Every area works in different cycles… and the ‘ripple effect’ does come into play as outlying suburbs have ‘value added’ due to the higher prices of the suburbs next to them..
And whereas one State,Territory,Region,City,Town,Suburb or Shack may be Down, another area may still be rising…
Hey MINI..You meet some interesting people[biggrin]
Kay.. see if you can Get Brenda Irwin to Visit our little Forum..[thumbsupanim]
REDWING
“Money is a currency, like electricity and it requires momentum to make it Effective”
I was reading another thread of SIS’s and you and i are at the same stage i think, we have IP’s initially – Geared, now achieving nuetral to positive gearing due to the recent Capital Gains achieved..
Kinda makes you glad you bought when you did and took the risks you did ! also happy i fixed my loans IO at the time i did as it’s way below whats available now.. looking forward to more CG, Perth is still chugging along, we’re still getting bricks from over east as we still can’t produce enough for the next 18 months or so, according to an article in the West Australian..
My next foray has to be + Geared to achieve balance in my portfolio due to a new family addition coming along.. the – gearing may be put on hold.. my next property though as stated in another post would be something with the ability to achieve CG and Cash Flow, with this is also some Risk, it’s all about balancing these 3
REDWING
“Money is a currency, like electricity and it requires momentum to make it Effective”
I remember when I was 18 and I had so much money in the bank I didn’t know what to do with it and my older sister said “why don’t you buy some land?”, being 18, I thought “Land? pfft! what do i need land for?” so i bought a car. And am i kicking myself now! Land used to be $60,000 in the area taht i was looking at now i’ve checked its $135,000+.
Thanks
Morning MH
I was commenting on this statement of if he bought the land way back then at $60’000 and held it untill the current price now of $135 000 ( over X many years ) then over that period of time, the cost’s incurred on paying off the loan wouldn’t have been deductible, also no income would be forthcoming..
I’ve known people to make great money over a short period of time on land in the recent times, but, in my mind unless your turning a quick profit, or developing etc, vacant land isn’t too appealing..
Not my cup of tea, but not my forte’ either..
REDWING
“Money is a currency, like electricity and it requires momentum to make it Effective”
He may in fact have quiet a liesurely morning, as a broker i’d expect he’d be busy in the afternoon’s and early evenings, when he can catch up with his clients..
Maybe he was infering that you shouldn’t sell ( and realise a profit , as you’d lose some in CGT )but rather buy n hold..
My interpretation anyway ………..
REDWING
“Money is a currency, like electricity and it requires momentum to make it Effective”
A friends sister, who is an accountant said you can have Hybrid trusts or Discretionary trusts, not a hybrid discretionary trust as i’ve seen discussed here.. is this correct.. as if she doesnt know much about the structures i wouldn’t like to use hers services ??
REDWING[fear]
“Money is a currency, like electricity and it requires momentum to make it Effective”
You cannot get a tax deduction on the interest poayments on the land, so to me anyway, unless you build reasonably quick ( 1 year ) on the land, you waste ca$h..
Buying a Investment Property, to me, would be a better option, get a property ( earning income ) with your land content..
For your 1st property i’d recommend buying an established property, that way you learn a bit more about property before you venture into building..
My 2c
REDWING
“Money is a currency, like electricity and it requires momentum to make it Effective”
1st kid- “we’re so poor, my dad owes the bank $1000”
2nd kid- “we’re so rich, my dad owes the bank $1000 000”
It’s about gearing/leveraging and OPM, the faster way to ‘wealth’ or ‘ruin’
A $1000 000 debt would not be a problem to me, if, i had $4000 000 worth of assets, bringing in above and beyond the amount required to cover the debt..
I have IO loans, but am i worried at this stage about repaying some of the principle..no !
REDWING
“Money is a currency, like electricity and it requires momentum to make it Effective”