Forum Replies Created
Hi Vinay, yes welcome as well and investing is all about learning and reading forums like this.
I am slightly concerned that you say you are about to sign a contract for a house and land package but you are still not sure what the rental yields are or about the area!!! This is something you should already know by now where you can very quickly off the top of your head provide the rental returns you expect to get based on the house you are about to build, some reasons why you chose this area and possible future growth in this suburb plus surrounding suburbs and even the state…
I am not trying to be a know it all – I am still trying to find the right strategy but it is important to find out as much as you can and do the numbers before you start any such investment strategy… research is key….
Either way good luck with your IP and I hope it all works out well.
Sam.
DFT ??? Sorry not sure what you mean….
Sam
Derek thanks for the info – yes i wouldnt have 5 properties all negative geared – just wouldnt be viable…
Also we have structured the properties in a higher percentage to my name as yes my wife will be off work again next year for 12 months… have thought this thru…
I am not a reno person either but i wouldnt be doing any huge reno.. mainly paint / carpet / lights and some garden work…
Sam.
Thanks Derek and lillystar – NO THANKS to Juliet !!
Derek what you are saying is exactly the approach I am taking – my 2nd IP which will be ready by the end of year will also be negative geared ( both my wife and I make an ok income so the tax benefits are there ) and the 3rd IP will be an under valued, some renovations, rent and re-value… but still important tht that ANY IP that is purchased still has good rental and CG..
I think I am on the right track – I think…
Cheers.
Sam.
Rose, you mentioned in your post you are in your full year of your NRAS property but you are just getting tenants next week – why the delay ???? was there no demand for NRAS ??
I thought there was demand for these type of properties and they are lining up to get in ?? Well that is the spiele I am getting from those trying to sell them off as such.
Sam.
Tried emailing you direct but it says you are not accepting emails !! Not sure what that is all about – I have recently purchased in the Logan Council area and pretty happy with it.. again long term, but rental is pretty good – in high 300s… has a lot going for it with its proxmity to both Brisbane and Gold Coast…
Thanks GJ for the info – sounds very promising… would have to move fast to get the $10K bonus thou… but northshore sounds the pick of the bunch……… will check this out.. and keep you posted…
Cheers.
Thanks moxi10 and mattsta… but with regard to the mining towns are they not just short term ???
Buy a house for $500K and get $1400 per week will produce a postive cash flow in the meantime but will these properties maintain their value or will they drop down at some point in the future and loss occur ??
I would be worried long term or are they ok for the next 5 – 10 years ??? Lookiing at Karratha and maybe Gladstone… any thoughts..
Sam.
Thanks Engleo10.., that I guess is my point, where I don’t want to end up not able to move forward to IP 3 or 4 as all properties are negative geared.. Will keep that in mind. Just trying to find properties that arebpostive cash flow might be the trick..
Richard thanks for your comment – the fact you have 40 investments nearly paid off is a credit to you.. I have a loan broker who seems to know what he is doing but I have never heard of a instalment contract !!!
What are they and how do they work?
Sam
This topic interests me… As before going onto my second IP and the way forward I am trying to get my head around where to go with regard to my portfolio.. But I think the majority agree it depends on your circumstances.. As you get closer to retirement whatever age that might be you want your portfolio to be capable to be positive, assuming you sell 2 – 3 property that had CG to pay off other investments..
Still trying to determine the way forward on the above for myself.. Don’t want to get IP 3 and have to stop as not enough equity to buy IP 4
Sam
Wow G.J. you have done you research… yes I was looking at NRAS but you are right what happens if the goverment changes and they scrap it or change the conidtions.. also i dont think the banks really like that sort of an investment for borrowing power… I have last year built a house in Marsden QLD which impressed me with a number of new developments in the area and the $ being spent in the region. So long term looks promising and also short term yeilds are good.. so looking at duplicating this for my 2nd IP. Was looking at something closer to home so as to avoid all eggs in 1 basket ( QLD ) scenario but I am leaning towards QLD again..
