Forum Replies Created
Kp,
Yes 15.5 hrs is certainly a couple of lunch boxes away; ah what the heck, grab the eskie!![laugh4]
Westan,
20,000km (big lunch box??? now that’s an understatement; even the eskie ain’t gonna cut that one)!!! [lmao]
Just for the record guys, I have nothing against cashflow positive properties, what I am against in the fool notion that “cashflow is king”; how many positives have turned to negatives because of economic changes and or poor investment choices. Yes Westan, you’re absolutely right, just because their cashflow positive doesn’t make them a good deal, having growth as part of that equation DOES. That is why you have succeeded, not because they are cashflow positive, but because you HAD GROWTH, without it, what have got, a few extra dollars, which once spent, leaves you with????
As for buying far from home, I have owned property in both NSW and QLD and it was no picnic, with or without the #@$% lunchbox!!! Nonetheless, both these states have much to offer the savvy investor!!!
For me personally…..Experience has made me shy away from distant properties, hence I prefer to keep IPs within my own backyard ATM, however, I would never imply that this is the ONLY way to go. FYI, I was recently considering NZ, and as yet, the jury is still out on my decision!!!
As I said to Ko_Starr, if it works for you; go for it. But make damn sure, that whichever way you go (be it positive or negative) be CERTAIN; and as long as you are that; whichever way your cookie crumbles; at the end of the day, you have no-one but yourself to either blame or pat on the back!!!! DO WHAT IS RIGHT FOR YOU!!!
Jo
Originally posted by Ko_starr:I’m interested in buying a house around 9 hours drive from where I live main reason is because i’m pretty sure it is pos cash flow and if not it’s very close to it and surely should turn sooner or later in the future.
What makes you so confident that it will “turn” pos cash flow??? Remember, it could go the other way just as quickly, but if you feel it’s right for you…..go for it!!! Oh and don’t forget to take a cut lunch as well as a few other choice munchies/nibblies for the looooooooong drive!!!!
Jo
Hi Peter,
I hope I don’t get into strife for saying so, especially on someone else’s site, but although I have never read ANY “investment” book (and have no interest in doing so) yours sounds like a MUST read!!!
After reading some of your comments both in here, but mostly in Somersoft, I have found you to be “good value” and I can only assume, your books would reflect same.
Cheers,
Jo
David,
Thanks for coming to the thread; I knew you could extend some valuable information/insight in replying to Elika’s (Helen’s) questions, as you are both in the industry and in the area she wishes to purchase. That is why I hunted you down in Somersoft!!! [lmao]
Elika/Helen,
Hope it helps, David knows his stuff; not that the others have not made valid points; I just thought he could be of some added value from an agents perspetive (as you requested).
Cheers, [sunny]
Jo
P.S. I have to agree with you David, I have communicated with emcdonald and I hope that her enthusiasm and love of RE continues; she is quite versed in RE matters and IMO she is truly inspirational for one so young!!! [medieval]
Hi Jes,
Welcome to the forum!!!
For the WA suburb snapshots, you can try http://www.reports.rpdata.com.au or alternatively go to http://www.domain.com.au and search under (appropriately named) “suburb snapshot”. Domain will also provide you with a section called “Auction Results” which will tell you the prices of properties sold at/or prior to Auction. As for “all” homes sold, try the “properties sold” section of http://www.realestate.com.au.
Good luck,
Jo
I understand your point Westan, and yes it has no “concrete” bearing, however, immigrants (or otherwise) working/studying in these areas can help boost the area’s economy, even if it is only a miniscule amount (ie. increase rental demand).
I didn’t think it would cause such confusion; as I assumed most people actually read the contents of links provided, and in doing so, they would make some sort of (albeit small) connection.[blink]
Cheers,
Jo
Originally posted by westan:they list regional areas and low population areas of the metro areas.
I have edited my thread heading accordingly, but as you are aware, the length of same is limited and in trying to fit in as much as possible, it may have given the wrong impression!!!It doesn’t list low growth regional areas as i think you were thinking.
I didn’t think that it did or didn’t.Thanks Westan, but I didn’t misunderstand the figures; I know what they were referring to, and my only reason for posting the link was strictly as a FYI source for people’s interest. I am fully aware of growth of the areas you mentioned….no need to convince me; I’m in agreeance with you!!!
Cheers,
Jo
FYI here is a couple of links which may be of interest:
http://www.tco.asn.au/oac/community_overview.cgi?oacID=16
Tassie in general:
http://www.domain.com.au/general/display.aspx?ID=HA5FACT_6&mode=tvfactsJo
Originally posted by Peter Spann:
I am not prepared to sacrifice quality and growth for income as I believe in the long term growth will far outweigh any meagre income I receive from property.[drummer] DITTO!!![drummer]
Yes I was Geo; but I quit!!! Thought I’d leave the tough job to those who can handle it better. Hey, maybe you could take my place; I’ll vote for you!!!!
