Forum Replies Created
- Originally posted by wrappack:
Oh dear, I am about to get myself into some very hot h20.
Let me ask this. How often does the feeding team win? Almost all the time. 95+%. So where is the ‘competition’ of the scrum? If the ref gave the feeding team the ball, same result almost all of the time with less probs of spinal injuries.
I totally agree (although it is more like 99%) because League scrums have become a joke. There is no need for them. They should just award the team the ball.
On the other hand, maybe they should look at how Rugby Union sets a scrum where the forwards actually work to get the ball. It is more like 80% of the time the team feeding gets the ball.
But I am getting so [offtopic] now I should just quit.
‘Eat rich food, barbeque a yuppie’ [greedy]
ooohhh I hope so
*rubbing his hands together and emitting an evil laugh*
Or maybe Steve is so 2003[laughing][laughing]
‘Eat rich food, barbeque a yuppie’ [greedy]
Interesting discussion Yack and although I didn’t see it on Sunday, it happens almost every show. As an investor and owner I hate to see the agents trying to work their ‘magic’ on less knowledgable vendors.
But as an auctioneer I have seen that it can work in some circumstances.
Playing the devil’s advocate again Kay!
‘Eat rich food, barbeque a yuppie’ [greedy]
Hey Kay, shall we catch a plane up and see what freebies are on offer there too!
‘Eat rich food, barbeque a yuppie’ [greedy]
After speaking to both residex and Home Price Guide at Property Expo 2004, it seems that Home Price Guide is more up-to-date therefore probably a better bet. HPG get their figures on a weekly basis from auction and sale results across the country (except Tassie). Residex is gleaned from info that is usually 1 qtr old.
‘Eat rich food, barbeque a yuppie’ [greedy]
I won’t ask you how long you have been working on that little bit of genius.
Why don’t you take your idea to a gaming company and you could even get it made into a PS2, Xbox or PC game. Imagine playing Monopoly interactively with people around the country or Globe.
Me thinks you should get down to the patent office quick smart!
‘Eat rich food, barbeque a yuppie’ [greedy]
Credit card debt sucks, pay it off and have a clean slate. The bank may even look at you in a different light![blink]
Then pay off your PPoR as much as you can. I know not everyone agrees (well they have so far), but I think it is the right thing to do. You can borrow more and you don’t need a deposit for an IP. I have never put one on a property, always borrowed 100% plus costs. You can still find an occasional +ve CF properties with high enough yields (15 – 16%) to support 105% borrowings.
‘Eat rich food, barbeque a yuppie’ [greedy]
Yeah saw the topic, read it but had nothing to add so I left it alone.
Have you got your response to Poordad’s next post ready?
‘Eat rich food, barbeque a yuppie’ [greedy]
Originally posted by RussH:For those who owned property in the city before the boom great you all made a huge profit but what now .I think a lot of people will get burnt in the city when there is no more huge growth .How long will you have to put the dollars in to a -ve IP until it goes boom again.??????We dont all make big $ to support -ve deals.So a foot in the door on a small +cf is good choice.
So many +CF properties in Western Australia.Let me help you. And we can achieve a win win situation.Russ.
I agree with you here Russ. There will be a slow down in growth in capital cities but not a stop. At the property expo residex was predicting areas that will lose, stay the same and increase in value. There are still plenty of places that will see a CG in the next few years but maybe not at the 20% plus we have seen in some areas.
I was talking from Kaloni’s perspective (who started the thread) who has made it quite clear that he/she has the cash and income to fund the -ve gearing aspect of a property.
I have stated previously too that +ve CF is great. I am negotiating on two (one is a cert.) but think personally that a diverse investment portfolio is the way to go. If your +ve CF can offset your -ve CF properties, and the -ve ones are big in CG (and are in areas that will continue to show CG), I don’t think you can go wrong. The downside is that you may take a couple more years before your financial freedom is attained, the upside is there is much less risk.
I agree with Elves about shares too, but as everyone does not have the resources to put $1000’s into the stock market, +ve CF is a good thing.
‘Eat rich food, barbeque a yuppie’ [greedy]
Hey, you asked for opinions so I’ll give you mine.
I am in kinda the same boat. We have about $25-30K left to pay off our PPoR. I want to get that to zero (or within a couple of thousand to keep the facility open) as soon as possible. Both IP’s and the two I am just in the process of signing up will be IO loans. Every dollar we get goes into an offset account, so we don’t ‘save’ anyway. All expenses are put on M/C to get the 60 day interest free period.
