thing?
Jaffa, as a matter of interest, I remember you saying on the Forum that you found it difficult to get an IP loan, and you were going to test out Edenlea to see if you could possibly get a loan. How did you go with it? Were you successful? I am asking you this as a followup.
kay henry
Oh yeah- I forgot the LVR thing! coops- I just bought a property in sydney’s eastern suburbs, and it has a 70% LVR on it too. As for me, I don’t mind 30% deposit- keeps my LVR down. Population isn’t the only thing that determines LVR- if you buy a bourgeoise house in Lorne, vic, or berry or Kangaroo Valley/Jamberoo, nsw, they are not going to want 30% deposit- because those places are hugely desirable- even though they have small populations.
Just depends on how much “risk” the banks perceive the place to be.
I wouldn’t put the postcode up here- but you may wish to do so in private to a Mortgage Broker. Most people on here, if they have found a CF+ town, like to be able to keep their counsel about it
kay henry
coops- it depends on what you’re looking for. Really expensive propertires in cities generally have a large neg CF. Really cheap properties in the country might have a pozz CF. Neg growth or no growth means you are paying pre-boom prices- well, that’s not such a bad thing. Ihave looked for places that have not achieved huge growth too- I call them “under-valued”… You said the place has a reasonable population. Look up “population decline blahtown” in google.com.au, and see if the place is having significant decline.
These days, it is difficult to get cash pozz properties (10% or more). If you are seeking mere CF, then you could buy into the town. Personally, I don’t expect any growth on IP’s that I buy for the next few years. However, I am happy to receive 6% yield on a property/location that has “growth potential” rather than 10% yield on a property/location that possibly has none.
It’s up to you
kay henry
Oh thankas Lucifer! Talk about get an exact answer to my question in 1 minute! I do love google myself
kay henry
A saxophonist in our midst! Welcome Cam :o)
Cam, I know places like wellington were raked over thoroughly by investors about two years ago. It then achived considerable capital gain- good luck in finding CF+ properties there. I have to say though…. have you SEEN Wellington? I worked iun the outback for a while, and Wellington is not pretty- I thought it was depressing really, but you might want to check it out for yourself.
If you’re looking at Dubbo or Orange, you are looking at more regional centres- as opposed to country town of Wellington. Regionals are always fun
) I reckon you might be able to get 8% for a regional in Dubbo/Orange.kay henry
Marisa – heya :o) I apologise for not returning your PM- I did mean to. [blush2]
Marisa, I think if you feel that a property is worth 50k, then offer that. If people want a property, then it can be worthwhile paying for it. To me, it wouldn’t matter that some properties in the town have been on the market for a long time- that doesn’t mean anything to me
) If you have a stable tenant who wants to stay, then it could be a good investment. Buying it at 50k means that you already got almost 20% off the original price- that would not be a bad thing.Regarding the RE agent, well, I am not sure what kind of fellow he is. What I do know is that I was selling an IP, and some people really messed me around until they pulled out. This wasn’t great for my psychology, and a RE is working for the vendor, not for the buyer. But then again, sometimes people just have poor interpersonal skills- go figure, you get that everywhere. I think the RE was entitled to not want to paas an offer that he might view as “ridiculous” to a buyer. I have made an offer on a place, and the RE just said “look, the owner won’t accept it.” And I knew tey wouldn’t either- the RE agent is there to negotiate- and to protect the buyer. I respect the job they do.
I think 50k @ $110 rent a week might have been a decent buy- depending on other variables. But if it wasn’t right for you, then you are probably better off not having gone through with it
At least you’re getting to know what’s available. Sometimes, negotiating RE – even if it doesn’t work out- is some of the best learning experiences we can have.kay henry
want2brich,
It’s 100% tax deductible, until the govt imposes some retrospective tax changes- remember tea trees and emus? hehe
)If you get 100% tax deduction, it can reduce your taxable income by 10k… but if you are making a *profit* on any other income (such as pozz geared IP’s), it will merely be offset. You’d only get back 3k-5k anyhoo… if you are currently making a loss.
I’d chuck 10k into an IP. I’d also forget about prospective returns on the movie- projections on movies are like projected CG on an OTP [thumbsdownanim
kay henry
Oops G7- I think I read your amount of posts as your age! (In which case, I would be as old as Methuseleh). And G7- now that I know you’re so young, you have many many options
I hope you can one day afford your own home too Bbruham… [blink] you need some sleep!! I may one day own a home, bbruham- thanks for your thoughts [hair2]
kay henry
G7 :o)
I’ll give it a shot answering you from my experience. I checked out your profile and you’re 42. I am 37- I am not sure of your situation, and it might be really different than mine.
I’ve never really been able to afford my own home. I probably thought that was a bad thing in the past, but now I see it as a reasonable part of “fate”, given that tax concessions are generous for IP owners but not PPOR owners. There was a post on another forum about people renting… and they all said they “chose” to rent… [baaa] Well, for some of us, it’s an economic imperative, rather than a real “choice”.
However, having rented all of my life, since I was 19 and moved out of home, I think that to develop a portfolio of IP’s is a good thing! [biggrin] I actually don’t know if I will *ever* own my own home… because I would have to sell up my IP’s and buy myself a home- forgo the income of them, to have that one major “asset”. If one can rent cheaply, and comfortably, and safely… and one loves one’s rental property… then I think it’s a worthy alternative.
Having said that though… as I said, it’s not a real “choice” for me to rent (at least I’m honest!) so I can’t be purely objective about renting Vs PPOR, because to do so I would have to be able to do both- in fact, I can only do one of them :o)
So even thought it hasn’t been a “decision” for me to rent- it’s a necessity, the outcome for me has still been quite good
kay henry
) If I didn’t know you were such a genius, I would say it would have taken ages for anyone to write that message. Yer cute.
So you have to have it on land sometimes? So I guess people on houseboats would either have to have their own land; “rent” to stay on someone else’s land; or receive permission from a friend to stay on their land.
