Forum Replies Created
Oh well, you can clean up the mess and make good profits over the long term when those out of towners realise how poor the capital growth is compared to city properties and are sick of managing properties out in the sticks.
I see no reason why not. You are maintaining your property.
Did you take into account that the points earned has cost you in deductible expenses eg. the interest is deductible and the airfare is not income.
eg. I dont know the figures but lets say.
You get $30000 points a year by paying an investment loan with ANZ – it costs you $500 in extra pmts – the diff between discount var and var rate.
But to fly to NZ costs $489. But you need to earn $990 in before tax dollars.
I have not done the sums. Has anyone done the sums on a $200k loan with ANZ home loans and linked to frequent flyers. How many points a month do you get on such a loan.
Thats what i did back in 1999 when we started our family and upgraded from a unit to a house.
Our PPOR mortgage is almost $nil and our investment property bought then has doubled in value.
I would sell old PPOR. Put the funds in new PPOR and buy a place in Norwood that is 110% borrowed.
There are no tax implications here. You get full tax deductibility. You get to live a little easier on your tax refund cheques.
Downside is you pay agents fees in selling and stamp duty on new purchase. But thats nothing in 10 yrs time when the place doubles in value.
However talk to an accountant and see if you can re-structure by selling to a trust or something like that. I am not sure how that works. There is also a possibility the ATO may object.
Should be interesting times ahead.
SIS – how are you placed if the property market falls 20% and interest rates rise 2-3%.
Would you be able to cope with no growth for 2-5 yrs.
Those that invested from 1997 have not experienced a falling property market.
So waiting for property growth while incurring all those expenses and hassles of property ownership can be hard when there is no growth.
is it listed on realestate.com.au
There appears to be many properties listed in Clayfield. Looks like many are trying to realise their profits now.
Whats the price, council rates, rent and body corp fees?
Is the rent guaranteed for a number of years.
Maybe i can offer some advice.
I agree with all the above.
In my current experience a tenant has broken the lease. She was a great tenant, there for 3 yrs no problems, now got married and decided to break lease.
She gave her 4 weeks notice. I come back from holidays (overseas) to find out she had give notice and no new tenant after 4 weeks notice.
In my opinion this was no good. I rewrote the ad on the internet and in the rental list. That week we had over 3 enquiries. I reckon it was because I rewrote the ad to appeal and i had put pressure on them not to screw a good tenant.
We now have a new tenant in there this week.
I have placed my copy of the Book on my Xmas list.
Should be able to read it during my quiet time.All good bookshops and
Spann http://www.freemanfox.com.au – go read the peter spann thread in the gurus section
and
Somers http://www.somersoft.com.au
they have both been around longer than Steve Mcknight and both have experienced property market downturns.
Make sure you also read Peter Spann and Jan Somers to get a well rounded view on property investing.
I agree with qwerty which is totally waht I have been getting at.
I too have increased equity. But my income and rents have not gone up too much in the last 3-5 years while interest rates have gone down over that time to fuel the equity and boom.
Interest rates will slowly rise as the US economy recovers. This is where it will be tough to hold these equity investments. So be careful and dont over extend.
I prefer to invest in quality assets. You are better off with quality in the long run. You go buy your outback properties and take home a few $000 a year and let me pay a little extra and contribute a little in the first 3 years and let me have the capital gains with a capital city property.
Open your eyes. Go read a Peter Spann and Jan Somers book and get back to me.
Any opinions from new investors. I know I am frustrated that I have learnt about property investing but not is not a good time to expand the protfolio.
Any other opinions.
Welcome to the forum. You have just completed a book that was relevant in 1999. The 11 second rule does not work now.
Have a look at a newspaper – its Nov 2004.
Do you really reckon you can buy a house for $500k and get $1000 a weeks rent.
We have missed the boat.
Sounds like a common problem investing out of town. As a property investor I highly respect said to me – “When your out of town all types of people take advantage of you.”
I would just find a property manager and work with them. You need to take control and do things like ask when the picture will be on the internet. You then go check it out on the day they said. If its not there ask why. They work for you and you need to monitor them.
Its no good swapping agents. They all talk to each other and you eventually get a reputation.
As your out of town and need someone to manage your property make sure they are well paid. You want your properties to be at the top of their list.
You need to speak to them every few days if you have a unit untenated.
I was away for 5 weeks and when I get back I found out a tenant was to break the lease. They gave 4 weeks notice. When i returned it was already 4 weeks. thats bad – its a very large unit in a great area. I got onto the job, re-wrote the ad and within 10 days we had a new tenant.
Time for you to take control but work with a property manager in the town. If your too passive so too are the property managers. Thats my experience.
Your background is very similar to mine. I started by buying a 2 bed unit in Mentone back in 1997. I had no idea and even felt intimidated by looking in an agents window at the properties there.
You got to start somewhere. Go buy a property near your home, even if its a 2 bed unit. However in hindsight a house would have been better.
I am still working as a chartered accountant but now have several properties and the PPOR. I also get a good tax refund every year on the tax I pay as an accountant. Investing in property and working as a CA is a good mix for me.
Good luck with your last exam – I remember those days. I did not really know property investing was achievable back then.
I have never been able to find a Cyrstal ball. But having said that, I work for an IT company and was hit hard by the IT bubble/crash.
So I am very wary and I see similarities with the current property market. As interest rates tend upwards people will start to over commit as they expect the same gains we have had in the last 3-5 years.
As for the sharemarket, I have avoided. I leave my compulsory superannuation to invest there. And those professionals managing my money aint done that well.
I will look out for the warning signs. One warning sign is that I bought my PPOR in 1999 for $180k. Now they are $370k. My income has not doubled in that time. In fact its not even increased by 10%.
I doubt we will get those returns in the next 10 years.
We would be lucky if we got 100% return in the next 10 years as I expect interest rates to tend upwards and I dont expect inflation to rise all that much over the next 3-5 years. Unless incomes rise considerably.
I am surprised no one else has an opinion on this!!!!!
Come On!!!
