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Firstly welcome to the forum and I hope you enjoy your time with us.
Congratulations on completing your studying.
Whilst i think the 3 areas you have mentioned all have individual merit when it comes to potential and capital growth i dont think you have any chance of finding anything that on the surface will be positvely geared at the moment.
Let us know if you want a property report done on any individual property and i can email you one from Residex.
I am looking at a couple of development sites in Ipswich and Residex is just one form of due diligence i find helps.Richard Taylor | Australia's leading private lender
Hi there It may be difficult to find positively geared property but not impossible. You may be able to find a property that you could add a granny flat to and add the extra value. Often rental returns on the cost to add the GF allow the property to move into cashflow positive territory.
<moderator: delete advertising>
All the best!
Thanks all,
Yeah I kinda realise pos geared property is very rare but neutral is fine by me. Also what is a DLUG. If its house by itself I may b interested but if some sort complex where u pay body corp or split house then I wudnt want it. I guess yeah I can go the path of the subdivide the land with already house on it. Gota start looking kool.DLUG – Double lock up garage.
Y did mod delete advert. Wats wrong with that? I don’t get it
Very simply because blatant advertising is not allowed on the forum.
In the 9 odd years i have been a member you see them come and go.
They join on day 1 answer 20 posts the same day, contribute nothing to the greater forum membership, push their products and services at every opportunity and then disappear when their spruiking efforts fail.
Richard Taylor | Australia's leading private lender
Hi Ninah1000,
Well said Richard
Work out your strategy first and identify the areas, ensure your budget and borrowings allow for you to not just buy the property but also your ability to fund any works required to transform it into a positive to neutral result. Also factor in items such as depreciation. Remember if your strategy is to own the property for the next 15 years and you are already at a neutral position, then it wont take too many rental increases over time to make a property positive. If you can make it positive from year 2 or 3 then its a great investment over the majority of the time you own it even if it falls short initially.
Locations you are considering may also offer the ability for you to create better cashflow by subdividing off a back block, buying a property on two titles, buying a duplex pair on one title doing a strata and selling off one etc. There are many ways of manufacturing your growth so that when the market moves you just compound on that and end up in a better position of equity, cashflow and ultimately a strong portfolio with flexible options.
Apart from your normal comfort factor and risk profile, also consider other locations that may fit your strategy so you are open to considering the deal based on the numbers not just your comfort zone. Of course where you start may not be where you finish so making sure you take some sort of action with put you ahead of many.
All the best
Paul.Positive Results | Educating Property Investors / We Find Houses
http://wefindhouses.com.au
Email Me | Phone MeHelping You To Invest With A Purpose To Finish With Successful Results
This Is all good and all but I was also thuinking I haven’t paid any xtra off my ppor as I been paying off min principle and interest only. On one hand if I put heaps into my house for bit then invest, however I feel its def a buyers market where I am so invest in subdivide will then make propert neutral/pos. My cashflow in nex pay will be quite big shud have about 1400 cleared a f/n. Also I have an ip that’s neg geared to tune of 15000 after I include tax return. Decisions decisions?
Hi Ninh,
Another option is to refinance your PPR to an interest only loan. Don't be concerned about paying off the principle at the moment, channel your cashflow into buying assets that will grow in value and create your wealth. Paying off you PPR doesn't usually create wealth, or leverage. Even if you have your PPR on an interest only loan, that does not mean you can't pay down more off it from time to time, or even treat it like a P & I loan. By having it as interest only you have the flexibility to pay what you want, but only the minimum obligation to pay the interest component which increases available cash-flow from your income to service other good income producing debt.
I am always happy to discuss with investors their existing portfolio and brainstorm a strategy of ideas that are more specif to their circumstances. Its a complimentary offer, no strings attached. Just like investors to get some independent ideas that have no agendas attached.
Talking it through will help to solve your decisions decisions dilemma, there is always more than one way to approach investing but when you look at the options you will find one that sits well with you.
Most importantly,
Enjoy the journey.
Paul.Positive Results | Educating Property Investors / We Find Houses
http://wefindhouses.com.au
Email Me | Phone MeHelping You To Invest With A Purpose To Finish With Successful Results
Hi Ninh,
I definitely agree with Paul. You need to work out your strategy longer term. What is it you are wanting to achieve by investing in property? Is it capital gains, cash flow or both. Do you want to eventually replace you or your wife’s income with positively geared property? Asking yourself lots of questions will help you sort out where it is you want to get to because if you don’t know where you are going, how will you know when you get there.
With investing of any kind I believe we need to start with the end in mind. So I always have a 10, 5 and 1 yr plan. I then break my 1 year plan down to monthly goals of how I will achieve each piece. I work backwards from the big picture of what my life looks like when I have reached my goals and then I can fill in the steps to how I will achieve that. I only need details of what I need to do in the next month or two to keep me on track. I like structure and to know that I’m moving towards my goals. Hope this helps.
Thanks
My goal is to own my house one day, but like most people maybe, I spend a lot and dsometime question weather I can also make use of money as well as spend. When I bought my 1st invest it is good cause I know I’m doing something good with money while at same time spend and enjoy. Now I even more I’m stcuk between weather to invest 2nd ip and that I can still spend. But also afraid that if I get 2nd ip and for some reason we dowm to one job I will stress and worry then have to sell. So I guess I must choose wisely
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