Forum Replies Created
HWD007,
Are you a psychiatrist?[
]My turn on the Soap box ![
]Responsible investing – The ability to do it without adverse affect on you, your family and anybody else.
Successful investing – The ability to increase wealth with the least amount of loss and stress.
Thankyouverymuch [8D]
In reading this, there was definitely a ring of familiarity, ie the record levels of investment borrowing last month in Australia; ie 50% of all housing finance going to investors?Is this figure due to an increase in investor borrowing or a decrease in PPOR borrowing? It may just mean the equation is changing. I am always suspicious of how the media put their skew on things.[}
]DG and Wally, the tax advantages are not the reason to gear a property. The main reason most people (should) gear into property is to generate wealth from capital gains. The effect on the tax you pay just helps you along the way.
If you negative gear a property you would be betting on a capital gain.
If it’s neutrally geared, you would still be betting on capital gain, but it’s an easier investment to live with.
If you positively gear a property, the capital growth is not as important because the investment is generating income from day one, but you need quite a few of them to get a substantial income as there typically isn’t much capital growth. I believe it comes down to personal preference. The term Negative Gearing has been pumped up by the media for years along with marketeers. I reckon, a lot of people have heard the hype and get the feeling they should be doing it so jump in head first without educating themselves.
I have talked about it with friends and I get the impression they are frustrated because they want to do something but don’t have the know how…. I tell them to educate themselves, read books.
Anyway, didn’t mean to ramble, its been a long night.[]HousesOnly,
Not all renters are struggling[]. Some people choose to rent and may take offence.
Every day we here (hear) stories of record lending for investment properties all over the country.
NSW now lends nearly 50% to investor(‘)s for property. Qld lends 38% again to property investors.If ever there’s a time NOT to buy property, it must be now.I see first home buyers
sinking themselves up to their eye balls in debt.
If you know Sydney and some of these first home
buyers suburbs, Kellyville,Quakers Hill etc try driving around them. Some house lawns are looking a little unkept.Some houses are not keeping up to the rest of the street.This is where I will be looking for some good deals, as the strain becomes too much on paying the mortgage etc.
People buying in Tasmania, the joint is going backwards!! Wait for the first cold winds of credit restrictions to hit the place, and Tassie renters will jump ship. heading for the main land where there’s a better chance of employment.
The same goes for these country towns, most of your tenants are unmarried mothers.Grovelling so you won’t increase the the rent.(They might offer
to cut the increase out).Some of the posts I’ve read tonight are on this theme.Country towns are only where dead beats rent. Unmarried mothers, drugies, unemployed who just won’t work.If they really wanted a job they would be in the cities.
Want a headache? Invest in reginal towns.
Me! I’ll stick to the city, THE ONLY CITY,Sydney.
Bruce G.
With the risk of getting shot down[], ‘Bull Durham’ may have some points here. But, I would say it only applies to buy and hold properties, not Wraps (which don’t rely on capital growth).There will be casualties amongst first (and second, third) home buyers that have over committed. The Quakers Hill, Kellyville areas are hugely overpriced, the land of the Pomms (Campbelltown) is a geographical and infrastructual mirror of the Kellyville area, but, because there has been no (not as much) buyer hysteria, the increases have not been as ridiculous. The Hills area (Kellyville etc) will offer good deals if/when rates rise and sellers flood the market. As Kiyosaki says, buy when everyone else is selling and vice versa.
As for Tassie, can’t comment. Never been there.
Bruce, you got it wrong with the country town tenants. They are not tenants if it’s a wrap, the “druggies, single mums and unemployed” PEOPLE are owners. That makes a big difference.
As for buy and hold in country towns, if it’s positive and you can put up with any dramas, what more could you want.Serious question Bruce. How do you see it panning out after this bubble bursts. How long do you reckon it will be before we can see good capital growth in property again?
Michael, that’s one of the funniest posts i’ve ever read. [
] Don’t hold back now…..Bruce Almighty (sorry, couldn’t resist the analogy [
]),
Congrats on the successful attainment of your property portfolio and thanks for adding a little spice to the forum. However, your comments still have that Northy overtone (oops now I’m guilty of stereotyping []). Looking forward to some constructive words of wisdom in the future. I live in Campbelltown NSW, I hope you don’t hold that against me. Sean.I stuffed this up in an earlier post, so here it is corrected… I hope.[
]
Since we’re on the subject. One wealth creation lecturer, Brad Sugars, promotes the following method of debt elimination in 7yrs. Some people may be familiar with this so correct me of I’m wr….. wr…. wr….. WRONG![]
1) List all debts including the minimum fortnightly payment in order from, the loan with the least number of repayments remaining to the loan with the greatest number of repayments remaining.
