All Topics / General Property / I still buying

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  • Profile photo of recoverymanrecoveryman
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    @recoveryman
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    Post Count: 122

    I will settle next week on a brick unit in a large size town in WA (people who meet me in Perth early in the year know where I am talking about).
    Purchace price of 74k rent 120 pw and in a good area walking distence to town.
    I am interested to know if other people are buying and if so what type of PI and what sort of area.
    There are still PI out there, I belive if the numbers stack up now, why wait for a possible downturn (possible better PI), it might not happen and in the mean time you have another PI that pays for itself.
    hope this gets a good debate going
    glenn

    “I should be content to look at a mountain for what it is and not as a comment on my life” D. Ignatow

    Profile photo of yackyack
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    Yeah – but why buy boiled lollies now when you can probably buy chocolates in 18 months time.

    Is that not what investing is about.

    Profile photo of diclemdiclem
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    @diclem
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    Hi Guys,
    Just bought a prop yesterday.
    Not what most people here are looking for…
    House on large block, will be subdivided for dual-occ.
    Melbourne suburb about 12k out.
    No-where near cashflow+, but plan to sell existing house and keep new dwelling.
    Should be close to positive with depreciation.
    Cheers,
    Sue [biggrin]

    “Be careful not to step on the flowers when you’re reaching for the stars”

    Profile photo of kay henrykay henry
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    @kay-henry
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    recoveryman ;O)

    Timely topic for me! I exchanged contracts yesterday on a sydney IP. Definitely negatively geared, 4 year old city apartment- yield 6%. I am VERY happy with the purchase :o)

    I would buy in any market, but not at inflated prices. This apartment was, in my reading of the market, price adjusted for the current conditions. Super happy me! [lmao]

    As long as the bank keeps lending, I’ll keep buying :)

    Oops- forgot to mention- this and any other purchase will be buy and hold for 10-15 years, or sell at the peak of the next boom, whichever comes first. I won’t be selling in less than 7 years though.

    kay henry

    Profile photo of westanwestan
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    Hi guys

    yep i’m still buying at the moment, if the deals a good one why not. settle on 2 in two weeks. Having said that i will also continue to sell some more properties that have gone up so much i certainly wouldn’t be buying them at the price i’ll get.

    regards westan

    Profile photo of gmh454gmh454
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    Originally posted by kay henry:

    recoveryman ;O)

    Definitely negatively geared, 4 year old city apartment- yield 6%. I am VERY happy with the purchase

    Presume your talking gross, return ????

    Profile photo of kay henrykay henry
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    Yes gmh :+P Guess you have a problem with that :O) It’s a growth property, gmh. Someone has to buy city properties, and this time, it’s me. the yield will probably be 8% with depreciation schedule. Good enough for this investor.

    kay henry

    Profile photo of brahmsbrahms
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    Hi kay and gmh

    without being overly nosey, kay would you mind awefully clarifying is the 6% a gross return on purchase price – or net of outgoings with or without a factoring for vacancy.

    i feel its important to be able to benchmark a return, the fact that you feel the upside is definately in future appreciation is more than enough reason to purchase in a metro location.

    how many times do you hear ‘you make your money when you buy’ – you know the drill.

    cheers

    brahms

    If you don’t ask, the answer is no!!

    Profile photo of gmh454gmh454
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    Originally posted by kay henry:

    Yes gmh :+P Guess you have a problem with that :O) It’s a growth property, gmh. Someone has to buy city properties, and this time, it’s me. the yield will probably be 8% with depreciation schedule. Good enough for this investor.

    kay henry

    Kay was not querying your strategy, just seeking info. Thanks

    Profile photo of kay henrykay henry
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    brahms,

    Your question is fine- and so politely asked, how could anyone be offended? :o)

    I just do a gross rental yield like this:

    Annual rental yield divided by purchase price. I am not one of those whizz kids who does all the spreadsheet stuff, which might be unfortunate.

