Forum Replies Created
I’d say it is the German who keep the fish while the Dan keep the horse.
Hiu
Hi folks,
Althought I did not post often, I keep close watch on what is going on in the forum. In this instance, especially related to this boring Shares Vs Properties agrument, rather than wasting time to shot down the opponent position, why don’t each side do a favour to themselve to see the possibility to learn more on the other asset class and have it integrated into your overall strategy.
For instance, I have been active investing in share for the past 5 years. I made my first bucket of gold with shares despite of the dark time. I also see property as a safer form of investment and reinvest my gain into properties which get me further in the game. I believe I have strike a balance in my portfolio with some extra cash readily to take up opportunities as they arrive.
Just a thought.
Hiu.
Hi everyone,
It has been a while since I return to the forum as I have been very much occupied with my investment portfolio.
Relate to the issue of housing affordability, I would say it is time to stop pumping the bubble further and allow the hope for new blood to get into the market.
I like to idea of positive gearing but never really get to the point of implmenting it within my portfolio, mainly because of logistical issues. As such, I am still keeping my eyes open for negative geared properties within Sydney. With my past year of research, I must conclude that further expansion to my portfolio would simply allow the risk to overweight the potential return. By simply looking at the price on areas such as Penrith, Quaker Hills, blacktown, Blue Mountain, Windsor and such, supposedly to be a region for first home buyers , it is already shoot past their affortable range. I already seeing owner-occupiers been forced into selling at great loss as they can’t afford the 300k+ mortgage anymore.
All these mean the market is now at the stage of killing off hope of home ownership for the common people and in turn shall kill off their motivation to achieve. The result would be more people fall back to dole or taking a ‘safer’ path in their career that would culmulatively hinder the progress of Australia economy. Look at Hong Kong and Japan, don’t let the great Australia economy fell for the same traps!
For the long term health of property investing, the market must provide hope to the new blood such that the price must be within their range and allow the hope to be maintained to motivate them to achieve. Then, there shall be organic growth to our investment and allow the market continuous expansion and eveyone to have their share.
I have shifted my attention to the share market and already made some decent return. I shall keep looking and start investing in property when the market have return to a more reasonable level.
regards,
Hiu
What if the title holder, which is a company, file a bankrupt during the settlement period? I would allow the release to the title holder, a person, given my favourable terms, who simply like to use the released deposit for their new home purchase.
I wish I have better luck next time.Hiu
Just to let you know that I settled for the 440K one. I consider that a good deal for me simply because my wife like it better than the other and we probably move there in a couple year time. In the meantime, I can enjoy the negative gearing that I desperately need for this year and allowed me the reason to hunt down more +ve geared properties. BTW, as long as the appreciation can maintain at 5% non-compound per year, I can be sure of 25% cash to equity ROI per year.
Regards,
Hiu
Hi all,
As my previous post, similar to what Isagold did, I build a model that would give me ROI projection of any property no matter it is +ve or -ve. My model takes care of depreciation, CPI, selling and purchasing cost too. In one scenario, I have a 100K property rented at 150/wk, which is about a -$100/m(netted dep and tax), assuming a 5% CG annually, I should see a +ve ROI by year 4 and about 200% ROI by year 9.
However, the ROI is still no comparsion, should I use up my credit to buy a great big house & land and live in it and keep rollover and sell the really big house when I retire. It is mainly because of the CG tax!
I am in doubt.
Hiu
In a sense, I agree with the view of the Accountant to have a sizable deposit before you buy for yourself. Considering if you borrow 300k for your 360K purchase, you are losting to bank close to 18K interest for the first few years year. Also, you have that 60K+ opportunity cost have to bring into the picture as well! However, a 360K place should only rent you at most net 300 per week with no add-on cost of property ownership. That why a smart person should only buy when he/she can really afford house ownership!
Such everyone should rent from people who target only capital gain and have them to pay for your lifestyle while they work harder.
For me, I started with nothing and have my investment life started early and made enough money so that I can just buy my place with cash. Now, I shall leverage my LOC to make some serious money down the road.
Hiu
Oh boy,
They just asked many of my same concerns in this property investment venture. Althrough I live here in Sydney (I have to work oversea too!) but my investment problem would be fairly much the same as anyone trying to invest from oversea.
Regardings investing on properties around Uni and Hospital, I am fairly in favour of it as it provides a constant higher income tenant group(even students! They are rich in our prespective.) that would certainly fuel our venture.
Regards,
Hiu
Well, that is just like interest rate being part of the evil that we all have to deal with!
In my past investment, I ensure that my ROI would well exceed the combined cost on loan AND projected inflation for the investment duration. You migth also want to apply NPV & FV with inflation added into your ROI estimation.
Regards,
Hiu
Thanks a lot Bruce!
After 6 days, I finally have you to give me a suggestion. Indeed, I’ve been doing research for the past 2 months and now I shall be in position to strike some serious deals. However, my main issues would be of operative nature where I am intenting to buy at least one property a month(all positive gear <100K each) and they are going to locate far within regional area. I see having some good agents to look after the property for me as a critical success factor but I lack the ways to ensure the quality of their service. I am also in process of setting a specific financial structure to facilitate the venture.
In light of this, would you have any specific advice you can offer me?
Thanks in advance.
Regards,
Hiu
Hi Everyone,
It is great to see many like minded people who are willing to share and bouncing off each other idea.
I am brand new to this game and eager to get a good start. I shall forward my contact to Gracie and hope to see see you all soon!Hiu
