[kong71286Participant@kong71286Join Date: 2009Post Count: 261]

April 22, 2011 - 12:43 pm

In my view, the best person to talk to about this would be a real estate agent located in Mascot

[kong71286Participant@kong71286Join Date: 2009Post Count: 261]

April 21, 2011 - 11:19 pm

Well said Anthony

[kong71286Participant@kong71286Join Date: 2009Post Count: 261]

April 18, 2011 - 11:35 pm

Personally, I would invest where I believe my returns will be the greatest, and right now I believe Silver is the biggest investment of this decade

Not only is it a monetary metal, but it is also an industrial metal with strong supply/demand fundamentals:

• Monetary Metal: When people lose faith in fiat currency because of excessive currency printing, they always flock back to gold/silver, which has been money for thousands of years
• Industrial Metal: Because of its unique properties,  Silver is used in all sorts of appliances e.g. electronics, mirrors, photography
• Demand: Demand for Silver is likely to increase. Not only because of an increase in demand for consumer electronics (e.g. cell phones, computers) due to the rise of middle class in China and India, but also because of emerging uses of Silver such as in Water Purification, and in Solar energy
• Supply: Stockpiles of Silver are at an all time low, and are being consumed rapidly as the information age progresses. It is estimated that there is less than 10 years supply  and there is not much new supply being discovered

[kong71286Participant@kong71286Join Date: 2009Post Count: 261]

April 15, 2011 - 11:25 pm

Don't get me wrong, I never stated that Australian properties are going to crash

I just stumbled upon this article and thought it was quite interesting and worth sharing

And yes, I agree with you about the Australian Economy (and dollar) being much stronger than that the US, and that Australian properties are more likely to stagnate during the next few years

[kong71286Participant@kong71286Join Date: 2009Post Count: 261]

April 15, 2011 - 1:47 am

Housing Denial in Australia Feeds Off Same Myths We Heard in the US

http://globaleconomicanalysis.blogspot.com/2011/04/housing-denial-in-australia-feeds-off.html

[kong71286Participant@kong71286Join Date: 2009Post Count: 261]

April 13, 2011 - 11:18 pm

Thanks for sharing that with us

I think fear is in the eye of the beholder

For instance a stock broker may say that properties are risky but will say otherwise about stocks

As you previously mentioned the best way of overcoming fear is becoming educated, and doing your due diligence

[kong71286Participant@kong71286Join Date: 2009Post Count: 261]

April 6, 2011 - 8:02 am

Thanks Sebastian

That was an awesome read, and reinforces how much of a crucial role emotions play in people's purchasing decisions. As investors we can use this information to optimize the market appeal of our properties, to attain the best return on our investments.

On the subject of property valuation, I've been a bit curious…

• How do you value the land component of a property?

Thanks in advance!

Kong

[kong71286Participant@kong71286Join Date: 2009Post Count: 261]

April 6, 2011 - 7:49 am

saybalebay wrote:

At the end of the day I will have about 300k cash, however no PPOR or employment. I will have a small continuing income from insurance. I would like to use this cash to invest in property, hopefully to generate some sort of income. From your experience, will my circumstances allow me to do so?? Any ideas/advice will be most welcome.

Hello Saybalebay,

Welcome to the forums

To answer your question, 'Yes' I think it is possible to invest in properties with $300,000 cash, but that it might be difficult to get additional funding from banks without a reliable source of income.

• How much income would you like to generate?

Most residential properties these days yield around 5% i.e. $15,000 per annum on a $300,000 property

If you want higher yield of +10% ($30,000 p.a.) you might have to consider alternative investments such as Commercial properties

Hope that helps!

Kong

[kong71286Participant@kong71286Join Date: 2009Post Count: 261]

April 5, 2011 - 2:14 am

Hi Breeza,

Firstly welcome to the forums. You've come to the right place for advice.

It's good to see so much enthusiasm from you, and that you have a desire to succeed.

You've mentioned that you want to own many properties by the time you turn 30 and own your dream home by the time you turn 32

• How much money do you need to achieve this?
• What do you think will be the best strategy to achieve this goal in the timeframe suggested? Passive, buy and hold approach? Active, quick cash, renovation approach?
• Have you got the necessary knowledge to implement this strategy?

As many other members have mentioned many times in the forums, you need educate yourself first and do your due diligence before making any investment decisions. The best place to seek advice from is from experts in their field e.g. for renovation strategy, Dean Parker would be a great source

https://www.propertyinvesting.com/resources/products/complete-reno-system

[kong71286Participant@kong71286Join Date: 2009Post Count: 261]

April 5, 2011 - 1:30 am

ummester wrote:

its really very simple.
If the interest on the loan can be locked in for less than what the rent cost you PA – you should buy. If the interest is more than the rent – you should rent and save.

Well summarised 

One thing to becareful about though, is how it will affect your borrowing ability for other investment properties

[kong71286Participant@kong71286Join Date: 2009Post Count: 261]

April 4, 2011 - 10:08 am

Thanks guys,

I really enjoyed the reading your posts, and looking at different perspectives.

At this stage however, I feel that there is too much uncertainty and instability in the world, and the only place I feel safe investing my money is in commodities such as Gold and Silver. I also feel that it would be prudent to watch and see what happens with refinancing at the end of 2012.

[kong71286Participant@kong71286Join Date: 2009Post Count: 261]

April 3, 2011 - 11:23 pm

First of all, welcome to the forums!

Saving $50,000 whilst you were still at university is quite an achievement!

What should you do with that money?

Well that's a good question, but it really depends on you

• What are your goals?
• What time frame are you looking at to achieve this goal?
• And Why?

