Dear List
I have been reading in the back ground for a while now, and would like to ask your advice. My wife and I are currently living in the UK, and have an interest in a property in Oxford that is costing us about AUS$30K per year. We are earning AUS$130K between us, and have a small unit in Perth valued at AUS$280K. We owe AUS$58K on this property in Perth, and feel that we now need to act and perhaps purchase another property?? Do you think we should buy and other rental property or concertrate on paying the current property off? If so what would you do in our boat, we will be returning to Australia in about three years, and would like to have positive geared perperty.Yours
The market has certainly slowed here, it is not the time to purchase hastily so as not to miss out on the boom. I believe that it is more a time to purchase wisely and make money out of the deal.
If you do wish to buy here I would use a buyers agent rather than just purchase blind from theinternet As I said above it is time to purchase under market value – even if you need to examine 100 deals to do so!
All the best,
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Sir Peter
I think you are in a great position to purchase more property. Although your Oxford property seems to be costing quite a bit each year, your Perth prop should be paying for itself, and has a nice chunk of equity….
If you spend a bit of time looking (as Simon has suggested) and buy a property that is close to positive, your overall Aust portfolio should still be positive as you’ve got a good head start with the Perth place. You could then either pay down the second loan until it is positive, or purchase another property of similar return (so that your overall Aust is still CF+), and go from there.
In 3 years the rents are bound to rise, either making the props positive by themselves, or if you’ve been paying extra off the loan, increasing your return.
Either way, you have time on your side (plus a nice chunk of equity and good cashflow).
Cheers
MelHi peter
i’m with the others, don’t feel the need to rush in, as i feel prices will not be rising for a while, but you might get it cheaper if you wait. It certainly is the time to be doing your homework. Perhaps get the Australian property investor magazine http://www.apimagazine.com.au it will give you a real feel for the market, as will using real estate sites like realestate.com.au.
regards westan
I live in New Zealand and for a fee find cash positive deals there, email me at [email protected] to join our database
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