Bill and others out there..
If property is “off the Boil” and markets are expected to drop, then what next is the best course of action?
Reduce debt on loans as quickly as possible as more intrest rises possibly coming?
Look at other markets i.e shares, would the rate of return on say investing 10k in a stock or managed fund be better than paying that 10k off a current loan, you would have to choose well wouldn’t you..
search and invest extra $ for a better return than banks (4.75% to 5%)think i saw a thread a while back touting 7-8%.
just throwing ideas out here! i’ll still be searching for good property deals.[^]
what would you do with your spare $ till the next cycle…? Hmmm
there’s still a lot happening over here (WA) by that i mean a lot of projects
Redwing
“The man that thinks at 5o as he did when he was 20 has wasted 30 years of his life”
G’day Redwing…
I have learned to be patient… I wasn’t always.
Reduce debt and see how 2004 pans out by end March… no crystal ball, but I can see that far ahead………. If you could read the emails I’m getting you would not touch R/E.
Cheers
Bill
Bill O’Mara
Real Estate,Mortgages, Option Writing & Forex. [email protected]Hi Redwing,
You virtually answered the question yourself. If you put the 10K on the loan then you effectively get the interest rate you are paying which is more than the interest rate you will receive from an investment account and as your equity increases your return is even much higher.
C2
“Is it true the more you owe the more you grow until the bank steps in?”Thanks C2 and Bill
Value your opinions!!
Good to see there’s a few of us up hmmm where’s PeterM
REDWING
“The man that thinks at 5o as he did when he was 20 has wasted 30 years of his life”
Hi Redwing,
IMHO, I find it easier to put money into a mortgage rather than go around looking for the absolute best possible return. I don’t think it really matters whether the return is 6-8% or 10%. I use the cost of time and effort factor in making quick decisions. My time is valuable and it only takes a simple transfer on the computer to put the 10K into the mortgage. It’s done in a few seconds I get between 6-8% and then I forget about it and move on. If it’s in the right account and I need it again later it’s another few seconds on the computer and it’s done over and forgotten until the next time. If you start chasing for the best possible return how many hours are you going to spend going over shares, LPT’s, PDF’s, etc. How much is yout time worth to you. I’m not involved in shares and it’s not my forte, although I do intend to do Crashy’s course at a later date as part of my investment education.
The choice is yours TIME and EFFORT vs RETURN
C2
“Is it true the more you owe the more you grow until the bank steps in?”TIME and EFFORT vs RETURN
!!i’ll have to put that up at the top of my diary and make it my motto [
]One thing this forum has made me appreciate is to “DO THE NUMBERS” there are many ways of getting into the property market, and i now look at the numbersof any idea i have i.e ‘worst house in best street scenario’, sit down and work out application and loan costs, renovation and gardening costs, pottential problems, maximum and minimuim return expected- to see if the deal is worth it.
when looking for+CF properties and purchasing outside of your local area or area of knowledge, that “due diligence’ and ‘research’ are major factors in evaluating your decision. i’ve also learnt from others in the forum aboutvarious areas beyond my ‘comfort zone’ and knowledge, for example i know nothing about QLd or over EASt ( i’m in WA)… but i’m learning.
So untill the next deal comes along… andi’m looking still, trust me, i’m concentrating on reducing the mortgage on my PPOR and building the Equity. hmmm may be time to get the properties valued again to see where i stand[
][}]REDWING
“The man that thinks at 5o as he did when he was 20 has wasted 30 years of his life”
Hi Redwing,
I’m glad you like the TIME and EFFORT vs RETURN. I use this in many areas and not just wealth creation.
C2
“Is it true the more you owe the more you grow until the bank sterps in?”
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