Forum Replies Created
no, no contradiction… I pointed out that it wasn’t bought as an investment…
as I wrote, “they’re more of a lifestyle/emotional thing.. that was our thinking when we bought it, having somewhere to take the kids etc.”Yes, I said: “had I not bought one and sold it I wouldn’t be in the position I’m in now.” That’s a statement of fact, and I’m happy to admit to plenty of luck in riding the CG wave like a lot of people did. We just bought where we could afford, and the rental appraisal was more out of curiosity than anything… the holiday rental stuff was mainly due to the Peninsula being so painfully packed during the Xmas period, so we thought, hey, why not rent it out instead of it sitting empty? We didn’t buy thinking about CG and yield etc…
Clearly your thinking has been different in purchasnig your holiday house, since you’re taking CG etc into account. I would argue that most holiday house purchasers don’t.
Thanks for the offer of the bet, but I’m not a gambler… I honestly like to see everyone do well with their investments, it’s just that what’s good for one isn’t so good for another… for the sake of when we revisit this thread in 12 months, name some specific areas on the Bass Coast… I think there will be bugger all growth over the next 12 months in most areas to be honest. And as always, there’s other investments besides property.
cheers
rg’day rogue
spot on, I love holiday houses, but I wouldn’t call them investments, they’re more of a lifestyle/emotional thing.. that was our thinking when we bought it, having somewhere to take the kids etc. Mind you, had I not bought one and sold it I wouldn’t be in the position I’m in now. I wouldn’t buy one now as an investment because the yield just isn’t there. When I bought the cost was 170k, and the rent (as a permanent) was appraised at around 200pw… holiday rentals over the Xmas period mainly brought in 1000-1200 per week. It rented out for around 5-6 weeks with the odd week here and there at other times through the year for a greatly reduced prce. Those numbers aren’t bad at the original purchase price, but we sold for $340k, while the 200pw figure hasn’t changed… the numbers today don’t stack up, way too negatively geared (for me anyway). Selling it was the best thing we did, because every time we went there I ended up spending most of the time gardening, cleaning up etc. Also, the holiday tenants, even though they were families who came from “good” suburbs, were absolute pigs… there was always damage left behind, be it flywire screens or stains on furniture. Not anything major enough to go through insurance, but just bloody annoying.
good luck (honestly, not sarcasm) for people buying at Philip Island et al now, I just don’t think the growth will be there for a little while… I’m not saying you’re wrong, it’s all just opinions.
I’d love to see some stats about people working from home too, because although I’ve read plenty about how more and more are doing so, yet in my circle of friends and associates, I’m yet to come across one, even though they are employed in a very wide range of careers…
cheers and merry christmas to all
rwho are the “people who know”? by the time it gets in API, the train has left anyway.
as a place for a holiday house, it’s good… and rogue, it’s not currently going through a boom… it’s been through a boom, like everywhere else on the coast. Also, if the economic downturn is just around the corner like Mr Costello is softening us up for, and we hit a recesssion with its accmopanying bad times, the first thing to go for people is their luxuries ie holiday homes. Look back at history, that’s exactly what happened on the surf coast and the peninsula during the last recession. That would be a good time to buy… not right now. Booms don’t peter out in a matter of months, I believe it’ll track sideways for a while, if not down.
I still can’t get my head around how people expect places to keep on booming after CG of 200-300%+ in the past few years. You can get places in Rye for 200-250k as well. Mornington Peninsula ain’t all Sorrento and Portsea.
Cheers
rwhy buy at the tail end of a boom? prices have doubled and tripled already…
I like giving simple replies.
If it’s causing you too much stress, sell one and reduce your overall debt.
If you think it’s worth the stress and you can put up with it, don’t sell any.
Only you know the answer really
Ask yourself, is the lure of the future worth so much sacrifice now? As you said, you need a life. Investing is just a means to an end and money ain’t everything (although it’s nice to have!!).
By the way, rolling the loan over will still leave you with the same LVR, so what’s the benefit?
Cheers
rHello Michael…
Just be careful, tax minimisation is legal, tax avoidance ain’t. Don’t stretch white lies too far with the ATO.
Cheers mate
rIn certain towns in regional Australia, residential properties meeting the 11 sec solution are very very easy to find… whether they are a good investment is another matter.
cheers
rMichael
I’d encourage you to get your hands dirty yourself, without using a buyers agent. It’s the best way to learn.
Cheers
rHi Michael
For some up to date news on what the NZ market is doing, do a search for posts by minimogul and westan… wilandel have also bought properties there.
cheers
rHi LifeX
While Steve’s fundamentals are based on positive cashflow, even he admits capital gain has been a MAJOR factor in amassing his fortune with Dave.
Cheers
rApart from Steve’s first book, read Jan Somers’ book More Wealth From Residential Property… might also be worth subscribing to Australian Property Investor magazine
Hi debtdogg,
Get a copy of “Trust Magic” by Dale Gatherum-Goss.
It will clear everything up for you.You can buy it online at http://www.gatherumgoss.com
cheers
rHowdy bruham my man,
I still don’t know why people equate “cheaper” or “country” properties with “backwater”… there are many bustling cities in Australia with populations of 30, 40, 50 thousand that have a solid diversity of industry and are good places to invest. One example, I bought 4 with yields of 10% 18 months ago in a city of 50,000 for a total of $330,000… I put $45k total into the deals… if I was to sell the lot tomorrow I would easily gross around the high $400s to $500k. Say I sold them all for $500k, that would make my gross cash on cash return around 400%. It’s not as good as some, but good enough for me.
Cheers
rHigh 100s will easily buy you something decent and rentable in a place like Shepparton, Bendigo, Ballarat, Warrnambool etc… regional centres with populations of 30,0000 or more.
cheers
rIf you redraw your money from your home via redraw facility or line of credit, and use it for investing, then the interest on the loan is deductible… all you have to do is prove to the ATO what the money was used for.
Cheers
rhowdy,
interest on money borrowed for investment is tax deductible
cheers
rI don’t quite get the point of this exercise. Shouldn’t people invest to their means? I’d rather the cheaper properties… vacancy in the hunters hill place means big big repayments to meet… at least with 4 the risk is spread. The Hunters Hill one may very well be worth more in a decade, but my sleep at night factor for the other option will be much greate…
cheers
rHi Domo,
Use the search facility, she’s been discussed quite a lot.
Cheers
rbruham
I’ve always been a news man, never the alleged “current affairs”… only worthwhile shows that deserve that tag are 60 minutes (sometimes), Sunday, and a few on the ABC. Good to see you’re supporting Mr Packer and keeping the likes of me in a job by watching 9.
Cheers
r
