Just wondering, in this market of ‘difficult to find CF+ properties’ what strategies are the experienced investors using to get ahead??
I am a novice and I read on one of these forums that Steve has changed his investment approach since writing ‘0-130…’ and I’m wondering….. well, what is he doing??
Thanks
Narelle
Chatting on this forum to you.
Don’t be afraid to sit it out for a while to see where things are heading! I think real estate is soon going to NOT be the flavour of the month (so to speak).
Hi narelle
sadly australia is about the worst country in the world at the moment for cash flow. I’m busy looking in NZ for myself and also looking at other O/S markets also. Investing O/S can be very dangerous if you don’t do all your checks, and its not for everyone. However it can also be very rewarding. But please anyone do thorough investigation before parting with your money.
Regards westan
I live in New Zealand and for a fee find cash positive deals there, email me at [email protected] to join our database
Hi Narelle,
As has happened in the past, so it will be again now, when markets cool.
Serious investors will be busy cashing up, and re-investing their money into more lucrative ventures, whether it be property, shares or cash. But if we are strictly talking property, again, I have to stress, SERIOUS investors will know that it is time to either buy for future growth, or sit and wait for the sun to shine once more (as it eventually will).
Second thing, the not-so-serious investors will PANIC and sell up (or try to) or if they don’t have anything to sell, will just moan and groan about how BAD the property market is, and how glad they are they are not a part of it!!!
I have seen 4 cool markets, and the trends/patterns, topics of discussion, doom and gloomsters etc etc are ALWAYS the same, and ever PREDICTABLE!!!! [biggrin]
Jo
Maximising value in properties through renos, selling the dogs, setting up businesses & share trading.
And much too busy to spend essessive amounts of time on forums
At least that’s what we’re doing
Cheers,
Aceyducey
In theory, there is no difference between theory and practice. But, in practice, there is.– Jan L.A. van de Snepscheut
mknk,
I think Steve has bought some properties in NZ. He’s also putting out a new book, and if it sells as well as his last book did, he’ll probably never have to lift a finger to do anything again.
As for me, I’m a novice
I am working and paying back my mortgages RE can be a slow game, and sometimes, it’s about the boring part of just paying off properties.kay henry
i’m into buying shares at the moment. just learning all i can. when the sun shines again then i will be ready to strike.
cheers all
shaunLead, Follow or get out of the bloody way
Good cashflow deals are still out there even in Sydney. In the past two months or so I have seen two people with cashflow +ve – or very close to it – on new purchases in Sydney. One was a unit renting for $700 pw which cost $500,000.
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
Terry,
Shouldn’t that have been $1000 a week to make it positively geared? Or do you mean a positive cashflow for return over interest rate costs only? I see the return you’ve stated as 7.2% (which is still good) :o)
kay henry
Punting Index futuures and Trading share options till things heat up again.
CheersI have sold a few to reduce debt and reduce my exposure to interest rates. Have another couple for sale but won’t sell unless I get my price or close to it.
On the other management side, I am keeping up the maintenance and doing bits of reno’s. Raising rents a little to offset rising council rates and perhaps future interest rates.
On the buying side, zip. I am astounded that people are still buying really negatively geared investments like there is no tomorrow. Great money for the sellers if they can get it. I have not found any positive cashflow ones for a while now. I wouldn’t really buy now unless I found an absolute bargain, not necessarily cashflow positive, but cheap enough that I could afford to hold it without too much effort. Then when prices rise again, I may cash it in, to reduce debt and further increase my cashflow.
If you want to get out of a hole, first stop digging.
Hi Brenda,
I must admit I am surprised by your surprise [biggrin] of people buying negatively geared properties especially at a time in the Oz market, when +CF (as you have found) are becoming so much more difficult (yet not impossible) to come by!!!
People are starting to realise that +CF positive can be achieved in other ways, rather than buying them as such straight out.
As I mentioned many times, without growth, the proverbial “wealth well” slowly but surely runs dry, as profits become engulfed by inflation/increased interest rates etc etc!!!
I know many will disagree with this notion, and that’s fine, but there are more and more coming to terms with the knowledge, that cash (alone) in your pocket today does not, and cannot sustain wealth!!!
Jo
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