[AUSMaverickParticipant@ausmaverickJoin Date: 2009Post Count: 24]

September 4, 2011 - 9:03 am

"W" – ARE WE THERE YET ?? ……………. maybe not quite, however 2012 should deliver some arcing & sparking !!     so with the stockmarket volatility & a flat/declining AUS property market, while we wait for this crisis to run its race, where should investers park their money?        

How about GOV bonds or fixed term deposits ??? 

Maverick

"the same kind of thinking that got you to where you are, will not get you to where you want to go"

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April 16, 2010 - 11:19 am

Banker,Terryw,Qlds007. – great posts !  as someone with a significant cross – collateralise IP portfolio.         I am in the middle of aapplying for an  increase in LOC with my favourite  bank, with a current LVR of 46% & acceptable serviceability, I should be able to report on the outcome next week.

My 10 year personal dealings with my banker, have been tremendously successful however, having  all your eggs  in one basket however good it might be, does cause me moments of anxiety.        For many of the reasons provided by some of you & other respected property finance professionals I am considering un-collateralsing my loans later this year. 

I will will give you a hands on report on my success    or ortherwise  early next week, keep up the very benificial discussions.

AUSMaverick

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November 26, 2009 - 12:38 pm

John,

Really fine, rationale & measured comments John !  Your investment experience ( or is it your age ? …….shines through )

Thankyou

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November 17, 2009 - 12:56 pm

mattnz,

Great factual & realistic reply !  I concur with your comments (although the optimist in me has just sent out another search party looking to take a photo of the current green shoots ?) before they are overwhelmed & completely disapear………..by the reality of what IS really going on with the GFC.

Yeah ! China fudging the books cant last forever ?  & ……….when they are forced to come clean will AUS get hammered ??

Maybe ……!!

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November 17, 2009 - 12:40 pm

bach87 – if you do a search "books" on this site you will find plenty of info !

However one of my previous posts below should help you get started.

I have found it is wise to concentrate on the Australian authors & suggest new  IP investors start by reading the following books in this order:
1. Jan Somers – building wealth through investment property (an excellent read & starting game plan for novices)
2. John L Fitzgerarld – Seven steps to wealth (similar approach to Jan, easy to follow strategy with sound advice)
3. Michael Yardney- How to grow a multi – million dollar property portfolio ( a fantastic read, enormous amount of advice across the full specrum, some of his tips are directed at the more advanced  property investor)

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November 15, 2009 - 12:26 pm

Jeneb,

I am truely sorry to hear of your misfortune at this stage of your life, but as Duckster correctly says in his post . . . .

"You are in a real predicament

If you sold all your shares you still have to find $85,000 to pay off the debt shortfall.

Hopefully you have other assets to sell or borrow (not with a margin loan) against to pay off the extra $85,000"

I am an independent individual property investor (not a Financial Advisor), however even though you have had a recent bad experience it would seem you are going to need the advice of a GOOD professional Financial Advisor as ………..time due to retirement & possibly your current net worth may both be a little short.
 
some things you may wish to consider ( I am unable to give you profesional financial advice):
a. delay retirement 1-2 years
b. use current home equity or super funds to pay off the $85K debt
c. Once $85K debt is repaid IF you have sufficient equity from your super or PPOR you MAY ? be in a position to purchase a cash flow+ investment property to generate some future income.

Please seek professional Financial Planning help before you do anything !

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November 11, 2009 - 5:37 am

Ed,

I have found it is wise to concentrate on the Australian authors & suggest new  IP investors start by reading the following books in this order:
1. Jan Somers – building wealth through investment property (an excellent read & starting game plan for novices)
2. John L Fitzgerarld – Seven steps to wealth (similar approach to Jan, easy to follow strategy with sound advice)
3. Michael Yardney- How to grow a multi – million dollar property portfolio ( a fantastic read, enormous amount of advice across the full specrum, some of his tips are directed at the more advanced  property investor)

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October 28, 2009 - 11:10 am

garg – It's been a long time since I was involved in the building/marketing  of SPEC homes, however………….a SPEC home is when a Builder,Developer or Property investor/company puchase residential land & build a new home or homes on it (usually & hopefuly when the R/E market is hot & there is a big demand from buyers)

For  profit reasons they want to turn it over as quickly as possible (sell it) mainly to minimise bank holding/funding costs,many times they will comence marketing or even SELL it of the plan BEFORE construction has even commenced (aiming for a quick sale) because a quick sale means a bigger profit.

