Forum Replies Created
yes being in a negatively geared position and only paying the interest can work out ok but I do believe that there is a good feeling about getting a property into a positively geared position as then you are making money and are in a great position to perhaps invest once again! – there is a good feeling about owning more of a property than just "25%" for instance!
there are advantages in not paying or paying off more of the principal. The decision can sometimes come down to your cash flow position too! If you lose your job or your cash flow is very minimal then not being too far negatively geared can be comforting!
ah yes, that's good to hear….
regards,
Hi there Brendon,
glad to hear you are thinking of investing in Bendigo or Mildura…
I am very familiar with Bendigo. Our vacancy rates are very low so if you have a property to rent out…. if it is good quality, good position etc… it is normally quite easy to rent out. The prices in Bendigo are gradually going up… probably due to us considered closer to Melb. since the calder highway improvements…. It's 110 k/h for a good portion of the journey from Bendigo to Melb….. – makes the trip quite fast. – Vline train to Melb. is good too… I know of some people who actually live in Bendigo and commute to melb. each day….For around $230 (you may have to go higher or consider an older place) you wont get too much but do look in places that are near the uni. shoppings centres etc…., public transport…
hope this helps,
Peter.
yes, regarding your question about whether to sell or not? if you don't need the extra cash, try not to sell because hopefully over time you will see more growth and continue to get the income from the rent…. – I can see however, that you may need the cash to help buy the house that you want……
regards,Peter
Hi there JD,
glad to hear you are thinking about Gladstone.
If you would like to email me, I can give you more details about Gladstone and the current opportunities…..
regards,
Peter.
Hi there Chris,
welcome to the wonderful world of properting investing and in your case, home ownership!
Before you start investing, get a good deposit behind you. Do remember there is bad debt and good debt when it comes to property investing. If you buy your own home, that is bad debt because the interest is not tax deductable and you basically just owe the bank lots of money. So if you buy your own place to live in, try to get it paid off as quick as possible. On the other hand, when you purchase investment properties for others to rent out, you can claim your interest payments and other expenses like rates, water, some depreciation etc….
yes it is possible to buy many negatively geared properties regularly but you need to be able to make the repayments and service any other llittle nasty surprises like new hot water services, cutting trees down in your yard, termite inspection and eradication, fixing faulty appliances like dishwashers and airconditioners etc… etc…..
If you plan to negatively gear, don't go in too deep…. who knows you could lose your job and then you are still in a position of making all the repayments without your job income.
that's why positively geared properties can be a good option also… both have their advantages.
Feel free to contact me if you would like more info. on positively geared properties..
Hi there aturner,
you are in a fantastic position. well done. You have great income and are obviously a good saver. Getting into property should work well for you.
Over time I would take the following steps:
Put at least 20% deposit down on the investment properties and try to make some of these properties move from negatively geared to positively geared. That way, if you lose your job or your income drops substantially, you wont have to find lots of money every month to keep paying the mortgages. Being negatively geared is fine if you still have some income coming in to make up the difference.
hope this helps,
hi there,
yes when we invest in property there are many outcomes that we may desire. Initially we have to expect that the property will either be -ve or +ve geared. If you have adequate current cash flow, then -ve gearing is excellent because the tax benefits are good and if you purchase well, your property should grow in value over time. If however you want immediate extra cash flow from your property, then if you choose a +ve geared property wisely, then you should come out on top each week. That is, your income from the property should be more than the expenses you have to pay.
hope this helps,
yes time is so valuable. I guess that is why property investing is so appealing.. It is fun and worthwhile learning about the market but once you get some research/education under your belt you are in a better position to make sensible decisions. Then after investing well, you will have time to reflect and then venture into your next possibility.
hi there newbie!,
glad to see you are learning up heaps about the positive cash flow process. If you do it right, it can work out very well for your husband and yourself. The setting up of finances correctly is so important, keep up the good work. All the best in your quest!
yes good advice Clint,
cash flow is the name of the game. It gives you freedom to work on saving for the next investment rather than trying to get enough each week to pay the bills and seeing if there is any left over for investments!
