The 2009 positive thread!

Hi all, thought I’d start a positive thread among all the global financial crisis threads and unfortunate stories about some people struggling.

For us, the future is looking bright:

- Our property values are holding up nicely and still seeing small increases in value. Some of our lower priced outer suburbs are inching up, and I'm also quite impressed by recent land sales near our blocks closer to the CBD.

- We've unfixed the majority of our loans on the way down at no break costs (missed one loan still fixed at about 7.7% unfortunately) and saving bucket loads of interest. Deciding when to fix them again, will wait and see what the banks next fixed move is.

- Rents increasing quite well including 5% increase at 6 month mid-term, another 5% upon a lease break after only 5 months, another currently almost ready for letting receiving strong demand at price better than I expected to realise.

- The above factors have lead to a couple of our properties now becoming positively geared (yes not just CF+ after tax) waaaaay sooner than ever imagined. Only downside to this is tax will be increasing.

- Business revenues are increasing at the usual pace and are expected to continue along the same trend. New lease extension completed last year so security of tenure ensured for years to come.

- Personal debts are getting paid down consistently and quicker due to saved interest.

- ASX portfolio of relative blue chips now leveraged into and almost into set and forget mode for the long term (by necessity, the more I play with the ASX, the more risk I take, so making myself stop! ).

- Wedding plans mostly taken care of for November (thanks to my beautiful fiancée - I can't claim credit for any of it). Honeymoon flights to Hawaii booked and taken care of, although still need to book accommodation (suggestions of beach front hotels anyone?).

- Long term plan of buying our dream house 2-3 streets back from beach will be well underway along continuing growth path, although not entirely sure which path we'll take yet.

I'm not trying to gloat, just like sharing some positive info. and wondering whether anyone else is having a good time either helped by or in spite of the current environment. Nice to have some positiveness amongst all the D&G.

They sound like some nice foundations you've laid down for the future. With a positive attitude and the ability to act on good judgement you can't go too wrong in any climate .

Congratulations on your marriage in November.

steveadl, nice thread!

Similarly, this crisis is causing me some huge dilemma's, I mean, what am I going to do with all this cash flow now that my portfolio is positive geared to the tune of $2,000 per month??

The ASX share fund I am dollar cost averaging into has become cheaper by the month, meaning I am buying more and more with the same outlay. (it will turn around one day!).

Work has never been better or busier...

It's pretty positive from this neck of the woods...

Nice one Steve!
Don't worry about the tax. It just means you're making a profit. Nobody ever went broke doing that!
It's all good in my little world, too. No place for D&G here.
I had planned to consolidate (whatever that means) this year. Re finance some loans, pay down some debt and start moving toward the harvest phase of my investment cycle.
Then I got offered a unit in a group of 5 where I already own 2. Would I be interested in buying it at the capital value as per recent rates notice.
Thought about it for a nonosecond and said YES!
So now, I don't even have to work out what consolidation means as I won't be doing it. I'm back in the game. The last settlement was 6 months ago. Seems longer
Good luck with the wedding plans!

Great idea...

I see 2009 as an exicting year for our family. Refinanced towards the end of last year unlocking equity getting ready for the next IP which may very well be 2 or 3 now.

Rents increased at the end of last year so now all IP's are positively geared and then some.

Have slowly been buying some shares while the market is low, spare cash in term deposit with a rate greater than the current mortgage.

Job is secure and most importantly everyone in the family is happy and healthy.

Congratulation Steve and well done for starting this thread!

I am very positive for 2009, after last year things can only get better and they are slowly doing that. Just one more little hiccup with the NAB, after Monday we should know whether we can get around that one without having to sell a property we would prefer to keep but other wise once these latest cuts flow through we shall be in a much better position with 7 properties and block of land saved. Onwards and upward, just a little more slow and steady this year thats all!

In any case being negative in this life is no way to go about it, no room for D&G in my book!

What a big turnaround for me.

A few months ago we were selling our old PPOR because property prices were not moving and with interest rates on the increase our holding costs were going up. That particular sale fell through because the buyer got greedy the last minute and wanted a bigger discount.

Now with rents 20% up and interest rates 3% lower, we can afford to buy 2 more IP's.

On the employment front, I'd like to think that I have a secure job but who knows? I am not a negative person but with what we hear from the government it will be wise to take things nice and slow so we will buy 1 more IP to start with and will try to fix some of our loans.

