Reload original page
 |
|
|
Whats your 2008 investment strategy?1 2mathewc73 [235 Posts]  Hi everyone, I must admit it is very difficult to NOT do anything! Happy new year! Mathew millions [387 Posts]  Hi Mathew, My plans are: - Get a new accountant, (i've got a couple in mind) before I do anything discuss my goals with them   dreaming [43 Posts]  My Plans for 2008: 1. Get the bank to value my properties. Don't worry be happy L.A Aussie [1470 Posts]  We settled on a block of land in Aug which will be for our next PPoR, so we will be doing some debt reduction and getting cashed up for the most part. We have a decent amount of equity in the potfolio, but the current Bank is not letting us do much due to servicability (the new block has put a spanner in the works I guess) so we are going to also re-finance the portfolio so I can use some of the funds to buy a business for when we return to Aus in April. All going well, we will use the funds from the business for living, and use the wife's income for more investing and debt reduction; maybe get the new PPoR built towards the ned of the year, then look for the next IP project. Cheers, "we get sent lemons; it's up to us to make lemonade" L.A Aussie [1470 Posts] dreaming wrote:
How long since you've had the properties valued Dreaming? It would be intereting to hear how the cap gain has been for you since the last val. Cheers, "we get sent lemons; it's up to us to make lemonade" Daedalus [97 Posts]  The strategy was to go hard on CF neutral/slightly CF+ to build the asset base. I've got a fair amount of equity available, and I wanted to max it out then let capital appreciation do it's thing, with a revaluation each year and topping up the portfolio with the increased equity. As it happens, my plan didn't consider that lenders would only take 70-80% of rental income into their servicability calcs, so I'm now approaching a limit on servicability, despite having enough surplus income to pay down loans by about $5K every month. Strange. Just as I was pondering that one, the economy started to jitter, interest rate rises have begun to accelerate, so now I'm kind of glad of 2 things: So now, my investment criteria has swung towards a very CF+ focus - enough to buffer significant economic turbulence. I suspect that with such tight criteria, my next investment will be from a 'very motivated vendor', and since the cash flow will stack up, it will still be a good thing regardless of market sentiment (in fact, because of market sentiment). I see it as similar to Warren Buffett's investing approach: work out what an investment is worth based on it's cash flows. If the price is below that valuation, buy it. If not, don't. It may be some time before my next buy trigger, but so be it. I've got some sharemarket and property trust investment in index funds through my super, but there's no point taking that out as I can't get at it for a looong time. So it can stay where it is and ride out the storm. I'll try to ignore the net worth impact, which doesn't really mean that much anyway So for me 2008 will be the year that forced me to invest the way I should have been investing all along. Should be an interesting time nonetheless... Daedalus dreaming [43 Posts] L.A Aussie wrote:
Hi Marc, Property one 18months since last valuation, second property brought last May, so it will be interesting to see what the banks valuation comes through at. Thanks Don't worry be happy richardgr [15 Posts] Uncertain here. Everything I have read in the past month has had a negative slant on property investing. Opinions seem to be first option is cash in the bank, second option blue chip shares and third is property.
