Forum Replies Created
Filled in a gap in my afternoon finding NEMO and making a weighted star shape [
].How about this one (it’s a little easy compared to the last two, maybe even easier than the sacks)…
Their are three msitakes in this sentence.
Can you find them?
Hi Kate,
At the end of the day if you purchase another personal property you will have access to 80% of your money for property investing. However, although you may actually buy the property for cash (upto $400k) you will still be making repayments if you refinance to fund your investing. If the properties you are purchasing are positive cashflow then the income from these will cover those repayments, but if you purchase negative cashflow properties then you’ll be paying off a $320k mortgage (80%) out of your income (plus any extra repayments on the investment properties).
As for advice – depends on your personal goals and lifestyle, something you need to weigh up the positives and negitives of and decide for yourself.
Option 1 (Rent) – Will give you more available $$’s to invest and also more personal flexibility in lifestyle change. You’ll be paying off someone elses mortgage rather than your own though.
Option 2 (Another PPOR) – Will give you the comfort of your own place and also the potential of capital growth if you purchase in a good location. Repayments may be higher if you don’t purchase positive cashflow properties (but this will be the case either way if the investment properties are negitively geared).
Quickest way to wealth – What is wealth to you? In my opinion wealth can be judged in 2 ways – cashflow or asset value. I have a lot of personal lifestyle goals (i’m still early 20’s) so my personal wealth goals relate to cashflow (i.e. realised wealth), so although i will still build a portfolio geared towards capital growth my main concern will be for cashflow. But what works best in my situation won’t work best in your situation, so my advice is to do some homework before you take the next step and see which option relates best to your personal goals.
Good luck, Leigh [
].
“If you can count your money, you don’t have a billion dollars”
J. Paul GettyI believe that retirement is having the option to work or not.
Other than travelling to England with my parents when I was barely old enough to remember it I’ve never been overseas. I’ve never been to America, Ireland, Fiji, Bali, Greece, Italy, Canada, or New Zealand, other than Footscray ([
]) I’ve never experienced another culture, never seen war, slavery, poverty or wealth, I’ve never stayed, travelled or eaten 1st class, never seen the Alps, the Rockies, the Amazon, a glacier, haven’t sky dived, heli-skiid or bungee jumped, hell, I’ve never even been to Tassie or the Northern Territory!But, once I’ve spent 7 years in Tibet, come ashore at Anzac Cove, walked the Kokoda trail, backpacked through Europe, dinned out in New York, lived it up in Hollywood, been lost in the Amazon, surfed the Nile (it’s true – once a year), paraded down the streets of Rio, run with the bulls in Spain and sun baked naked on a beach in France I’ll come home and work again stacking shelves with the days returns at the local video shop for $13.77 an hour. You know why? Because all those things are boring and I’ll wish I never took the opportunity to try them!
Oh, and if sitting in gods waiting room for my number to come up is the next thing after retirement then I’d better become a patient man. Not all of us have the privilege of life experience as yet, but in 40-50 years time (long after financial freedom) when I’m nearing the age of traditional retirement I’ll think back to this moment and reminisce ‘gee im glad I didn’t take ol’ bbruhams advice and keep on working!’
“If you can count your money, you don’t have a billion dollars”
J. Paul GettyWould it be realistic to look at the trends of say the US to gauge an indication of the long term direction of property in Australia?
What i mean by this is that because the US housing market has been around for a lot longer than Australia (obviously!) then what’s happened over the years in the US might be a good indication of what might happen here?
Similarly, Australia seems to be some years ahead of NZ. So if you were to look at what’s happened here it might be a good indication of what’s going to take place in NZ over the next 1-2 decades?
I know one thing that may push Australia into another huge supply of cf+ properties – interest rates as low as the US [
].
“If you can count your money, you don’t have a billion dollars”
J. Paul GettyA couple of creative suggestions that might be useful to you richmond.
1. You could try approaching the vendor to retain an equity in the property.
i.e – Vendor leaves 15% in the property and you obtain 90% finance through the bank. Most likely to achieve this when offering the vendor a premium price for their property for doing so.
2. If you’re using the same bank to finance a new property you may be able to refinance enough money out of the other properties and place it into a term deposit. You can then secure 100% finance by using the term deposit as well as the new property as security rather than x-coll another property. When the property has increased in value (either by way of purchasing BMV, improvements or CG) you can simply request that the bank removes the security against your term deposit and you’re off again [
].Might help you, but I’m not sure if you’re looking at using this as a strategy to purchasing further properties or refinance an existing one.
Good luck, sounds like you’re doing really well so far [
].
“If you can count your money, you don’t have a billion dollars”
J. Paul Getty
i bought 2000 shares in CSL on the float 7 years ago for 2.40 each. sold them 3 months later for about the same price when i decided to buy a family home and neaded the deposit. chose the wrong shares because they they recently reached $50 a share could have made 100K,
I sold a parcel of shares i had in a company by the name of Virotec to attend Steve’s seminar on the weekend, they’d been slowly going down over a couple of months so I thought i’d cash them in to pay for the seminar. Wish i had of done it a couple of days later though, they were up 33% the next time i checked them! Ah well it’s only a few hundred $$$’s not $100k []!
“If you can count your money, you don’t have a billion dollars”
J. Paul Getty
Some very good food for thought [
].I think you’d only consider this on a very large deal, maybe apartment blocks or commercial deals.
].
]) I’ve never experienced another culture, never seen war, slavery, poverty or wealth, I’ve never stayed, travelled or eaten 1st class, never seen the Alps, the Rockies, the Amazon, a glacier, haven’t sky dived, heli-skiid or bungee jumped, hell, I’ve never even been to Tassie or the Northern Territory!
].
! Ah well it’s only a few hundred $$$’s not $100k [
]!
