Forum Replies Created
- Originally posted by MiniMogul:
Interest rates high, rents rising, property prices, errm, ‘flattening’, time passing, people going off properties, more sellers than buyers- when those conditions start to dig in you will find the deals again.
Nice try Mini, and ideally, one would hope so. However, all these factors, albeit they occur, do not happen simultaneously, property is only one player in the larger scheme of things.
Why would anyone who is fortunate enough to have a property which is returning more than it costs to maintain, put it up for sale??? Sure, some will be forced to sell for various reasons, however on the whole, most people who have such “cashcows” will IMO be reluctant to part with them. And if they do, I personally would be questioning their worth!!! And when (not if) the market changes (as the pendulum eventually swings back) in the opposite direction, this is even more reason not to offload the goose that lays your golden eggs, is it not???
Of course property will loose flavour, it is already happening or haven’t you noticed??? The herd mentality is alive and well, the flock are taking to the hills (or NZ) looking for alternatives – shares, cash and anything else aside from bricks and mortar!!!
The only way to obtain CF+ properties ATM, and for some considerable time to come, would be to create the situation, through properties currently owned.
People such as yourself have put yourself in an admirable position Mini; you were lucky enough and smart enough to buy well, and your time will come to gain even more from your investments. However, sadly for the others looking to our shores here in Oz, the boat hasn’t totally disappeared, but it is so distant that one risks drowning to reach it!!!
Therefore in terms of CF+ deals, IMO NZ is and will remain the better option for quite a few years yet!!!
Cheers, [biggrin]
Jo
Just sent you a PM and an email Simon. [biggrin]
Jo
SS = Somersoft
I tend to like the over use (abuse???) of !!!! and ???? that so many find annoying!!! [blink]
But my real favourite is IMHO, which was explained to me as being In My Honest Opinion, when in fact, I was later correctly informed as being In My HUMBLE Opinion, hence to avoid any upset, I just use IMO (plain old, In My Opinion) which is good enough and is still both honest and humble, just not stated!!!! [biggrin]
Cheers,
Jo
Yes Luckyone, you are definitely splitting hairs!!
The rent is normally calculated monthly using the first formula you provided to work out “calendar month” payments. And although, technically as per your daily calculations, you are indeed losing approx $4 per month (which is hardly a huge loss), the first calculation assumes that EVERY year is the same, including leap years!!!
Cheers,
Jo
Hello John,
Christmas is months away yet!!!. I understand that your property is yet to be settled, and as such I would not be too perturbed with its vacancy at this point. However, I would suggest that you consider getting tenants into the premises before you take on any of the repairs needed.
Some of the work we spoke about recently, can be left until a tenant has moved in, and for that reason, I feel it would be more feasible to wait until the premises is occupied.
Feel free to call me again, should you wish to; I am always happy to help.
Cheers, [biggrin]
Jo
Rose,
I have just attempted to reply to your email, but unfortunately it was undeliverable, and bounced back, hence you may need to take a look at your current email account.
I have therefore, cut and pasted my reply to your email in a PM, and forwarded it on through this site.
Either way, as we discussed earlier, the house you are inspecting tomorrow evening sounds like an excellent deal, and upward move for your family and business.
Good luck; keep us posted, we all love a happy ending!!! [biggrin]
Jo
Hi Rose,
I have just sent you a PM.
There are several options I guess, and it depends on what you feel most comfortable with.
I’d imagine with 3 growing boys you will need the space, and perhaps upgrading to a bigger home is the best way, however, there are still alot of larger homes around that can accommodate large families for less than 400K; it really depends on WHERE you want to move to.
I know there are quite a few double storey homes selling in some of the newer estates, houses that were once fetching 450K and are now below the 380K mark. It really is just a matter of shopping around, and lots of negotiating, which I know you are capable of!!!
As I said, feel free to call, I’ll be happy to talk through a few ideas with you if that is more suitable.
Cheers,
Jo
Hello Rose,
How’s things??? Long time no hear/read!!! Good to see you back in the forum!!!
I’m afraid as far as positive geared IPs in Victoria, they are difficult to come by, and although they exist, are few and far between.
You may need to look interstate, although again, positive geared IPs are rare in other states too. Aside from this, the only other option may be o/s investing such as NZ.
If you ever want to chat, remember I am only around the corner from you; so give me a call, maybe we can share a cuppa!!!
