Forum Replies Created
In all seriousness, no one on this forum or anywhere else can tell you how to get the motivation or drive to become an investor. It comes from within. If you want it (and its obvious that you do) then the next question is the means to achieve it. As munjy has pointed out, you need the financial backing to get started. Anyone can decide they want to be an investor. The difference are the ones that leverage their current financial position to achieve their goals and objectives. Oh, working for someone else whilst trying to achieve your goals is not such a bad thing. It may just be the catalyst to get to where you want to go.
Eric
I think the first thing you need to do is clarify your’s and your husbands goals in terms of where you want to be financially in the future. This is will greatly determine the decisions you make today, i.e. do we sell up and get that `dream’ home now or use your financial means to start building your ip portfolio. You don’t specify how much your home is worth and what is owing? Depending on what this is and your loan serviceability capacity you could probably start buying an ip/s now. What you buy will really be determined on how much you can afford. Leading up to this, I would be plugging as much free cash now into paying those high cost debts (cc’s, pers loans etc.), and then, if you can get rid of them. You mention youre a little foggy on what you can borrow. Do yourself a huge favour and see a mortgage broker. In the past I (and as many on these forums will attest) have found them extremely useful in seeing exactly what can be achieved now.
In essence, you really do need to have that discussion with hubby to determine exactly where you want to go. Frankly I would do some delayed gratification and get that dream home later in life.
All the best,
EricI just did a search on realestate.com.au for rental properties. there appears to be quite a few up for lease. not sure of the condition of your place (new/old?) but from what I can see yours is below the average market value. Again I dont know the precise condition of your place. Alot of places I see appear to be new. Why were the 2 applications rejected??
Short answer is no. Any changes with the title will incur stamp duty. Best to consult with your solicitor/conveyancer now to discuss this as they may be able to structure it in such a way to include your brother on the title.
I don’t entirely agree with Dazzling. In some areas of NSW for example Housing Comm enclaves are slowly being torn down with occupants being moved more into the general community. You’d be well advised to thoroughly research the area in which you wish to buy to see if this kind of thing is happening.
Eric
GE, whilst horrendously expensive, helped us out a lot when we were going through a rough patch. I’m pretty sure they also went on val rather than contract. Why dont you see a broker? They’d be able to help you quicker.
Eric
Selling
I’m curious. When you first decided that you wanted to accumulate investment properties, were you planning on holding onto to them long term or was it more a case of getting in and riding the rising market???
Far be it from me or anyone to criticise your decision, however if you had the idea of holding onto these properties for the long term, cutting now is a brave option. If its the later then given the state of the Brissie market, then maybe youre getting out at the right time.
Eric
and thats just it dr.x! i say bring it on. for those of us that live without credit cards and expensive consumer debt, are well placed to take advantage if the proverbial hits the fan. but as nation we are in dire straits if we don’t address the issues that steve’s has so rightly mentioned.
What an excellent post wild one!!! If there was ever an example how anybody can be successful in property investing, youre it! Shear determination, lots of hard work and some knowledge go along way.
Pabbs, its great that youre wanting to get into property investing, however I would question making someone else rich by buying expensive packages etc. I know of a few people that have these type of things gathering dust on their bookshelfs. Sure buy plenty of books (second hand if you can; ebay is a great place for this), and attend the odd seminar. Nothing will get your portfolio started quicker than getting started.
Eric
isn’t this advertising??????????
I thought I’d add some value to this topic by posting below the definition of “advice” as quoted from “http://dictionary.reference.com/search?q=advice”
1. Opinion about what could or should be done about a situation or problem; counsel.
2. Information communicated; news. Often used in the plural: advices from an ambassador.One of the main reasons that I personally enjoy participating in these forums is about the many & varied opinions and information that is communicated. Bless the cotton socks of those litigious types that have made giving advice such a minefield that it is today.
So long as there are suckers in our community, there will be people that take advantage of this, spoiling it for the many good people who dispense with good financial advice.
Eric
Rather than depositing funds in an interest bearing account, put the funds straight onto your PPOR loan. This obviously has the effect of saving you stacks of interest, which in the long run would be a lot more than the 5.75% you would earn on an ING account etc.
Eric
Kevin,
The question was how to extract more leverage to buy more properties, not how to do it!
Sure, the way you’ve described how to do it should `have you flying’ in no time but there is a limit.
The topic I think has been satisfactorily answered. As investors, TIME is what matters.