YAY…GEO FOR MODERATOR….WHOO HOO…GO TEAM!!!
Jo [tongue]
Kay,
Your (anyone’s) “negative geared” property in the “not so cheap” area can become “positive geared” if you pump as much money as you can humanly muster (over time of course), as can a “positive geared” property turn into a negatively geared property if there is a mass exodus of the “cheaper” area (and/or other circumstances ie. major repairs needed to be done on same).
It’s all a matter of works best for you, and your financial situation; as long as you are comfortable and not over-extending yourself, things should pretty much balance themselves out.
Jo
Maybe the fact that this is could be classed as “advertising”??? [blink]
Not sure it is permissable, but I am assuming that as admin/moderators have allowed it to remain, it must be okay.
Jo
Hi Trish,
IMO you are in an excellent position by owning your house “outright” that in itself is a huge achievement!!!
And to trade the negative geared property for 2 x cashflow properties (which can turn to neg gear in a heartbeat anyway) or in exchange for a “holiday rental” is IMO foolish; UNLESS it (your neg geared IP) is performing REALLY badly. But then, because you have no current debt, any cashflow positive income will be added and taxed along with your wages/salary (assuming you work).
At the end of the day, it depends on how badly the neg geared property is doing (how much out of pocket you are), it’s long term CG potential and how long you have owned it (if < a year, you are looking down the barrel of 100% CGT bill).
My 2c……Keep it, and don’t get scared by the “doom and gloom” and/or “cashflow is king” crap; positive can turn negative before your very eyes!!!!
Cheers,
Jo
Hi Wayne,
Storage space, as humans we tend to accumulate (hoard) lots of “things” so one can never have too many places in which to put them. Shelves, cupboards. You could make use of empty space by enclosing it and putting a door in front for some useful storage room. Extra shelving in laundries is ideal for placing detergents on etc, as are broom and/or ironing board cupboards.
If you like the bathroom heater, and you don’t mind spending an extra quid, try a heated towel rail; nothing nicer after stepping out of the shower/bath and wrapping yourself up in a soft warm towel (heavenly)!!!!
Sensor lights in front (or rear) garden or (preferably) front porch leading to entrance, gives people sense of security and helps at times when scrambling around for keys in the dark.
Clothes lines, retractable ones work well, and don’t hog the backyard and make it unsightly.
But I guess, it all comes down to personal choice and of course $$$$
Cheers,
Jo
Hello Start,
Footscray, Maidstone, Maribyrnong all about 8km of CBD, proximity good to transport and as with any area <15km of CBD, you can’t go wrong.
St Albans, still only 17km and Werribee a bit further out at 28km from CBD, however both have been undervalued for a long time, and IMO (as well as a few reports over the last 18 months) are long overdue for CG which is highly favourable.
Cheers,
Jo
P.S. If these areas interest, consider Niddrie as well; close to Essendon, near the airport and great racecourse nearby!!!
Hi Toad,
Welcome to the jungle….err Forum!!! [lmao]
Congratulations on your sale!!!
One question still nags me … what happens if interest rates go up 2,3 4 or even 5%.
A smart investor should be able to weather such increases, and by ensuring that he/she does not over-extend themselves financially, such vast rises will be accounted for (but hopefully not realised)!!!
Hope that helps, and good luck,
Jo
I had no problem at all.
The former owners rented it off me for the first month while their new house was being completed. My PM was advertising it whilst they were still living in it, and conducted heaps inspections with fantastic feedback and several applications before finally deciding on one.
Jo
Hey Kaloni,
I’m not far off you in years (41) and I refer to myself as “semi retired” only because I still spend time working with people, when I could be lazing about doing nothing!!! No, just kidding, that would bore me silly!!!
4% is not unrealistic in the slightest, and can be achieved in many areas of Melbourne, but unfortunately I don’t think this will be the case with many of the eastern suburbs (not impossible) but just not as likely.
Mordialloc, Mentone and the like can be expensive (depending as Yack says on which side of the tracks) but why not consider Frankston South, Mornington (I get 5.4% for one I bought there only a few months ago) Mt Martha and so on. There are some lovely older homes beachside of the Nepean and that will get you the 4% you seek.
Cheers,
Jo
Hi Kaloni,
The problem with many of the more expensive areas, is that unfortunately, if you are looking for positive geared properties, you will be hard pressed to find them, if at all!!!!
I mean, you could spend 500K and buy a lovely beachside property but the rent may well only equate to say $300, okay $350 p/w which is about 3% gross, which after deducting all your associated costs is even less!!! But the Capital Growth is much higher than say a property in the sticks, which will give you a far greater income (possibly even +CF) but the CG will not compare.
What are you looking for +CF or -CF??? A property for the long term B&H CG value??? Or cashflow today, regardless of long term CG???
Maybe you need to sort out what you want first, before looking in areas that don’t meet your criteria.
All the best,
Jo
Absolutely!!!!
