[erratikMember@erratikJoin Date: 2004Post Count: 11]

November 6, 2007 - 8:45 pm

so in layman's terms… no matter which way you look at it we're screwed?

[erratikMember@erratikJoin Date: 2004Post Count: 11]

October 8, 2007 - 1:33 pm

Kiwi-Fulla wrote:

My swing on it is ….

Just do something!
Basically there are 3 ways that most people have in thier skillset to make money out of property:
1. Buy and Rent – If the yeild is there…. this is typically in the down cycle or slump in the market
2. Buy Renovate and sell or refinance… if you can't get cashflow then you can get cash to do more transactions.
3. Buy subdivide and sell of the improved site

Here are some other suggestions that can get you to the golden path of freedom…..

4. Buy and add a minor dwelling to create more cashflow and increase yeild and value
5. Buy and add a room or change a room onto a bedroom to create more cashflow and increase yeild and value
6. Lease option to create more cashflow and increase yeild and value
7. Wrap (Vendor Finance) to create more cashflow and increase yeild and value

If there some skills missing then perhaps we could all get up skilling to increase our chances of success in all market….. we must all move with the tide of change and learn to see the demand no matter what the market is doing.

Good luck all!

Great post. Some really good ideas here.

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August 13, 2007 - 7:23 am

Opportunity In Everything wrote:

Providing a tenant with a car, you might want to save your biggest cardboard box, thats where you'd end up living.

LOL.

I had a similar thought previously too so good on you for asking!

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August 30, 2005 - 11:42 am

Procrastination is the thief of time.– Edward Young

Don’t I know it [whistle]

I’m also looking to make a start in the game.

Good luck Libby!

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December 29, 2004 - 7:19 am

Originally posted by ksb7:
would it be recommended to build a portfolio of positively geared properties to ultimately have the home we want?

yes, “delayed gratification” as Steve would put it.

That’s certainly the approach that I want to take with my own investing.

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December 28, 2004 - 11:26 pm

Your lending options are difficult to determine without you first providing an indication of how much you want to spend on an investment property and also an indication of your other expenses.

How much I am wanting to spend is limited by my borrowing capacity, which is why I’m considering involving my parents.

Of course I would prefer not to have to put up their house as collateral, but with my limited savings I do not see any other option.

I suppose my target purchase at this point is a maximum $250K.

With regards to expenditure, I don’t have any outstanding loans. I would have approx 1.2K per month savings left after living expenses.

I don’t thing that you should be the one considering borrowing against your parents home. It is a decision for them as they will lose their home if you do not pay the loan and they cannot pay it.

Certainly, when it comes to borrowing against their home they’d be involved

However, if they agree, there are a few options available here. The easiest is for them to borrow and then you use the funds.

If they are the ones borrowing, how do I build up my own lending history?

I would strongly recommend that you do not cross-collateralise (linke together under one loan packaged) your parents home and the property you want to purchase.

To do it, I suggest you and your parents speak with a mortgage broker and they can take you through it. It is not overly difficult if everyone is willing.

Regarding getting a valuation, don’t worry about it. Save your money. The lender will do this when you select one. You can get a fair indication of the property value by looking at recent sales of similar properties in the immediate area.

Some very useful info here that I will look further into.

Thanks for your help.

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November 9, 2004 - 6:19 am

Originally posted by Monopoly:If you are prepared to sell off an asset which has grown 50% in just 2 years, IMO you’re a fool!!! Even if the cashflow is not positive, the growth is fantastic!!!

not sure if that was sarcasm, but my response would be something along the lines of “it depends on what your investing goal is”. if it’s +cf that you’re after, then it’s definitely worth considering renting the place out. Nothing wrong with having both +cf and +ve CG

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November 1, 2004 - 10:56 pm

Perhaps look at the possibility of joint ventures.