Eric
I love my kids (like im sure most m&d’s do) dearly. But the wife and I are already planning to the day what we will do once the offspring are off our hands. I don’t entirely agree with Dazzling’s idea of setting the kids up by conveniently putting them into one of the ip’s. Hell, if youre gonna set them free let them buy into a property themselves! There would have to be ultra-exceptional circumstances that would necessitate the kids staying till their 35. Anyway just my thoughts.
Eric
Ronulas,
A good topic for the forum. I’m in a very similar situation to you, where the properties i own haven’t really gone anywhere, value-wise over the last few months. I suspect that this is the case more broadley as well (maybe except for Perth).
Not sure what youre cashflow situation is like, but with any spare cash i have I’m currently retiring debt as quickly as possible, particularly of the non-deductible variety. This is certainly one way of increasing ones leverage. The experts will ofcourse tell you that this is not the most desirable way of increasing leverage. Obviously a far cheaper way is by accessing increases in equity as a result of capital growth.
Anyhoo, i also would love to hear what others are doing to increase their portfolio’s when things are right up to the limit already.
Cheers Eric
Dazzling, personally my work life is no where near as extravagent or financially rewarding as yours appears to be. But I’ve figured out that really in the greater scheme of things this means squat. I pretty much see the kids for 1/2 hr or so mon-fri. hardly what i would call quality time. And to be frank this tears me up [wail], thanks mainly to Sydney’s fantastic road system. Buts thats another story.
What you need is it has been suggested is an exit plan, built around a career or occupation that gives you more time to spend with the family. I guess its all about getting your priorities right. Mine is to enjoy and have more fun with my family. I plan to achieve this within a 5 year time frame by finding ways to better leverage MY time.
At the end of the day, it would be a shame to look back at your life, as in the case of your collegues and have regrets about not seeing the kids.
Youre savvy and switched on. I’m sure you will make the right decision!
Eric
I have a real passion for Mercedes cars, more so the classics. A couple of years ago I owned an ’85 380SEL and a ’87 280SE (wifes wheels). I ended up selling both as there was a real conflict between our goal of aspiring to financial freedom and the very expensive maintenance costs on these beasts. Now, I shuffle around in a 2003 Toyota Corolla (company car) and the wife in a 94 Camry which we paid cash for after sellings the Merc’s. My dream car is an S55 AMG (Mercedes).
Originally posted by shake-the-disease:Congratulations, you are in a fantastic position, especially considering your age.
My advice is ……. do nothing. You are exactly where you should be, pushing 80% LVR. You have done the hard work, now let time grow your asset base and as it does borrow more and continue to gear into more property or shares.
Selling is simply absurd, I can’t understand that logic.
I wouldn’t be totally dismissing selling one of the property/s! springchicken really hasn’t given us a proper insight into how being sixteen grand per annum in the red is effecting him. How much longer will the folks allow him to stay at home? What if they want to sell up and go bush??
Springchicken, you’ve done well accumulating property at such a ripe age however I think you now need to re-evaluate your portfolio.
Losing sixteen grand every year is absurd!!!!
westinvest, i’m sure you know youre stuff, but i hardly think we need to go to the extent of saying not to trust tenants. I mean, you sort of have to anyway. They do live in youre 2nd, 3rd, 4th….. biggest asset, right? Its probably why tenants treat landlords with such contempt sometimes. I agree that it is critical to do all necessary background checks, do regular inspections etc. however if you go in with that sort of attitude i believe youre already doing yourself and the tenant a disservice from the start. I’ve also had problems with tenants in the past but that hasn’t stopped me `trusting’ others with using my property.
Eric
Lamo,
Welcome to the wonderful world of property investing!!!!
I sympathize with you. I wouldn’t be too embarassed about this situation. I think most of us here that own ip’s have had this happen to them. I once owned a 2bdr unit that was so badly trashed (motorbikes riden inside, walls graffiti’d on etc.) that took ages to restore. Then when a tenant moved in they started whinging and whining about a few things. This didn’t end up at the tribunal, but it came close.
The one thing that we all need to do as landlords is treat our tenants more like customers. Sure the customer isn’t always right, but as Steve McKnight harps on about, its all about creating win-win situations. Some will surely disagree with me here but so long as you do all the appropriate checks from the start, most tenants only want to be left to enjoy their home and when there is a problem for it to be rectified as quickly and efficiently as possible.
And yes all of this happens despite paying good money to a property manager to allegedly manage the property on my behalf.
Don’t be discouraged however. Get back on the horse so to speak. I’m sure you’ve learnt your lesson.
Eric