Cheers, [biggrin]
Jo
Per room, 2 or 3 bedroom places don’t necessarily achieve more than city 1-bedders.
True Kay,
This is because of the so called “trends” and the increase of one person households that is indeed occurring. However, although one bedders can (and obviously trends suggest they currently do) achieve better rests, IMHO history has proven that trends can (and do) change. Which is why I like to play it safe, hence when I buy an investment property, and again, as I said in my first post, because of personal perference and as part of my long term investment strategy, I always buy properties that will accommodate various tenant structures; singles, couples and/or families……that way, I am covered on all levels!!! [biggrin]
Cheers,
Jo
Are they Bbruham???
Oh well, there you go, you learn something new everyday!!!
Thanks Bbruham, it’s always good to learn from someone who really knows their stuff!![winking]
Cheers, [thumbsupanim]
Jo
Hello Simon,
Firstly I guess, it depends on what it is you hope to achieve from your investment. If you plan to “buy and hold” then your 175K entry level apartment in Melbourne will be fine, but if you plan to keep it for just a few years (<5) and are more concerned with immediate cashflow you could experience a few headaches. There is an ever increasing over supply of apartment buildings in Melbourne’s CBD and vacancy rates are incredibily high at present as a result.
Furthermore, and this is purely personal perference, I would never buy anything less than a 2 bedder anything (house or unit/apartment) unless it is going to be for yourself to live in, as they don’t generate anywhere near the same income as 2+ bedroom IPs.
As a fellow Melbournian, may I offer you a suggestion??? If you are looking for growth, I suggest you take a closer look at the inner circle surrounding the CBD and work your way outwards. Although the prices become more affordable as you venture further out from the CBD (as in most cities), there is still alot of good buying value within close proximity to the CBD and entry level properties are still very much a possibility. But I guess it all depends on your budget and your overall investment goals.
Cheers, [biggrin]
Jo
Good for you Scott!!!
I’m sure I am not alone when I say, that if I had listened to my friends when I bought in various suburbs, I would not be where I am today!!!
You gotta love the “herd” mentality; it is so predictable!!! [rolleyesanim]
Well done on having the foresight, and ba**s to take a chance, and come out the victor!![medieval]
Jo
Hi Neville,
I can’t say for sure about a web address, but you more than likely got a pamphlet in the mail, yes???
They often run their “free” information seminars at Council Halls throughout Melbourne, but that is about all I know of them.
Cheers,
Jo
Yes, yes and finally, yes!!!!
Spring will turn into Summer, hence carry on into the new year.
Although my crystal ball is currently in for repairs, my GUESS (and note it is only an assumption) is that interest rates will not (if they are to rise) exceed the 1% mark!!!
And finally, absolutely in agreeance….however IMHO if you cannot afford to weather a 2% increase you should not be looking at committing to any housing loan ATM.
Jo
There’s a simple explanation Yorker, and it’s not rocket science……it’s called SPRING!!! [sunny] People will venture out more in the warmer climates, sunny days categorically point to lifting of spirits and people are inclined to be more relaxed about spending their money!!!
Winter, or colder months, have the reverse effect!!!
There are studies with facts/stats to prove this, I am happy to dig some out if you like, just let me know, plus I have a colleague who did a paper on same, and I’m sure he can provide more detailed information.
Cheers, [biggrin]
Jo
Actually DD, it was moderated, if you take notice (previous page) in the first post, Simon Macks (aka MortgageHunter) deleted bits and commented accordingly, however, it seems the author not only went and put back the deleted section but cleverly changed his/her username (macsbananas to the now prop.com) perhaps to detract attention to this fact??? [blink]
Jo
Materially, yes I did; I lost 3 properties out of the ordeal, which was in effect a small price to pay as I became a happier person without the emotional blackmail!!!
Keep your chin up Property Lee, there is a rainbow at the end of every darkness, and although you may not see it right now, trust me, in time you will!!!!
My thoughts are with you, [sunny]
Jo
Hey residentialwealth,
That’s cool, and congrats on the flukes!!! Yes they do happen, and must admit I have had a few myself, but mostly they have been very carefully calculated moves.
As for the character building…well what can I say???
Will look at the link, and look forward to reading the book(s)!!!
Well done!!! [medieval]
Jo
Sorry to hear that Property Lee; that’s awful!!!!
I’d die without my kids; reckon I would’ve fought like hell, maybe even done the unspeakable before I’d let him take my babies!!!!
