Cool DaMan, always good to foster discussion although this was not the way you intended this string to go. I appologise to you for any waylaying of your questions so lets look seriously. You have cash now in a softer market. All indications are that the booom is gone but for you a new buyer this is a good thing.
Where the rental ratio of 1.5/1 or $1.50 rent for every $1000 invested was unattainable 6 months ago, whch gives you 7.5% return by the way, is now occasionally to be found with some creativity. My example was 2 x townhouse bought for $95k each in december,I renovated 1 totally in a week where I painted and co-ordinated services that week, the rent went from $95/week(1/1) ratio or 5%, to $145/week or roughly 1.5/1 7.5%. The reno cost me about $3k in total which is either immediately deductable or depreciable over time. Nett cost of reno due to tax benefits is practically zero and I’m now getting a reasonable return.
Secondlty the neigh sayers say no cap gains if good return. Well its now worth $120k so you do the maths. So if that were you, you would now have another $20k + if sold to add to your deposit. So that is my opinion only.
Think outside the square most live in. You get ahead that way.
Baloo sorry if I misread your replies, it just seemed to encourage a leave it alone attitude which doesn’t really help Da Man get ahead.
Kojo I have positive properties almost all the time for sale as Im a spotter. Maybe you should PM me.
Hope this helps.
DD
Don’t sweat the small stuff,and it’s all small stuff!!
this is my first poste and only half way thru book, but i have to agree that we are only looking at the start of the correction in the property market… there may be a Bear market coming in the share market , higher interest rates world wide, tougher times will hit the banks, and lending will be tightened….with that my logic tells me is more defaults and better deals…
so i will be waiting …and house and land near coastal areas sound good too, but waht about positive cashflow deals…are they always alive, even now? Must be i guess…Zen dude read hi read lo then off you go. There are heaps of opportunities available if you actually are serious and want to get ahead. Some are cashflow based some are capital based and those rare few that cover both. May last year I saw that the positive property ratios were drying up in my “pet” areas so I bought 6 houses.
By the time I settled 6 weeks later they had gone up 223k and they were all positive. Now because im a greedy bugger some are slightly negative but I have more properties by peeling out the cream as it appears and by going again.
Those same 6 properties Ill be lucky to get 80k growth in a year from now so it all depends what you want. I for one am in a consolidation phase as I have just purchased my dream home. This has severely hampered my empire building and will continue to do so until at least September.
We are all different and all Im saying is that we should always look out for those elusive opportunities and be flexible to change as the market does.
Good luck
DD
Don’t sweat the small stuff,and it’s all small stuff!!
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