Next move required

Viewing 6 posts - 1 through 6 (of 6 total)

vyaw2003
Participant
@vyaw2003
Join Date: 2006
Post Count: 188
June 5, 2007 - 12:41 am
Hello,
Should i buy another place now (second)? Earning a fair amount of coin ATM.
If i dont but another place now i will pay my place off quicker and as a result pay less interest. How do i know which is the best option?
If i have another place i will also get more income from rent. How do i know which will work out better? If there a formular for this?
foundation
Member
@foundation
Join Date: 2005
Post Count: 1,153
June 5, 2007 - 2:51 am
Y'know what strikes me as a little odd? An hour before this post you wrote:
vyaw2003 wrote:
I have been sitting on a deal for a few years now in Country Victoria. Area seems fine just no offers until now Finally got an offer to sell.
I want 95
advertised it at 75
finally got an offer at 55
I told the real estate agent that she is wasting his time.
Any way should i cut my loses and try to twist them up to at least 65 to break even? Or not sell, only problem is that i borrowed my funds to get this, and the interest is killing me, might be time to break even and then work on the next deal?
Thanks
Simon
???
F. [cowboy2]
vyaw2003
Participant
@vyaw2003
Join Date: 2006
Post Count: 188
June 5, 2007 - 3:58 am
thanks for monitoring all my posts, but the second post was based on the assumption that i my dud deal goes through.
Now i need to think about my next move and next deal.
I dont have to wait for settlement to start looking.
The fact that i ignored reference to this deal is based on the fact that i wont loose money or make money.
let
Participant
@let
Join Date: 2007
Post Count: 10
June 5, 2007 - 4:22 am
Hi, if you go through the realestate.com.au site you will find some helpfull calculators, they will allow you to look at many different options. hope this helps.
kking
Member
@kking
Join Date: 2006
Post Count: 17
June 5, 2007 - 4:43 am
Hi vyaw2003
Becoming an EXCELLENT money manger is a pre-requisite to becoming an EXCELLENT property investor so you have to know your numbers inside out. Not only your property numbers but also your personal income/expense numbers.
If you have this in place you'll automatically see if you are ready to buy the next property.
As a RESULTS Program graduate I learned all these things including how to buy the next deal without money but with EXCELLENT money manger skills.
During the property investing process we learn to BUY; MANAGE then SELL but this is not always a contiguous process but overlaps from one deal to the next so that the whole process is dynamic. The real skill comes in juggling these three phases of property investing so that you don't end up in a bind.
IF you don't have one I recommend that you look for a mentor who can help you work thru these things.
Good luck,
Kerry
L.A Aussie
Member
@l.a-aussie
Join Date: 2006
Post Count: 1,488
June 5, 2007 - 5:17 am
It's a bit of a "six is half a dozen of the other" situation, and the good news is that both directions are good; pay down your personal debt quickly, or invest the money in another asset. Either way you win.
Ideally, you should look to purchase a cashflow positive property that you can use the pos cashflow to also help pay down the debt on the first property along with all the coin you are making right now.
That way you'll have 2 properties, the new one will be costing you zilch, and you are still hacking down the loan on the existing one, while they are both going up in value. Yahoo!