Eastern suburbs Sydney ?
Buy it now.
(no responsibility for my opinion being incorrect. it is just my personal opinion.
Pisces
ret
Ret, i’ll leave yours to someone else, i am the wrong man for this question i chose not to buy in Ascot Vale (Melb) in Aug 2002 because i thought the market was too high then.[
] (but i did buy in other areas that increased probably more).Houses only your hot with the calcultations [
]. it is an interesting point because if it goes up 100% it only needs to drop 50% to put you back where you started.
westanI find +ve cashflow deals in New Zealand which I sell to other investors. To be on my database send an e-mail to [email protected]
Hi all[
].I have only discovered this brilliant site tonight and was immediately drawn to a topic that as novice property investor I am seriously wrestling with.Have I left it too late to expand on the 1 investment property my wife and I purchased in 2001?For a number of reasons we have been reluctant to buy more IP,s including a new $200,000 Mortgage,the expensive dependant years[2 teenage girls at a private school ect]and most of all an uncertainty about whether now or in a few years time would be better timing.While I’m still perhaps niavely optimistic that growth will in the medium to long term remain healthy in certain area’s my wife is urging more caution at this time of uncertainty[].We have equity of around 70,000 in our IP and about $100,000 in the family home but our current repayments don,t leave us a lot of room if rates were to rise by 2 to 3 %in the next year or so.We are also considering a reno on the FH which would given that it would give us a ocean view should increase our equity further..but at what cost.Having finished reading Rich Dad Poor Dad [20 years too late[!]]I am champing at the bit but the nagging doubt won’t go away[8]…now or as some of you have suggested 05/06.I would be grateful for any advice from this forums wealth of experience[]Cheers![]Hi Midas
welcome to the forum
well that’s the difficult question we are all asking, personally i haven’t bought in OZ since about April and have actual;ly sold 1/2 (about 12) my oz properties, i didn’t do it because i thought the market was about to collapse but because i was persuing some other great capital growth/positivecash flow deals. Its would be interestingto see from you guys who are saying the market will go south big time were you buying big when the market was very cheap ???
Back to you Midas i like the idea of adding value to your home obviously it must increase the value by more than it costs you.
regards westanI find +ve cashflow deals in New Zealand which I sell to other investors. To be on my database send an e-mail to [email protected]
Hey Houses Only,
>Just a small point which is quite significant
Ah got me there!! I was picturing the situation in dollar terms i.e up $100k – down $50 – still up $50k. Neglected the underlying value in the percentage ratio… ooops!
Cheers
Give a man a fish & you feed him for a day, teach a man to fish & you feed him for a lifetime, give an entrepreneur a fish though & he wont be satisfied until he has a majority share of the entire fishing industry!hi Rod,
> “mini,
> I reckon you’ll find that rents move like (but not necessarily with) house
> prices, some years they will increase, some they will stay the same and
> sometimes they may even decrease.I quite agree..
but I keep thinking of KtKiwi’s example of the 10k house in 1991 rented for $20 per week which in 2003 was worth $50K, rented for $130.
It has to have gone up an average of 8, 10 bucks a year to even mathematically make sense.
>Long term they they probably do go up with
> inflation but short term many other factors will have an effect.
> I wouldn’t count on $10 per week every year.but do you think a rise of $10 a week in rent every year is a good estimate as an average over the 8 years ahead i was talking about?
I do.
cheers-
miniHi Mini,
I’ve just joined this forum and am intrigued by what you are doing. Great work.
I imagine there would be a point when rising rents would slow down as people’s incomes don’t go up quickly enough to cover the annual increase. But you can be sure there’s a median income in any particular area that would give you an idea of what people can afford to pay. For instance, in places where you are buying properties for $40K, but the average wage is say 25K pa, then there must be some standard percentage that average earners pay in rent. Let’s say it’s $100 per week – that would be 20%.
Does anyone know what that percentage is? Because that would tell you the average rent for the area and you could set that as your conservative ceiling yeild. I guess.
WM.
Finding you smarter ways to finance your investments.
Wealthmagnet,
welcome to the forum, and BTW, slammin’ first post.
cheers-
MiniHouses Only, I don’t get why the rents would be going down if prices are going down.
Lower prices generally means less people buying. Less people buying means less investors buying new rental properties. Surely this will mean that the available supply will drop, and therefore the ‘greater’ relative demand will cause an increase in rents, thus causing increasing yields. Especially if you can afford to buy one of the properties that has dropped in value.
Cheers
Mel
] (but i did buy in other areas that increased probably more).
]. it is an interesting point because if it goes up 100% it only needs to drop 50% to put you back where you started.
].I have only discovered this brilliant site tonight and was immediately drawn to a topic that as novice property investor I am seriously wrestling with.Have I left it too late to expand on the 1 investment property my wife and I purchased in 2001?For a number of reasons we have been reluctant to buy more IP,s including a new $200,000 Mortgage,the expensive dependant years[2 teenage girls at a private school ect]and most of all an uncertainty about whether now or in a few years time would be better timing.While I’m still perhaps niavely optimistic that growth will in the medium to long term remain healthy in certain area’s my wife is urging more caution at this time of uncertainty[
!]]I am champing at the bit but the nagging doubt won’t go away[8]…now or as some of you have suggested 05/06.I would be grateful for any advice from this forums wealth of experience[
]Cheers
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