All Topics / General Property / My Property Theory – Your thoughts

Viewing 8 posts - 61 through 68 (of 68 total)
  • Profile photo of richmondrichmond
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    @richmond
    Join Date: 2003
    Post Count: 831

    Sorry Bear, but I don’t think Queenstown and Williamstown can be compared at all… and I don’t think tourists pencil in Williamstown when they’re considering where to go in Melbourne…

    And Sea Change was mainly filmed at Barwon Heads.

    Cheers
    r

    Profile photo of BEAR1964BEAR1964
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    @bear1964
    Join Date: 2003
    Post Count: 702

    OK I stand corrected on it being filmed entirely there. When I was there I was informed it was. Im not comparing the towns as towns, just as a tourism observation. Other small towns I have visited also in Tassie the locals have told me the tourism is what has put them on the map. They say people travel there, fall in love and buy there. In other cases it just brings in alot more $$$$$$$$$$$

    Regards Bear

    Profile photo of markpatrickmarkpatrick
    Member
    @markpatrick
    Join Date: 2004
    Post Count: 94

    I would not invest in Tassie myself.
    Maybe it did grow strongly by say 30%, so that makes your property worth, what $50,000, not worth the trouble imo.
    I would be very surprised if this was not caused primarily by inexperienced investors after it was on TV.
    Tassie is perfect for a holiday cabin in the bush somewhere though, it has some of the best country I`ve ever seen!.

    Profile photo of RowanWRowanW
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    @rowanw
    Join Date: 2003
    Post Count: 13

    quote:


    Originally posted by BEAR1964

    Thanks Richmond

    …My experience many years ago when interest rates got as hi as 18%…Many people lost alot of money in these areas…but if ya can’t service the loan u have to get out.

    Regards Bear


    And this was my original point – whether you convince yourself that because X happened in area Y means it’s going to take off – is not worth worring about if you are living on the edge, financially.

    +ve cashflow is fine for some, as is -ve cashflow. Rural, regional, urban IP’s – it’s all a matter of what your attitude is to the risk associated with each and every buy. But underpinning each and every purchase also must be the realisation that you must be able to service the debt – in bad times as well as good.

    How many of you have looked on with envy at those people who coolly advise that they have $120,000 income from rent per annum. Did they also tell you how much the interest bill on the debt was and how much higher that debt grows when interest rates rise and they don’t/can’t adjust their rental yields more than once a year?[?]

    By the way Bear, locals telling you how good the area is, is a bit like the cabbie giving you a red hot share tip [:(]

    Be careful out there – study the market, make a plan, and stick to it!

    Cheers,
    Rowan

    Profile photo of hwd007hwd007
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    @hwd007
    Join Date: 2002
    Post Count: 247

    i think if you factor in fixed rates to you positive cash flow analysis, you should be safer.

    Profile photo of MiniMogulMiniMogul
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    @minimogul
    Join Date: 2002
    Post Count: 1,414

    Hi All,

    I want to do a longer reply but am at an internet cafe on holidays, so can’t talk long.

    Briefly, I think it all comes down to the old ‘negative gearing versus positive gearing’ argument.

    The best thing about cash yields is that you don’t have to revalue, refinance, sell, or otherwise frig around to ‘get your money’ – it arrives in the bank regularly, courtesy of your tenants and property managers. It’s actual cash, which pays your groceries if you spend it, and earns MORE cash for you if you don’t. Cash that can be put towards further CF properties that will *increase* your income/lifetstyle /serviceability to a bank, as well as put you closer to being able to retire and live off your properties.

    I’m not saying that a well-placed negatively geared property would look out of place in my portfolio, and if the chance to make silly money comes up I will definitely go for it. But personally, I will be making sure that my portfolio is always positively geared overall. Really, that my *life* is positively geared, overall. That way you can use the positive cashflow properties to support the (let’s face it) more speculative ‘negatively-geared for growth’ properties. Yet not be more ‘broke’ every week.

    cheers-
    mini

    Profile photo of kay henrykay henry
    Member
    @kay-henry
    Join Date: 2003
    Post Count: 2,737

    Gawd Mini- you addict- couldn’t keep away huh? :+P

    kay henry

    Profile photo of Matt PMatt P
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    @matt-p
    Join Date: 2003
    Post Count: 645

    well some people are just forum addicts *cough* PropertyGuru *cough* [:p]

    Matt

    “If you do what you have always done, you will get what you have always had.”

    “Isn’t it time for a change?”

Viewing 8 posts - 61 through 68 (of 68 total)

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