Forum Replies Created
Another “GREAT” who says you should live off your equity is
Ed Chan of Chan & Naylor P/Ltd.
You just keep on having your properties revalued and living off the new equity.
The properties are suppose to double in value every ten years (At 7% a year).
So you owe more, but the new equity covers you.
So the ROLLACOASTER ride goes on for ever.
Not for me.bruham.
Steve,
Your insights- no. 4, Is a great reminder that one can not live on debt for ever.The Investors Club uses this system. Hold ten properties, refinancing one property each year. Using your equity to live in your required life style . By the time you have reached no. 10, you just do it all over again.
Michael Yardney of Metropole does the same.Sooner or later the banks will say enough is enough.
When this happens, you have been retired for a number of years
and are un-employable.
You are then forced to start the sell down, so you need to reduce your debt levels and also to live.
Less properties, less debt and less living comforts.
The above sounds tragic.bruham.
G’day all,
I’m history, I live on the coast.
You hear things and read some stupid articals and you start believing them.
I have a problem with medical deseases. If I don’t know a name of a desease, them I’m safe and can’t catch it.As for that superman movie, it was on foxtel last night.
bruham.
Property WA,
I’m involved in two of B&B listings.
They sent me the paperwork the other day. No brokerage costs involved with my offer.
B&B believe that it will be fully subscribed through current share holders.
Minimum of five thousand shares at one dollar a share.
B&B must think that residential property is going the way of New York property, only large corporations can afford to invest. The poor tenant only rents.
Very sad.bruham.
foundation,
I believe every word of your post. People are telling me stories of near forced sales due to no growth in the market. negative gearing
sucks if you have your hand continuously in your own pocket covering negative gearing costs. No capital growth. Just capital loss.
One fellow sold at a loss of eighty thousand dollars just so he could escape the tread mill.
I’ve been in this situation, so I know how he feels.
This is one of many property sob stories going around Sydney .For you “sandgroppers” there’s a story that W.A. property is a bubble ready to explode.
I checked out some of Perth’s suburbs yesterday. The prices of property that you couldn’t give away two years ago is beyond belief.
Four hundred thousand dollars for three bedroom houses out in the sticks.
Perth is now dearer than Queensland. Now that is unbelievable !!!!
Jumping into the Perth property market is now gambling.bruham.
Wealth4life,
In 1999, I did as you suggested, bought one bedroom units. BLOODY DISASTER!!! There are so many one bedders around that they’ll never grow in valuation. Pyrmont is chocked with one bedders and studio apts.
You said close to the city. I hate your description of “close” Paramatta is over an hours drive a light traffic.
Balmain and North Sydney are the only close suburbs.
Balmain was a real workers area. A mate of mine bought in Balmain as he couldn’t afford anywhere else in Sydney at the time.So Balmain started at a very low entery price for property.
With your money, as a deposit, I would be looking at dual -occ sites in the Curl Curl areas. That ‘s the Northern Beaches.
I’m looking there now.Another rule to property investment is to follow the railway line.
NOT on it, but a five minute walk away.My thoughts.
bruham.G’day all’
I must be doing some thing right! Going against the “herd”.
I ‘m in search of two dual – occ sites. Must be exactly to my requirements.
As more people abandon property for shares, I must be doing “good”!!
When I charged around the property scene in 1999, I bought anything I could lay my hands on. A BLOODY DISASTER!!!
A FOOL AND HIS MONEY ARE SOON PARTED. Yes I stuffed up big time.
Took three -four years to un-stuff the whole situation. And the money lost in time and selling etc still hurts like hell.Now I buy only dual -occ sites in “the” right location. As the property prices of Sydney’s northern beaches cool, I’m out about looking, looking and still looking.
Steve Mc Knight once said that property investing isn’t easy. He got that right.
I see properties that are nearly just right (almost perfect)
but I think, careful idiot, no more stuff ups.Foundation, yes you would most definitely need more than six properties to live off.
My strategy is direct shares, managed funds, listed property, un -listed property and of cause superannuation funds.
Property comes a long last. I’ll be dead by the time they are of any benefit to the “kids”
Investing is now a play thing for me. I’ve got mine. It’s now all about the “GRAVY ” for the “kids”.bruham.
jkrejci,
I used the software once It’s that complicated, that I’ve only used it one time.
The bastard must have deliberatey done this to show how cleaver he thinks he is.One time was enough. Never again. I threw it in my junk draw.
NEVER WOULD I RECOMMEND THIS SOFTWARE TO ANYONE.
There are easier,quicker programmes out there.And cheaper.
bruham.
G’day all’
affordability is the name of the game.
Having read a recent post from “wealth4life” my beliefs are simular.
I own one dual occ. I believe it’s in a top location.When I first started out investing, I bought one bedroom units. Plus a serviced apartment. All of them were a complete waste of time.
Houses in top locations only please.I’m now looking for another top location dual occ. It can be in any major capital city. This will be my number two investment property.
I only intend to have three top dual occ s.Shares for ever.
bruham.
G’day reelygood1,
Just read my share news about Australian Gas Light Co. ( I hold AGL shares).
They joined forces with CS Energy of Qld.
Together they’ll up grade the Mica power station in the Mount Isa area. The cost is between $150 – $200 million dollars.
Due for completion in 2010.Might have to have a look at Townsville and surrounding areas.
I should have bought into Townsville years ago.bruham.
G’day Kay Henry,
You say, being a snob about where to buy property, while missing other opportunities. I would rather buy one property in Manly on the beach than one hundred properties else where.
Quality before quanity every time.Worst mistate. Buying a serviced hotel apt when first starting out.
6.5% net return for two years, then down to average returns.