Creating passive incomes is a great idea but before we get to that point we do often need a steady job with income to provide for our foundation – and once we are stable we can then carefully launch into other propositions/investments etc….
Regards
Peter S ([email protected])
High Rent Return Properties – http://www.ozpropertyinvest.com/hy/2022.htmlWattoette wrote:It seems too many people believe everything they read…….Most articles and books are that persons own personal view, and how and what they have done was suitable to their own circumstances….You have to take bits and pieces from each one and make your own truth with the facts you can gleam from these people and real life statistics over a long term, not just the last 10 years or so. Which is why you need trustworthy experts around you, not just some one with an opinion because that opinion worked for them……..
As far as I can tell so far……all negatively geared properties (should) eventually become positive over time if you pay a small amount off the principal as well as the interest, if they dont then you are either not doing your research properly before you buy or we have had a major housing bust………dont quote me on that as I am still a beginner doing my own research and I am also waiting for my appointment with my broker on Monday to throw around ideas.
I do appreciate all of your feedback, but please dont dictate to me that one way is right for all as this is definately not the case.
yes, Wattoette, if you can pay a little off the principal regularly then over time you should be in a position where your rent (as it normally keeps rising) will be more than your interest payments + expenses…. Do realise however that it can take quite a few years before a negatively geared property becomes positively geared….. (what a wonderful day it is when that happens…) you are in a position then to think about perhaps getting another property!
Regards
Peter S ([email protected])
High Rent Return Properties – http://www.ozpropertyinvest.com/hy/2022.htmlHi Wattoette,
sounds like you are in a good position to purchase a new property for investment purposes…. yes I must say that avoiding maintenance costs and getting benefits from depreciation, tax etc…. is worth looking at…. but then the newer places can sometimes cost quite a bit more initially too! all the best with your investments!Regards
Peter S ([email protected])
High Rent Return Properties – http://www.ozpropertyinvest.com/hy/2022.htmlyes I know what you mean about older properties… they can require regular maintenance. However, hopefully in the beginning this property didn't cost too much and therefore you can expect to have to part with some money to keep it functioning ok! If you purchase a property that can potentially return two rental incomes, eg. a home with a granny flat, or unit connected to it or out the back then the possibility of +ve cash flow is much higher.
Regards
Peter S ([email protected])
High Rent Return Properties – http://www.ozpropertyinvest.com/hy/2022.htmlGetting your second IP. Sounds exciting. A few things you may consider: check that the area has growth potential, ie. has industry that is prosperous or about to be developed, schools, facilities, parks, conveniences near-by and perhaps is a property that has the potential for two lots of rent. eg. A house with a granny flat or unit out the back which can be rented separately.
Regards
Peter S ([email protected])
High Rent Return Properties – http://www.ozpropertyinvest.com/hy/2022.htmlhi there lbluedento,
yes I have used hotspotting and yes the reports are quite expensive but if you are serious about a particular property or topic involving properties, then the reports are up-to-date and worth a read. If you end up purchasing a good property because of the information given to you in the report, I guess the $90 is not too much to pay. But if you just want to read every report they produce then it could become quite expensive! The advice is professional and in the know!
regards,
Peter S ([email protected])
High Rent Return Properties – http://www.ozpropertyinvest.com/hy/2022.html
Yes cash flow positive properties aren't the easiest to find but sometimes some good reports are available on hotspotting.com.au
for a cost of course!I agree with another post that mentioned shared places or places that may have a secondary add-on dwelling (eg. like a granny flat), that can be rented separately can also return quite good rent (you are basically getting two rents in one location!)
regards,
Peter S ([email protected])High Rent Return Properties – http://www.ozpropertyinvest.com/hy/2022.html
well one of the areas is related to mining and the other is taking advantage of building a place that has a separate section to it that can be rented out separately. This second approach means you can charge rent for the home as well as the separate granny flat type arrangement!
what do you think?
proptyman!I know of some places in Queensland that are reported to be looking good for positive cash flow in the near future. <moderator: delete advertising>
proptyman
