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If you bought suburb reports from residex, they listed average total returns per annum.
I am based in Sydney. I am looking for affordable and established suburb under 350k within max. 30 mins from Melbourne city.
I can’t buy in Sydney since the price already not affordable. I am hoping by the end of the day, the price will increase because people would like to live near the city. Thanks for your advice. I will call the town planner and do my own inspection before i decide to make an offer.Just read don’t sign anything! from neil jenmann.
And ask them to have your independent broker, independent valuer and your own lawyer.
If you have to use their all in one services, run away from them.First one always hard. I never think about exit strategy for every ip too until I went to seminar. Sometimes they got me confused instead of guiding me. I think I better stick to your last comment if we buy well and have to sell ealier it shouldn’t be an issue. Thanks Benny, I will take a note on your advice.
I would like to keep all profitable property of course. However when I went to seminar they emphasised that you need to have exit strategy for your whole portfolio ( consolidate and keep some outright ) and exit strategy for every purchased ip if somehow situation was changed. ( interest rate rises, stagnant capital growth, deserted suburb , fire etc )
Exit strategy for every purchased ip is kind of hard. If we end up with lower price then I have no chance to mitigate the losses. Selling property depends on market and buyer. We can’t control them. So any clever ideas about it?
Sorry for asking silly question but if I wanna put myself in huge debt – I need to know how to get out of it.
I wouldn’t ever do it on gut feelings like some people did.@php , i told them already but they said it’s already happened and they don’t wanna spend more $ to uncross it.
I think they can’t see what make it difference.My friend just bought a house in campbelltown , fully renovated at 485k, P+I loan with 105%loan and only need to top up $200 each month before tax. They have their landlord insurance as well. If they set up the loan and claim tax deduction, they might can get cash positive on their investment.
Ok. Excellent advice Richard. I really appreciated that.
Thanks a million Benny. I got your points loud and clear.
For Richard, inner city means big or capital city like Sydney or Brisbane ? or just CBD from regional city ?
I am sorry for being novice but i don’t really get it.So your strategy bought a house in inner city ( land component ), get granny flat ( dual income ) ,add value ( reno ? ) – refinance – get equity for next deposit ?
While it sounds really good plan, i don’t think i can afford it.
I can imagine i need a million at least for that – and don’t think i will find a lender who is willing to lend me.I am setting my budget at 250-300k ( max. 400k ) with hopefully a bit of cosmetic reno.
Thank you very much for your advice – i really appreciated it.
Thanks PHP. I can’t see why median price is different from average market value. but i will find out about it.
Thanks for your offer i really appreciate it.Catalyst i can see your point.
Richard, I am looking to build my portfolio with investing in cash positive gearing property min. 7% rental yield with moderate capital growth potential min 3-5% annum. Would need to look for affordable established suburb with future development project, future population growth and min population 10K. Will diversified in location and type of property to avoid land tax. Prefer 2x250k purchased rather than 1x500k to minimize my risk. Not interested buying new or off the plan, but would like to buy under market value or buy cheap – upgrade it with cosmetic renovation. will set up Line of credit with offset account and withdraw feature.so if i am buying the property , i will expect cash flow to cover the mortgage and expenses, tax deduction as a bonus, and capital gain potential for next deposit investment. Am i in the right track ? That’s why i pick up suburbs with potential future hotspots and start narrowing down at the property and get confused by its property performance. It just make no sense for me.
I don’t expect to sell my property asap but i will be expecting the price will go up – If i am waiting for 20 years and gain nothing but weekly cash $50 then having a problem to sell it ( looking for buyer or worse – losses – since the price was down ) then i better switch my preference suburb.
Any advice guys? Am my expectation and strategy too high or unrealistic ? But this is my future that i am betting it. I don’t wanna make a mistake and regret it for years.
Thank you very much for the information. I am on ease now. I went to several seminar and webinar and people keep pushing that trust is a must for every investor. However I think it is not suitable for me. Your book n your advice just save my from my constant headache. I really appreciate and grateful for your link in the website and your book. It is very informative and useful.
Thanks Terry, its complicated because i don’t really understand trust structure.
The book itself is easy to understand, i read fast once i passed that trust part.Actually i don’t understand trust benefit for asset protection, protect the asset from what ? Is it for business people who own business and might going bankrupt so they will hold all asset under trust to avoid the lender and court order to pursue their asset ? so if we are on PAYG and single , actually we don’t need trust.
Am i correct ?welcome on my board. I even more confused with my friend’s very good recommendation. Once i found out his very good broker provided him bad choice of investing loan, i pulled myself out of it. It’s really important to do our due diligence and keep our head clear. I keep having people giving me bad advice such as ” why you took forever to buy a property ? just buy any in sydney – they will give you good growth, every property in sydney doubled after 10 years ”
good luck with your search.
Hi Terry,
I am reading your book up to p.66 now. I am reading so slow since i had to keep flipping back the pages. It’s really complicated and confusing.
I always thought that trust structure will give you more benefit about land tax saving, asset protection, and borrowing power.
However now I think buying under my own name will give me advantage over land tax saving. I could avoid the land tax charges by diversify my portfolio and spread it over the states, I don’t expect to have hundreds of ip anyway.About Asset protection and borrowing power – as long as i buy building insurance and landlord insurance for my asset, buying positive gearing property to ensure cash flow – isn’t it the same ?
Thanks a lot.
I am in sydney. thanks. I will try to fit it, but i am timely poor. I have been trying to all those free seminar and join free webinar as well.
How do you know whether that your accountant specialised in property investing ? Can you tell me ?
Hi all,
Thanks for great explanation. It is now make sense now Jacqui.
I didn’t mean to be lazy but sometimes experience make a different.
I believe using professional service will make the better investment experience and minimise errors.
But on the other hand, i am definitely need to know the process and whether they do it properly as I know that some professional might not as professional as they seems.Thanks a million, guys.
I think i will get myself good broker, good buyer’s agent, good conveyancing and tax accountant specialist in property investment.Oh no. Anyone can upload it here? I missed the chance to buy the magazine. :p
thank a million for your great explanation Michael and Nathan!
I appreciate it very much. I read all the books, attend the seminars ( one today – dymphna boholt @syd – great one ) , asking questions and hopefully will get my structure ready for next year..
Please bear with me if i am asking stupid question..
Thanks,
Wiwin
