Forum Replies Created
Hi Redwing,
Thanks for the post. Sounds interesting as a business model. For me, the biggest issue is sourcing the right properties. I’ve got no issue with cash flow or equity, but my time is precious. If I could outsource the process of finding the right property then this would be a boon.
Worth a look for sure. Just gotta be a little careful that the properties they put forward are top shelf. Don’t mind paying a commission if they’re really that good, but 6.6% is insanely big. They’d have to be superior properties well in advance of anything I could find myself to justify that commission.
My first thoughts are, however, that they’re not going to be good enough to justify that sort of commission.
Cheers,
Michael.Richmond and Calder,
Thanks!
I thought clearing the debt on my PPOR was the way to go and that’s the plan I’m executing right now. At current repayment rates I’ll be debt free in mid-2007 (2.5years). At that point I think the market will still be soft, and I’ll be well positioned to buy in before an imminent recovery. We’ll also have around $800K to $900K in equity and solid cash flow.
Richmond, we own 40 acres of rural land at Bundaberg but not sure of the current zoning (my wife bought it before we met). It is currently agisted (sp?) for cattle so we make a little money on it. It has new fencing all around and permanent surface water. We have been thinking of building a house on it for around $100K and then renting the property. 3Bdr on similar acreage rent for around $300 a week so I think the $100K improvement would be a pretty smart idea. We’re going to hold on to it as its getting encroached upon by infrastructure. A few years back they put in a tarred road straight past the property and its on the electricity grid and water/sewerage now too.
Thanks again,
Michael.Originally posted by kp:Its a great question Steph,
And the young professional couple who earn $110k and $50k together…are inherently not savers…they’re party going spenders. So the deposit question is another mystery?
They think that high income equals wealth…but all they are doing is trading time for money…so its a trap in itself.
And the job usually burns them out within 10 years….then what ? wake up call time ?…..time to reassess the finances ?Its truly scary from where I sit…..
KP
KP,
Have to kind of disagree, at least from my perspective. My wife and I fit that income demographic with my income at $125K and my wife’s at $45K. And we just bought our first house for $650K in North Narrabeen on Sydney’s Northern Beaches.
But, here’s the difference…
We pay my entire salary off the house each month at around $6,500 net, even though the required repayments are only around $3,500 (10 year P&I term). We still live a fantastic lifestyle on my wife’s income of around $4K net a month. We also managed to save around $300K deposit and have already payed another $150K off since we bought the house around 2 years ago. We still owe $180K, but the house is now worth around $850K so we’re looking alright at the moment.
So not all top quartile earners are spend big consumers, some of us are responsible wealth accumulators (or at least want to be). But my wife and I may be just the exception to the rule.
BTW, this is my first post so I hope it doesn’t come across the wrong way. I’m here on a journey of discovery. I’m still an absolute novice on REI but have been doing my homework (Kiyosaki, Burley etc).
Our current plan is to pay off the house in the next 2 years then look to start investing in real estate. I’m hoping to accelerate this though with some purchases inside that timeframe. I have around $3K in disposable income a month ($6,500 of my salary less $3,500 house repayments). My salary will continue to be our investment income and my wife’s is the enjoy life money.
Cheers,
Michael.
