Forum Replies Created
I have simliar issues with my wife.
She supports me but is not as pasisonate in property investing as myself. I am a numbers man (accountant) and she is more a people person.
I would love to pump all our money into property investing. But I have a family (two kids) to support and my wife runs the household.
We have a rough budget. We pay our PPOR mortgage and a little on an investment property. The rest of our monthly paypacket is for her to live within the limits of. I dont care where it goes as long as its within that amount.
This seems to be working and she is saving a little of that for other things.
She still makes the comment – i wish we could just pay our PPOR mortgage off and have the title. I tell her dont worry about that – our equity in investment properties more than pays of our PPOR mortgage 10 times over.
We did Canada last year with the kids. I explained to her the reason we were able to do this was because of property investing. We certainly did not save for it on a monthly basis. She is starting to understand this.
So in summary – keep investing. Try and teach her the benefits of investing. Dont go gung ho. Just nibble at the edges till she understands.
Agreed. The figures are just confirming what I have intimated for a while now.
And there is still room for more price falls. How can a young couple afford a mortgage of $300k to buy an average home in surburban Melbourne?
Richmond
I totally agree. Thats better than rushing in and buying something you will regret down the track. Property investing is a patience and long term game.
There is NO DOUBT there will be lean times for property investing in the future. How resilient can you be? There are thousands of stories like this.
The question is – can you put up with the low growth, low positive cash flow (a few $100 a month), tenants, repairs, property managers, renovations etc for a period of time. Its not easy.
Many will loose interest. When I was 19 it was shares not property. Now the 19 year olds think its property.
Sounds like we need to Fire Ceasar. Your not a property investor. I am not hiring spruikers. Your Fired.
<<<Bought my first poor excuse for a property in april 04′>>>>
I would love to hear more details. At 19 I was just learning how to drive, studying, working part time at Woolies and getting pissed on weekends.
I did a review of rental prices in Mentone and South Frankston. Both in Melbourne. I reckon I could increase my rentals by $10 on each property.
Sorry – too early for SBS in our house.
I agree with the dont sweat the small stuff. But regardless of how small if its not justified its not right.
I should email jenman and ask what he reckons. As a consumer I should not pay this amount. As a consumer advocate he should support all agents stopping this practice.
Whattya reckon?
I dont really think it matters that much. If an areas has units and the house next door is on a large block and its condition is not good – you dont need to be einstein that one day they will build units on it.
So you dont need to do that much due diligence.
Are you saying you bought a property based SOLELY on photos on the Internet.
I hear they are selling London Bridge – are you interested?
If you take a long term view – keep both. Bt selling the investment property you would loose a bit an capital gains tax and still owe money on your PPOR.
Also make sure the investment property is an interest only loan.
Someone who will spend my money and let me sleep in all day.
But seriously – you got to ask the right questions and decide what to do. They are there just to check what you are doing is correct.
Many accountants are divided between shares, managed funds and property. So you got to be careful how proactive you want them to be.
I invest near where I live.
I want to be able to drive by and keep an eye on things.
I know my area well. Its in surburban Melbourne, near beach on a station line, and in a growing area and the land is being reused. ie. older joints are being pulled down and new ones built.
I dont see a need to look at other areas. I am more than happy to invest locally. I also invest for capital gains.
I dont understand why it will take 9-12 months to dispose of the property!
I cant offer any advice on New Zealand.
But a friend of a family who has a property in a regional area has told me that when you dont live near a property everyone likes to take advantage of you. From agents to repairmen to tenants etc.
I started my property investing journey before my PPOR was paid off.
I used the equity in my PPOR to buy an investment property on an interest only loan. I felt at that time I could afford both mortgages, plus I had an income that needed the benefits of negative gearing.
That was back in 1997-1999. If you have a tenant lined up and you trust her not to say I cant afford rent this week AND you can meet the payments. Go for it.
Personally, I would wait a little longer as I reckon there will be better opportunities once we see the next interest rate rise. Could be in 6-12 months time.
I do mean the PPOR is not subject to capital gains Tax.
Its really hard to comment without all the facts.
But I know where your coming from. I am a father of two young children. My oldests starts shool in Feb 2005. My wife does not work.
I would not sell my PPOR – especially after having worked so damn hard for it. If you still owe some money on it sell your investment properties to pay off any debt on the PPOR. After all its tax free (not subject to tax).
Property investing is a long term proposition.
Then using the equity you have in your home that you are more than happy to live in – use the equity to invest. I also suggest you read the latest book by Peter Spann. That way you can ascertain what your existing properties are like.
Good luck with it.
Thanks for those that replied.
As we approach the start of a new year – is anyone else prepared to reflect on their 2004 and note some objectives for 2005.
Thanks again to those who took the time.
