Forum Replies Created
Any other thoughts on this? It sounds pretty good to me. 15yrs fixed at 7.69%.
As interest pmts are my main expense, having the certainty would be good.
The question I would ask myself is – What will the $620k country properties be worth in 5-7 yrs? What would the city property be worth in 5-7 yrs?
That would determine how much cash you need for the properties. With the city property all you will need is the monthly pmts. With the country properties growth will be limited so you will need more cash to payoff the properties.
“So when these opportunities arise, do you think you’ll increase your gearing or stay at about the same as now?”
Yes I will. But I need to consider how much I can support these properties. In then past I never saved a deposit, I just used the equity in the previous property.
Now that prices have stablised and I dont expect too much growth in the next 3-5 yrs, I either need to save a deposit or wait for rents to go up or reduce what we as a family spend.
With a young family, recent renovations on PPOR and holiday to Canada (sister in laws wedding – so we gotta go), I have found it difficult to save a deposit for new investment properties.
I am a long term investor and in no hurry.
The key to property investing by Jan Somers is – buy when you can afford it (fix rates so you know pmts) and time in the market will be rewarded.
Only you know the answer to the first comment.
My gearing is only 30% and therfore 70% equity.
I have sold a property recently and am waiting for future opportunities that will arise over the next 2-3 years.
I want yields and interest rates to start to rise a little.
I too would hold.
You should always hold property for a min of 5 years.
If your earning other income and on a hig tax rate the loss is only half.
You have to start somewhere, and I would rather have a unit in Sth Yarra that is costing me a few $100 a month than a house in Moe giving me $1000 a year.
In my opinion in the longer run you are better off buying quality properties like the stuff in Sth Yarra than in regional/rural towns.
I just cut and pasted from an email a mate sent me about 18 months ago. Let me correct them.
These work –
http://www.dialanexchange.com.au
http://www.interchange-timeshare.com.auI dont know anything about them, your thoughts appreciated.
How did the meeting go?
My only advice is to wait for yields to improve as interest rates rise. The book 0-130 is a description of someones success in a different part of the property cycle.
It cannot be replicated today. Steve is busy writing his new Book and giving seminars – not out buying another 130 properties in 3.5 yrs.
You got to be patient. I would not rush into buying a property out Kalgoorlie way.
Ballarat surely is a better investment than Kalgoorlie.
I changed PM during the year and the old PM actually sent me the yearly statement. Cost me nothing, cost them a stamp but it did create some Goodwill for them.
I only moved because the new mob sponsor my local football club and I organised the sponsorship. They have both looked after me very well.
This was given to me by a friend of mine some years ago. I have not even had a look at the web sites. I sort of decided timeshare was not for me but he takes the kids on holidays a bit.
here’s the links for timeshare places. There are two companies that will display information pertaining to the Timeshares.
http://www.dialanexchange.com.au/home.htm
http://www.interchange-timeshare.com.au/bonus.html#Bonus.I would be interested in your comments. As I said I have not done anything in this area.
I met my wife while backpacking in Canada on a train. Look what happens if you speak to strangers. In the 2 and a half years I was working/travelling overseas that train was the only one packed enough that you actually spoke to a person.
We chatted for the length of the trip. She was rugged up in black and with the blond hair I was more than happy to spin my shit.
I stayed in a youth hostel for a few days and returned to Montreal after visiting Quebec City and stayed with her and her parents in their basement in the surburbs.
She could have cut me in a 1000 pieces and no-one would have known. But there was a special feeling and it felt right.
Anyway, we have been married now for 7 years and now have 2 kids. In 6-8 weeks time we are going to Canada for my sister in laws wedding. A 24 hr flight with 2 young kids should be fun.
Johhnnie
Should you not be concentrating on the next election!
I tend to agree. I just sold a property that was costing me too much on a monthly basis as I do not expect much growth over the next 3-5 yrs.
Now I am at the stage where all costs are covered by the rents ie (neutrel).
I expect we are in a cycle where interest rates will rise. The first rate to happen shortly after the next election.
I also remember when property did not rise for a good length of time. So I expect the same as you.
I also reckon it will sort out the men/women from the boys/girls.
I am looking forward to the next 2-3 yrs. As a long term investor, now is the time to cash up and consolidate.
Teacher K
I agree – I thought the same when I first read it.
No need to duck.
cajun – please explain. I would like to hear your experiences and why you have turned your back on property investing.
How long were you doing it? Where were you doing your property investing? How much time were you spending on property?
I am sure newbies and those doing it a long time would love to hear your experiences.
As you just bought the property, regardless of whether you have tenants or not, if you do major renovations these are capital costs and cannot be deducted against your income.
But you can claim depreciation/building allowance on these costs.
I have an evapouritive cooler in our PPOR in Melbourne. Its excellent. Its about 3-4 yrs old.
I did not think we needed to have it checked regularly. Its in the upstairs roof and every time you turn it off the water tank empties and fills up when you turn it on.
Maybe I should give the cooler guy a call? What do you reckon?
Like everyone – a tenant wants value for money.
So just set the price to just below market value. If you dont get a tenant then look and see what the opposition in your area offers for the same price.
Why add all this stuff if people are not prepared to pay for it anyway.
I dont think so. Best way is to learn about the area. Get local knowledge. Then you can look at a property and generally know what it will rent for.
Dude, Where’s my Car – It up there too I reckon.
Whats my tattoo say – Dude – Sweet – Dude – Sweet – Dude – Sweet.
That guy from American Pie cracks me up. Instead of a quuer eye for the straight guy, I want to see the Stiffler version – where Stifler goes and helps people out.
