I have always kept the debt low so rent will cover the repayments, four houses less than half debt. Times like now the share market is down and stability in the market is not stable. I can afford to sit and wait. Having many houses with not much down is not paying off in this market. Share market for me is never an option long term. It dose not even come close to investing in property!!! Never invest (gamble) on capital gain – always buy at the right price and insure you can ride out a worst case scenario. Don't invest if you are not prepared or geared to lose it, it is all a gamble….. what do you think?
I think, if you are being honest, you may not loose any of your houses.
I think i dont understand the big picture. Im sighing relief with the interest rates coming down and not in a hurry to sell ours but pretty disappointed with my super balance. I have seen enough stock market crashes that i am now convinced i wont be going there any time soon, ive seen market dip in house prices but they have always rebounded quickly. I think its just a wait and see thing.
For people paying off a mortgage, and thinking of buying a home or investment property, finally we have some good news.
Now if only my next deposit had not been parked in the sharemarket I could………..Cheers
Hi all
I think there are some hard times a head. Im seeing more property on the market at a reduced price. Sure intrest rates are coming down however those that have got in a bit deep want out as the fear of a property crash is in the media every day. Banks are now not leading as much and they are a bit more concered if you can pay it back. Some people are prefering to rent as the damage of the last few years of intrest rate rises has hit home the releif may be too late. When the Gov. start giving money to people to keep them happy you know the bad news is in the mail. Hopefully we will se housing return to a more realist price and only those who can manage a loan be given one. Rental returns have been very poor and bank intrest a better investment. This is also changing which is a good sign, some better rental retures to show up. Time will tell. This is only my personal opinion.
Cheers
T…………..
I am frrling more positive now the interest rates have dropped a little. By keeping the high repayments up I am going to make a bit of headway through the high debt levels I have thus buffering for any future hike. I have learnt some interesting lessons in the preceeding weeks.
Lesson 1. The bubble always bursts even if we think it won't.
Lesson 2. Don't refinance loans for lifestyle purposes (yes I have done this a couple of times and am paying for it dearly)
Lesson 3. Don't buy property at the top end of the market that is the first area that falls in tough times and the last to pick up.
Lesson 4. Hold tight whilst the bubble bursts there is always an new one to catch on the horizon.
Lesson 5. Make sure you can afford repayments without relying on rent (thank god this was instinctive for me and I haven't learned this the hard way).
Nat
I did have a share market portfolio but sold it off at a loss in September rather than now in October at a much bigger loss.
I then used the proceeds to reduce my debt down on my investment property
I am expecting the share market to continue falling until the all ordinary index reaches its long term growth trend.
I think people will still lose their houses even with an interest rate drop as some people are so far behind in their repayments that the banks will still be re possessing their homes.I am concerned. I have funds to purchase another 2 properties but i am waiting to see what happens.If things only drop of a little then flatline a bit well then i feel confident enough to buy in my preferred area.
If they drop a lot well then i have a low LVR that will still be ok and i will start to look and buy when i think it is close to bottom.Either way i have over 6 months annual/long service leave
1 Years wage in cash for personal expenses
LOC worth 10 years of my IP's repayments
And a LVR that could handle the dreaded 40% drop.So in a nut shell i have a buffer but im watching and waiting to decide my next move. No rush in this market.
Hi, mostly nervous & uncertain but there's a flutter of excitement, maybe fear? Enough to consider going back to earned income rather than just relying on rental income. In case the sky really falls down, in case my tenants stop paying rent.
I resolve from this very minute to use fear & uncertainty to fuel a charge forward. There is nothing to fear but fear itself.
Hope I've experienced enough downturns to be prudent.
KY
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