Forum Replies Created
- Badgers_R_Us wrote:CHIS wrote:
I wish I was smarter
Perhaps those that take your advice might also end up wishing this was so!
I'm doing alright in life. This is a forum for general discussion. I don't expect anybody to take my advice and I really couldn't give a shit what you think either. Personal insults on a general forum are for the childish and intellectually challenged. Why don't you sit back for 5 years and wait for the next boom?
Start your own business
Build a website
Work from home
Kick @rse. Good luckOther countries in the world are on a totally different economic cycle to America. America sent itself broke on needless wars and ridiculous lending to sub primers.
Russia is booming
Asia is booming
Australia is booming
Everybody shed a tear for the yanks and move on. It's their mess, let them worry about itIf your numbers are right, that is the case. As I mentioned, building costs have a bad habit of blowing out. Your return may not be as good as you are hoping as the debts may end up being more. It's your call. Nobody makes it without taking some risks. Consider that the houses may be worth less than it costs you to build them. What if you have to sell them? If you can cover the repayments, why not do it? If you are in a position to hang onto them and will be able to afford the repayments, it's a winner. The numbers give you the answer you seek. How accurate are your calculations?
Badgers_R_Us wrote:CHIS wrote:It's the time of champions
This is the market to make moneyScamp wrote:Stay out of the property market at all costs. Getting in now will ruin you for life. End of story.There is no right or wrong time to invest because the right time can only be based upon your own specific circumstances.
At the moment no one can predict with any certainty what will happen, therefore to speculate is to gamble and as they say, only gamble with what you can afford to lose i.e. consider a worst case scenarios or ask yourself if you can live with it.
What happens if you have a sustained period of vacancy?
What happens interest rates go back up (stagflation is a possibility)?
What happens if you lose your job?
At the moment these are all very real prospects, so you need to at least consider a contingency or what you might lose if you end up having to sell quickly.
Worry worry worry
Analysis paralysis
Investing is not without risk
Negative gearing now would be stupid unless you were looking at long term
Negative gearing is pretty stupid full stop.
The positive cashflows are out there
Foreclosures, falling prices, haggling sellers down, etc etc. It's just a tranfer of wealth from one to another. One mans junk is another mans gold. Everybody has to consider their own circumstances. The once in a lifetime real estate deal comes along every week. Just because the newspapers say the world is ending means jack shit. Newspapers are run by lefties that want communism back who work for minimum wage. Why believe what you read?
The world will not end
The sun will come up tomorrow. People will get rich. 10 years from now you'll be hearing about how people got rich when everybody else panicked. There will be bookstores full of these books and we'll be going……………if only I had……………..
Get greedy when everybody else is cautious
Your debts are the banks problem. If they give you the money and you can afford the repayments, don't worry.
People aren't going to stop living in houses. Don't worry, be happyProperty isn't the only way to make money.
I see your point, however falling house prices and plummeting interest rates are the time to get into the property market. Positive cashflow deals are everywhere again. You can haggle people down as well. Go hard, pick the right deals and think positive cashflow deals. Negative gearing is no use to you but I was never into negative gearing. It is a premise based on theoretical equity that involves you losing money. It's pretty dumb
Commercial real estate is holding value and if you are into business now is the time. It depends what business of course. Luxury good businesses may suffer if the economy dries up.Avoid blocks of land like the plague
Building is expensive. It is now cheaper to buy a house than build it
A block of land provides you with absolutely no tax breaks. It doesn't pay you rent. They are very hard to offload if you get into trouble.
Bricks and mortar. The time is nighIt's the time of champions
This is the market to make moneyScamp wrote:CHIS wrote:Australia has mass immigration. All our capital cities have urban sprawl. WA is being bulldozed for housing. House prices will not plummet because their isn't enough of them. It isn't America. Interest rates came down 1% today. The sooner you get into property the sooner your life gets going. The sheep are scared. The Lions are feeding."This isn't america". Please explain in which way it's not america ( yes , the obvious being that it's a different country ). Australia is EXACTLY like america. Overpriced, loads of properties available, oversupply of properties infact ( there's 900.000 EMPTY properties ). In fact, America was probably in a better state than Australia was.
The debt levels certainly are a lot lower in America than in Australia.
Please explain…We aren't spending billions every week on a war in Iraq
Our banks are the most profitable in the world
Our raw materials are being bought by the millions of tons every week………..and will be for many years
Our population is growing
Immigration is at an all time high
Our country has a massive budget surplus that our government can spend on infrastructure to stimulate the economy if needed.
America is bankrupt. We aren't
Australia doesn't have to spend 700 billion dollars to bale out the mickey mouse banks that lent billions of dollars to people who couldn't repay the debts.
Chalk and cheese.Scamp, you sure are a panic merchant. What's it like living in fear? Man up
It depends on your attitude to risk. It is expensive to build and the costs are increasing. Values may decrease a little. You may end up with negative equity. However, if you've done your numbers properly, you will be in front. Building projects have a habit of blowing out. There will be unexpected costs, delays and frustrations with subdivion. These problems will drain your cashflow. It seems the return for your risk is pretty low. I would sit on it over the next 6 months and just get a bit more of an idea where the market is heading.
Most of our big commodity markets are in Asia in countries such as China. BHP, RIO TINTO etc are strong and very profitable companies. They are great investments at the moment. The share market reflects human panic. Profitable companies aren't going to go belly up. When people panic in the share market, they invest in real estate. Bricks and mortar. The interest rates were slashed today by the RBA. Interest rates are on the way down again.
