Forum Replies Created
Cameron,
Yah, thats a killer deal, Reno will be cheap. I would act fast before someone else snages this deal. I can’t see how you could go wrong here.
Slum Lord
Bill,
Mine are in regional centres in VIC, QLD, and WA also some in outer suburbs of capitol cities in these sates. I think once you start buying, and begin to know what you are looking for, the areas become easier to find.
I wouldn’t care to mention town names, not because of greed or anything, but because this board gets such a strong readership that mentioning a specific town could result in an unnatural flood of investors to an area.
Slumy
Finance has been a nightmare, just make sure the numbers are right and keep pushing, also try not to give them too many at one time, 2 at a time is good.
So any others? lots of people posting on this board, would be nice to get an idea of how they are going?
Don’t be afraid to say “0” or 1 or 2. Everyone had 0 at some point.
Slumy
Interest rates will not hit 17% again any time soon, maybe not even in our lifetime. With the amount of debt the average household has taken on based on buying property and refinancing to access equity, a sharp rise in rates would cripple the average Australian family (not just the investors). The RBA is well aware of this and would not act so irresponsibly.
Interest rates could go up but Australia already has some of the highest interest rates in the world. If interest rates do go up, even minimally, it will mean the RBA is trying to slow the economy and inflation. This means wages, cost of goods, and yes house prices AND rents will be continuing to rise.
You must understand we are in a new, unprecedented financial age. Allen Greespan, from the reserve bank in the USA, has rewritten economic philosophy and the way we deal with Interests rates.
To throw out comments like “17% interest rates” is to ignore economic fundamentals and the way the RBA and other Federal Reserve banks now operate. Frankly it’s nonsense.
A well-developed property portfolio will be able to handle any realistic raise in interest rates.
I do agree that you can sometimes find posts on this site by enthusiastic people that many not fully understand the economic fundamentals behind what they are doing, but to throw up 17% interest rates is just nonsense and unfounded.
crashy,
“Sydney yields are around 2.7%, compared with 7.2% in Brisbane”
7.2% would be some of the best returns in the worst areas, the real average rental retun in Brizy would be far below this. Where did you get this number from?
BTW, I do agree Brizy has lots of legs left, just not sure about your rental return numbers.
You wont be able to get a loan in NZ$ from and Aussie bank.
I would also be very surprised if you can find an NZ bank that will loan an Aussie to buy NZ property with only 20% down. I had looked into ths in the past and about the best I could find was 65-70%. If anyone has gotten a loan with only 20% down it would be great to find out what bank?
Slum Lord
Thats a bit high risk for your first deal.
What happens if you can’t sell? Will you have the money and finance to settle? You could end up making payments on land with no income?
Could get messy, this is the kind of deal is realestate speculation, not investment.
Your first REI deal should be a cheap positive cash flow house or unit. Probably something in a regional town centre.
I have run into this as well. I often then say, ok, I understand. Then ask, was the offer less than X, more then X, less then X, etc. For Whatever reason every time I do this with an agent they allow me to narrow it to a 2-5k range.
It is like they have this policy of not disclosing the price of the last offer, but as soon as you make it into a little guessing game they are happy to play along.
What sort of house/land package are you building in Rockingham? (if you dont mind)
Cost of land, house, possible rental?
Thanks
Slum Lord
quote:
Tracy,I am interested in the idea of a network of investors in the Perth Area. Let me know how you progress. Hello to David again. I am interested in Joondalup but will sit on the sideline for awhile (may miss the boat but that is life). Love hearing about the Perth market as I am following it closely. I am building in Rockingham and hope to purchase another IP before the year is through. Love this forum as I am learning so much.
Should have been more specific, I mean in regards to basic rental returns.
Thanks
Slum Lord
