Why is everything different this time? As George Bernard Shaw once said:

We learn from history that we learn nothing from history.

Josh

Geo, I wish I had enough money to retire on. I was mainly asking since people expect the apartment market to drop a bit in the next few years and I might have that money then, unfortunatly not now. Just want to be prepared.

Thanks Acey, I wanted to know what some of the main differences between apples and pears were as all I knew where they were…[Read more]

Thanks Derek,

I don’t have too big a problem with the higher LVR as I was looking to go towards neutral gearing or positive cashflow since I believe that Cash is king.

The main thinkg I’m wondering about is that since rates and BC are higher is this in some way offset by lower maintenance costs (ie for gardens and aprtments tend to be…[Read more]

I’ll be there in Brisvegas to see the Kiyosaki concert.

Have a look through E trade. My brother got my ticket there but I think it might have been cheaper and I got a free rich dad poor dad velvet edition book.

Josh

From what I can gather, a lot of com prop investors use the services of an agent that will help you purchase etc, etc.

I think I’ll also look at comm prop as the way to go, all the people in the big money go commercial or develop.

Besides they generally have higher cashflow and less operating expenses…. Cash is King!

Josh

I’ve heard of some holding props in a trust and distributing to a company thus getting the best of both worlds….. I don’t see why you can’t have both the co. and you as benificieries.

I’d check it out though.

Josh

Hi david,

Off the top of my head, the cheap +cf houses used to sell around 50k, now probably around 80 to 90 k rent I gguess is around 100pw. I honestly haven’t had too much of a look at the prices, rent and vacancies too much as I don’t tend to agree with investing in small towns with little potential.

I could probably try and find out the kind…[Read more]

I live near ayr, it does depend on the sugar industry a fair bit so it does depend on what you think will happen to the sugar industry. The town it self doesn’t have too many prospects, it isn’t a beach town and does rely on the primary industries. close to townsville (1 hour). I think the town will be around for a while but growth??? I seriously…[Read more]

Oh and also I wouldn’t put money into investing in collinsville.

Josh

I live in bowen, about 80 clicks from collsvegas.

It is highley reliant on the mines, power station and to a smaller extent teachers. A new mine recently opened so it might be alright. Teachers never stay long. Some live in bowen and just drive an hour to work every day.

The town has one hosp GP and one prive GP although tehy have difficulty…[Read more]

I remember reading in BRW about a recent court ruling regarding interest while building a house. The result was that interest can be claimed IF the house was being built with the intention of renting upon completion.

Josh

As a side note, buying your own PPOR may not be the quickest way to get rich.

On a dollar for dollar basis renting beats owning a ppor.

Josh

I think also Actually buying the cvan park can be rather expensive. There were a couple for sale in Bowen and ranged in price from about 1 to 4 mil.. They do rent well though I believe

Josh

Chris Corrigan of Patrick Corp thinks that the rail link was a waste of money as far as business is concerned and I think he would probably be in a good position to tell.

JOsh

Hi all,

From what I have read, If you can find a tenent that will pay all outgoings (rates repairs etc), long lease, not currently owened by tenent, you might do OK.

As MJK One of the big risks is the vacancy period, Due to the higher costs large repayments may be required, AS long as you can cover this you would probably be OK.

As Mel…[Read more]

I think from what I have read, it is harder to get info/research on com prop so most people buy through an agent.

As with anything else higher risk is higher returns. Com prop is more volitile and can go down in value more so than res prop. If you lose a tenet you could be vancant for longer periods.

Josh

Matt,

If you are worried about losing the money or servicing the loan I would tend to go for less IP’s with lower gearing ratios. As with anything the higher the reward the higher the risk.

Josh

Hi all,

With reagrds to the immigrants, I don’t think this is the main factor driving the prop market. (I read somewhere that most of them rent which may affect the vacancy rates and thus props but I thhink it is minor) At the moment it is the baby boomers who are driving this property market, and anything driven by this group of people will make…[Read more]

Ok, I’m not really invested in com prop but hopefully here are some answers from what I have read in a few books:

1) Yes, usually, You tend to find vacancies are for longer, (not really more but if you get one they can remain vacant for a lot longer.) Prices to fluctuate more and tend to run with the economic cycle.

2) The GST is the main one I…[Read more]

Hi all, Interesting topic.

First off I believe both camps have both their pros and cons and I think a portfolio should probably have a combination of both.

However as far as the cashflow goes I generally am all for it. I think that they will generally have lower CG than the city centers over the long term. Like angie! says the cg may be there…[Read more]