We have the two current IP loans fixed until next year (4 & 5 year IO loans) but the next two will be variable IO at this stage.
I would keep going on the IO loan until your PPoR is paid off, then look at the scenario again. Most lenders will give you a fixed IO product, just be mindful of the rates they quote you.
CBA have a wealth package that will give you up to .7% off standard variable rates and .25% off fixed rates. You also get the platinum M/C which gives you other benefits (FF points $ for $, travel insurance etc). I think it costs about $400 as a package but could be worth looking at for you if you are ready to refinance.
Good luck
‘Eat rich food, barbeque a yuppie’ [greedy]
After seeing Margaret Lomas at Property Expo yesterday, she has given me more faith in a property venture that I have just signed up on. It is right up her alley (I mean that in the nicest possible way, Margaret!).
It is a new house that is not +ve CF unless you depreciate the building and F/F. It ends up about $20 +ve weekly after that. It is in a good area that is expanding rapidly and I fully expect some CG within 12 months.
Based on what she was saying yesterday, there is no need to have your portfolio full of older $40K country/regional properties to get you your $20 in the hand each week. If you can get a brand new house to do that, why not?
I will say here that I also follow Steve’s wisdom and think that a few $40K houses at $130 rent p/w can be good too as diversification.
That is why she only has 10 properties. They are more expensive than $40K but the chance of CG is so much higher if you buy in the right area. So she is covering both ends of the scale ie. +ve CF from day 1 and guaranteed CG (if there is such a thing) because she has bought good properties in good areas.
Power to you Steve and Margaret!
‘Eat rich food, barbeque a yuppie’ [greedy]
Originally posted by nchattaway:Does anyone have experience negotiating a long settlement plus access rights with the public trustee? I’ll be looking to do this so as to avoid paying interest while I complete the rennovation work.
Nathan
In my limited (only 1) experience with the public trustee, they are not negotiable on anything. The unfortunate real estate agent cannot do anything except the usual. I do not see a positive outcome with you trying for a long settlement and early access. They are just trying to recoup the money ASAP for dissemination to the various creditors and/or family.
Sorry for beinga bit negative and maybe I just picked a PT agent that was having a bad day!
‘Eat rich food, barbeque a yuppie’ [greedy]
There are two states (very greedy) that I know of that look at cross colateralisataion (sp.?) as a way to get more money from you in stamp duty on the mortgage.
I will try to explain it the best I can:
QLD – if you buy a property using any other property as security (cross colat.) you have to pay the stamp duty (mortgage) on not just the loan for the property but also the loan facility on any other property that has been used for security. ie. We bought an IP and had to pay and extra $1500 in Mortgage Stamp duty as it was secured against our PPoR which had a loan facility of $300,000. We did not have that much outstanding on our PPoR as we have been paying it off very quickly, but as the loan facility was for that amount (in other words we could borrow that amount against our PPoR) we had to pay it.
WA also charge extra but you are only disadvantaged if you buy multiple properties in WA and the properties in other states are not worth huge amounts in comparison. It is a very lengthy discourse I know, but I hope it helps.
For info on QLD look at this link:
http://www.osr.qld.gov.au/taxes/duties/mortgage_multijurisdictional_faq.htm
(Look at the second FAQ)For info on the WA tax look at this link
http://www.dtf.wa.gov.au/cms/osr_content.asp?id=268
or ring your mortgage broker.
‘Eat rich food, barbeque a yuppie’ [greedy]
Originally posted by RussH:What a dilemma! Personally I can,t understand why anyone would want to spend a dollar to save fifty cents but there ya go its a wierd world..I,m just generalising here so dont take offence.[biggrin]Whats wrong with positive cashflow.Your doing this to make money ,so as small a deposit as necessary and use the leverage of OPM to make you money.
So many +CF properties in Western Australia.Let me help you. And we can achieve a win win situation.Russ.
Russ
I know you are a one eyed +ve CF investor, but there are some of us who look at negative gearing as a way to make much more money, albeit in the long term.
I personally want a varied portfolio with many -ve, neutral and +ve CF properties. This, I believe will be the best solution for me.
You may be in a different position than I am, so I am not going to tell you that you should diversify your portfolio. Only you can measure the benefits of having an brick IP in Ocean Reef as opposed to a fibro shack in Albany.
