Broadmeadows

[macdub]

Hi guys,
just want some thoughts..I bought first IP in broady about 2 yrs ago and unfortunately paid bit more than I should have..Its tenanted and slightly negatively geared with no issues..Just wondering if I should just hold onto it or get rid of it and invest somewhere else..

Do you think it will ever pickup? The price hasnt moved at all and I thought if I get some equity, I will borrow more and buy another one but feel like going nowhere..

thanks in advance

 

[Propertunity]

2 years is WAY WAY too short a time horizon for a real estate investment. You should be thinking 5-7 years minimum and 10 years realistically.

If you sell now, you will lose $'s on the transaction fees of buying & selling.

The fundamentals of Broadmeadows have not changed since purchase I assume? Then why sell?

Time heals a lot of wounds in the RE market.

 

[Big Will]

it is not timing of the market but time in the market is where you make the most money with real estate.

Although if you can get both $-$

 

[macdub]

thanks guys..I also think I should just hang in there for few years..just that I can't buy more properties..My PPOR is performing well and I borrowed the deposit for IP on equity..Now don't want to borrow more on PPOR...do people borrow for deposit for more than one IP if their PPOR is doing well?

 

[Big Will]

if you are doing a buy and hold strategy and using time as your friend, it is like a snowball effect.

The first house takes awhile to acquire.
Second house takes awhile to acquire.
Third house takes less time to acquire
..
..
..
10th house takes next to no time to acquire

Provided that all properties receiving good GC and are receiving good rental yield.

Having good rental yield will effect the GC and having good GC will effect the rental yield.

However getting the GC is harder to service but will through time make it cashflow positive.

 

[Propertunity]

thanks guys..I also think I should just hang in there for few years..just that I can't buy more properties

That's why it is very important to get the first few property purchases right. Because if you don't then, as you're discovering, it slows you down in your investment property journey. Unfortunately, most newbies starting out, don't have the right amount of experience to choose correctly.

..My PPOR is performing well and I borrowed the deposit for IP on equity..Now don't want to borrow more on PPOR...do people borrow for deposit for more than one IP if their PPOR is doing well?

When I was in the acquisition phase, I borrowed regularly against my then PPOR, to fund deposits on IPs. But I was fairly highly geared up in doing this.