End result when SOLD the purchaser gets a new home the builder/Developer get paid & makes a profit so………they can go and repeat the excercise over & over again until all the buyers go home & the market suffers a downturn is flat & it usually comes to a halt for a year or so until the buyer demand is there again. 

I hope this explanation helps a little & if you think you still need more specifics on "SPEC HOMES" let me know & I will see what I can do for you.

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October 27, 2009 - 1:00 am

wealth4life,

lucigoosey posted 24 OCT 2009.

"I am new to IP and have been reading a book by Michael Yardney – How to Grow a multi million dollar property.
He mentions an investing technique where you for instance borrow an extra 50,000 when buying an IP so that you can meet the interest repayments on the property without being out of pocket. This sounds very attractive to me who doesn't have a lot of spare cash and would struggle to make the difference between the rental income and the loan repayment having my own mortgage already.

Can any one advise if this is a viable technique/strategy and what could be the pitfalls"
                `~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

In answer to your thread on this post you submitted 28 OCT 09.

1. I am a retired Marine Engineer & Project Director, I live in Darwin & I may be new to this site however I purchased my first investment property in Cairns in 1975.
2. Yes my borrowings above purchase price was only $28 & not $50 however I believe it was a good EXAMPLE in answer to the question.
3. If the moderator of this forum would like to email or phone me (they have my contact details) I will be happy to discuss the purchase details of my latest property a 2 br unit in Bakewell N.T.
4.The coincidence that I joined tis forum on the 18/10/09 & lucigoosey on the 23/10/09 is just that a coincidence, there is no conspiracy I have never met or spoken to either lucigoosey or Michael Yardney &  I certainly don't know their personal address also I don't believe a successful man like Michael Yardney needs any free advertising hype from me!
5. You may consider my post shallow, however I made the effort to contribute honestly to this forum, my intention was to briefly & simply use one of my recent IP purchase examples to encourage a potential property investor & in doing so try to answer their question.
6. I believe all who post on this site should be able to be a little critical of what they read ,but I also believe that they have a responsibility to respond  in a polite manner.

Thankyou for your time in reading my reply

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October 26, 2009 - 6:16 am

Lucigoosey,

100% + IP borrowings:

What Michael Yardney says in the book you are reading that as an IP investor when you buy your next IP, you use the equity in your existing properties that will then allow you to borrow 10% PP + purchase costs + legals + a little extra to cover any immediate repairs you may be required to undertake etc.

For example: (using other IP equity) I recently purchased a unit doing what Michael suggests.

I borrowed :                         
 PP –                                           $292,000
Borrowing costs& legals-        $13,000 (approx )
extra for contingencies-            $15,000
Total borrowings               =   $320,000

In 2001 using equity I bought a unit for $155,000 other than a $100 deposit I used NO cash of my own.
 That unit is now valued at $420,000 a profit of $264,900 -minus 8 years of holding costs + CGT if I was to sell today, but still a great profit for my $100 investment.

For LOC info:
 
-please read the blogs in the finance section of this site.

I hope this helps or inspires………..

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October 26, 2009 - 5:08 am

Joel,

 ""a pessimist is someone who complains about the noise, when opportunity is knocking at the door" 

"the same kind of thinking that got you to where you are, will not get you to where you want to go"

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October 23, 2009 - 3:57 am

……………………"Lets be real. Property has been flat for last 3 – 4 years relative to inflation"  ??   

