Hi DD
you challenged my statement that the deal wasn’t cash positive, all i was doing was simply answering your comment, i was showing you that when you do the figure it isn’t thats all.
Hey no appology for calling me a Wombat[biggrin]
Just for the record i’m an aussie.
Regards westanI live in New Zealand and for a fee find cash positive deals there, email me at [email protected] to join our database
I appreciate your comments Westan and think you indeed add a great deal of value to this furum (I.e I don’t think your a wombat). I will however put it to you that with the right strategies one can make profits from owning property basically anywhere in the world. You are an expert in your chosen market (NZ) and would obviously create better profits than someone with less knowledge. If you go into a market make sure you are an expert in it then I’m pretty sure you will make money over the long term.
For those of you interested in the osurce of my data; I am friends with a very high profile demographer and this information came from their database.
Roseberry is, well an interesting place….
In my mind their are quite a few negatives:
~50% of the people are unemployed
~Houses are trashed by tennants (too often, compared to other places -see unemployment).
~The house isn’t really massivly positive geared.
~Zero Cap Gains for foreseeable future (it’s already had it’s high growth rate).
~Very low growth rates (this is really the only time it has increased in value, mainly due to people from Syd & Melbourne desperate to buy).
~One industry town (mining, well I don’t count unemployment an industry[wink2], (in itself this increases the risk)).
~No local RE (it can be difficult to manage a property when you don’t have an agent on the ground and live in another state, and in my opinon it’s not that easy to get too).For me there are better places to invest.
Rgds.
Lucifer_auI basically agree with Westans method of calculation except for the 20 % deposit part .
I gather Steve Mcnight calculates his pos cashflow after 20% deposit as well.
I believe you must add into the equation the cost of your 20% deposit as well .
No matter where it comes from it either costs you money or doesnt earn you money somewhere else once you have used it .
In Westans example I would be adding another say $650 to my cost calculation to cover this .
Without doing something to get a higher rent I would find it hard to see this as positive cashflow property.
Cheers,
GregHi all,
Just enjoying the comments made on this topic. When I first came to this forum I was looking for a lot of advice and like minded people which I have found. Unfortunately when I see people pushing towns or cities I start to worry. For example Yorker pushing Rosebery. Please check his past archives he has pushed a number of towns in the past. On one of his topics Tasmania Growth on the 13/8 he stated that his last purchase was a $40000 property renting $130 pw in Rosebery. When questioned if he was worried that Roseberry is a small town which relies heavily on employment by the mine he replied on the 13/8 that he would be long gone by the time the resource boom ends. On 17/9 he again pushes Rosebery as a hot spot. He now states he has been out of Rosebery for the past 6 months and is just out to help people. My BS meter is now flaring up. I suggest everyone who encounters people who are pushing a towns to do a check on them to see if they have vested interests.MartinMartin
Get over it pal, everyone else is.
The problem I have is people promoting areas where they have an obvious interest. There are other forums for that so at least try them. People experienced and those wanting to look at property investing come here to look for advice, not to here advertising. If you dispute what I have said please say so, if you think I’m lying please say so. I’d hate to think that a new comer will act on your “Hot Tips”.I’m glad a few other people have seen through you.
Martin
Get a life! I’m not the only person who has mentioned areas on this forum. I have never advertised a property, nor would I. Very tired of sceptical people like yourself, who clearly lack the knowledge to be a success in this game.
Hi Brisbane 04,
At this point in the property cycle +ve gearing leads you offshore or to the back of woop woop and –ve gearing has you paying out for years and years waiting for CG’s.
So, for some to make money, a form of property investment “cannibalism†emerges where market savvy investors try to feed off the not so market savvy investors.Always do your own DD I reckon!!
Hi Qwerty,
I totally agree. I dont believe I am a sceptical person but anyone who is about to invest an amount of money should do due dilagence not only on the area mentioned but on the person recommending it, I did and Yorker sounds like someone who has obvious interests in places he promotes. I’m no expert in the property game thats for sure but I have been investing in IP for past 11 years, have owned up to 10 IP’s, hold at present 5. Have immenseley enjoyed the property boom which allowed us to pay off our home and an investment property and make a huge dent in another. So Yorker I believe we have done alright. So as DD notes watch out for cannibals.Martin
I know its tedious reading through the entire forum, I’ve been guilty myself of not doing so prior to entering into discussion. If you read through this thread and indeed any others I’ve put up, you’ll plainly see that I always encourage people to perform due diligence. I totally agree with you, hence there’s really nothing more to say on this thread.
I’m sure it will die naturally then, or should I lock it?
kay henry
Locked threads = “awwww, spoilsport”
Moderate dodgy posts = win/win
“Those who believe interest rates are going to remain at current levels for a long period of time are kidding themselves.”
Not necessarily! Maybe they FIXED their mortgages!!! hahaahahahahahha
Re: promoting one’s own town, I never name check where I am investing and neither does Steve, though everyone seems to want him to!
HAHA.
however I am a bird dog and I do source properties for others in the towns where I invest myself. this is because I know the streets, the market, the locals, the best building inspector, the best rental manager, etc etc – because I invest there myself. I would find it hard to bird dog deals where I DON”T have deals myself. That is why we are using different bird-dogs in other towns, and believe me we bird dog eachother deals too behind the scenes, as well as to our clients. I would find it hard to trust a bird dog who said ‘this is a great deal, buy it’ – and didn’t have deals there him or herself.blah blah
cheers-
Minijoy to the world
Just lock the post, nothing is being added of any real value, rather it seems their is simply more squabbling.
Rgds.
Lucifer_auI agree Lucifer
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