Forum Replies Created
Hmmm.
By giving my opinion I seem to have offended you!
My apologies.Ill be sure to check the number of Stars against a poster before answering.
Seems newbies with experienced opinions are not tolerated well with those(some)who post Prolifically.
((I am not a fan of Lenders’ Mortgage Insurance- dead money, in my opinion.))
Well yes I agree but if you can use it to your advantage
.A few years ago I could purchase 2 Esplanade Apartments only if I took out that dead money insurance—-without it no deal.Cost $2K+ I paid it with a smile on my face–Its tax deductable too.
Today the increased equity on that deal.
400K the smile is now perminent!Dead money?
John
Hmm.
I do a bit of this.
Yes it can be done anything can be written into a contract.
Doubt youd get approvals through that quick and doubt youd get trades that quick either.Better still why not sell off plan.
Unless ofcourse you are keeping and renting only.
Sell some hold some.John
I have emailed you directly.
john
HEY
DESK that YOU?
tech/a
Sell house invest 50% in 2 IPs at around 200K+15K costs and 10K wipe out debts.So loan on each around 120K
Cost at 6.5% interest only $7,800Rent return around $220/week (Im getting that in Adelaide for comparable property)
$11,000 return each week.Surplus $3200each or
$6400/yrs or Around $125/week—yes some out goingsRent at $350/week and you probably have some spare from Your rents to help out.
Plus you get the capital gain on 2 IPs
Ever thought of taking on a female Uni student lodger with you(Country girl you know what I mean)? In either situation could be worth $80-$100/week.Just some quick thoughts.
JohnThe boat will have sailed for many.
Anubis gives some insight into alternative ways to positive cashflow property.
Thinking outside the square isnt enough.98% of people are already there. The other 2% are OUTSIDE the square to begin with!
John
Melissa.
I havent read Steves Book but should as you can always learn a trick or 2.
Personally I think your very wise mulling the Numbers over.
If you dont get the numbers right you wont reach your goal.
Many in Business get the numbers wrong and go broke around 90% of those who start in the first 3 yrs.
Even more dont get the numbers right when Trading(Stocks ,derivatives and or Futures).98% of those fail.Many dont even understand the concept of “Getting The Numbers Right”—ignorance isnt bliss—it can be damned expensive.
You want your first forray into Property to be a home run as that will make the next so much easier.
Look outside your square–trackdown areas where the numbers do add up.Possibly youll need more core funds to pull a property to neutral or Positive.
Look at apartments or units rather than housing.
Just some thoughts as I dont know your exact circumstances.
In answer to your question how long —-Ill answer that in the context of Today—There are opportunities STILL out there.
Originally we bought homes easily rented positive and as all who did in the 90s reaped excellent return.
We now look at sub dividable sites and developement opportunity.See my personal view is that those who missed the boat(and many see themselves in this bind)see owning a home or even a unit even further off than before and the younger people are —well in somewhat of the same boat.All need to keep renting (well thats their thoughts) and rentals are still in high demand infact I have agents phoning regularly looking to sell and then rent those we keep.We have no problems selling off plan.
So thats just thinking out of the square looking at the same market from a different veiw.As an example a very easy one came up last year.
1200 square meters on a corner 190K sub divided off 600squ meters and sold still own the Shack (Its an older style fiberboard in the southern beach suburbs in Adelaide as a $190k property the numbers were sick as a “Cut and Shut” the property now owes me 100k and is valued at 170K nice and positive.
Sorry about the long winded reply hope it gives you something to think about.
John
For those interested offer rejected so let it pass,there will be another.
JohnThe secret to me atleast is.
Borrowing as much of other peoples money as you can at little or no cost.Then putting it to work to return you capital growth on your borrowed capital.
The repeating the exercise again and again.
You need capital growth to build your empire,passive incomes can be a product of sound empire building.
Gearing as close to possible to neutral if not positive particularly in times of slow equity growth are keys I feel.
Negative is fine in high growth.(You have something to offset the losses — increasing equity).Seems you have found a “Reason” in some areas for Price growth—there would be my search.
John
Thanks for the reply.
Council are fine in this area with subdivision.
Im not looking at Slicing it up immediately.
Planning to hold and more than likely develope 2 good sized 3 bed townhouses.Esplanade here (In this small stretch of beach)is undervalued relative to beaches both North and South of this location.I cannot see why as it is serviced well by freeway and has classy suburbs urrounding which are selling well.
I should mention that I am a builder as well(Civil Construction more so than residential) so my developement costs are around 15-20% better than most.
Think there is a good drink in it but yes I definately agree re size of the block would much prefer 2500meters but show me a site on the Esplanade that size!
They dont come up all that often and those that do are too good to push over and 100-150K more so not a proposition— well not in the next 5 yrs.
Thanks
For your comments
johnH/me.
Mortgage lenders love self employed people who pay themselves as a PAYE employee.
Nice group certificates and tax returns.
Although I have a company and structured differently to a sole trader Banks and superfunds love both my and my wifes very visable earnings.
Something to keep in mind as a history will take 3 yrs to generate,not to mention the tax breaks.
John
but that is not my reason for investing.
Hmm Im interested is then your reason
a passive income?I personally buy for C/G and gear to be atleast neutral.I have no idea about wraps so cannot comment.
(They remind me of derivatives in the markets!)Passive income is not on the agenda—-yet.
What is your thinking?
JohnThank you for your responses.
Ill come clean.I understand that this is my first post and I am certaintly nothing more than lines of type on a page.
I do have multiple property’s and I am genuine in my request.
I have been trading (Margin) for sometime and developing trading methods for many years (no this is not my profession I have a Civil Construction company it is an interest a profitable one.)
Since inception(8yrs ago)I have been posting on Reefcap which is a share/commodity version of this site.
There 2yrs ago I was asked to help find the answer to this question.
“Can everyday people develope a profitable trading method and trade it profitably”
I and a few others designed a longer term share trading method which has been trading live on Reefcap for 18 mths.From inception it has a return of 44% in 18 mths and on margin funds a return of over 100%.
So the answer so far is yes!Anyway all is there for public veiwing Ill post the link.
In answer to what plans I have if all turns pear shaped.
(1)Property doesnt increase or values fall,(I will not be adding to traded funds in that year and may add more in better years.
(2)If shares underperform or make a loss.I have run 1000s of models and am aware of maximum drawdowns in the methods I trade if these are breached and in the years I have traded them they havent!(That doesnt mean they couldnt)then I would suspend trading.This would according to the models be well before being called.Initially Im only placing 60K at risk if you like.Failure of the method would come at a total drawdown of 50% this is a “Risk” I could be prepared to take if the reward is sufficient—the jury is still out.
I have also asked the share fraternity the same question and the response is from a share prospective.
You maybe interested in the fact that I have in the same period as trading made 100s of % more from Property than Trading.
In fairness though I have invested vastly more in Property than Trading—why—Comfort of the known I guess.My return
now on the small amount I trade margin is exceeding property returns for the first time in years hence my investigation of an intergration.Thanks again for your interest.
Links if interested
http://www.reefcap.com/ubb/Forum8/HTML/000350.html
http://www.reefcap.com/ubb/Forum8/HTML/000287.html
John tech/a
