New Investor,

Yes it is a negative if you are capital growth focussed but if the numbers stack up for you, in income terms, it may still be OK for cash positive investing.

MJK

Thats right Steve, we all have to be educated. Thats what I like about this forum.

MJK

I’m with you see my post ” inflation ” .

MJK

Thanks for your reply Michael.We did get onto some of these guys in the end.

Cheers
MJK

David,

How does one get hold of this West Australian Report if one is a Melbournian?

MJK

Trueblue,

Thanks again for the info.

MJK

Thanks for those replies. I’m trying to get educated. What about canning vale ? Although I’d like to buy a new property, area where there is too much land take a long time to become scare commodities ? Any thoughts ? I’ll have a look into Mandurah, Broome and Carramar.

MJK

You could get the property revalued in writing by a professional & respected valuer and then present this evidence to the bank, No garantees they will accept it because usually they like there own valuers to check it out.Maybe you could ask the bank to revalue for you ?

MJK

Dorothy,

My opinion is that you would only look at Ballarat or othe rural towns if you where after positive gearing and at the figures you mentioned they would be negative. Capital growth in rural areas is more of a bonus than a sure bet and I would think ( looking into my crystal ball ) that Ballarat would be more likely at its peak than not.…[Read more]

Thanks for your reply Minimogul

MJK

F J O,

To answer your question 7% represents the empty units.Close to one in ten. That means competition for tenants is fierce. I would not like to be one of the ten forced to discount to a 3% yeild to get a tenant. Rule of thumb for many years has been no higher than 3% vacancy is acceptable.

MJK

Michael,

May I be a sticky beak and ask what suburb/state this reno is?

MJK

Or maybe become a patron.

MJK

Spocky,

The point is on this web site people are focusing in positive cash flow. Capital gains is a bonus if it comes but if it doesn’t you still make money. The idea is to buy a hole string of positive cash flow properties like building blocks to a positive/ passive income.

MJK

Minimogul,
Just to move away from sex for a moment.
Did you say 29% in NZ. Can you post some suburbs worth looking at mate.

MJK

I recenty read an article from the Financial review which suggested that vacancy rates in Melb CBD apartments are at 7%. Most property people advise not getting involved in areas above 3-4% Also rents are way down and there are thousands of new apartments still to hit the market. Be very careful. Why not look in the suburbs. Land is not…[Read more]

Ziz,

Could you tell us what the comfortable debt level you mentioned was ? Could you expand on your early days strategy ie. what you were able to achieve in say 10 years with property alone. It sounds like your early focus was on -ve geared property, but by the sounds of it the portfolio has become +ve today. How did this transition occur.

MJK

Paul,

Now you have contributed in a helpful way! I congratulate you on your achievements and encourage more positive input from you.

MJK

One might suggest that the biggest risk in investing is “not doing it”, but I’m sure your after a more practical answer so Ill leave it to someone else.

MJK

Well Paul, I must say I’m with the others that want to learn of your success formula.I suspect hedgie may be right when he suggests you had a winfall in 1977 ? Now be honest, did you get to where you are by “true grit” or did you get a “leg up” old boy. Do you have some wisdom for us or are you the ” Great Aussie Knocker “. I suspect you may be…[Read more]