All Topics / Help Needed! / what would you do

Viewing 6 posts - 1 through 6 (of 6 total)
  • Profile photo of JpcashflowJpcashflow
    Participant
    @jpcashflow
    Join Date: 2007
    Post Count: 575

    Hi every one
    I have one ip which is postived geared. I make 410 clear in my pocket each month
    The property is work 260k I own 26k to the bank.
    I have a second ip which I own 250k and I get rent of 260 a week and my repayments are 380 a week
    I work in real estate I earn 80k + a year.
    I am only 25 I don’t want to go over board

    Would it be good maybe to invest in a property where I can build and then rent out
    Or buy a older property again

    I wouldn’t mind buying a s business either vending machines – coin laurdrent
    Or buying a run down property and then re sell

    Need some direction please

    Jpcashflow | JP Financial Group
    http://www.jpfinancialgroup.com.au
    Email Me | Phone Me

    Your first port of call in finance :)

    Profile photo of gibbo1gibbo1
    Participant
    @gibbo1
    Join Date: 2008
    Post Count: 152

    Hi,

    I have previously owned both vendies and a laundromat – go with the property. 
    Vending machines –
    *very high capital to get new machines
    *takes a lot of time finding sites
     *if buying existing sites t/o is never anywhere near as good as what it is suppose to be
     *you have to be constantly available to respond to service calls
    *most service calls will be someone has done something stupid (most of the time trying to rip the machine off) and always the day after you last serviced it
     *if you do it small scale more likely to have stock go out of date, you will get some flavours that you can only put into one machine
    *large scale going to need to buy a van/truck (tried to do it with a sedan – i wasted so much time and money driving backwards and forwards)
    *lots of competition – can very easily lose a good site.  Had one site where i had 3 machines total value of nearly $20k, employed a new manager whose partner ran a vending business and I lost the site overnight.  Then had 3 almost new machines (I purchased them 2 months earlier to upgrade my machines to keep the site happy) lost a fair bit selling them 2nd hand when I didn;t have time to find a new site.

    Laundromats
    *got to be able to open and close them each day.  I found they had to be open by 6am and closed at 10pm, any less you lose business, any later well the security tapes make for interesting watching when the camera and DVR dont get stolen
    *Some people who use them are disgusting pigs leaving the machines in a condition that no one else would want to use them.  These people will tend to do this just after you open them.
    *Vandalism – people are happy to do $200 damage to a dryer to save paying $2 to dry their clothes
    *You will spend many hours cleaning, coming in to see someone has dropped a meat pie on the floor that everyone else has walked through, a stubby that has been dropped and broken with beer everywhere
    *unconcious junkies

    That leaves the property
    Go for it, with your job it should be easier to pick up a great little buy.  Go for something that has large land value, which might by sub dividable in the future, close to shops and schools.  With your 2 properties combined your cash flow is almost netural so funding any futre properties shouldn't be to bad, especially if you find something that is CF+

    Profile photo of JpcashflowJpcashflow
    Participant
    @jpcashflow
    Join Date: 2007
    Post Count: 575

    Hi,
    Thanks for that advice. My gut feeling was saying the same thing. I guess maybe after october i will start looking for another property.

    thanks
    Cheers

    Jpcashflow | JP Financial Group
    http://www.jpfinancialgroup.com.au
    Email Me | Phone Me

    Your first port of call in finance :)

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213

    looks like your doing well with the property so keep it up i think.

    I would suggest you use IO loans with a 100% offset attached. This way you can save the same interest without paying the loan down. So if you ever decide you need the cash it won't be tax complicated – eg you may want to buy a PPOR.

    Also look at setting up a discretionary trust for the next one.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of JpcashflowJpcashflow
    Participant
    @jpcashflow
    Join Date: 2007
    Post Count: 575

    Thanks for the advice
    I will wait untill late October and see how the market pans out.

    Cant wait this year has been so postive thanks guys

    Jpcashflow | JP Financial Group
    http://www.jpfinancialgroup.com.au
    Email Me | Phone Me

    Your first port of call in finance :)

    Profile photo of JpcashflowJpcashflow
    Participant
    @jpcashflow
    Join Date: 2007
    Post Count: 575

    Thanks for the advice
    I will wait untill late October and see how the market pans out.

    Cant wait this year has been so postive thanks guys

    Jpcashflow | JP Financial Group
    http://www.jpfinancialgroup.com.au
    Email Me | Phone Me

    Your first port of call in finance :)

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

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