Just a quick question regarding property investing in general.
Is it a good idea to always put deposit on to any property one buys.
WHat happens if you don’t have much initial deposit.How does one have positive cash flow property as there are not many left in market nowadays.
Whats the basic strategy ppl use to buy one after the other property. Main problem I guess everyone does have is cashflow and nowadays most of the property valuations are coming below the actual value. Lot of ppl tell me its not a good idea when you buy negative cash flow property and keep paying 800-1000 dollars per month from your pocket to cover repayments. But I guess unfortunately this is how good location properties work. Is it still worth doing this way.
Someone suggested me to invest in Narre warren, Berwick, Pakenham suburbs of Melbourne.Other person advised me to buy off the plan apartments or town houses. But I guess thats too risky and most of the time they have their own profit shares in that. But I want to be close to CBD as risk factors are less.
Hope my questions do make any sense.
Please Any Suggestions?
opee wrote:Just a quick question regarding property investing in general. Below are not quick questions but I'll try quick answers. Is it a good idea to always put deposit on to any property one buys. Not always. I always borrow the full amount. It's all tax deductable.If you have other debts you are better doing this.
WHat happens if you don't have much initial deposit. You can use equity in your home.How does one have positive cash flow property as there are not many left in market nowadays. OH! the ultimate question. If it were as easy as just looking on the net everyone would buy them. You don't always "find" CF+ properties unless you buy in mining towns etc. You make them (reno, subdivide, add second income stream).
Whats the basic strategy ppl use to buy one after the other property. Main problem I guess everyone does have is cashflow and nowadays most of the property valuations are coming below the actual value. Lot of ppl tell me its not a good idea when you buy negative cash flow property and keep paying 800-1000 dollars per month from your pocket to cover repayments. But I guess unfortunately this is how good location properties work. Is it still worth doing this way. Everyone has their own strategy and it goes with what their goals are and what they can afford. You need to work out how "you" will achieve your goals. 90% of property investors only own one IP. Most of the reason for that is they can't afford any more. Negative cashflow properties will do that to you. You need a balance of CF and CG in order to "make it" in property.
Someone suggested me to invest in Narre warren, Berwick, Pakenham suburbs of Melbourne.Other person advised me to buy off the plan apartments or town houses. But I guess thats too risky and most of the time they have their own profit shares in that. But I want to be close to CBD as risk factors are less. Hope my questions do make any sense. Please Any Suggestions?
I personally do not like OTP except in a raging market (which we haven't seen for some time. Set yourself some goals. Keep reading and it will fall into place.
One bit of advice when listening to people " only listen to those people that have what you want". You'll meet lots of "experts" who will tell you what to do and what not to do. Stop them and ask what's in "their" portfolio and how they are able to generate income without working (or whatever your goal is). That will stop 99% of them. LOL
^^^
A quality reply there. +1Hi Catalyst…Many many thanks for the answers….just great…
)opee,
I agree with catalyst that you need to get advice from people who have actually achieved the result you want. (Not from friends or family or others who do not own any IPs or are just giving their 2 cents opinion)
But before you get good advice from good rolemodels, it helps to know what you actually want. What do you want? What goals do you have for investment properties?
If you get clear on that, they you can get clearer on the solution.
Hi M.Investigator,
My goals are to own as many properties I can in future.
Hopefully get some capital growth n good rentals.
So that I can be in comfortable position..But
Its hard to find positive geared property in Melbourne nowa days..
..Any Ideas please?
)
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