Forum Replies Created
Personally, I would prefer to buy something close to home, even if its negative geared. Owning property is a real eye opener. I learnt a hell of a lot from my first investment property purchase. I would hate to do one interstate and get burnt by the experience not to buy property again.
Anyway your choice I suppose. If you know the other area very well eg you grew up there I might try it. But unless i had plenty of time, I would not buy on positive cashflow terms alone. As for commercial property – you really need to do your research. High returns comes with high risk.
I reckon property plus is just marketing NZ properties.
I usually sound interested for 30 seconds then i ask them the tough questions and go on for about 5 mins. My wife hates it when i do that. They usually cant wait to get off the phone. Its been ages since they have called me.
Thats how i protest them calling me.
Aussie said
“if you think there is nothing wrong with a system whereby millions of dollars of assets can be purchased based on a subjective and manipluated notion of ‘valuation’ then i suggest you think again”All Spann is saying is do your homework on valuations to make it easier for valuers. Valuers are professionals and need to justify their valuations. All your doing is making it easier for the valuer to get a valuation you like.
I know now equity is just paper funds. I have heaps of equity and neutral servicibilty. I expect prices to fall further. So I am waiting to purchase a few years down the track.
I only invest near in the surburbs near home. I am an investor not a gambler. And I dont want the hassles of being an out of town landlord.
Check out this post –
https://www.propertyinvesting.com/forum/topic/14205.htmlI dont want this to happen to me. As someone told me when your not in town, you are the first to be used. Agents look after the locals first (they are the ones who speak face to face at an agents office), repairmen know your from out of town and charge you more etc.
I would not do it. But thats just my choice.
AussieRogue said –
“my point is that this technically is not property investing. its more about how to source cheap money. the book should be called ‘sourcing cheap money by manipulating valuations in order to grow your wealth’.”
I disagree. He is a property investor. As he wants growth properties he needs to supplement his income to support those. Thats where he does invest in shares and commerical property trusts. I supplement my properties with my full time job.
But where he makes his most money is in doing renovations and gets them revalued so he can buy his next property (leapfrog) without finding a deposit. It works very well in a growth cycle but in a downward cycle things are slower.
In my opinion its a sound strategy.
I agree with Richmonnd. Property is a long term gain. We have just been lucky the last 5 years. Its only been catch up.
So when a credit report is generated for a Bank does the credit report refer to judgments made in that persons name?
So therefore a landlord who registers the judgement does not need to do anything further unless they want to contact a debt collector.
I enjoyed the Book and believe in that strategy v the ve+ one.
I am not worried about a house of cards. It depends on the risk tolerance of the individual. I have plenty of equity (currently 70%) and plenty of bank finance to buy if I wish.
However, in this present cycle I dont really see any upside in values and I want to sleep at night. I dont want to renovate just to find my property is worth the same as it was when I bought it. I also dont want to over extend my finances.
If there is a house of cards waiting to happen, then hopefully I will be close to buy a few properties.
I do believe in doing your homework and ensuring you have evidence to support your paper valuations. I dont believe all valuers do a good job in making valuations when most do a drive by and only look at past sales (previous 2-3 yrs). If you have evidence, these valuers will be more likely to accept your estimates.
So where am I in the Peter Spann picture. I have heaps of equity but servicibility is my issue. So I am consolidating and waiting for yields to be more attractive. Its only a matter of a few years in my opinion. I have a full time job and only renovate on the side. So time is on my side.
Drewbie, Michael, Agile, Nobleone etc
Thanks for your replies. The intention of my post was never to say not have a go. It sounds like you have given some thought to it.
The concern I have at the back of my mind (and I cannot predict the future) is that I have reservations about whether now is a good time to invest in property or not.
John Symonds just yesterday mentioned that he expects property prices to fall possibly from 5-10% over the next 12 months.
That has always been my concern. I just wanted to make sure new investors were aware of the risks. Its not fun making repayments when interest rates rise and paying for new repairs and continually ringing the property manager for a new tenant.
Personally, now I am consolidating and not buying anything for another 2-3 years. My last purchases were in 2000 – they have doubled and rents have only gone up 20%. Do you really think newlyweds can afford a $200k loan on a new home? Thats the main reason I am conservative.
At least you guys have given it some thought and locked in interest rates etc. Again good luck.
<<<I am a newbie with two properties, only aquiring the second one recently.>>>
Drewbie – could I ask where you bought these properties and whether you have a PPOR. Whats more important to you – a few $000 in positive cash flow or capital gain. Or living in your own house one day.
Remember Steve made his money from capital gain. Not a few $000 in positive cash flow.
Good luck with it, but I would like to know the answers to those few questions.
I suppose the issue i have is this – I am chasing a tenant for monies owed to me. A judgement has been made against the tenant at the residential tribunal and I have lodged the judgment with the magistrates court.
I dont know where the tenants are. One is in Qld and the other still in Victoria.
Both tenants are in their late 20’s early 30’s. One was a physio and I believe that one day he may apply for a bank loan or credit.
I am wondering if I can just sit and wait for one of them to apply for a bank loan and the bank will see a default on their credit record.
Is this true? If so, I can just wait and they should contact me to pay the outstanding sum. If not, do I need to contact a credit agency to make sure the judgement is there or not.
Did your property manager do regular inspections? Was the condition of the lawn noted in those inspections?
<<<<What can you do when your local market doesn’t give you the +ve CF properties you are looking for.>>>>
I dont invest for positive cashflow. I firmly believe in the strategy outlined by Peter Spann. I too have a full time job.
Please read Peter Spann it will become more clear. Its the stage of the market we are in. I dont intend to buy for another year or two.
Steve Mcknight has done well because he bought several years ago and his properties have experienced capital growth.
I would rather see you buy a 2 bed unit in Dee Why and have to contribute to it. You will be heaps better off in the long run. If you reckon prices will come down a little over th next 2 yrs (well I do). Then study the market and buy in a few years time.
If you do decide to buy. Buy interest only and pump all spare cash into your PPOR. The other good thing about investing in a good asset is that you will get a good tas refund.
Drop me a PM if you want more details.
If she has a lease, then she is entitled to stay till the lease expires. Is she wont accept the extra moving money then suggest a little more.
My credit record is fine.
I have a past tenant who owes me. I was wondering if that tenant ever decides to get finance whether they will need to repay me before they get finance.
So are you talking about property development or something like that.
My advice
1. Read Peter Spann BEFORE you do anything.
2. If you REALLY want to buy now buy a 2 bed unit in your area. You will learn heaps in that time.
3. Its not easy managing a property. And buying one so far from home is a recipe for disaster. Its easy for people to take advantage of you when you are so far away.
4. Whats a few $000 dollars in positive cash flow if there is no growth.
5. I rather you succeed with a property at home than fail with one overseas and lose interest in property investing.
6. You have a very solid base from which to start.
7. You should look at quality assets.Is that really the business you want to be in.
I am in the business of property investing for the following reasons;
1. Make capital gains
2. Add value over time (between tenancies) to the property to increase capital gains.
3. As capital gains arise so to does rental increases.
4. Have renters who maintain property and limit damage to natural wear and tear.Personally I would not touch the property.
Yes it will.
And then it may go on about those rural properties and how the repairs and tenant isuues and other hassles of being so far from your investment are not worth the couple of thousand positive cash flow. And then how the locals are laughing as they are buying these properties back for less than they sold them.
