Forum Replies Created
Thanks Richard!
75% is much higher than I would have expected.
So it appears that an LLC is the way to go and finance is certainly achievable.
One last question that is more heard of in the stock market…..
Are people considering the Sovereign risk?
Is it conceivable that the US will either end foreign investment within its RE industry or lock those that are already in, in for a set period not unlike what occurred in Dubai post GFC?fWord wrote:johnrisk wrote:Smart money is and has been flowing into assets that will do well during inflation.<moderator: delete flame> Care to elaborate on what assets those might be?
It's well and fine for people to say, 'Oh, don't invest in this', or 'oh, don't invest in that either'. But certainly then, these people should then be able to say WHAT we should then consider investing in.
As in most cases however, people are more interested in looking for problems than finding solutions.
Take a look at precious metals. smart money, maybe…. maybe not. alot of money…… yes.
Hey,
Its a little difficult to determine your true position without declaring your income. There is a wealth of knowledge on here and a few brokers who may be able to offer advice, but they will need more info.
Personally, I would pay down that credit card as a number 1 priority. Forget re-investing or renovating until that is done. If your income allows it, do it that way. If not you may consider re-drawing on your investment loan (you should speak to your accountant before doing this as you wont be able to claim that amount in any negative gearing – if there is any).
Once you have paid down that debt, re-assess. investing in another IP now, on the assumption that you will see significant capital growth over the next 2 years may be a gamble unless you pick your areas well.
This is not professional advice, just my opinion. Always do your own due diligence.
Good luck
i tend to agree that the sentiment here in Australia is changing about with regards to cost of properties. Its funny because none of the fundamentals have really changed that much in my opinion.
It is also my humble opinion that, as the global economic situation gains more uncertainty then the sentiment in traditional investment classes may be altered. This is not limited to Real estate. In fact take a look at stocks and you will see a correlation as well.
The real losers at the end of the day are those with cash in the bank and those in over-leveraged positions. Cash in the bank is useless in a high inflationary environment and well…. over-leveraging is a big no no and the banks seem to have curved their policies to reflect that.Just out of curiousity. In the past whether it be by overseas property bubbles bursting. What occurs to rent after a bubble 'pops'? Does market rent stay around the same? Does it drop off? Or would demand for rentals and inflation force rent upwards?
i understand each market would be different, just seeking some opinions.
Interested. Thank you for your honest answer.
I would like to hear more as it develops and, if required will assist in any way that I can.
Please add me to any list that you have or email circular.
Cheers,
Mick
Martha,
Can i request more information please. i have been looking(previously) at similar markets and wondered how to get the venture off the ground.
I am interested to know the structure of any proposed LLC and the number of shares on offer, whether one person can invest in more than one share also.
If there arent answers to these questions yet, maybe those that are interested can help out with some leg work.
thanks in advance.
mick
No mistake.
I am young(ish), have a few properties and have started over the last 6 months diversifying, mostly into Silver. I have been a member of this forum for several years(mostly loitering) and can tell you that I have a heavy biaise towards property.
Silver however has changed this. I still hold my property and you have to understand that unless you go for shares or ETFs you arent able to leverage like real estate, however i have seen some incredible returns in the last 6 months – and am still buying.
It is a speculative move but my thoughts and research led me to this synopsis:
Silver value has generally increased at a rate above inflation for a couple of decades(with a few exceptions),
( Interest in your average bank account is lower than inflation ie your losing money).
Silver has industrial uses as well as a monetary value. Gold is only used in a small amount of industry and is more of a monetary standard (and heavily recycled- silver is rarely recycled).
– Some predictions place Silver as one of the first elements to disappear off the periodic table, potentially in the next decade.
– There is more gold above ground than there is silver….. apparently.Do your own research and be cautious, there is a small hype surrounding this invesment at the moment and it looks to be building very quickly. If you enter now, there may be a pullback(there may not be as well). Just research it and gain an independent perspective then make your own decision.
Finally, if you do choose to enter the silver market, dont purchase from online auction sites. People are paying well above the value of precious metals and you dont need that from the start. Ask your friend where he is purchasing his or PM me your location (city) and I can put you in touch with a distributor in your area (hopefully) otherwise shipping and insurance usually add a bit of a premium to your investment.
Cheers,
Mick
Dependant on your capital, location and your ability to securely store Precious Metals, there are a couple of options.
The number of bullion dealers in Australia is growing at a good rate with presence in most states/capital cities.Perth mint also offer a few services, you can purchase online/over the phone and they will ship to you(with insurance). They also offer a storage facility i believe.
Otherwise Ebay is an option which i wouldnt recommend due to increasing fraud-like activity, you could do a search for forums in Australia that are focussed on precious metals, there are always deals going there by current physical holders of Gold and Silver.
Good luck.
