Forum Replies Created
Hi eric,
I was just this minute saying to my wife. " I feel the property environment is similar to the mid 80's in Los Angeles". At that time properties were cheap, interest rates low and rents high.
One thing about real estate is we all need a place to live and always will.
For the financial markets to find a balance after the shake up seems to involve property doing a new cycle. I mean, by this, that now property is at an all time low ebb it can only cycle in one direction, upwards. Bottom is bottom. Therefore the real estate investing band wagon is the only one in town I think. It is a little strange that all the major countries have cycled to the bottom at the same time though.
This just shows how the world grows smaller and smaller every day. Fast communications helps I am sure.
The three rules of property purchase have never really changed no matter what the time is.
(1) Location
(2) Location
(3) LocationWhat this actually means is if the property you are looking at purchasing is in a so called " Bad area", you can still buy it if it is located well. It would have to be the worst one in the best street say at a great price. So location is actually rather confusing.
So for my answer to the post is 'YES.' Now is always the best time to buy property.
Cheers
New to this forum myself but will be in NZ some time later this year.
I have my eye on a house set on 5 acres. My problem.
(1) I wish to purchase the property but have no deposit.
(2) I wish to invest financially in the properties ability to make money, i.e. stock, fish etc.
(3) The owner is prepared to carry back a second mortgage.
(4) What is the maximum loan I can get as a first mortgage that is asset only secured?Any help appreciated
Cheers
safmoe wrote:That said if I sell the property there is a big chance I'll make a loss, plus have to pay 20K in breaking costs. If I don't sell I'm concerned that I have my income locked into this property and I will miss out on good opportunites coming up, at a lower interest rate….hence potential of positive cashflow.What do you guys think?
What income are you referring to? It seems to me it is a question of how much you are willing to loose. Sell now and loose 'X' or sell later and loose 'Y'
One scenario.
Sell as a 'Rent to Buy'
Structure your contract to give yourself a decent up front deposit and the payments to cover your own. The weekly payments will be higher than rent but on a 'Rent to Buy' contract that is quite acceptable. Do not get greedy! Just cover your own costs. Talk to a lawyer.
Just a thought.
I am new to this forum but unable to find an " Introduce Yourself" forum so I am doing that here.
I have been involved in R.E. for some 30 plus years and am currently trying something in NZ while living in Australia.
I have come across many 'Nah Sayers. when it comes to 'Rent to Buy' and have been on both ends of the deal. They can be good if you are in a position that the extra rental payment makes no real time difference at the time because it is financially affordable to you and your credit is not the best or your ability to get a conventional loan is compromised but you must have a plan in mind for the property.
One property that I purchased on 'Rent to Buy' was signed over a 3 year period which allowed me to renovate it cosmetically and re-sell it at the end of the period. I was in the US and self employed so unable to provide previous years tax returns to the lenders to get bank money. The person I purchased this property from was a millionaire and the 'Rent to Buy' deals were all he did. Of course he wanted me to fail and walk away but I knew this at the start. I just did not. Simple.
So if you go into these types of creative financing deals and become fully informed and are armed with a good future plan then they can be a boost to PI and an easy way for many to get your feet wet. The bottom line is the person offering the deals has his own wealth in mind no matter what they say their reasons are for offering their particular property but so does the buyer, in general.
Some 'poor' buyers are unfortunately sucked into deals they are unable to keep up with financially but isn't that what C.C, companies and many Banks do to people as well? Man's inhumanity to his fellow man never seizes to amaze me. If you only have one cow then would it not be wise to just milk it rather than butchering it. Think about it.
My first ever RE deal I did was to purchase my first family home about 30 years ago and I actually had to present my offer to the seller personally because the RE agent was too embarrassed to present such a low offer whereas I, on the other hand, wanted to get the home for as little as possible. Needless to say the seller did not take my offer, great, I thought, I never expected them to, but they counter offered me and I accepted.
The lesson I learned here was (1) If you do not get a "no" for your first offer you are offering too much.
and (2) Pick your RE agent carefully.I am by no means a 'GURU' but as we age we find ourselves in a position of being fairly knowledgeable purely because we have been around longer. I, unfortunately am a little like a teacher who knows more than he has put into practice. That being said I am still learning every day.
I did not mean to monopolize the post but I truly love property investing with all its' good and bad and finding this forum where there seems to be others of the same vain I am sure I can help a few and get some help myself.
Cheers.
Brian
