[Jason700Member@jason700Join Date: 2011Post Count: 17]

June 7, 2011 - 3:55 am

Ummm Property Investing forums such as this one are a good start.  I find that I'll say something which is wrong or slightly wrong and then there'll be someone that'll correct me.  So this space is really good for making mistakes and learning off the experts.  Personally I do not call myself and expert even though I write about property in a blog/online website

[Jason700Member@jason700Join Date: 2011Post Count: 17]

June 7, 2011 - 3:49 am

Catalyst wrote:

Jason700 wrote:

to be honest… just wait 7-10 years for the property to double in value and keep renting it out until then   Well those are my thoughts anyway.  Buy and hold (then leverage)

Cheers   Jason

IF you can afford it. 2.5-3% is WAY too low for me to hold on and hope for CG.

That's one hell of a loss EVERY year. You would want to get som,e serious CG to compensate for that. With ibnterest rates of 7% you're losing 4% + rates + insurance + agent fees + + + (EVERY year)

It all depends on how much you're borrowing but yes I agree when you put it like that… It'll hurt

[Jason700Member@jason700Join Date: 2011Post Count: 17]

June 2, 2011 - 6:23 am

Ah okay… Awesome!

[Jason700Member@jason700Join Date: 2011Post Count: 17]

June 2, 2011 - 6:00 am

Really?  Okay well then my research was flawed… Can you further explain that a little? 

[Jason700Member@jason700Join Date: 2011Post Count: 17]

June 2, 2011 - 5:44 am

The thing with US properties you have to be vigilant on is a few things (as I recently thought similar thoughts).

You are better off buying the property outright than getting a loan attached to it because a) banks in Aus won't (will very rarely) lend you a loan b) if you manage to get a loan you are playing with international exchange rates.

Between the US and Aus there is a double tax system.  Therefore you get taxed two times.

You cannot negative gear your property.

Whilst yields are quite high (up to 12%) vacancy rates are also high thus cancelling out the returns.

If you'd like to eventually live in said house in the states, you would have to become a US citizen which means you'll have to jump through many many loop holes

Anyway that was more than enough information for me to choose against said option

[Jason700Member@jason700Join Date: 2011Post Count: 17]

May 31, 2011 - 4:43 am

To be honest with you Stringer… I do not know about that area at all.  But some basic tips/thoughts to improve your investment property is.

Don't just look at capital gains but also rental yield.  Are you able to rent this property for a decent yield or is it not worth the hassle (my bets are on that it definately is worth renting out)

If old and dilapitated maybe renovate to recieve capital gains and higher yield.

Remember, 3 years ago was when the GFC struck and property values dropped almost immediately.  So don't be daft and think that its a bad thing that it was worth more 3 years ago… Your property value will still rise (eventually)

Having said all this… If you feel that it is worth asking on this forum whether or not its good then chances are you do not think it is good enough.  Always go with your gut and if you need advice, ask a professional.

[Jason700Member@jason700Join Date: 2011Post Count: 17]

May 31, 2011 - 4:32 am

Look I'm gonig to have to agree with a couple of the people here.  If you manage your investment property yourself you will run into various problems.  However, I'd like to point out one majour problem and that is…

If you are looking to rent it out immediately then it may take you some time trying to find the suitable tenants.  Time = money.  Therefore lets just say you save on the 8% or whatever the company charges.  For illustrative purpases lets just say it's 10%.

Lets say the rental agency takes 21 days to find a suitable tenant.  Let's say it'll take you one or two or three weeks longer to get the suitable tennant.  That'll mean that to recoup your losses you will have to rent out the place for 10, 20 or 30 weeks.  These tenants may not last that long.

Also, what happens when the tennants dont pay on time.  Who follows it up?  What happens when there is a dispute.  Are you ready to go to the tribunal and waste even more time.  Use the simple economic theory you stand to earn more money doing your own job then spending time trying to fix up your property management

[Jason700Member@jason700Join Date: 2011Post Count: 17]

May 31, 2011 - 3:28 am

There is part of your question which hasn't been answered.  Which is, what type of property should you get?  And the answer is basically, it depends on you and what you want and what you are used to.  I can understand why they were pushing apartments as there is generally less costs involved and in a few capital cities, such as Melbourne, to buy a property at that price usually means that you get more on your investment.  But there are also other factors also which could prove a house and land package may be worth while (eg. the land may be subdivided). In the end it totally depends on you if you want to have a house and land on the city fringe (or in a country town) or a unit in the city.  What certain property investment companies can do is guide you to the better investment properties in the right areas so that you don't have a dud property.