Great Thread. Became a dad for the second time (boy this time!! woohoo) Managed to buy 2 more IPs this year with long term corporate tenants and keeping our LVR below %75 Although in Mining towns I'm very confident about the future with these Moving back to Brisbane in April after working in Weipa for 2.5 years. Have a relatively secure job with the same company in Brisbane and all IPs positively geared and making us money. Started my own consulting business part-time which is going great. Renovating our PPOR in April which will be great fun.

All the best
Andrew

Congratulations Steve firstly for all you have achieved, secondly for posting a thread that is of a positive nature and thirdly on you upcoming wedding.

We had a great year last year.

Paid off all bad debt except for a small remaining loan on our PPOR which will be gone by the end of this year.
Bought 2 IP's, one of which is CF+ with the reductions in IR.
Our son and DIL had their first baby (and I can't believe how much I love having grandkids).
Our daughter moved out of home with her partner and is doing really well and building a lovely little life for herself.
Discovered that our marriage CAN survive when it's only the two of us at home and in fact is better than ever (after nearly 30 years).

The coming year is one of saving funds and paying off the last of PPOR debt. A 'gentle' year of consolidation.

Take care all

Congrats Steve, what an exciting yr ahead for you! I'm sure your fiancee appreciates the fact that you let her plan the whole wedding. All my husband had to do was turn up. Actually, I did gave him one task to do and he even managed to stuff that up. Luckily my bridesmaid noticed and fixed it. I asked him to buy ribbons for the car and he bought purple instead of burgundy the whole colour scheme is burgundy, ivory and silver, even down to the groomsmen vests, flowers etc lol it's funny now but not so at the time.

I really hope 2009 will be a great year! It's so exciting and so much to look forward to

My twins will be here soon!

We've settled into our PPOR now and have everything we need. It's almost paid off, in our ideal area so can't complain much. Only 5 mins drive from mil and sil and aunty's so lots of people to call up on for help and our network of friends all live close by.

we have another house on the market..yay! If we don't sell it then we'll just rent it out. the yield is 7.26% and there's equity of $120k from bank valuation. But if we sold it I think we would only net about $80 to $100 after costs. The market's not good atm...very very slow for everything.

Our other IPs have always done well. Now at 10.8% yield. Fixed rates at 7.14% but coming off in a few mths time. Will put them back on P&I and fix it again and pay down the max allowed which I think is $15k per loan.

enough cashflow for the next 2 yrs to last us through the recession. Basically enough to prepay all our bills and home loans. I'll be so busy I won't even have time to keep track and pay bills.

a big trip ear marked for year end to spend Xmas in UK with hubby's bro and family and visit Xmas markets in europe and also plan to go skiing in lapland, visit father Xmas and visit all our friends in UK. So eager to ski again and to enrol son into ski school. I even day dream about it.

Hubby started his new job teaching grade 1...hope it all goes well and his kids are way smarter by year end and all the parents are happy.

our new project is underway, in council atm so should start building by about 3 to 4 weeks, will be finished by year end.

The thing I really hope for is that the twins can be really good, easy going babies without high pitched scream/cries. My sil is having twins too and Josh will have 11 cousins from hubby's side alone all under 4y.o. It's gonna be madness.

Actually 2009 will either be one of the most amazing yrs or the hardest yr of my life or maybe both. I feel like I'm mentally ready to take them on or am I kidding myself? lol

Try to lose the weight I've piled on this pg and regain my yummy mummy status lol I have so much clothes, would die if I couldn't wear them again.

Hope everyone has a wonderful and prosperous 2009!

We've had a difficult couple of years following our solicitor's negligence costing us a heap... but I'm so excited to have survived last year's high interest rates!

I'm very excited about 2009:

* planning to buy positively geared property in USA

* doing Cert IV in Financial Services (Finance/Mortgage Broking), and may do some freelance mortgage broking upon completion - info will be useful to me as an investor in any case

* hubby and I celebrating 15th wedding anniversary, and are very happy together

* planned reunion for my Dad's family this year, possibly in conjunction with my grandparents' 69th wedding anniversary (we don't want to risk waiting to see if they make it to 70!)

* our twin sons turn 8 this year, and are (thankfully) getting more independent

* I'm enjoying getting older; some of the hormonal changes are way fun

Eveythinng going well over my way aswell.

G'day Steve,

Kudos for a great thread What a good idea !!

Me too - all on the up-and-up for 2009.

2008 was hard, especially when the RBA and Banks combined to lift repayments by nearly 20% since Nov07. (They called it 1.3%, but we know better eh?) My costs (between Oct07 and mid 08) escalated 40% in that time.

