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Thats because we live in the best country around and alot of people want to move here.
I would sit and wait. Look at it this way. IP1 has allowed you to buy IP2 and IP3. If you pay down some loans on IP2 and IP 3 and let time take its course, then you could probably multiple again. ie IP2 allows you to buy IP4 and IP5 and IP3 allows you to buy IP6 and IP7.
How soon you buy IP4-7 depends on your risk profile. I am conservative and don’t want to risk loosing it all one day.
I still don’t understand why you need to sell a good performing property investment. You got to have some patience.
Congratulations.
Before you know it she will be 5 yrs old. The first 6 months are the toughest. Well thats what we found.
Have fun.
We are a two car family.
Our family car – wife drives is a 97 Ford Falcon station wagon.
I drive a salary packaged 2002 Holden Astra. Lease expires next month with a $10k residual. I will payout the residual and that will give me an extra $500-700 per month cash to invest instead of use on the car.
I dont fancy getting public transport to work as driving saves me at least an hour a day.
I agree with Kay. I dont need a BMW or Merc but I also dont want to drive a car I drove while at Uni.
As always – life is a balance.
Intrinsic Value –
This is what worries me a little.
How can a young couple getting married afford to buy an average house for $350k. Well thats what you need in surburban Melbourne.
Not only do they need to afford the interest payments but they also need to save the deposit. I cannot imagine having a mortgage of $250 to $300k.
That to me is intrinsic value.
Prices will fall slightly or at best remain where they are over the next 3-5 years.
So I still see property prices falling.
Student accomodation paying 8% for a studio apartment. Studio to me means there is no bedroom and you sleep in the lounge.
CF+ – i dont call that investing. Too risky for me. An inner city apartment. Small body corp fees – what does that mean?
I get their emails. None of their properties interest me.
My aim is to consolidate and do NOTHING.
I am not entirely doing nothing. All I am saying is that my portfolio is now at a stage where its neutral. i believe in investing in city surburb properties near the beach and stations.
Sure prices have gone down and there are opportunties, but i reckon the opportunities will be better in a few yrs.
I am not the only one sitting and waiting for better opportunities.
Hi Westan
In my view buying in the US is too risky for me and they too are in a smimilar position in the property cycle.
The returns may be good in some areas but they come at a price – risk.
If returns were that good then why dont more people in the US invest in property rather than shares and their 401k.
My uncle in law – who lives in Canada has always said to me NOW is the time to be selling not buying.
Anyway – good luck with your spotting business. Hopefully your investors will not regret their investments over time.
If you cant find this answer on this web site – i doubt you will be able to find any properties for $100k giving positive cash flow.
I started with buying my own PPOR. We were renting and saved a very small deposit and then bought our PPOR. As I grew some equity I bought my first investment property without the need for a deposit. We cross collaterised. Now my PPOR is fully paid and I have a few investment properties that were negative geared but are paying for themselves nicely. Our PPOR is now unencumbered waiting for future opportunities.
If I was to start again today – what would I do? I would probably buy a PPOR. Its too hard to save a deposit and rent and then do the above again. By buying a PPOR you are buying in todays dollars and will pay it off in tomorrows dollars. Eg. For a home in my area 5 yrs ago you paid $180k now its $350k. I would buy now and commit in todays dollars, otherwise buying a PPOR in the future will always cost more. Oh and its capital gains tax free.
I have been looking for a new position recently. I have been with the same company for over 10 yrs and feel like a change. I am just over 40 and cannot get over how young the recruiters are.
My thoughts –
1. Rents could rise – tenants have more cash.
2. Could be inflationary and cause interest rates to rise.
3. People have more cash – more confidence to invest.
4. Less people on higher tax rate – reduce effect of negative gearingI am a little worried about all this investing in the US. Property in the US like here is also overvalued.
I lived in the US (San Francisco) for a year back in 1999. And I was in Canada/US about 8 months ago. I looked at properties in Canada – Montreal and Ottawa. I also looked at some properties in the US on the Canadian border.
The places I saw were like ghost towns. About 20 years ago when my wife was a kid growing up in Canada these US towns and cities were pumping. Now they are a shadow of what they were.
Is this good for investing? I dont know. They may be cash flow positive but I dont reckon its worth the currency swings, tenant problems in winter. Do you realise how cold it gets on the US/Canada border.
I also had discussions with my wifes canadian uncle who is a property millionaire. He was discouraging me saying now is the time to be seling NOT buying. He also made the point when your a long way from your investments you get ripped. I respect his opinion alot as he bought a 64plex back when things were bad – about 15 yrs ago from a group of accountants and solicitors. He told me to just bide my time.
Anyway its my 2 cts worth.
<<<<it is tenanted for 250pw until 0805 >>
Do you reckon you can still get this rent when the lease is up? I have properties I have bought about 5-6 yrs ago for half this price and cannot get $250 rent.
Where is the property?
Good luck with it.
Only offer what you reckon its worth. If its a special deal and you reckon you can make good money on it in fimmediate uture eg. development site then offer more.
I reckon there is no hurry to buy. So wait a little. Wait for them to chase you. You got the cash, so your the king.
My wife has started to respect property investing after reading the Book “The Good Earth†by Pearl S Buck. It was written in 1931 and we got our copy from the Library.
Anyone heard of this Book – its worth looking at. I would love to hear any other comments regarding this.
I too have a disinterested partner who has now slowly turned the corner.
My wife has started to respect property investing after reading the Book “The Good Earth†by Pearl S Buck. It was written in 1931 and we got our copy from the Library.
It was listed on Oprahs Book list or something. My wife read it and suggested I read it as well. Eventhough its on Oprahs list and probably a girlies book I thought I would read it as it may give me a clue to whats in my wifes head. Except for the Da Vinci Code we hardly read similar Books.
Anyway its now got her wanting to buy properties and reduce spending and save for a deposit on a holiday house. Its not a financial book but it does describe through the main characters life the benefits of property ownership. Its set in China prior to the revolution. I did enjoy it and realised I think the same way as the main character. Now my wife is starting too.
Maybe this Book would be a good birthday or Xmas present without being pushy. However I dont even know if you can buy it.
I have no problem with advertising. All I am saying is that the sign should be removed from the property after its sold.
There you go again – telling me to grow up!!!!! Hardly objective just because my opionion differs from yours. There are no right or wrong answers here – just a discussion. Let me get my 4 yr old son – maybe you can tell him to grow up too.
