Forum Replies Created
My partner was initially not interested either.
So I discussed with her planning for retirement and securing a method to ensure we would be comfortable at this time. of course all the old folk thinking RELIIES had the mentality of working hard and saving for your own home and work harder to pay it off….yes and then what… hmmmm big fat cheque from the government of 200k + with the *superindustries funds*…..wot a joke !!! so thats 250 K in 30 years…..thats the eqivelent of 25 K in todays terms…. wooo knock yourself out !!! gossssh WOT TO DO WITH ALL THAT $$$$$$$
So I said, a way to secure financial security when we retire is through building a investment property portfolio….. and starting it NOW….and the clincher !!! MAKIING her read : “Rich dad Poor dad” ….now she is at dinner parties discussing the benefits of property to her friends…sneaky huh ????
SDAB
I looked extensively at DHA figures. Yes there are advantages to having guarrenteed rent for a period of up to 13 years, but that appears to be the only upside, well that and the fact the defence force will renovate the property post lease off period.
I found the prices of the properties somewhat our of touch with existing proerties in the same areas. For example Epping, two bedroomed new townhouse were going for approx 100k higher than the mean price for properties in that post code (residex 2006). Even though there will be continued growth in rental yields over the next 12 to 18 months, there is still a formidable amount of negative gearing required. Added to that the 16 % management fee required per week to maintain the property. Now work out the numbers required to make this sustainable on a 600k house or townhouse. In my opinion, there are too many cons for these properties vs the pro’s. Dont take my word for it though. Log onto the DHA web site and do the figures yourself, even savvy investors can see the numbers dont add up simply for the peace of mind yo have a continual tenant in place
D
DAB
thank you … i thought the latter would be the most appropriatte for our purposes and with the tax incentives.. good news was able to obtain a 95% interest only loan without mortgage insurance, so will be definately following this path.Thank you for your reply
DAB