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Selling
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@selling
Join Date: 2005
Post Count: 11
September 28, 2005 - 11:50 pm
Here is Brisbane there are 4 houses for sale just in my street. They have been in the market for more than 6 months now.
I am trying to sell all my IPs but it is been hard.
George
Selling
Member
@selling
Join Date: 2005
Post Count: 11
September 24, 2005 - 9:19 am
Read clones post:
https://www.propertyinvesting.com/forum/topic/19799.html
Another reason for selling my IPs.
George.
Selling
Member
@selling
Join Date: 2005
Post Count: 11
September 16, 2005 - 5:52 am
Closing another one.
I’ll post more details later.
George
Selling
Member
@selling
Join Date: 2005
Post Count: 11
September 12, 2005 - 11:50 pm
Originally posted by MKD:
Hello George,
How did you ever calculate a Brisbane residential property to have been positively geared? What variables did you factor into your calculations?
Cheers,
MKD.
Hi MKD,
They were 4 or 5 years ago when I got into the IP arena. Now they are not anymore and it is getting worse every time.
Reasons:
1) Interest going up
2) Insurance policies up (Katrina striking next year)
3) Taxes down (People moving from 47% to 42% or from 42% to 30%)
They are just a few and I believe the worse is the taxes one.
That is the reason I am selling, IP is not for life is an investment like anything else, if you get your profit you get out, no holding for holding
The only people that are saying that the IP market is good are realestate, brokers and mortgage people but remember this rule, they are there to make money for themselves not for you. (Rule of gold)
George
Selling
Member
@selling
Join Date: 2005
Post Count: 11
September 12, 2005 - 6:44 am
1 down 4 to go. I am very happy because people are still buying with this high prices [biggrin]
I strongly believe that buying cheap and selling high is marvelous. CF+ is just an addition.
George
Selling
Member
@selling
Join Date: 2005
Post Count: 11
September 4, 2005 - 10:54 am
Originally posted by lupus1704:
George,
Can I enquire as to how the properties went from +CF to -CF?
Apologies if this seems a naive question, but I always assumed that CF+ properties mean’t that the rent coming in covered pretty much all expenses and holding costs. If the properties already belonged to you and the income has in the past covered the expenses, how do they suddenly all become CF-.
Overvaluation of property should not affect CF once purchased.
Granted, selling in an over valued market is a great way to realise a capital gain for other projects, but I am still trying to come to grips with CF+ properties and am wondering how a property can become CF-.
The only way I see it is if:
1] interest payments have gone up (unlikely as the rates haven’t really been raised recently)
2] rent has dropped.
3] increase in costs due to tenant damage?
4] a loss of depreciation allowances
In all these cases, there is nothing to do with an overvalued market, but rather related to each individual property.
So, if it’s not too much of a bother, could you explain your statement a little more?
Thanks
lupus
Hi guys,
Well, my propertieswen from CF+ to CF- because of:
1) Interest rates up
2) Vacancy rates up
I did a valuation of my properties 3 months ago and after all the hussle and property stress I am making a poor 4.5%. I better get my money in the bank for 4 or 5 years and get back to properties after that.
One thing I have learn in many years is that you should sell when you are making a profit and avoid being greedy to try to keep something that is not really working or is not working very well.
George