Property bust not here yet … worse to come

Someone correct me if I’m wrong but LVR = Loan to Valuation Ratio meaning wealth4life does not like to borrow more than 50% of the property’s value.

What is IMHO? Still trying to catch all the acronyms… NWIM!

Hi guys, can we have Perth in the discussion again? Every week has a different feel here in W.A. Is a 500k home in a southern suburb [Baldivis] that will rent for $300 pw at 90% lend bad investing? Should’t the growth rate now steady to 8%pa?

What do I invest in? Mostly residential property with something extra to add, ie a “potential” that I have assigned a value to and factored into the price of the deal.

So working backwards from an end value to me I can determine the correct purchase price for me! It’s not really rocket science.

I love property!! How can you not get excited and be postive about it? Will I be able to buy random property without any due dilligence and expect to profit? No!!!!!!!

cheers

I Buy Property http://www.cashflowproperties.co.nz
Cash Flow Property

I don’t understand why every one panics with the interest rate hype… Do I look at things through rose coloured glasses? As long as your interest rates are locked in and you have purchased wisely in the first place you can sit back and watch everyone else panic. People are always saying to me “its not the right time to purchase now”. Well it is always the right time, you just have to do your home work.
Thanks Andrea

http://www.investmentpropertytoolbox.com.au
Complete guide to being your own property manager and all the legal document’s required.

Yep, spot on.
But fixed period is only temporary. Once it’s over you will get hit with extra interest.
What upsets people that one way or the other as interest goes up you pay MORE money to the bank rather that using it for principle.

I would say” I do not care much” as well as my PPOR is less that 50% now in and it will take me less than 2 more years to get it down to “0” but I still hate to see as my interest rate got jacked up from 6.5% to 7.26. This easily added another few months on the duration of the loan.

Hi All
I have been somewhat absent from the forum for a while – activites concentrated in other areas somewhat (work – it gets in the way of life )

To respond to a couple of these questions:

SHARES:
Money comes in, money goes out – the rate of either side determines the direction of the market. Thankfully as money flows out of the market, or even better, if investors get extremely bearish the market falls really quick – the best time (for me) to make money in the market. Shorting is extremely lucrative.

PROPERTY:
I must admit I haven’t been able to find a +ve geared property to date. Not sure if that’s because of my location (WA) and people getting more for their property than they ask, or, asking lots for run down places. Rent just doesn’t seem to be able to keep up – yet. Not saying they’re not out there – just I haven’t been able to find one yet Having said that, a couple that I looked at, with the speed the market moved, I could have made reasonable money on refurbs – just at the time of viewing it didn’t fit my risk analysis – I guess I was too cautious

WHAT TYPE OF INVESTOR ARE YOU:
I look at almost anything that I think has a $$ to be made. The good thing about a cash rich economy is that everything goes up in price. I have made a few $$ from importing classic cars from poorer countries to sell to cashed up investors here. Even that market goes in circles and the ‘bargains’ are hard to find as the source works out pretty quickly whats going on and prices hike quickly. Not the sort of thing you came make “real money/living” from unless you have a huge backing as the lead times and holding costs are pretty big.

I am a share/CFD/FOREX trader/coach on a daily basis. The market has been quite choppy the last 5 months – but there is still good money to be made. Clear trends are better, and downtrends are the best for making money – NOTE – for my style of trading!!

So far as property is concerned, between myself and my GF we have 3 properties, 1 of which is under construction and still increasing in value. It will however be -ve geared when completed (build price locked thankfully as the shire has dragged its heels for about 5 months now). “My” house still has a mortgage albiet a small one and only because I have owned it for so long that it is +ve geared. My GF’s house is owned outright. This will probably become a rental in the next year as well as we seek a 4th property – and going against the grain we will have a large mortgage on this one, our new “home”, as we want some acreage. However, talks with the accountant will be in order to see if we can solve that problem.

Comments??

Anyone in WA looking for others to join in JV’s feel free to contact me – I am open to looking at any possibilities. I have just sold my business as well and will have more spare time to committ to running around to do ‘property stuff’.

Cheers

I think in about 12-24 months will be good time to buy for us. Not because market is ready but simply because we will have PPOR payed out and 30% deposit for IP. Than in 12 more months we will manage to get loan down to 60-50% and than can relax as IP will become self sustained. Than it does not really matter how interest or market moves you are in the “safe buffer” area. This is the plan.
Anyone else want to share of there’s view of future?

This article?
http://www.smh.com.au/news/national/homes-lost-as-rates-bite/2006/09/09/1157222376383.html

I would like to know how many Syndey investors, have used the slowly disappearing equity in their homes to buy into overpriced Perth.

Know of a few personally, I think the Sydney boom, has been a significant contributor to the Perth boom.

Don’t think it is all Perth locals.