Forum Replies Created
Why dont you start with your partner?
Why I invest in Property;
1. Property better than shares in long term.
2. Its an appreciating asset.
3. Tax benefits for me. I get a good fat cheque each year.
4. Making mortgage payment is a savings plan.
5. I can drive by and I feel good. I own that property I say to myself.
6. Provide for future income.
7. My parents friends who are wealthy have all done it via property investing.
8. You can do so much with it – renovate, split, sell a bit – or just do nothing.
9. Let the tenant pay for it.You better check if 12 months is long enough to keep selling your ppor after renovations especially if your a carpenter. The ATO may deem this a business.
Your strategy is sound. Have you read the Peter Spann books. Thats what he does. Its a must read for you. I have read them both and sort of do this.
Why sell an appreciating asset. Especially if its only costing you $2000 of which you get half back from the tax man. Dont listen to all this stuff about selling a growth asset like this for a postive cash flow property in a regional area.
After all its in Australia’s largest city and Manly to boot. You should be looking at buying more properties there in 3-5 yrs time than selling now.
Your perspective should be on 3-5 yrs time not ve+ properties with limited growth potential. To make $100k you need about 50 properties to make $2k a year. Imagine the hassles in running 50 properties. Not to mention repairs, lost rent, property managers.
If your still not convinced, go read any of the Peter Spann books.
It greatly depends on the area of the property.
I have 2 bed units in Mentone and Frankston.
The quality of tenant is better in Mentone. Never lost a weeks rent in Mentone. Had some dodgy ones in Frankston. They seem to be more professional workers in Mentone compared to more blue collar in Frankston.
Duration of leases – about the same.
<<<Monthly payments into your account:
$1898.73 >>>>If someone can afford that much a month why would they want to do a wrap.
If banks wont touch them, then why would you?
Just sell the property if you cannot afford to keep it.
I am on a professional package with Comm Bank. Got a platinum Card which gets 1 Qantas point for each $1 spent. Dont worry about interest rate – pay balance each month.
Also got an ANZ Qantas Visa. Also get 1 point for each $1 spent. Mostly use to pay property expenses. Also pay balance each month.
It may work for people like me who have family overseas and would love to accumulate frequent flying points quickly – especially if they are partly funded by the tax man.
How many points a month do you get for a $200k loan?
I am willing to answer the odd email. PM me.
What are the growth prospects? I dont know Newtown.
Can you afford the repayments?
Property investing is about time in the market. I prefer growth properties to regional/rural properties.
I contracted a collection agency. They were no help. They have moved to Qld with no forwarding address. They sent letters to her mother but they have gone unanswered.
I spoke to my solicitor. Now all i need to do is register the judgement with the Administrative tribunal. I am in the process of doing this.
This should at least come up in any credit check.
I think the basic question here is – how much positive cash flow should I get in a deal to make it worth my while investing in that property? eg. should it be $1000 positive cash flow or more.
T o me it depends on the property. Where is it located. To me, I invest for capital gain. I prefer to invest in surburban properties with better growth prospects than rural / regional towns.
I would need to get more than $1000 positive cashflow to invest in a rural/regional area – especially now that interest rates will tend upwards over the next 5-10 years.
Jeff Fenech
What was the final outcome Gatsby??????
Just back from 6 weeks visting family and working in Canada and the UK. Nothing comes close to Australia.
Canada and the UK come close but I agree totally with Nobleone.
I would take my capital gain and run. I dont like rural and regional properties which is what this appears to be. It will be a long time before this property grows.
Even Westan has sold up from Victoria.
Why develop now. Why not wait a little and pay as much as possible of your PPOR. You dont want to lose it all. Sounds a little risky to me presently. I dont like PPOR debt.
I would wait, reduce what I owe on my PPOR. Your investment property sounds like it has huge potential.
Develop down the track and keep the units. Dont sell them.
Dont overexpose yourself. Just my 2 cts worth.
ANUBIS
I did the same. My last deal was a sale.
Good point Terry.
I bought a unit in 1999 in Sth Frankston for $95k. Now worth about $230k. I signed for a 10 yr loan at 7.5%.
I dont regret it and the certainty has been good. I suppose you could say you also spent an extra $10k over the 10 yrs ie. difference between fixed rate and variable rate.
Hey Mini
I agree with your comments. I never thought I would say that 12-18 months ago.
