CAPITAL GROWTH/GAINS……
Are you looking at persuing Great Capital Gains still ?
Do you think the market has ran it’s course at this point in time ?
Are you changing your strategy now ?
+ CASH FLOW..
Are you still chasing your 10% yields ?
OR reducing expected yields to be expected to 8-9% ?
Or are you leaving OZ for NZ ?
IF growth is diminishing and yields are reducing…WHAT NEXT ?
How has your plan’s changed of late…[8D]
REDWING
Just wondering …
Good deals of course are about, just harder to find.. what next, consolidate and wait ??
“Money is a currency, like electricity and it requires momentum to make it Effective”
My strategy is one of growth. Good quality properties that I know will always grow in value and have reasonable tenants.
My plans – consolidate and wait!!!!! I dont want to be like the HERD. I will bide my time.
I have already bought and am not buying now. I dont want to be disappointed in 3-5 yrs time by buying a cash flow property that is fundamentally flawed. (regional property, bought when interest rates are historically low, low socio-economic tenants, maintenance involved in cheap far away properties).
My strategy is one of good quality growth properties.
There are still growth properties. I am not necessarily waiting, but I am watching and I am consolidtating and offloading and revamping etc
I was keen on cashflow positive properties, but my ideas have changed and would now only go for growth. Any cashflow would be a bonus.
Terryw
Discover Home Loans
North Sydney
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
what made you change your ideas terry? (apologies if you’ve explained this in the past)
cheers
rHi Redwing,
This is a great question and one that I am eager to hear the answer for from others. We have our own home and 4 IP’s at the moment and I am eager to get into more asap but I am willing to take the time to do the research and I feel that if we can hang in with the interest rate rises that may come then going into 2005-2006 it may be a great time to buy bargins (homes that people can no longer afford) and maybe get back to the days of + cf that Steve knows so well.Personally, I feel that I would like to purchase this year and am looking for a mix of – cf and + cf (if you can find them). I would look at acquiring some in the capitl, some in major regional towns — some for growth (through time in good market and reno) and others for neg gearing benefits and some for + cf.
I believe there are many opportunities for further good growth in the market in QLD especially and would like to take that growth this year in prep for coming years.
Just my thoughts….
Cheers Karen B!
I’m looking now, for a couple of reasons, firstly I believe that over the next year or two some investors will leave the market when they don’t get the returns they are expecting, therefore I feel that vacancy rates may drop and perhaps rents will go up, effectively voiding interest increases.
I believe I need a mix of +ve and -ve geared properties. I belive everything cycles so I can wait for the next cycle and I will already be in the property market when some share market investors are trying to get back into property.
I guess our plan is a 10 year plan so we have time to wait. We plan on continually purchasing, we can ride out the highs and lows by being consisent in our plan.
Originally posted by elves:There are still growth properties. I am not necessarily waiting, but I am watching and I am consolidtating and offloading and revamping etc
Agree and doing the same as Elves,
Originally posted by PurpleKiss:I believe I need a mix of +ve and -ve geared properties. I belive everything cycles so I can wait for the next cycle and I will already be in the property market when some share market investors are trying to get back into property.
Also agree and on the very much same plan as PurpleKiss.
Originally posted by TerryW:I was keen on cashflow positive properties, but my ideas have changed and would now only go for growth. Any cashflow would be a bonus.
always been a -ve gearer, and where possible +ve cashflow properties are bonuses… but honestly, i dont really like +ve cashflow properties too much. (Only use them for Offset Gearing)
Cheers,
sisI agree with the following example by Big Ben he used on a different post…That growth is better than cash flow.
1, Capital gains of 7% on $200,000= $14,000
Capital gains on $30,000 rural = $0
Income losses from neutral geared property per annum
$0
Income gains from +CF rural area per annum say $2,500 Ie it takes 6 years to make same gain as 1 year.Take into consideration that i am getting compound growth on the $14,000PA and i must say that you will find it very hard to catch up.
Very true and valid yack, but there are some people who can only afford to buy the $30K properties to start.
All bar one of my properties have been purchased for growth rather than cashflow, and I think that that trend will very much continue. I am looking into alternative investments that will give me the cashflow to continue to buy growth houses. Plus, I like paying no tax [
]Cheers
MelClose to exhausting my finances to absorb another negative geared propoerty, so I am carefully looking at property in population growth centres. With the desire to be at least neutrally/positively geared with exapanding infrastructure, industry.
Not easy though.
James
Hi there, I am always looking…..
I have a few good quality neg geared properties in good locations. One property has now been rezoned triplex, so we may look at developing.
I am also looking at commerical properties and NZ but not in a rush.
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