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a slightly different opinion with beerboy, in him saying “equity should grow bigger with 4 properties”. I am not sure this is the case in 2004 (assuming we are using the example stated about buying 5X4 $50k properties).
Generally, the rule (in 2004) is that the lower the price, the greater rental tield, but the less CG. That’s the risk. For more expensive properties, you often get less % yield, but more potential for CG (location location location). That’s the risk there. So with exxy props, you get less money in your hand, but hopefully more money when (and if) you sell, or more equity to play with if you don’t sell but prices rise. Of course, there is no guarantee of prices rising either- even with exxy props
And with cheaper props, you are relying on the weekly income, but, in 2004, your property MAY not rise (although it may). hehehe…Sometimes it’s all about gut instinct and what you feel comfortable with.
Enjoy your real estate foray, reno!
kay henry
dereksam,
Congrats on saving up $8k- it’s a start [thumbsupanim] If you buy an investment property, you won’t be entitled to the FHOG, so your 8K will be it. I am not a fan of Lenders’ Mortgage Insurance- dead money, in my opinion.
[thumbsdownanim}In terns of searching, check out realestate.come.au Go the the Qld map, click on the Ipswich link (for example) and leave the “show surrounding areas” tick on. Then you can click on “show cheapest (<) price.” That’s the way I do my checks. I find the net fantastic for checking out areas, and realestate.com.au is a really good search engine. Of course, it ain;t the last word on finding out about everythingto do with RE, but it is a good start.
I am with the rather imbibed daaj- why not start off small in your investment choice? The purpose of looking at places like Ipswich is that properties there are cheaper than in some of the rest of Australia. As you have a small deposit, start off cheaper. Ya don’t wanna be struggling with a VBM (very big mortgage) all your life for one IP. The smaller you start, the more you can get
Here’s an article written in the last couple of days about why the Ipswich market might still be good value:
http://www.propertyreview.com.au/archives/2004/17032004/reviewed/17022004003.html
kay henry
Yes Mini, I do buy with emotion in mind. I do have the head of an owner/occupier, I guess, despite the literature that says to do otherwise. I only have 2 IP’s at the moment, [glum] and I love them both :o))
I probably wouldn’t be able to service a loan of $300k to buy a 10% yielding property. In fact, I have no idea what my next purchase will be. I bought two IP’s last year, so I’m thinking I might have to chill out a bit and keep some money in the bank for a while and make some decisions (sold an IP last year, so have a little money to play with).
Cel, you can go to the monopoly.com site. They have all different versions for different countries. Might be Australia’s time to make up our own
)kay henry
Rugby,
hehe, yes, it IS very funny
Question is, can the Moderator delete ’em as quickly as Chan can write ’em? He is pretty quick, the Chan dude!kay henry
And with cheaper props, you are relying on the weekly income, but, in 2004, your property MAY not rise (although it may). hehehe…
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