crashy
where can you get 95% finance on shares?????????

I am a keen stockmarket follower but i’m not as excited about the stockmarket as you. (i’m not all that excited about buying property either at the moment).
But there are Big risks with the market in USA, P/E’s are very high and there is a risk that the market could easily fall 500-1000 points if the long awaited recovery doesn’t eventuate. And if Deflation hits then we are all in trouble, unless you have cash.
the figures i mentioned are for australia for the past 20 years not 5.
who lends 95% finance for shares???
westan

Hi crusty
your figures are out of date
Property has outperformed shares according to the most recent figures.
Also i don’t believe you
it is not possible to get 95% finance on shares unless you are offering a house as security and i don’t delieve you about the finance of 5.75% on shares.
if you can you guys have got a great product, but hey they wont be around for long because giving 95% finance to inexperienced investors will send them broke.
westan

Hi mini and all

To add to your comments. The writer says the property returned 14.4% “which is high but not astounding.” Give me 14.5% on an investment anyday. It is outstanding! 10% return would be worth only $240,000 and at 10% in the future wouldn’t be worth $820,000 till about 2017. By this time a 14.4% return would be worth $6.5 million. Simple maths “compounding interest at 14.4% your money doubles every 5 years the “rule of 72”. Once again a reporter who doesn’t understand investing or maths.
Hey Mini are you on commission with the NZ tourist dept? You can’t help telling us how Beautiful you Home is. No arguments from me, and i hear they aren’t bad at that rubgy thing.
regards westan

Hi Dellas

well done saved $25k that fantastic.
My advise to you
1. spend a lot of time reading and researching. Read a lot of the old posts here, and buy or borrow books on investing in property.
2. learn all you can about Cash positive properties.
3. look only at buying cash positve properties. You may not be able to if you live in Melb or Sydney. but consider regional areas.
4. look at buying something that needs a little bit of work but you will be adding greatly to the value of the house.
5. if possible live in it while you fix it up to Get the $7000 FHOG. Then rent out the other rooms and have them pay the mortgage or move out and rent the home.
6. look for areas that something is happenning. for instance in Victoria Hamilton has taken off because of a billion dollar Mineral sand project nearby. Some properties at the bottom end have doubled in 12 months (i bought one 15 months ago for 32k put it on the market for 89K recently). keep an eye on local developments.
7. read steve’s new book and “Rich Dad Poor Dad” by Kiyosaki
hope this helps
The other point about getting a loan
With your deposit you should easily qualify for a loan of up to 100k, and the rent should cover the property repayments if you buy right.
regards westan

Hi Crunchingbadger
welcome to the forum.
Thanks for the tip but Ballarat is 100km from Melbourne. I’m keen to get the book but not that keen[]
Regards westan

AlanaW
the problem with a negative Geared property in a trust is that losses in a trust cannot be transfered to an individual taxpayer (so they can claim it against other income). The only time a nergative geared property is worth being in a trust is if a capital gain is made and you sell.
At least this is my understanding of trusts (i’ve had one for 7 years) if i’m wrong please explain where? Thanks
westan

Hi roundbelly

I’ve been a member of this site for over 12 months and the quality of advice is excellent. Usually you will find the other sites are lureing you to buy an investment property they will make a cut out of.
Regarding books
i’m a bit fan of “Real estate Riches” buy Dolf DeRoos -more of a why property rather than a how to.
Most of the Aussie writers are good however many encourage Negative gearing which if the market is stagnent for years or falls is centainly the wrong strategy.
Margarett Lomans books aren’t bad.
From reports Steve’s new book sounds excellent, however i haven’t read it yet, can’t even buy a copy sold out in every book store in Ballarat when i was there today.
If your hunch is right about the bubble will burst (don’t expect a burst like the stock market), then now is an excellent time to learn as much as you can about property investing.
Don’t spend 1000’s on seminars save it for building your Wealth (not theirs), what they cover is written in books.
westan

Hi wisdom

i havn’t been following the outer suburbs of Melbourne, you may have to look further out to regional cities. Steve actually mentioned this on today tonight. As an example of a cash positive deal i did last April in Horsham. Purchase price 74k
Cash on deal 20% cash the rest borrowed at 5.65%
Loaned 59,200 @ 5.65% interest $65 pw
Rates and water 20pw
Insurance 5pw
Agents fees 11pw
Total 101pw
Income Rent 155pw
Profit excluding repairs/vacancies 54pw

see it is possible
regards westan

Thanks Muppet and Mini for your responses.
they have been very helpful. as i have posted in the past, i purchased 3 properties down south on my last visit. i know the north has been stonger economically and population wise but there are just as many bargain properties in the north as in the south. perhaps i’ll pick up a couple in the north in Sept?

regards westan

Hi guys

why don’t you form an investing club, get together (once a week or fortnight), at different peoples houses or a Pub and share ideas and resources. i’ll get you started by sending a Video (i taped off pay tv last year) by Dolf De Roos on property investing (worth watching). We have a group in Stawell where i live where about 8 of us get together to talk investing (property and shares) its been fun and profitable.
Regards westan