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  • Profile photo of N_LamN_Lam
    Member
    @n_lam
    Join Date: 2005
    Post Count: 5
    November 30, 2005 - 3:09 pm

    Hi Michael,

    Preferably Victoria. However, as I’m in the search for a +ve cashflow property as my first property, I’m investigating in investing in other states where the opporutunties are greater. I’m still trying to get my head around what are the risks involved, does it even matter if I don’t get to see my investment property in real life. etc.

    So, have you ever heard of “we find houses” directed by Paul Wilson?

    Profile photo of N_LamN_Lam
    Member
    @n_lam
    Join Date: 2005
    Post Count: 5
    November 29, 2005 - 2:01 pm

    Thanks jenwren, nickelben and krs

    You are right about “there is always ways around the problem”

    I’ve already decided that I am going to do this on my own. There was an attempt to do this in venture with my brother and sister, but we all agreed that earning 1/3rd of the income and carrying the debt of the venture makes each of our indvidual servicability ratings bad.

    I’ve had a good think about it and my strategy so far without figures is:

    1) Buy the first 2 or 3 properties as +ve cash flow properties using a buyers agent to get into the game and understand the process. I will not limit myself to just apartments (If jenwren is buying acres of land, why cant i :))

    2) For the 3rd or 4th property moving forward, I want to diversify my portfolio through bluechip properties that will appreciate in value (i.e. -ve cash flow), but also continue to purchase +ve cash flow properties.

    Justifying my strategy,

    1) I get to keep on buying properties
    2) I build wealth and equity
    3) the proceeds from the +ve cashflow properties can be used to fund the -ve geared properties and
    4) I get diversity in my portfolio

    Do you see how my strategy could be flawed?

    Nam [biggrin]

    Profile photo of N_LamN_Lam
    Member
    @n_lam
    Join Date: 2005
    Post Count: 5
    November 27, 2005 - 1:00 pm

    Thanks Krs and nickelben

    Thanks for the advice. I have been looking in the forums but not under “trusts” – I’ll give it a go. However, I believe the structure is a separate discussion all together (I’m already talking to accountants about this).

    Before researching any further, I’ve already got two ideas in mind, but I’m still not sure if either will pull through for me given their drawbacks.

    1st Idea: Buy an apartment(s) which is positive cash flow or neutrully geared. I get equity and good cash flow as per my strategy but the main draw back is that lenders who I have spoken to won’t give me a loan and I won’t be able to get the second property for a while.

    2nd Idea: Buy a researched property which I think will appreciate. I can draw on the equity from this property as it goes up in value, but only if it goes up in value. The main drawbacks are that cash flow will be negative and I’m relying on my research for the property to appreciate.

    I will continue to look more in the forums posted online and eventually come to a decision. Thanks for your help!!

    N Lam

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