Terry said “I am getting increasingly concerned about people buying inferior properties just because they are producing positive cashflow. “

I agree… obviously cash flow is important in terms of servicing the loan, but buying props out in woop woop doesn’t make sense to me… I like regional centres with minimum populations of 35,000 – 40,000 that are on the move… in time I’ll be looking at suburbs of Melbourne when yields catch up a bit.

Cheers
r

If anyone’s worried about interest rates hitting 8 or 9% why wouldn’t you fix for the attractive 3 year rates that are being spoken about in other threads?

cheers
r

best information I can suggest is to use the search function, read a lot of posts, buy some books and study them too, and don’t close your mind to the extent where it’s exclusively positive cashflow biased. There’s a lot of ways to skin a cat.

Hi

I think you answered your own question.

Why not check out the Trading Post if you want to relocate houses? They sometimes have them offered for free, all you have to do is pay the costs of removal. They’re not always in bad nick either.

Cheers
r

alvin, why don’t you “make” time to learn to use the search function… if you’re fair dinkum about investing, you’ll find the time to do the research.

Cheers
r

Take your time and do it properly, don’t rush and make mistakes thinking you have to make a million bucks in 5 minutes. It’s get rich slow, not get rich quick.

cheers
r

If you want to cut your losses and sell, drop the price until it’s off your hands…

It’s only worth what someone’s willing to pay. Sounds obvious, but it’s not always easy getting your head around it.

Cheers
r

I’d be more curious to know why he requires $1million a year in rental income.

I don’t really think there is all that much negativity around. Yes, there’s stories about possible interest rate rises, and there’s also stories about declining values, but they are just pieces on what economists think, and regurgitation of statistics. Don’t get me wrong, I am of the belief there are plenty of good buys around, and while I don’t want to read “disaster” stories, I’d like to hear some of the cons as well as the pros, especially in publications like API, just to give things a bit of balance. I’m aware of the pitfalls of property investing, but there are still a lot of newbies who come here and think they can make their fortunes in 5 minutes, however we both know that’s not the case… it’s a “game” (I hate that term) of patience and “get rich slowly” not “get rich quick”.

Cheers
r

It’s not a done deal as yet, but my step-grandmother passed away recently, leaving her house (which is on a double block in North Melbourne) to my step-father. It’s on the verge of falling down, but has street access at the front and lane access at the back… it’s a big block and would comfortably fit 4 townhouses on it… of my family however, I’m the only that can get finance, so I’ll probably do a joint venture with my step dad, meaning he can dramatically increase his inheritance, while I make a quid as well (win/win).

I’m thinking 4 X 3 br over 3 levels with with a double car garage on the bottom and living/bedrooms on the other 2 levels, then a rooftop entertaining area…

Anyway, it’s a work in progress and in the very earliest stage (just investigating all options/heritage planning issues), but if we get the all clear that will take most of my time (not to mention money)… I’m basically aiming to have one of the townhouses for myself and my wife at the end of it all, totally paid for, and worth in the vicinity of $500-$550k, which I can then dip into to finance other deals down the track.

Cheers
r