    See, the way I work it brahms… due to the location of the property… there are 30,000 potential tenants opposite (major urban university), so i am not worried about vacancy. Besides, one year leases knock off the vacancy period.

    I do gross yield, brahms- makes it easier for my head :) I know once I add in mortgage costs, interest, QS report, landlord protection insurance, BC fees, rates, any repairs, PM costs etc etc… that my net yield will drop considerably- c’est la vie- I love my new place [blush2]

    kay henry

    Profile photo of brahmsbrahms
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    thanks kay, i’m not so sure i’m a whizz kid, but, i can do the math – and more importantly, research well and back yourself – appreciate your reply.

    cheers

    brahms

    If you don’t ask, the answer is no!!

    Profile photo of RiskyRisky
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    I too have just had a house settle two days ago, shouldnt have any vacancy rates for the first year at least as i have a tennant moving in today on a 12 month lease. It Is positive geared and returning 10% yield gross. (62000/120) Country town in WA population of 8000.
    Because i buy the bottom end price houses ,now or anytime now is a good time as i dont think there
    going to go down in price, however the middle to top end properties have a chance of reducing in price slightly till the next cycle . But this is just my thoughts. I too will keep buying as long as the banks keep lending the paper stuff to me[thumbsupanim]

    If you want the rainbow youve got to put up with the rain!

    Profile photo of Misty1Misty1
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    I’m with u risky! It may be “risky” to buy now, let alone in the lower end of the scale,but that’s what I’m doing/ have been doing, & so far,so good.[biggrin]

    Profile photo of redwingredwing
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    Originally posted by yack:

    Yeah – but why buy boiled lollies now when you can probably buy chocolates in 18 months time.

    Is that not what investing is about.

    [biggrin][biggrin]

    “Money is a currency, like electricity and it requires momentum to make it Effective”
    Count The Currency With This Online Positive Cashflow Calculator

    Profile photo of kay henrykay henry
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    gmh- no problems at all :o) And please feel free to question or challenge my strategy at any time- that’s what the forum is for :) Whn I get challenged, it helps me to either be ble to articulate what I’m doing and therefore strengthen my belief in it; or to realise I might be better off trying something else- either way, it’s good to self-reflect :)

    kay henry

    Profile photo of madhunmadhun
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    Originally posted by kay henry:

    recoveryman ;O)

    As long as the bank keeps lending, I’ll keep buying :)

    Kay,

    Would you mind if i add this as my signature.

    Profile photo of kay henrykay henry
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    @kay-henry
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    Sure, madhun- go for it! I am sure I’m not the first person to have said or thought that about the banks :) Meanwhile, my signature will probably soon say “OH NO! THE BANKS STOPPED LENDING!” hehe.

    kay henry

    Profile photo of recoverymanrecoveryman
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    Yack
    I would not say my PI is a boiled lolly, it is a good buy. The point I making is we don’t know in 18 months time there will be chocolates around, could be upswing and only old boiled around. I also think that in 18 months time it will be better buying especial in Sydney apartments but I don’t know Kay’s latest PI sounds pretty good, and if the investment is with us now and the bank say OK I say give me the lolly now and the chocolate in 18 months time as well
    Glenn
    p.s I just found a good way to spell check, write in Word then transfer to here

    “I should be content to look at a mountain for what it is and not as a comment on my life” D. Ignatow

    Profile photo of westanwestan
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    Hi Recovery man

    please don’t use the spell checker. i love your spelling mistakes, if you fix them then i’ll be the worst speller on the forum.

    bey wetnas
    bye westan

    Profile photo of recoverymanrecoveryman
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    @recoveryman
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    Weatan
    I will stop using word as it is the first time you asked me for anything and I am indebted to you for all your contribrution to this forum and to support and assistence both in PI and in life.
    hope the person checking you out reads this.
    after all the buying and selling we will have to get together
    glenn

    “I should be content to look at a mountain for what it is and not as a comment on my life” D. Ignatow

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