Enjoy buying your first investment property and if you need some more help don't be afraid to contact.

Cheers

Jason

[Jason700Member@jason700Join Date: 2011Post Count: 17]

May 6, 2011 - 3:09 am

to be honest… just wait 7-10 years for the property to double in value and keep renting it out until then   Well those are my thoughts anyway.  Buy and hold (then leverage)

Cheers

Jason

[Jason700Member@jason700Join Date: 2011Post Count: 17]

May 6, 2011 - 3:00 am

I think the right questions to ask are.

Am I going to live or will I live in said house?
Do I want to sell in the short/long term?
Whilst the rental yields might be at 9% or higher what is the vacancy rate and do I expect to get a good rate of return?
Am I using capital or am I taking out a loan from a bank/credit union that is American/Australian/other?
Am I prepared to lose a lot if the US dollar continues to recied?

In the end if you think its a house worth living in and you have a green card and the rest of it, regardless if you get a good rental yield it probably is worth it.  If you are not going to live in it however then those other questions are of value.

What are all your opinions?

[Jason700Member@jason700Join Date: 2011Post Count: 17]

May 6, 2011 - 2:35 am

Hi Je,

Looks like you being sent on a wild goose chase… Let me put it in perspective for you.  You are selling investment property.  Which means lets say you get a sale.  They put a 10% deposit down and then they pay the rest on the date of settlement which could be a year or 2 away.  Do you get money when it settles or when the deposit is paid down or a bit of both.

The other thing is.  Only 5% of Australian's actually buy an investment property in their lifetime of those 5% something like 10% actually have more than 5 investment properties.  Now if your one of those 5% of Australians that want to buy an investment property.  Which means you are willing to invest most (if not all) of your savings into an investment property.  Are you going to go with someone who is young and doens't have experience vs someone that is old and wise and has a few investment properties of their own?

In case you are wondering I also thought about selling investment property or property in general and let me tell ya after doing some other souly comission work it wasn't worth it for me. 

Now if you need help getting a job casual/part time or otherwise let me know. I write killer resumes and I can tell you when to apply for certain jobs

[Jason700Member@jason700Join Date: 2011Post Count: 17]

May 6, 2011 - 1:47 am

tbh why don't you talk to a professional and get them to give you their advice… I mean you don't know us, <moderator: delte language>. Anyway thats what I think

[Jason700Member@jason700Join Date: 2011Post Count: 17]

May 6, 2011 - 1:41 am

Alrighty Ravi,

Nice thinking of going in the property development area.  For starters you're gonna run into a lotta problems if you think about buying a property or what not before your 18 (yes tax is a bitch) so in the mean time I suggest you learn more about the property industry.  If you're still in school stay in school, if not I suggest getting into sales and if you can getting into sales within the property industry.  You'll need the skills and business sense that sales provides and you'll gain some knowledge as everyone has been saying by getting a job in the property industry.

When you do turn 18 and are still commited to becoming a property developer I would be making some key contacts with people in the industry.  That means getting off your ass and going to conferences, ringing around, walking into businessess and getting thrown out.  It bassically shows that you're commited to what you say and that you're not like anyone else.  Personally I wouldn't get into property developing but I'd get into buying investment property, especially buying off the plan.  You need to know what renevations/refurbishments (if any) are going to be important to get maximum capital return on both your rental yield and capital gains.

The reason why I right get into property investment insead of property development is because getting the right property in the right area doubles in value every 7-10 years.  As opposed to buying a piece of land/property forking out all your own money, spending a lot of time and effort to get it built and then spend a bit of extra time trying to sell it for a price that will make it be worth your while.

If you're interested in knowing more send me a message and let me know as I have a couple of contacts in the industry

[Jason700Member@jason700Join Date: 2011Post Count: 17]

May 5, 2011 - 7:53 am

oh and I reckon if you go the casino… you should invest in mining towns

[Jason700Member@jason700Join Date: 2011Post Count: 17]

May 5, 2011 - 7:53 am

wow there's heaps of comments on here… but from what I understand… I reckon they're high risk and you'd probably wanna sell before the bubble bursts right… But how would you determine that… Lots of research… Property is meant to be easy I reckon you're better off investing into capital cities esp Melbourne and Sydney and that way you have pease of mind… WHo knows their might be a floor or something in the town and before your property can get any value BOOM its gone way down… Hope that makes sense

[Jason700Member@jason700Join Date: 2011Post Count: 17]

May 5, 2011 - 7:31 am

yeah dunno…. I reckno you should just google it no?