There are plenty of ways to make money, whether it be in properties, shares, commodities or businesses, but what is vital is that you do your due diligence, and educate yourself in your investments

If you would like to invest in properties, what strategy will you be looking at?

• Capital Growth?
• Quick Cash/Renovation?
• Cashflow?

[kong71286Participant@kong71286Join Date: 2009Post Count: 261]

April 2, 2011 - 11:01 pm

I don't really know much about brokers, but TerryW has contributed greatly to these forums, and seems like a nice person I would want to do business with

[kong71286Participant@kong71286Join Date: 2009Post Count: 261]

April 2, 2011 - 10:53 pm

Some good points there

Just attended a Rich Dad Event, and one of the thing Robert goes through during the breakout session is the need to deal with the 'Past' and 'Present' in order to be able to predict the 'future'

The other breakout session by Monica about "Secrets of overcoming obstacles and taking action" also deals with the past, present, and future

1. Where do you want to be? If you know you couldn't fail what would you do? What would your life look like in 5 years time? How much passive income do you need? What would you do with your free time? Where will you be living? What will your family look like? What will your social life look like? Who will you spend time with? What are your aspirations? What is your ideal time frame?
2. Where are you now? What is your financial life like right now? You professional life? Your family? Are your relationships what you want them to be? Are you spending your time the way you want to, and with whom you want to? What are your current skill sets? How about your current habits? Do you have all the knowledge you need to have to do the things you want to do? What is your social life like?
3. What has held you back? What has kept you from taking action?
4. Answers/Steps/Solutions/Plan – based on knowledge + application + accountability + motivation over time
5. Your Why – a personal why that will you make you do what you thought you couldn't do

For those interested in reviewing the replay of the Rich Dad Los Angeles Event:

https://www.richdadworld.com/online_events.html

[kong71286Participant@kong71286Join Date: 2009Post Count: 261]

March 30, 2011 - 1:46 pm

LOL

Guess you are still investing (or not investing) based on numbers

[kong71286Participant@kong71286Join Date: 2009Post Count: 261]

March 25, 2011 - 8:56 pm

SueD wrote:

5 years ago I purchased a small sydney terrace in a beautiful, quiet, up and coming area which is 5 minutes drive from the city. The house is located in a block of streets known as the "Golden Triangle". This house is the worst house in the best street scenario. When I purchased it I could only just afford it, it was a risk and I had to budget well to stay there ie fix my interest rates and budget my wage each week, and this worked for me. I have now found that the property has been valued at $210,00 more than I purchased it for. A year and a half ago I moved out of the property and rented it out. I am now finding myself positive gearing the property to wonderful tennants, which has been my investment goal for the house. With the equity, I have now been able to purchase another property in another state and am still able to positive gear my Sydney house. It is always in the back of my mind what I should do with my sydney property. Should I sell it and use the money to buy a couple of places to positive gear for the future, should I wait and renovate this worst house in the best street, or should I keep it for the future.

First of all, congratulations on your investment!

Location is the most important factor for Capital Growth, and Sydney has been one of the prime areas of growth in Australia for the past decade

What you decide to do now with your property now really depends on what your goals are, and what time frame you are looking at

Personally I would invest where my return is greatest

[kong71286Participant@kong71286Join Date: 2009Post Count: 261]

March 25, 2011 - 8:13 pm

Wow… Talk about a heated debate in here!

As investors, I guess it all comes down to what you value more

Money or Time?

Would you rather try to do the job yourself to save a few bucks, and risk blotching things up?

Or would you rather hire a professional who can do the job property in a timely manner?

Personally, for me it depends on the job

If its something simple like fixing a leaking tap, I'd prefer to just spend a few dollars to replace the valve myself

But if it was a more complicated job, which requires a lot more time and some bigger tools, I would hire a professional

[kong71286Participant@kong71286Join Date: 2009Post Count: 261]

March 25, 2011 - 7:45 pm

HighIncomeProperty wrote:

Simon, As a Canadian, you might have a better chance than other non-resident investors, although I am not sure that buying thru the business is going to make it easier. Assuming you want to borrow 90% based on the value on the property and with no recourse to any other assets held by the LLC, you might have a hard time. We have tried to assist other foreign investors wanting to do the same thing, but we did not find a broker who could do it – a lot SAID they could do it, but in the end it wasn't happening. You might be able to find some with seller financing, what areas are you looking at?

I agree about it being difficult to borrow money if you don't have any assets or income to borrow against, but what are your thoughts about investing in commercial properties via an LLC? I remember reading somewhere that the borrowing for commercial properties is based on the asset and its income itself, rather than your personal assets/income.

[kong71286Participant@kong71286Join Date: 2009Post Count: 261]

March 25, 2011 - 7:33 pm

Hi Angel,

May I ask why you are not investing in Australia anymore? Have you had some bad experiences here? Or is it just that you think properties here are much more overvalued than in other countries?

And why you are thinking of European countries, as opposed to Asian countries, or Western Countries like the US?

Personally I don't know much about the European property market, and would prefer to invest in a country where I understand the language and have contacts there

Kong

[kong71286Participant@kong71286Join Date: 2009Post Count: 261]

March 24, 2011 - 7:25 am

Thanks DWolfe!

If you want something bad enough, I think you will find a way

Most people however are too comfortable where they are, and can't be bothered changing

The best tip I can offer, is to think about the BENEFITS of achieving your goals, so that the small menial things don't matter

As the the $90k thing, it's called 'Fractional Reserve Banking'. If you have 100% fractional reserve requirement then the bank can only lend out money they have, but if you have 10% fractional reserve requirements they can create money out of thin air and lend it out with interest. Not a bad business to be in, ey?