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Well said JP. I agree entirely, however myself I am basically just sitting back watching the market, and concentrating on paying down any unnecessary debts right now as although i believe we never really came out the other side of GFC 1, i think things are about to get a hell of a lot worse before they get any better. So paying off as much debt as possible at the moment before the world goes belly up again i think is important so i can set us up to strike when the time is right in the future. I think that this approach will be much more effective when it comes to growing my small (but still existent) portfolio. I also have the option of taking part in a discount stock purchase plan which is salary sacrificed through work and I’m considering sneaking into that as a way of investing and hopefully growing myself a nice little deposit for when that time arrives.
Having said that, while now is not really the best time given my current situation for me personally to be investing, that doesn’t mean that someone else who’s under completely different circumstances and is more aggressive than i can’t be buying up a storm. At the end of the day, what goes down must come up, it just depends on where and how much you are prepared to risk to get ahead long term.
Thats my 2c, but i’m no pro investor either, I’m still only getting started.
I used to live in a town near there…. It's a popular destination for holiday makers as well as people who live there. So you could use it personally for a holiday home, or use it as a furnished rental for holiday makers. I could see potential for growth down there. They have been trying to build that place up for quite a few years now, i'm not sure what their progress is like but I'd be keen to find out. I might go have a look see shortly now that i have some downtime coming up.
I too am interested in how this equity thing really works… I'm in the market to pickup another property in the next 12months and ive started looking and getting all my numbers and things sorted already. I have also just refinanced my first IP and now have an offset account. Does the offset account come into play with the equity or is it literally based on what you have paid off the actual loan?
FI24 as for you, i'm a similar age to you, and my advice to you is take your time! Do your research and get reading! There are hundreds of good books out there, (0-130 properties was actually the first one i read) and also the API (australian property investor) magazine is something that i have also found to be a good read and something worth looking at. Everything you read and everyone you talk to is something learned wether it be good or bad. Learn from other peoples mistakes as well as your own and make sure you are certain all your numbers are looking good. Don't rush into anything as you very well may end up over your head.
Listen to what the people on here have to say, some of them have some fantastic advice to throw your way!
Good Luck!
And to add australia has one of the lowest levels of carbon emissions compared to the rest of the world. But we are one of the first to vote it through?? IMO if the cost of building materials goes up, it will be harder for people to afford to build hence making australias housing shortage even worse…. Government either has some information that none of us do or they are just that stupid… ( i favour the later) The next 5-10 years will be mighty interesting thats for sure lol. Strap in and prepare to ride the roller coaster. Whats the point in having a rich economy if all your people are poor? You can’t have one without the other right?
Goto the newsagents and buy this months issue of Austrlian Property Investor mag…. They have their “Top 100” spots and has a write up on what areas to look for and what to buy in each town/suburb. P.s. Go for Roma, i stay out there for work as I’m in the oil and gas industry and there is a massive accommodation shortage. Just make sure you check for flood related areas because any rain out there these days basically has parts of Roma underwater.
Jamie M wrote:Dreaming Big wrote:Thanks for all your comments. I really do appreciate it!Jamie, we do plan on turning our PPOR into an IP eventually and we also plan to be very active in the propery investing area and not just buy one or two but more like ten or twenty (depending on how many we need to get where we want to be).
I understand that how you start and how you first set everything up is really important and can save you a lot of money. I'm just trying to be as prepared as possible before we jump in and buy something.
Here's an article I wrote for API magazine on this topic – hopefully it helps.
Cheers
Jamie
Thanks for posting that link Jamie, i just went and saw a broker today about refinancing my IP today and that is just how I’m setting it up. Interest only with an offset account. That article reassured me that my understanding of the Interest only loan with the offset account is correct and that i didn’t dot the wrong thing.
Thanks Jamie,
I have spent the last few months working on paying off credit cards and apart from that my only loan is for my car. My IP was my residence but i have since moved interstate and am now using it as a rental (this was my plan all the long). But from now on I’m renting so i am not restricted when it comes to my buying capacity. First priority is to eliminate as much debt as possible then ill be set and have less monthly costs so i can spend more money on making money lol if that makes sense.Aaaah fantastic. Thanks Jamie. I’ve been wondering what that was called. My current investment property is not far off being positively geared so i wanted to look into what that was called as i want to set this up for when it is finally making me some cash. I assume if i refinance (i want to do this regardless) this is something i can do during the process correct?
Excuse me being a little naive but I’m new to all this stuff. By offset, do you mean pay the interest only loan and also have an offset of “$$” that are left over from your rental income which would chip away at the loan?
Thanks in advance.
Coal bed Methane work is starting to really take off again. New drilling rigs are coming in, there are supposed to be quite a few coming into the Surat/Bowen basin area. These rigs are normally crewed from places like Roma/Chinchilla, Toowoomba and surrounding areas. Not sure if anyone on here is really interested in that side of the work because most of the posts in here seem to be talking about the mines. There will be a sudden increase of workers and service companies for the rigs around these towns, so these towns going to need more company housing which means $$ for rent and housing shortages. Especially with the Airport upgrade in Roma almost complete, there will be more planes flying in and out. I think the only thing holding these places back is the councils, I've heard from locals that the council isn't taking too kindly to the expansion of some of these towns. Hope this helps, feedback is always welcome.
Thanks for the advice… I joined the forum hoping to learn more, i thought that i could learn a lot through trolling through here. Thanks for the heads up on the courses. I was under the oppinion that most of these courses were based on seminars. If they are a waste of time are the seminars even worth looking at?