Hey,
Consumer debt = nil
Variable finance = still considering going fixed.Currently I am investing in physical silver. I have set a goal and will have achieved that goal within the fortnight. After that I intend to look into more potentially spec stocks. I am yet to do thorough research for prospects on that. I have been focused on building my physical as a base and im not sure that I will move into stocks, but I do believe resource backed stocks have to be a fantastic opportunity over the coming few years.
I may be the only one in Australia, but i believe that interest rates may hold beyond Christmas may have one or 2 rate rises after that and in fact by mid next year -drop off slightly. If there is a drop, that is when I would like to fix. It is an optimistic belief i know. Willing to eat my own words.
Cheers
Thank god for that!
I too am investing in silver….. fairly heavily. A little more speculative than gold i know.
the next round of QE, i believe will do little to jump start the US economy….. Unless its significant, which could cause the pendulum to move heavily into they hyperinflationary scenario. I dont think the US will stand alone in that environment and it will have global implications.
I am reassured by your post. My strategy, although without Gold is similar. I am carefully considering increasing my holdings by using a large portion of $$ from my offset account. I know if I had of done that 30 days ago, id be well ahead regardless of whether it was in Gold or Silver and it looks as if there is still a lot of upwards movement to go.
I am interested to see, if people are buying RE at the moment…. it does seem a little quieter around this forum than it used to be.
Also, Kong, if you have finance on property, are you fixed or variable? I am currently variable but watching closely for a good opportunity to fix for at least 3 years. Just interested to see your thoughts.
thanks again!
I thought that I was going crazy…..
It felt like everywhere in the media was reporting an almost certain rate hike but the reality is…… I think it would have done very little to curb inflation driven by international demand for our resources.
As far as uncertainty in the global economy goes, im suprised that a rate rise was even on the cards. The US dollar is tanking, Europe is in pretty bad shape and I feel that we are currently economically at our short-term peak and things will deteriorate from here. If China, whom is very closely linked to the US monetary system suffers from significant further losses in the US dollar, our resources boom will be the first thing on the chopping block, if that goes….. well its almost the only thing underpinning our economy at this point. Take a look at the true US deficit/national debt and divide that by the population if you want a small shock.
A small rant… My apologies, im not an economist and seldomly post here but given the instability globally at the moment I cant believe that a rate rise could be considered unless we move into a more currency based inflation/hyperinflationary model, then we would all pray that we fixed our rates.
Id love to hear other peoples' opinions on this, tell me that I am wrong/crazy.
Cheers
Would Asbestos be an issue with an older unit like this?
If you borrowed 100% and used an offset with the cash…. wouldnt you still pay LMI?
Would you, at the end of the day be better off putting in 20% to avoid that?
This is assuming that you have the 20% to put down plus reserves for offset.
feel free to disagree.
Has anyone got any experience with depreciation on transportable homes?
Are they eligible for the same tax concessions (ref depreciation) that a regular property would be entitled to?
Also is it at the same rate?Cheers in advance.
Mick
CSmith wrote:I agree with Banker – go with someone who has runs on the board.http://www.prlog.org/10195970-mortgage-choice-wins-big-at-2009-mfaa-awards.html
– 2nd post barely makes you someone that runs on any board.
Your post has validated several of the previous points.its a big generalisation, but I have never had a good experience from a broker through a franchise. If you want to use a broker, go for an independent that has been referred by a friend.
I have wooden floors in my unit(that i am the tenant for)…………. They are no good. It is a new executive style unit with many good finishes however….
This place and the boards is only about 13 months old and the boards are curling up and separating in many places. I am planning to renovate(IP) and was planning to use floorboards, but I dont think I will now unless i get an awesome warrantee from a solid company. I am in WA and i dont think we see the humidity that places in QLD/NT see either, So i dont think that is a factor.
These floors will need to be replaced, as the floors next door were 6 months ago.
Maybe tiles and carpets or laminate. I have never had a prob with these either where I rent or own.
Good luck
Without knowing the complete picture, could you hold onto it and value add by renovating?
OR
as it is a bigger block, could you get approval for a second dwelling, like a modular house or a kit home, something basic that could be rented easily, this may turn it positive and give you a little capital growth along the way.
Or
Depending on town planning, get development approval for either subdivision or units and either develop or onsell the property with that planning approval, again for a little extra capital.Good luck
I dont know if this will help, but I use the aus bureau of statistics – http://www.abs.gov.au and search by the town name and look at the census/regional data. Its not a list and not quite the answer to your question but in the absence of other suggestions….
Good luck
Mick
I may be missing something or maybe my elementary maths has failed me….
Assuming the subdivision is approved, the collective land value would be $269k x 2 or around $540k, if you are spending up to $520k on the purchase price, with the risk that it may not in fact get the approvals….. is that risk vs return worth it?
I guess it depends on your strategy and the location of the block.
As for purchasing from an agent, i would tread carefully. If the agent is selling his/her or a friends interest, why wouldnt they have it advertised already? doesnt seem right.
Good luck