But now, Feb 2009, with the most recent cut, we are no longer considering "which one do we sell" - as my costs have now plummeted to just 15% of what it was costing in mid-08 And, hey, that is pocket money compared to how it had been.

As well as that, the Co. I work for has requested I "stick around" for a bit longer. My contract was due to finish at 31 Mar 09 - so let me say once more .....

One other wee "find" (with special thanks to KeithJ) was this following offering - I found it right here, and it is SO what I needed to read. This is looking like exactly my next steps mapped out. Onya Keith !!! Here's the link....
http://www.somersoft.com/forums/showthread.php?t=32265

So 2009 is looking pretty damn good from where I sit.

In fact, I am VERY happy to leave 2008 behind - there were many other events in that year that I'd have much rather done without....

2009 is gunna be FINE !!!

Regards,

Wow, this is just what I was hoping for - keep em coming! And thanks for the well wishes everyone.

Great to hear others are on track for a great 2009 as well! Nice to see positive stories, I think amongst all the poor news and results coming out it's easy to forget that many people will make a fortune during this down turn in the economy and come out the other side much stronger.

Hey Rob, that means you now control 60% of the strata vote at Payneham - paint the whole block bright pink, I dare ya!!

Love to read all this positive news. Great thread, Steve.

2009 watch out!

Regards Jo

Things on this front are trekking reasonably well.

Just bought a new PPOR a few months back and finances are in great shape and structured to buy another IP and reno project this year - if the job stays secure!

IP is almost neutral and with being overseas for 3 years and not claimed depreciation and losses over those years the tax man owes me a lot come tax time! Should hopefully spur on possibly a 3rd IP if all is heading down the right path.

Wedding plans in place for November, just need to book a honeymoon! Any suggestions?

An optimistic thread is great.. its great to hear people are on track to realise their goals!

What an upbeat thread, Steve !

Your wedding and honeymoon plans in November seem really exciting as
do all your other investment and business goals. Congratulations and
well done.

Great to hear about your twins, Sue. You are in for interesting times.

For us :

1. We've refinanced PPOR and IP 1 and are looking to buy 2 more IPs in the next few months - one in Sydney West and the other in Queensland (have braced hubby for IP 4 but will have to do more to get him to agree on IP 5).

2. Car loan will get paid off this month, yippy !

3. Our Hornsby IP which was a big bugbear for us is starting to look pretty okay with much lower interest costs. Two others still fixed at 7.15% and 8%
but rents have been steadily on the rise, so no complaints there. Great property managers in place as well.

4. Have started buying small parcels of shares for our 19 y.o. Also need to
ensure 16 yo can keep his focus on his HSC and get the UAI he needs to pursue a degree in Architecture.

5. Having a financial plan done (again !!) so will provide us with a good insight on our insurances, wills, structures etc.

6. The big thing for hubby and me is to be able to keep our jobs through this
economic turmoil and we'll come out smiling at the other end.

7. Planning an overseas holiday end of the year but our teenagers prefer a trip to Cairns with friends.

I love this Forum !

BrendanG said:

Wedding plans in place for November, just need to book a honeymoon! Any suggestions?

Click to expand...

Hawaii!!

Brilliant idea for a thread Steve - well done....and good luck with your wedding plans. Stay well clear of all organisational decision making, turn up half sober, say "I do" when they kick you in the shins and everything should go smoothly.


2009 is the exit year for us, the one we have been planning for, for the last 14 years. The long slog on the property acquisition front has finished, and she's in kick back consolidation mode. We are now living off rents, and plan to let the equity tick along in the background and do whatever it does.


The rents are going gang busters, all tenants continue to dutifully pay their rents in advance. I'll let you know how the market review ends up.


Just took this morning off work to attend the daughter's swimming championship where she just broke a 23 yr. standing record. The thrill of seeing your child do something amazing is right up there with closing a profitable deal. Heaps of mother's and a few elderly grandfathers there. The fruits of property investing has allowed me to be able to join them. It's been worth it.


We are off for another cruise later this year, we liked it so much last year. Really enjoy the freedom that type of holiday allows.


The health aspects are going well. I reached my goal weight just this morning. Haven't been this fit or agile since 2002, so extremely happy about that. With ditching the office job, expect that the fitness levels will continue to rise, and the weight to continue to shed.


We plan on flying to Adelaide later this year to inspect our new purchase. Perhaps we should get together with the Adelaide Somersoft crew and make a night of it.


Best of luck to all of the other forumites on a positive property journey for '09.

Positive plans

Hi Cherry Pro

Have PM you my contact. I am also looking at an IP(s) bin Brisbane (and Sydney West)!

Cheers
jennifer