Australia has mass immigration. All our capital cities have urban sprawl. WA is being bulldozed for housing. House prices will not plummet because their isn't enough of them. It isn't America. Interest rates came down 1% today. The sooner you get into property the sooner your life gets going. The sheep are scared. The Lions are feeding.
Take the grant. Get into the market. The best time to buy real estate was yesterday and the worst is tomorrow. It has been this way since the beginning of time. House prices may come down a little but when it costs over $400K for a modest house and land package, houses aren't going to plummet. There is plenty of doom and gloom. My belief is that the housing market will stagnate for a few years but we won't have widespread cuts in value. The cliche is "time in the market is better than market timing". Property is a vehicle for wealth creation that has been used for time immemorial and most of Australia's richest people made it in real estate. It's a cycle. The good days are over for a while in terms of investing but now is a great time to think about buying your own home. Prices have come down. You can get your own place with some handouts from the government. This is likely to disappear. It's free money. You will have the opportunity to grow a bit of equity so that when the next boom comes, you'll be in the game instead of wishing you'd made that first step 5 years ago. It's always the right time to buy real estate. You have to be smart about it. The deal of a lifetime comes along every day in real estate. You have to put yourself in the position to take advantage of it. Credit will get harder soon. Grab it while you can
If you think the property is realistically worth $550-570K in the current market and you owe $530, try selling for for $545. That will help you cover real estate fees at sale and you may break even. If it's hurting you, get rid of it. Save the cash and look for a better investment where you can fully gear your husbands income. It sounds like you're losing money. If the property was in your husbands name you could go interest only and fully gear it. No loss at all. Put it on the market at $545. Reduce it a bit if you don't sell in a fortnight. Properties are selling if they are priced realistically. The days of greed are temporarily over. It's a cycle. The wheel goes around. People are always looking for houses and if they perceive good value they buy it. Growing families need bigger houses, people are moving to Perth in droves and need somewhere to live. The house wasn't an investment property and hasn't been set up to make the most of negative gearing. You're haemorrhaging cash. Sell it immediately.
How much do you owe? How much could you sell it for (be realistic and price to sell) ?
What is your income or more specifically, how much do you give to the ATO every month if you get rid of the one property?
Since you only have one property, it is likely that you can hold it if you are negative gearing. The rural house isn't killing you by the sounds of things.
Negative gearing is a long term investment. The ridiculous growth in values over the last 5 years was never going to continue.
Interest rates are on the way down. Put the rent up.
It depends on how you are coping emotionally. If you are covering your debts and the ATO is paying for your investment property, hold and dig in. If it is killing you, sell and take a hitI like your reading list so we are like minded. I am happy to bounce some ideas around on the forum. I am no millionaire so I'm no mentor. I invest in business. Business generates cashflow. Cash is king at the moment. The shares and property market has taken a bath. The folly of negative gearing has been exposed. Negative gearing may not be any use for another 5-10 years but who knows? Sometimes when the stock market crashes, everybody invests in real estate. I personally believe that anybody on even a ,modest wage can negative gear one property as you only give your tax money to the government anyway. Might as well own a real esate investment instead. If the property market drops off as many predict, positive cashflow investments may return. They are hard to find after the boom in property values over the last 5-10 years. Australian property is clearly over priced and the remarkable gains of recent times are over. You make your profit when you buy. Appreciation is a bonus and when you consider the amount you spend on stamp duty, agent fees, interest, you probably lose money. Positive cashflow properties are the way to go but hard to find. I prefer to concentrate on my local area rather than trawl the state/country for deals I know little about.
If you don't plan to live in it, don't get precious about it. It sounds like the house will become an investment property. If that is the case, go for as new a house as possible to maximise depreciation. If you can afford anything close to the CBD you will be able to get a good rent for it. The suburb is your choice of course. Scarborough is obviously a more affluent area than Coolbellup for example. If you can save $50K in 6-12 months after buying a property and paying repayments, then why are you looking fior a work transfer. God damn!
Where are you living now? With the wage you are earning you must be paying a shitload of tax. Rent/live at home and buy 2 properties to negative gear if you are moving to melbourneNew houses are definitely the best for depreciation. The best ones are only a few years old or brand new is the key. As the house ages you get less and less you can depreciate.
Off the plan is not necessarily a bad thing. Consider the area. Is there a high rental vacancy? You will need a tenant. What is the area like? You will need a tenant that won't trash your house. Who will build it? Are they reputable or if they are an unknown, find out what else they have built and take a look at it. What is the socioeconomic area? Will you get the rent you need? Familiarise yourself with the design and find out what project builders are charging for similar designs. If it's good value it's good value. Buying off the plan usually saves you some money. Your profit is made when you buy. Appreciation is a bonus and is no certainty for many years in the current environment.
mug investor
Here's an idea Benny. A young professional like yourself probably knows heaps of young single people. They don't want to live at home but can't buy their own home. This is a scenario where someone with balls and clarity of vision can get ahead.
Buy a house. Get lodgers in at $100 a week for example and use their lodgings to help pay the mortgage. Buy an affordable house with a few rooms. Don't get greedy.
The other thing you could consider is stay at home and buy a property to negative gear. In 5 years you may have built up some equity and had time to save up a deposit
