- whispermoondancer wrote:hello all.
i am reading steve's book at present, and have been looking for a property using the 11 second solution.
the average rentals in kingaroy qld, for a three bedroom timber house are $195 – $ 250 per week. Current asking prices for these houses start at $230,000. and go as high as you could pay.
using the above formula, the rent will never cover the payments on the loan. Am I never to break into the investment market with the prices as they are??????????????what on gods earth has that got to do with Bens question? instead of being totally random just start your own thread, it will help you get some visibility and maybe some responses
Scamp … please stop posting ridiculous posts in this thread … you're an absolute idiot and have not a clue about the Australian Market. Figures you are quoting for Varsity are idiotic …. you're making yourself out to be more of a fool every post you make … give up!!!
NO ONE TAKE ANY NOTICE OF ANY POSTS WRITTEN BY SCAMP!!!
Varsity will get the rent returns expected… every day … but ben they wont cover the repayments. If a property is valued at $250K and you borrow 90% you would borrow $225K and at interest only repayments you would be paying abou $400+ per week plus costs. As uni students usually share … if it's a 2 bedroom you may be able to rent out each room individually and get closer to the mark … but this doesnt always work out as you would like it to …. as far as tenants go 'trashing' a place .. you can get landlord insurance to help with those problems but it still can be a risk … so you need to screen your tenants well!
Cheers
joecool70 wrote:Hi BenhamanSorry guys, might just be a bit off topic, but it may be of interest to Benhaman. I know this comment may not answer your question, but I'm part of a group of property investors that meet once a month here on the Gold Coast. We are a not-for-profit group, but people of differing experience in property investment. The group's been going for just over a year and I've found the information we all share invaluable. We'd be happy for you to come along and share the knowledge. The meetings are free and open to anyone who may be interested in property investment, no matter what level of experience you may have – even if you're starting out. We just had a meeting this week at the Southport SLSC and had a guest speaker talking to us about Trusts. Our meetings are normally scheduled for the first week of each month so, if you or anyone else is interested in coming along, just send an email to: [email protected] to get further details of the time and venue.
Cheers
thanks for the invite joe cool…. actually found your group meeting advertised in another thread few days ago and was telling my mate about it yesterday… will most likely be at your next meetin… keen to say hi and see what advice is on offer… thanks again
personally, at first my thoughts are 'i think this "SCAMP" guy should be banned from the forum as all he seems to be about is "DOOMSDAY IS COMING", like the crazy guy you see in movies wearing a body sign claiming "THE END IS NIGH!!!!".'
Can be somewhat discouraging to new comers….Having said that… "THE END IS NIGH" guy in the movies is usually alaway right and you see everyone running for an escape like a fleein pack of rats!!!
Who know's, maybe with the way cost of living is going in this country and constant interest rate hikes, the future is set for a major downward turn?!
My main concern though is that if it were to happen would the Gold Coast really be affected with the limited amount of property?
SCAMP get's me worried yet gives me hope and I find this confusing!
I don't say the end is nigh.. I just say that property will devaluate. It's already happening, hard to ignore something that already happens. Just drive through the streets, see how much is for sale. Whole villages are for sale, yet noone buys. Do you think that that is a good sign, or a bad sign?
Maxxi wrote:Scamp … please stop posting ridiculous posts in this thread … you're an absolute idiot and have not a clue about the Australian Market. Figures you are quoting for Varsity are idiotic …. you're making yourself out to be more of a fool every post you make … give up!!!NO ONE TAKE ANY NOTICE OF ANY POSTS WRITTEN BY SCAMP!!!
Varsity will get the rent returns expected… every day … but ben they wont cover the repayments. If a property is valued at $250K and you borrow 90% you would borrow $225K and at interest only repayments you would be paying abou $400+ per week plus costs. As uni students usually share … if it's a 2 bedroom you may be able to rent out each room individually and get closer to the mark … but this doesnt always work out as you would like it to …. as far as tenants go 'trashing' a place .. you can get landlord insurance to help with those problems but it still can be a risk … so you need to screen your tenants well!
Cheers
Maxxi,
Don't attack the person.
Be critical only of their opinion…….after all this is a forum. I don't agree with the claims made either, nor the "sky is falling down" tone of Scamp's posts, however he is entitled to his opinion.
To attack the person by using words like absolute idiot and fool, does not in any way add to your credibility either.
sorry, i am new here, just starting to learn. ………………and you are quite rude.
Michaelparis,
Firstly, I'm neither chasing your approval of my credibility nor scamp of my approval. You must remember this forum is designer to help people and people must understand if you are going to post stupid comments … there are consequences. Besides … just as scamp has the right to post idiotic comments … I also have the right to view and comment of him as an idiot! If the shoe fits????
I think I've had enough of this thread ….. it's had it's life.
Ben
Sorry that your reasonable question has degenerated into a slanging match. This forum is usually more productive than this but the dialogue seems to have gone downhill in recent weeks. You might want to try and message some of the people here who make sense to you, to have a more sensible conversation.
Hi Ben, It's currently a buyers market so I would say now (to early next year) is a great time to buy! I bought a property in Varsity Lakes 2 years ago, it's gone up in value by $35k so far (bank valuations) and even if, as Scamp predicts, the market crashes on the Gold Coast, that won't affect me, because I'm not planning on selling for another 15+ years. Around 14 years ago my parents bought a house on the GC for $232k (Robina/Broadbeach area) that is now worth $800k plus – historically, property always increases in value (unless it's a shack in the middle of nowhere!) and a downturn in the cycle is the best time to buy.
I don't think the market will crash as the GC is the fastest-growing city in Australia at the moment – migration is high (popn of around 500,000+ with 18,000 more residents arriving each year), employment is strong – and no matter what the market is doing, people ALWAYS need somewhere to live. Even moreso if the economy tanks and people lose their homes and go bankrupt, etc, because there will be even more renters in need of a home. Property prices might decline (none of the leading property analysts and forecasters are predicting this, BTW – in fact they're all predicting growth of around 20% between now and 2010) but as long as you don't over-extend yourself financially and you're able to ride out any troughs in the cycle without being forced to sell, you'll be able to enjoy the benefits when prices eventually do go up.
It's confusing when you start out as an investor, especially when you come across so many conflicting opinions – comments such as Scamp's are useful in that they make you think about what a huge undertaking a property investment is (too many people jump in without doing proper research and end up in trouble..), but at the same time, try not to get bogged down by negative comments and follow your common sense. You're on the right track because you're looking at a realistic price range and a realistic deposit!!
My first unit cost me $150,000 and I almost didn't buy it due to fear of taking the plunge – I sold it two years later for $245,000 and it got me my start in property investing. If I didn't do that I wouldn't have the 3 properties I have now (even though I wish I'd held on to that property – it's now worth more than $300k – hindsight!!)
Hope this helps and doesn't confuse you more..
cheers
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