Sure +ve CF property is great week to week, and if you get some CG then that is even better. On the other side of the coin, we have had one -ve geared IP increase by $200,000 in two years. So you can see as long as you do your homework and have the spare cash to do it, -ve gearing does work (even Steve Mc agrees in his book).
Kaloni, in reference to your deposit dilema, I think 20% sounds reasonable but why don’t you plug in the figures into a investment property calculator (I have a fairly rudimentry one) and see what the different size deposits do for your cash flow. You may be able to get away with 10 or 15% on a $300,000 property and not be out of pocket too much.
‘Eat rich food, barbeque a yuppie’ [greedy]
I am looking at two properties that will return $20 – $30 a week after borrowing 105% of the purchase price. This works out at a 15 – 16% yield. I doubt I will find too much residential property in Australia in reasonable areas returning much more.
If I chose to put a 20% deposit down, I would see returns of $30 – $40 a week.
‘Eat rich food, barbeque a yuppie’ [greedy]
Originally posted by Nathan_b:Re: ur convo on country properties
i just found at 7 hours north of sydney one $60,000 for $120 PW return, only thing is 2000 people in town,thoughts…..
place low offer?
Nathan
As Chan has said, just because you find a property that meets the 11 second solution don’t be sucked in by the notion that this must be what everyone is talking about and therefor buy it without thinking it through.
I could find 10’s of properties in Australia within half an hour on the net that meet the 11 second solution. Where the difference lies is what you do after this.
As Chan has alluded to there are many factors in considering purchasing property. You do not want a property in smalltown, NSW that has no prospects for potential tenants. The idea is to look for towns that will see growth in the future. It does not even need to be big growth, just enough to sustain it.
‘Eat rich food, barbeque a yuppie’ [greedy]
Originally posted by Chan$:
I has to do a lot of dress up before she’s agreed to married me…LoL.You dressing up?
I think I will leave that one alone![blink]
‘Eat rich food, barbeque a yuppie’ [greedy]
Originally posted by RussH:Risky.You are on the right road.If I had the money I would be in regional investing too,THe eastern staters dont have a clue about W.A. Like Steve says get to know your area by spending time there.We have some great areas here in W.A and even tho they all dont have capital gain they are good +cf.Gero is a great place and growing.Most of our towns have good industry as well as tourism.Remember that its the return on investment that counts. dont matter where so long as it works.dont worry too much about cap. gain go for cash flow.
So many +CF properties out there.Let me help you and achieve a win win situation.Russ.
That’s a bit of a generalisation isn’t it. Being an Eastern Stater (although I was born in WA and my family live there), I am not in a minority that are looking at investing in WA. The only issue is I am looking for more than just a positive cash flow. Hell, if I wanted just +CF, I could have bought 20 properties in towns such as Mount Magnet, Norseman, Pemberton and the like. But just because the figures stack up that does not mean they are a sound investment.
If you are 100% confident that +CF is the only factor in your property purchase then I wish you luck. I for one, prefer a mix with a sprinkling of CG in there as well.
‘Eat rich food, barbeque a yuppie’ [greedy]
Thanks Mel, Kay, Chan (and Mrs Chan), SiS, TeacherK6, it was a good day.
Enjoyed meeting you all and Chan, how did you end up with such a nice wife? You obviously did a good con job on her to get her to marry you!!!!
The expo was all right once you got past the spruikers trying to sell you the next best OTP in sunny Queensland. There was some good info from some stalls.
Margaret Lomas was quite good too.
‘Eat rich food, barbeque a yuppie’ [greedy]
As a Capital city investor (until I discovered +ve CF), I would have said steer clear. But I have opened my eyes to other opportunities. Whereas my wife and I had a goal to have 6 properties (-ve and neutral geared) in 10 years, we know realise we can have many more albeit cheaper regional ones.
I think there are so many different factors that drive regional towns. Most of us sit in offices or at home in our capital cities and think that regional towns just follow us. Well this may well have been the case 20 years ago but definately not now.
There are many country towns that have grown so much that very big businesses have been attracted to them. These companies are paying their exec’s v. good money to move to the regional centres. I see it often in NSW and this in turn helps the economies of the towns. Mining & rural industries are no longer what larger regional towns survive on.
Just take a look at how many companies have their main plants or even head offices in regional areas of Australia.
I guess to get back to your original question. As long as you pick the right area, regional properties and towns will continue to prosper.
‘Eat rich food, barbeque a yuppie’ [greedy]
