Just spent 3 days up the coast looking at +Cashflow properties, did the sums and did the research and at the end of the day thinking that there is more money to be made using a different strategy.
Higher risk?
Does anyone have any of these +Cashflow properties?
Could you point out some of the advantages.
Maybe im just to nervous about the capital gain needed to bring equity back after perchase?Cheers [blink]
Originally posted by Brad1m:did the sums and did the research and at the end of the day thinking that there is more money to be made using a different strategy.
If you identify your ‘different strategy’ you may get some more comments.
For me I am a firm believer in growth properties and will seek these in well researched, reliable areas. A large and growing population base with a plethora of employment types and sources adds ‘certainty’ for me.
If you mean by ‘nervous about capital gain’ as a short term issue/matter then you have a right to be nervous. If on the other you can and are prepared for time to add value to your research then that is a different matter.
Derek
[email protected]Property investment advice and researched property in quality locations available.
i agree, what different strategy???
Yes please explain “what different strategy”??? [blink]
Oh and exactly HOW MUCH research did you do; I mean you spent three days looking, hence apart from the quick calculations, what other source of information did you avail yourself of???
I buy shoes at a whim, I spend months researching the area/state in which I wish to acquire property in!!!
Cheers,
Jo
Hi Joe:
To be honest, only did about 1 week researching the +CF stuff,first had to find a few +CF towns then had to narrow it down then went to the town and asked publicans, shop owners, butchers, ect plenty of Q’s.
Checked out growth rates and surrounding areas.
Asked plenty of Q’s in surrounding towns.Very limited time frame to work with, So squeeze,squeeze,squeeze.
Cheers Brad
Fair enough Brad,
At least you did do some research, although a bit more would have been good. But why the rush??? [blink]
Cheers,
Jo <— FYI please note, no “e” (yes my full name is Josephine, commonly referred to as Josie, but for the sake of brevity in here I use “Jo” [biggrin] As my gender is female “Joe” is not applicable as it is the male derivative of Joseph) [blush2]
Brad,
People primarily buy pozz geared properties because it can be a reasonably stress-free purchase- it pays for itself. None of us would knock back at 10% return if we could get it, I reckon. But one of the problems, as you’d be aware, is that property values have pretty much increased across the board, so pozz properties are fewer, and rents haven’t increased dramatically in some rural places. If you’re going for “vanilla” deals, then some of the places might be way run down, and require a lot of cash put in to make them viable as a rental property. A new stove or oven, and getting a trady out to your place, can cost you up the wazoo, and in some places, you might not have a property manager- ya godda check all that stuff out.
If interest rates rise, or body corporate fees double, or you have to pay a special levy for your apartment, then these events can eat into your positive property and make it a negative one.
Buying a heavily negative geared place vs pozz gearing… well, for he next few years we might not see much CG across the board, so income might be king (as opposed to CG down the track).
There are positives to positive gearing
It’s a good time to think and rethink strategies- in this flatter market where exuberance has been tempered.kay henry
Thanks Kay :
But still leaning toward the CG stuff in the high growth areas
It’s a good time to think and rethink strategies- in this flatter market where exuberance has been tempered.You must be logged in to reply to this topic. If you don't have an account, you can register here.