Sold at a loss just to escape. The place was way over priced.Best investment . A dual occ. at North Curl Curl complete with coastal views. Cost seven hundred and eighty thousand dollars.
Now worth other two million dollars. Thats if I sold.Best book. Michael Yardney”s “How to Grow a Multi Million Dollar Property Portfolio In Your Spare Time”
It confirms what I knew about correct property investing.
Because I have an argumentive fellow at work who believes the opposite to me, I bought him a copy as well. A very good read.bruham.
g’day moosehead,
It’s good to have lots of passion.
You’ll need every bit of as you get older.
Keep it going.Yes I have “good” debts (lots) and one “bad” debt.
The bad debt is a continuing debt. As soon as I pay it off ,I borrow it again. It’s limit is fifteen thousand dollars. It’s used for my home renovations.
This way my house is always kept up to date.My “wants” is about being able to do what i “want” without having to check the bank balance to see if i can afford the “want’.
The “want” list contains property investments, shares, managed funds. Superannuation funds, taxi plates.
And last my business. I run a fleet of twelve taxis.As for your frustrations, i have the same ones. Bloody things !!!
Brenda Irwin,
Filling up my seven year old ex- taxi. It took forty dollars (LPG).
The fellow next to me was filling his four wheel- drive that cost him one hundred and eighty dollars. When i asked him how long between refills he said ten days.
Now that’s pain.bruham.
G’day all,
Wow, Moosehead. Talk about a young bull in a china shop.
Slow down. Take off the boxing gloves.
Mate, you come on strong.
Now, first to the banks. The mortgage is owned by the bank until the last dollar and cent have been paid.The banks name appears on the first page of your mortgage. In my case my name (trust) does not. So they’re the owners.
The bank can require you to repay in full, all outstanding monies when ever it suits them. You actually sign on the bottom of this page as this is acceptable.
So the fact is, you don’t own your home while there is a mortgage covering it.
The word mortgage is french and MORT part means ” to the grave”.As for lawyers ( I’ve been sued a few times) so i know one or two.
The ones I know would pennies off a dead man. They will represent you in court for any reason, if you’ve got the dollars!As for anti- borrowing for investing. NOT me. I love borrowing for my “wants”.
I just don’t believe you should be using the equity in your home.
when I started out investing, i used the best case senario and then the worst case senario.
I use trusts. One for residentual property. One for industrial property. Three for my business.
Each of my kids (two) have their own trusts. Paid by me. All contents paid by me.
Before you do anything make certain you are protected legally and financially. Un-doing your mistakes is very very costly.Dazzling,when I read your learned writings, I get the feeling that you and your little group of investors are looking for more members.
Is this my imagination?bruham.
G’day all,
What you said Foundation, is spot on.
I have always believed that there is no such thing as GOOD DEBT.
All debt is bad. Yes you can work a rort on your tax return.But over all, you would be better off collecting full rent from your rentals,paying no bank interest (Oh GOD! how wonderful). Then paying some taxation.
At least with our taxes they might do some one some good. Or build new infrastuctures for the good of our country.
As for being over-stretched financially, that is ALL those investors who stupidly ?? use their home as equity to fund more property
purchases.
These investors don’t (or do) realise that they’ve just given their homes to the banks.
They now own absolutely nothing !!!!!!!!bruham.
Money without financial intelligence is soon gone.
tajee,
You can claim depreciation (not 4%) on any property investment.
That’s no big deal.
Four percent when you’re down the toilet for thousands of dollars, doesn’t make sense to me !!!If you notice that most of these hotel rooms are run by the big business end of town.
(Proberly not in your back water of a country town. Which means even more dillergance is needed.)
Stockland property, Mirvac and most big listed property trusts.
That’s where they make a killing in their profits.I have shares in a two of these listed property trusts.
Commonwealth office property trust and Stockland trust.Only stupidity would allow you to go down this path.
Again, I say back away from this type of investment.Hopefully, your friend.
bruham.Hi all,
Thank you for all your replys. I’ve just down- loaded your replys and will give it to him on my next sighting.
You made more sense than me showing him how my structure worked.
Having professionals explain it and seeking their advise is always the best option.
Again many thanks.
bruham.tajee,
The last thing on earth to invest in are “serviced apts”.
They (management) increase the unit’s price to cover the rent.
So YOU are actually paying your own rent !!!
It takes years for the equity to grow to the purchase price.
Very hard to sell as only investors seeking a decent return are interested in buying.
Banks treat them as a liability. So you need a big percentage of the price for the deposit.Don’t go near them.
The builder makes money.
The developer makes money
The management team makes money
Only YOU that doesn’t make money.bruham.
MY TURN!!!!
Talk about length of this posting.It’s like waiting on the phone for you to have your say on talk-back radio, only to be cut off after you’ve had a five second conversation.
Two cars, one Ford laser year 1995.
Second car Ford falcon year 2000, ex. police car and ex. taxi.
Love that LPG.
Half the cost of petrol.bruham.
Dazzling – mate,
just read this post. Must be a near record for one topic.
My wife is a carbon copy of yours.But worse. When I read out some of the member’s achievements, how many investment properties they have, my wife tells me that they are all lairs.
How do you know that they are telling the truth?
You prove to me that they’re not telling lies and I’ll start to read some of the posts.
She then goes on to say, how do these people know that you’re not telling lies?
You can’t win.bruham.
Almost nothing!!!
In December paid a deposit on a full duplex, Quakers Hill(Sydney suburb).
I take control in Jan. 06.
Bought another taxi plate. Take control in Jan. 06.
Gave notice on my job. Walk out the door for good end of Jan. 06.
So 2006 is going to be my year.bruham.
