I have shifted Globe’s post (below) into the Help Needed Section for others to contribute.
DerekI’m after some advice? Late last year I purchased myself an IP without any plan or idea of what I was doing really? It’s negative gearded and was wondering how I can turn this around?
Still green on all this property investment stuff but it absolutely fascinates me!
Any feedback would be greatly appreciated
Cheers.
Globe
Thank you Derek. Once I posted it I was looking for it and was wondering where it went to? haha!
Cheers.
Hi Globe,
The first thing you need to do is to establish what your property investment goal is, timelines, exit strategy/ies, budget constraints (if any), future personal plans (family, tour Europe etc).
We are accumulating property using the equity in one property to leverage (or leap frog as Peter Spann calls it) into more property.
Eventually when I choose to retire I will then consider my property portfolio and see what my optins are and these could include from sell the lot through to live of the equity or variations thereof – my focus at this stage is to accumulate a property portfolio which gives me high levels of net worth.
Others are accumulating a property portfolio that will give them a high income stream and are less focussed on growth.
Ultimately it depends upon your strategy and beliefs.
You may also find it useful to post some key figure here so people know how ‘negative’ your property is so the suggestions are more valid.
Things like loan value, rent, value of the property, and other outgoings.
Derek
[email protected]Property Investment Support Available. Ongoing and never stopping. PM welcome.
I understand that some form of plan in this is necessary to map out where I want to be and what I want to do.
I owe about 145k on the loan and the weekly rent is 180. I don’t know the cuurrent value of the house but I purchased it for 175k.
I recently spent 3k on repairs that were necessary for the property to be comfortably liveable again. In the 2 months this happened I was without rental income.
Is it possible to find out some easy ways to calculate expenses in a normal situation of purchasing property? Any material I should be reading?
Thanks in advance.Wow Globe, sounds like you just missed the cheap houses by a couple of months. It is always a hard ask to turn around a negative property without going batty. With so little equity currently it is impossible to even peel out a deposit for something positive to partly fund the shortfall.
One seminar I went to recently said get 4 cashflow positive properties and then one cashflow negative with massive capital growth potential.
With only one investment your options are limited. Do you own your home? Would you be able to ream it for some investment deposits? Go see Westan or Minimogul for NZ cashcows and then try to get the whole shebang neutral if not +ve.
Good Luck
DD
Don’t sweat the small stuff,and it’s all small stuff!!
Globe,
There would be a heap of articles online about how much the expenses are on a property. Go to google.com.au and type in “expenses purchasing maintaining investment property” and go to Australian sites only. It will come up with a heap of articles for you to read.
There are also a heap of mortgage brokers on this forum, but just because you get advice/assistance from someone, doesn’t mean you have to use their services.
If you have any specific questions, you can ask on here. Globe, most of us would have bought that first IP with no clue of what we were doing, and no plan. If you achieve capital growth on your property, the plan will indicate itself- it will give you leverage to buy more.
In terms of locations… well, some places are hotspots for a few months, but there is more for you to check out that the latest hotspot- interest rates, location, costs of keeping the property, risks associated with the property, your borrowing capacity- just to name a few.
Ask away- we’re all ears
kay henry
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