Hi, I’ve just read Steve’s book and am excited about the prospect of buying positively geared IPs, however, I have met a lot of negativity along the way.
My partner and I were considering buying some land in Chancellor Park, Sunshine Coast for roughly $120,000 but once I’d applied some commonsense and Steve’s theories I found that this would not be a good investment. Despite the figures my husband was trying to convince me otherwise, until he spoke to our real estate friend who come to the same solution as me but for different reasons. (Word is market is going to hit a slump in the next 6-12 months and interest rates are set to rise again)
He also advised that in today’s current market although a good idea it’s an impossibility to buy positively geared IPs. And that our best bet was to buy our own property (home) first and borrow against the equity for future purchases. What are your thoughts on this?
My husband seems to think that we wouldn’t be able to qualify for a loan in general if we rented and wanted to own an investment IP too.
I’m new at this (22yrs) and would appreciate any ideas/advise to help me on the road to financial independence.
Thank you for your time.
Hi
This is pretty much the same theory as my wife & I have come to. We already have quite a bit of equity in our own house – so if I can dig up a golden opportuity, we’ll hopefully have the loot to finance the initial costs.
In the meantime, its full steam ahead with gaining equity in our place.
Not all positively geared properties have vanished. I had found a couple in the last week or so (they were out of my bravery comfort zone for a first IP purchase). Having done more research and got the balls to do it – they were both sold!!
The hunt begins again!
Be patient and do lots & lots of research.Finally a reply! Thank you Barnsey [biggrin]
I’ve spent most of this arvo surfing the web and reading up the posts on this forum. I’ve come across a lot of good ideas to build on my knowledge. Haven’t found that positively geared property yet but will keep looking. Good luck and hope you find the courage to step over that barrier.
Angelcake,
Here’s a reply I wrote last night to someone who asked a very similar question to the one you have asked. I’ve edited out the irrelevant bits
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I think there are heaps of positive geared properties around. Well, cheap properties with rental potential of 10.4% So you buy a property in a rural location, for 50k, and rent it for $105 a week. It’s not hard to find them.
I haven’t gone down the rural property road, but I bet could still fine 40 properties on the net within a half hour that could have rental potential of 10.4%. It’s whether you want to go there or not.
But just because I don’t go there, doesn’t mean that they don’t exist. How many towns are there on realestate.com.au? thousands and thousands. You can find those kinds of properties in an instant. A spotter will check out the properties for you, if you want to pay someone, but any person can find them themselves, independently.
kay henry
If you think they aren’t any CF+ properties out there then there isn’t. If you think otherwise, there is.
I’m in the process of closing on 2 myself so I must think there is [thumbsup2]. You don’t always have to work on raw yields, think outside the square.
Trick is, if you do find something, you need to be very quick in assessing the deal or locking your offer in with weasel terms to get out if the deal goes south [upsidedown]. Else they dissapear very quick.
Having said that, never pay too much. Nothing worse in getting into a bidding war [grrr] over a CF+ property like seagulls over a fish head [puke], which appears to be happeneing in some places.
Later…….
Please don’t ever think you can’t get a loan until you have canvassed all of the lenders or have a broker do it for you.
It is often all too easy to shoot yourself in the foot before you even start with a negative attitude!
Cheers,
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
I am positive about the prospect of +cf properties but needed some reassurance in the face of negatism. Thanks for the encouragement and ideas.
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