2) Calculate 10% of the total of all fortnightly repayments.
3) Starting with the debt at the top of the list, set the repayment to the minimum plus the 10%.
4) Pay the minimum payment on the rest.
5) After debt one is paid off, add what you were paying on debt one to the repayment of debt two.
6) Continue down the list, until all debts are paid off.
Apparently, this will pay off all debts including your mortgage. I wouldn’t include my gearing debts in this, just the bad (non deductable) to start with. I hope someone finds this helpful.G’day all.
What a great bunch of people. Property Investors all seem so cool.[8D] My name’s Sean (37), IT specialist. Married to Lisa with two girls Maddison (10) and Mallory (. I guess I’d call myself a “steady as it goes” investor. I’ve done a PPOR reno. Now in second PPOR reno (Glen Alpine, SW Sydney) that we will never sell as we love it. Have one +IP and now getting finance to get a little more serious. I love reno’s, but am a little to much of a perfectionist to do it at the rate Geof Doidge et al does it, so i’ll continue to plod along with the buy and hold stategy.[]
Thanks for a great forum. I’m hooked.Got to agree with Kate here. The guys that booked you have probably seen more than their fair share of fatalities due to speeding. The fact that they stopped you may mean they have saved someones life. You never know what is around the corner. I got booked once for doing 62 in a 40 school zone…. I thought the zone time ended at 0900 not 0930. I copped it on the chin because it was a stupid thing to do and I could not live with myself if I had hit a kid; I have kids of my own.
And yeah, what has this got to do with Property Investing? [][
!]This post brings back ugly memories of a cold call I received once… I can’t remember the company. But it used similar methods to those mentioned here. My other half got cold called once and a week later we had a very charming fellow in our dining room at 8pm impressing us with the vitues of his finance/investing package. It used a LOC and some budgeting software which allowed them to monitor your spending and income etc. I started to get supicious when he started mentioning pine forest investments etc. Crunch time came 4hrs later when we finally managed to squeeze him for the setup costs price of this wonderful product…. $6000. I turned him down and he got a little upset. From memory, I think he returned one more time expecting us to sign up at which time we refused again. Then an attempt at pressure selling when he called me and advised I only had two days to go to invest into this once in a life time pine forest plantation. NO [!] was the answer again. He was baffled, “why would I not invest in this sure thing?”
Who was he kidding!!!![]Hi Kellie, I’m sure someone more knowledgable may give a better answer but I’ll have a go.[
]
LVR is Loan to Value Ratio. IE The amount borrowed in relation to the value of the property, usually the purchase price.
From experience I have noticed if it is a PPOR they will usually lend you an amount in relation to the purchase price; unless the valuation comes in a long way under. If it is an IP I’ve noticed the lenders valuation may come in under the purchase price and that is the figure they use to generate the LVR.
A bank will lend you 110% if you have the equity to satisfy their LVR rules. Usually if the LVR is greater than 80% you will have to purchase mortgage insurance (just another cash grab).
Clear as mud hey.[]Polaris, you’ve got to get educated. A friend of mine is wrapping at the moment and he seems to be doing ok. He went to one of Steve’s seminars. Maybe all will be revealed from Steve’s book. Here endeth the lesson.[
][
] You know, if you mix milk with Milo. It makes a really nice drink.[]
What I am trying to say is, it’s all a matter of opinion. This deal looks like it’s returning about 6% which isn’t bad…. Don’t know what vacancy rates are like… maybe you could ring some property managers up there and get their opinion.
Milo is a Rad drink too.[]
]
]
], ‘Bull Durham’ may have some points here. But, I would say it only applies to buy and hold properties, not Wraps (which don’t rely on capital growth).
. I guess I’d call myself a “steady as it goes” investor. I’ve done a PPOR reno. Now in second PPOR reno (Glen Alpine, SW Sydney) that we will never sell as we love it. Have one +IP and now getting finance to get a little more serious. I love reno’s, but am a little to much of a perfectionist to do it at the rate Geof Doidge et al does it, so i’ll continue to plod along with the buy and hold stategy.[
!]This post brings back ugly memories of a cold call I received once… I can’t remember the company. But it used similar methods to those mentioned here. My other half got cold called once and a week later we had a very charming fellow in our dining room at 8pm impressing us with the vitues of his finance/investing package. It used a LOC and some budgeting software which allowed them to monitor your spending and income etc. I started to get supicious when he started mentioning pine forest investments etc. Crunch time came 4hrs later when we finally managed to squeeze him for the setup costs price of this wonderful product…. $6000. I turned him down and he got a little upset. From memory, I think he returned one more time expecting us to sign up at which time we refused again. Then an attempt at pressure selling when he called me and advised I only had two days to go to invest into this once in a life time pine forest plantation. NO [
]
