Viewing 14 posts - 1 through 14 (of 14 total)
  • Profile photo of maximusmaximus
    Member
    @maximus
    Join Date: 2003
    Post Count: 189

    Hi everyone. I was just wondering what the bulk of you would do if you had around $80,000-$100,000 to invest. By that I mean would you look at getting 1 property thus ensuring a positive return or 2 properties with a lower return but (hopefully) greater growth. Also, where do you recommend to buy. I live in Sydney but was thinking that parts of Brisbane look good. Any advice is appreciated.
    Thanx

    Profile photo of ADAD
    Participant
    @ad
    Join Date: 2002
    Post Count: 636

    When you say 80-100 to invest is that deposit or total loan ??

    Enjoy
    AD [:0)]
    (Andrew)

    “”Imagination is more important than knowledge. Knowledge is limited. Imagination encircles the world.”
    Albert Einstein

    Profile photo of maximusmaximus
    Member
    @maximus
    Join Date: 2003
    Post Count: 189

    Sorry about that, I should have clarified. The 80-100,000 would be deposit.
    Cheers

    Profile photo of ADAD
    Participant
    @ad
    Join Date: 2002
    Post Count: 636

    OK. What sort of propert are you looking at buying? What is your goal with property investing? Do you want Positive cashflow properties or Negative cashflow properties ?

    As to where to go specifically….Brisbane does offer some good buying but it still has to match your desired outcome. I bet I could go into any state and purchase houses that meet my requirements. I know what I want and I know how to narrow down the field to find those deals.

    Let us know your aims Maximus and see what happens.

    Enjoy
    AD [:0)]
    (Andrew)

    “”Imagination is more important than knowledge. Knowledge is limited. Imagination encircles the world.”
    Albert Einstein

    Profile photo of maximusmaximus
    Member
    @maximus
    Join Date: 2003
    Post Count: 189

    Thanx AD. What I’m trying to achieve is to eventually live off the rents of investment properties (aren’t we all). We (my wife and myself) have a few IP’s already, some neative and some positive (with tax deductions etc). So what I’m trying to do is find positive cashflow property/ies (hopefully with growth). I prefer houses but am also open to the thought of units, we currently have unit on Gold Coast in high rise complex which we were thinking of selling (this is where the deposit is coming from). Hope this helps you to help me. I’m sure that last statement was a similar phrase out of a Tom Cruise movie
    Thanx again

    Profile photo of ADAD
    Participant
    @ad
    Join Date: 2002
    Post Count: 636

    Mate I am impressed with your reply time. You must be sitting here as I do. As part of my plan I have allotted 30-45 minutes per day to spend on the forum seeing if I can help others. (Time is nearly up for today….so much to do).

    To your questions…..

    Let me ask you a question.
    How much do you want to live off ?
    When do you want to start living off it ?
    What would you do to get there ?
    What kind of properties do you want to own from here to the goal date ?
    At what level do you want to deal with people ?
    (remember property is all abour people).

    These are some of the questions I ask myself everyday. Give it some thought and let us know what you think. If you could also (for yourself) quantify these points don’t just make them rough. Put amounts, put dates, etc.

    Once you have done that then you can work toward your goal. It makes it easier to buy or not as one question gets asked.

    Will this deal get me closer to my goal or further from it ??

    Hope this helps.

    Enjoy
    AD [:0)]
    (Andrew)

    “”Imagination is more important than knowledge. Knowledge is limited. Imagination encircles the world.”
    Albert Einstein

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,173

    Mate

    I would buy 4 to 5 (or more? if you can qualify for high lvr loans) positively geared properties each generating $3000 each per year-using a trust of course. keep saving and keep reinvesting the cashflow into more of the same until you get what you what income wise.

    Terryw
    [email protected]

    Terryw | Structuring Lawyers / Loan Structuring Pty Ltd
    http://propertytaxbook.com.au/
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Aust wide) http://propertytaxbook.com.au/

    Profile photo of truebluetrueblue
    Member
    @trueblue
    Join Date: 2003
    Post Count: 142

    As your deposit is coming from the sale of units, I hope you have taken your tax out of your equation. Otherwise, you may have to go back to the drawing board.

    Profile photo of maximusmaximus
    Member
    @maximus
    Join Date: 2003
    Post Count: 189

    To TerryW. 4 or 5 sounds great. Just what I’m looking for, but where on earth do I find these type of properties that would be cashflow positive with such small deposit/s. Have searched the net for these type of properties, but very hard (if not impossible) to find.Maybe I’m looking in the wrong places. Once again, any input is greatly appreciated

    Profile photo of scottscott
    Member
    @scott
    Join Date: 2003
    Post Count: 110

    Dear Maximus,
    I’m only very new to this whole proprty thing, but I’ve found that its easier to find positve cash flow properties in the lower end of the market. I’m buying two at the moment, both under 100K and returning about 12%.
    with the money you have available you should be able to get quite a portfolio together look in large regional centres around capital cities, and dont nessesarily buy the ones that the agent wants you to see, the agent who sold me my two wasn’t even going to show them to me , it was only when I got him back to the office and said “you havent shown me anything I want to buy” that he pulled both of them out.
    One bit of advice only borrow to 80% LVR to avoid mortgauge insurance, if down the track you need more money for deposits,I’d refinance (to use any capital gains in the properties), back up to 80%.
    Good luck![:)]

    Best wishes
    Scott S

    “Aim for the stars and you’ll shoot the top of the telegraph pole. Aim for the top of the telegraph pole and you’ll shoot yourself in the foot!”
    -anon

    Profile photo of maximusmaximus
    Member
    @maximus
    Join Date: 2003
    Post Count: 189

    Thanx to everyone for their advice. Definately gives me food for thought. I was thinking of maybe 2 deposits, but you guys have made sense in suggesting going for more. Only problem now is to find the area/s to invest in that will produce a positive cashflow. Any more suggestions?????
    Thanx again
    P.S. This site rocks. It is so good to be able to discuss these types of issues that we all confront at one time or another.

    Profile photo of lynne14lynne14
    Member
    @lynne14
    Join Date: 2003
    Post Count: 29

    Hello Andrew
    I think most newbies (like me) have the same questions, your help is much appreciated. In your list of questions above, can you please explain ‘what would you do to get there” and how does what level of dealing with people make a difference? Thanks.[?]
    I also wonder if Maximus has $80K in equity why not keep the property & take a loan?

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,173

    Maximus

    You don’t have to find +ve cashflow properties. You can create them. Any property can be a +ve cashflow property-you can wrap them or lease option them.

    You can also do things like rent out each room to students. Add another bedroom cheaply etc. Anything that will increase rent.

    Terryw
    [email protected]

    Terryw | Structuring Lawyers / Loan Structuring Pty Ltd
    http://propertytaxbook.com.au/
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Aust wide) http://propertytaxbook.com.au/

    Profile photo of jempirejempire
    Participant
    @jempire
    Join Date: 2001
    Post Count: 19

    Maximus,

    I have a question for your regarding your situation.

    What investment strategy are you looking at using Renos, Lease-option, Wraps or Buy and hold?

    Your last question to the forum was where do you find these so called +ve properties? My answer to you is, you create them each property requires a different strategy it. Anyone can invest in -ve properties, it takes skill and patients to create a +ve property.

    If I were you I would use the 100k to invest in about 4-5 houses not units using one of the above strategies.

    I hope this helps you, the more questions you ask the more knowledge you gain which will help you make a more informed decision.

    Shane

Viewing 14 posts - 1 through 14 (of 14 total)

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