check this out peoples….
http://www.personalinvestor.com.au/columns/fbmmm.asp
Extensive list of new Perth property available for sale.Alternatively, become a joint venture partner in one of our property development partnerships – contact me to find out why our developments are unique. John – 0419 198 856
wow, Monique Wakelin advocating buying only in inner-city areas… so what’s actually new in that article?
quote from the article: “She uses the comparison between two $300,000 properties – both delivering a total return of 15 per cent a year. The first property does that with 10 per cent capital growth and 5 per cent gross rental yield. The second with 5 per cent capital growth and 10 per cent rental yield.
Wakelin says over 20 years the property delivering 10 per cent capital growth would be valued just over $2 million. The property that generated the higher rental yield by comparison would have a value of $795,000. Clearly a prime property with good capital growth is the better long-term bet but for a lot of people the prime inner-city properties are out of their price range.”
well, example a is going to restrict my borrowings whereas example b is going to add to my servicability allowing me to buy more places…
It’s the old horses for courses argument… personally I agree with an approach somewhere between Wakelin and McKnight.
cheers
r
As i said elsewhere: SEEEEEEEEEEEEEEEEEEEEEEEEEEEEEELLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLL!!
hehe. But seriously, highly gearing is a bloody risk. Some people are gambling over their heads in property :o( If people *are* too highly geared, they should sell up now while prices are still maitainging themselves. Forced sales are a disaster.
kay henry
and I agree with Kay, those who are too highly geared will find themselves in strife… those who aren’t should be fine… it’s bloody common sense people!!!!
Cheers
rI would think that always having 20% equity is still being very highly geared!!
I’m at between 25-30% at the moment, and would like to reborrow that 5-10% back out, but the banks are saying no, as they see us as being ‘too highly geared’.
Cheers
MelHi Mel,
I would think that always having 20% equity is still being very highly geared!!
k, i beg to differ on this, 20% equity to me seems to low, if major banks offered 90% LVR, id run and grab that opportunity and go crazy like Broadway style.
Cheers,
sisSIS, you are an aggressive little bugger. [
]I would say for every one of you (and me) there will be 30 or 40 who won’t want to grow that big that fast.
For me now, where my loans have 6 zeros, there won’t be many banks that will lend me much more than 80% (if at all under normal loans). [
]Cheers
MelHi Mel,
im not that aggressive, im nice and sweet too… [:X]
Cheers,
sisspeaking of 20% equity, here is another link to check out:
Interesting article- thanks AusProp!
If the other banks follow NAB, gearing will be standard at 25%- not the 20% we’re used to. It’s gonna be harder for first home buyers to be able to save the 25% deposit- god!
Mel- I think 20% equity is not much. Means you own 200k and owe 800k. That kind of pressure would do my head in. I am a bit debt averse really- well, to some extent.
You might have to to back to work, Mel! Seriously- how can the plan to pay it all off occur if one isn;t working?
kay henry
Originally posted by kay henry:You might have to to back to work, Mel! Seriously- how can the plan to pay it all off occur if one isn;t working?
[
!] Tell me about it. In fact, I had to go into work yesterday for a job interview – the rehab people have finally found me another one. It would have been great too – would have got to travel to Cairns, Darwin, Perth, Melbourne and probably Sydney – all with nice travel allowances. However, I decided that I really didn’t want to go back, and was planning to resign in July. These guys needed somebody who would work their butt off for at least a year, and it really needed to be the same person (involved in building the new Patrol Boats for the Navy – the ones they use to catch the boat people, and illegal whalers and stuff) for that time frame.The plan to pay it off – well, all I want to do is make sure that the expenses are less than the rent, and I will live off the rest. I’m not fussed about paying it off. In fact, I want to borrow a couple more million – so then my loans become the banks problem, and they’ll be really nice to me[
]As I said in another post, I’m looking at buying rabbits too![
] that will help with my servicabilityCheers
MelHi Mel,
What about this, you and me go into a JV, and we both can borrow not just a couple of million, but tens of million? [:o)] I have an excellent banker who gives nice and very attractive interest rate discounts? [:o)]
Cheers,
sisSIS – Done! [
]Remember, you Steve, me Dave.
Cheers
MelI WANT IN TOO!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! [^]
I WANT IN TOO!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! [^]
I WANT IN TOO!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! [^]
I WANT IN TOO!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! [^]
I WANT IN TOO!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! [^]
I WANT IN TOO!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! [^]
[
][:o)]Regards Bear
Hi,
The rule of thumb is higher debt, bigger risk.
Personally, with things as they are at the moment, I don’t think there’s too much risk of interest rates moving beyond 7.5% in the next few years.
I think the article assumes that investors keep gearing levels high (maybe on an I/O basis) – my advice is that if you have a plan for getting into debt, you also need a plan to get out of debt. Nearly all our loans are P&I.
Cheers,
Steve McKnight
**********
Remember that success comes from doing things differently.
**********Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
All my loans are interest only. If I have some money and don’t know what to do with it then just deposit in one of the loan.
Warm Regards
ChanDollars
[Keep going, you’re nearly reach the end of financial freedom]
]
]
] that will help with my servicability
You must be logged in to reply to this topic. If you don't have an account, you can register here.