Flat prices-where in Australia/when ? – Novice investors should not believe sensational media hype headlines, Australia is NOT just ONE property market each state & city is in it's own part of it's own cycle.        Just to prove this point Darwin (where I live) growth for last 12 months.     medium house price growth is 17.3%  & medium unit price growth is 19.8% & ……..no it's not a mining town !   SO IP investors what's all the current doom & gloom about? – dare to be different & get out of your comfort zone.
 
michael888 & 1winner – great input & comments, I am not an incureable optimist however I agree with what you have both said.

"the same kind of thinking that got you to where you are, will not get you to where you want to go"

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October 22, 2009 - 2:03 pm

Richard – as you are the experienced professional in this area your continued advice & caution regarding the use and or availability of using funds from LOC is very prudent  & appreciated.       In this present financial climate establishing/increasing a LOC is not assured.

I have a low LVR (not as good as yours) but only 44%  and a 20 yr + relationship with my banker, even though I managed to increase my LOC a few months back (for IP painting & repairs) I consider myself fortunate & I will be very carefully wording & presenting my next LOC increase application in a years time with fingers crossed   I agree it seems there are currently no gaurantees with LOC lending at the present time.

Please keep up the good work in this forum, even if like me you take early retirement in the near future.

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October 22, 2009 - 12:14 pm

Fredo_4305 – I have been using the Wespac Equity Advantage for about 3 years now, the service, staff cooperation/response has been quite good their  LOC interest rate tracks their current variable rate.

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October 21, 2009 - 6:06 am

Zenny & JD86 – thanks for the feedback your both off to a great start, if you take action & apply what those smart IP authors suggest you both should be quite wealthy in 7-10 years, especially as we are now at the start of another property growth cycle in many places around AUS, now is a very good time to buy the right property in the right location for the right price.

all the best !

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October 21, 2009 - 3:15 am

Are you able to provide an approximate (upper/lower limit) price guide for the hotels you have for sale in Bali & location details.

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October 20, 2009 - 3:48 am

As Terryw said compile a spreadsheet & do the numbers & you will find  that by deferring your home purchase for a property cycle about 7 years &   buying 2 cheaper investment properties, capital growth & cash flow  bonus of Tax/depreciation deductions & interest deductions will ensure you will be way ahead, you can then use the accumulated equity gains as a deposit on your own $800K home.

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October 19, 2009 - 4:54 am

xya & bootross have provided sound & very useful comment, it is wise to concentrate on the Australian authors suggest you try some in this order:
1. Jan Somers – building wealth through investment property (an excellent read & starting game plan for novices)
2. John L Fitzgerarld – Seven steps to wealth (similar approach to Jan, easy to follow strategy with sound advice)
3. Michael Yardney- How to grow a multi – million dollar property portfolio ( a fantastic read, enormous amount of advice across the full specrum, some of his tips are directed at the more advanced  property investor)
These and other australian property authors have helped me create a multi-million portfolio in less than ten years, especially Jan Somers who got me started – THANKYOU JAN.  
So ……..A.S.K. your way to wealth
K-knowlege
S- strategy
A- ACTION ……………….just do it !

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October 19, 2009 - 4:48 am

xya & bootross have provided sound & very useful comment, it is wise to concentrate on the Australian authors suggest you try some in this order:
1. Jan Somers – building wealth through investment property (an excellent read & starting game plan for novices)
2. John L Fitzgerarld – Seven steps to wealth (similar approach to Jan, easy to follow strategy with sound advice)
3. Michael Yardney- How to grow a multi – million dollar property portfolio ( a fantastic read, enormous amount of advice across the full specrum, some of his tips are directed at the more advanced  property investor)
These and other australian property authors have helped me create a multi-million portfolio in less than ten years, especially Jan Somers who got me started – THANKYOU JAN.  
So ……..A.S.K. your way to wealth
K-knowlege
S- strategy
A- ACTION ……………….just do it !

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October 18, 2009 - 1:44 pm

Most suburbs within 10km radius of CBD should present good medium term/long term growth at this stage of the Adelaide property cycle, I am looking just outside of this range at Brighton & South Brighton.