Looking at high 300K no more so not sure if this price range is a possibilty in TV. Let me know how you go when you get back from there – would be good to hear what you found. I built with Hayman Homes in Marsden and I cant speak more highly of them – from build to communication they were great… hoping the next one will be as painless and stress free as the first was… Yes also thought about the mining areas but I think this is great shorterm but I can see things going pear shaped here if mining suffers somehow and these 600K property owners all want to sell at once…
What I am not sure thou if purchasing my 2nd IP and they will both be negative geared how would I able to progress to number 3 – this is a great post and is exactly my questuon which no-one can answer it seems – understand everybody is different
and is exactly my question which no-one can answer… At some point you will also need a +ve cashflow or neutral property to offset the negative ones I would have thought.. but my question is where do get such investments ?? and is that the correct strategy to have some negative, some neutral and some postive? and how can you continue to purchase property if they are all negative geared – I suspect you cant. My concern is I dont want to get to Number 2 or 3 and then stop.
Your thoughts on this ????
Cheers.
Sam.
Keep us updated.. thanks for the repy as well..
G.J what was the outcome of your research in Townsville ?? Have you decided if you are going to invest there ?? I am looking at my second IP and considering Townsville but not sure if that is the place to be although heard good things…
thanks.
Sam.
I recently built a house in Logan area and rental yeilds are good… Wouldn’t expect them to grow much in the next 12 months but after that I can see some big things in some of the regional qld areas and just out of Brisbane…
But as always dont put all your eggs in one basket..
And agree I would always go for H & L package and not a unit unless you are looking for some short term cash-flow and not looking for big CG long term.. Land appreciates…
sam.
Laury, the debt comment you mentioned is interesting.. Our parents always said never owe anyone anything, not realizing the difference between good debt and bad debt…
I can sleep quiet comfortably knowing I am 1 – 2 million in debt, assuming that if I sold everything today I would at the least break even but more importantly walk away with money in my pocket..
Sam.
Property Seeker, what was the outcome on your question? I am not in your position but hope to be in. 5 -7 years.. Then what happens? As in how can one retire if the CG has not happened yet and some properties are still negative… Just wondering before I get there.. Wondering what you have decided….
Sam.,
Sorry should have provided the financials… We have about $300k in equity in PPOR and an income after tax of $8k per month, with 1 dependent. The 1st IP has $420k of IO loan with no other debts…
We don’t have any deposit to talk about… Our hope would be not to go down the renovation track but thanks engelo10 for the reply..
I was hoping there would be others that were at this point in their portfolio at some point that decided in a particular route which we could look into.. Our initial thoughts was the 1st and 2nd IP to be negative geared to reduce our tax and then look at neutral or positive geared.. But I can’t see where those properties are? Are there such investments that can get some CG but be positive or neutrally geared today? Maybe not looking in the right place. What about NRAS?
Thanks guys..
Hey, agree with itsandrew… Have a look at posts by euro73 plus do a search on google of nras and the official website. I am looking at this for our second IP and from all the research I have done I can come up 3 things to keep in mind.
First location and price is very important.. Make sure that you look at the investment not as a nras with the government benefits each year but as normal investment. If you wouldn’t normally buy there and the price is not right then I would stay away. In saying that there is not much options with locations and nras but there is still choice. Secondly ensure that you get all your finances in order and you buy from a reputable nras agent. Thirdly I would probably buy an nras property that is stand alone and not in a group of houses in a low socia economic suburb.. Could attract the wrong type of people. In saying that all that I think that nras could be worthwhile if you do your research and i can provide more info should i proceed in the next few months.
Neutral or positive cash flow is a positive and I think worthwhile to have one in your investment portfolio. Wouldn’t have all my IPs as nras thou. Different type of investments in different locations I think is important to protect yourself.
Anyone have a nras that can comment? Any regrets or comments that you can make. Would love to hear from you all.
Sam.