nedkelly [49 Posts]  I have just purchased a couple of bargain properties in Perth and are looking for others and are very optomistic about the next few years. Interest rates have just about peaked and will come down quickly in the next 12 months as the fear of recession becomes greater than the fear of inflation. Rents are increasing at a great rate, due to the huge shortage of rental properties. A lot of newer immigrants to Perth are keeping their funds overseas until exchange rates improve. This will happen when Aussie interest rates fall. Then these people will be looking for properties to buy. The stock markets will fall even further and people will be looking for other investments. Term deposits won't be that attractive for these people as interest rates will have fallen, so property will again be attractive due to the better yields. When you combine all the above factors (it's like the property cycle on steroids!) I am very excited about what lies ahead. ned kelly hleung [103 Posts] I'm going to build some houses on land that I own. Should get some greater rental returns here in Brisbane. Even though the capital gains won't be as high as last year, I'm going to keep buying if I can get hold of finance. I think that there are going to be some great opportunities here as heaps of people keep coming to SE Qld and there is a chronic shortage of all types of property for both renting and PPOR. millions [387 Posts] nedkelly wrote:
I have just purchased a couple of bargain properties in Perth Why do you consider them a bargain? Are they below replacement cost or close to land value? Are the properties further than 20k from city? Thanks, Linda nicko7 [31 Posts]  Hi Everyone Just playing devil's advocate for a bit. In the areas that i specialize, the house prices have gone up by about 30% in the last year. what are your strategies for producing these properties? Reno's, Vendor finance, Development, Commercial property Just some food for thought Nick hleung [103 Posts] Not easy to get cash flow positive properties at the moment. Some of my friends are looking at building duplexes which will be either neutral or close to cash flow positive. Millionaire in ... [141 Posts]  Hi all richief [13 Posts]  Our plans for the year: Currently selling a prime location house in hornsby for a large, quick profit. Then buying a larger family home to move into (out of our 2 bed unit). The unit is going up for rent (there is a long waiting list of people after 2 bed units in hornsby). Later in the year, depending on finances will either sell the unit (most units around here are selling for the asking prices within a few days of being on the market) and buy another IP closer to the city (maybe Erskineville) or use a line of credit to buy new property. Good times ahead for property investing if you can pick your spots wisely. Richard Wealth Accumulator [49 Posts] millions wrote:
Hi Mathew, Yours in wealth and lifestyle! Damian Ebzery B.Bus M.Bus AFPA ASA Any comments made of for the purpose of general discussion - these are not to be considered general or personal advice. Wealth Accumulator [49 Posts] mathewc73 wrote:
Yours in wealth and lifestyle! Damian Ebzery B.Bus M.Bus AFPA ASA Any comments made of for the purpose of general discussion - these are not to be considered general or personal advice. Wealth Accumulator [49 Posts] L.A Aussie wrote:
We settled on a block of land in Aug which will be for our next PPoR, so we will be doing some debt reduction and getting cashed up for the most part. If your going into business look at the structuring - make sure those assets are safe - also can benefit from income distribution strategies - however depends on the business might take sometime to make a profit. Yours in wealth and lifestyle! Damian Ebzery B.Bus M.Bus AFPA ASA Any comments made of for the purpose of general discussion - these are not to be considered general or personal advice. Wealth Accumulator [49 Posts] richardgr wrote:
Yours in wealth and lifestyle! Damian Ebzery B.Bus M.Bus AFPA ASA Any comments made of for the purpose of general discussion - these are not to be considered general or personal advice. Wealth Accumulator [49 Posts] Millionaire in training wrote:
Hi all Yours in wealth and lifestyle! Damian Ebzery B.Bus M.Bus AFPA ASA Any comments made of for the purpose of general discussion - these are not to be considered general or personal advice. Wealth Accumulator [49 Posts] Hi My plans are help more of my clients to accumulate wealth taking advantage of the bargains, so they are happy to pay me for the assistance allowing me to invest in all the bargains on offer at the moment! Yours in wealth and lifestyle! Damian Ebzery B.Bus M.Bus AFPA ASA Any comments made of for the purpose of general discussion - these are not to be considered general or personal advice. 1 2 |
User loginBest SellerIn The NewsAussie Dollar Booming Aussie dollar above US $0.98 after greenback softens. NAB Raises Interest Rates Why wait until Friday? The NAB has increased its home loan rate by 15 basis points to 9.61% CBA Rate Up Last week St George, today CBA raises home loan interest rates (14 basis points). Beware Friday arvos! Today's TipYour deal's in trouble if the difference between making and losing money is <more> Active forum topicsresources for commercial properties? Author: ao Question for accountants Author: CHIS Who's OnlineTake The Test
|
|
