I am too scared to go forward !!

[Gordon Gekko]

Hi All,

I am in a great position to go forward !! But i am too scared

We own our PROP ($450K)

We have 1 IP ($265K, Owe $80k)

Income $50k + $4k income from IP

How do i break thru this "barrier", get over the "hump" and start investing in Property for real ??

GG

 

[abcdiamond]

Gordon

We are not much further forward than you are, but it looks like you have the ability to get another IP with reasonable ease. (Do you have a mortgage on your PPOR?)

If you are concerned about holding costs, then the cheaper properties with higher yields may be better for you. I am seriously considering this option for my next one(s).

Its a question of going for higer yields or higher CG, unless I get lucky and find the perfect one

regards

ABCD

 

[Gordon Gekko]

ABCD,

That is the thing, we have no mortgage on our PROP. So we are "ripe" to by our next IP.

But something is stopping us

GG

 

[abcdiamond]

Do you really know what it is that is stopping you ?

Possible interest rate rises ?

Possible Property price drops ?

what other reasons might there be ?

 

[Cosmo]

Nothing wrong with holding back if you’re not at ease especially in a market that has been booming for years.

Hi yielding property at this stage of the cycle rings alarm bells for me (sorry gang!). Why have these properties taken so long to get their CG’s?

Hmmm, I can see why some might hesitate to think for a while.

 

[abcdiamond]

I agree with holding back at the moment, UNTIL the RIGHT property appears, but be ready to buy it quickly if you get the chance. If it is the RIGHT property, it won't stay on the martket long.

You need to know what the RIGHT property is though.

I've seen some apparantly high yield properties recently, and my gut feeling has been to hold back. I don't know exactly why either, but as Cosmo says, maybe it is alarm bells ringing.

I've also seen some bargains, and NOT been ready for them.

There are no simple answers, and I think I would rather play safe, and wait for the bargain to appear, but I don't think I will have to wait for ever.

Regards

ABCD

 

[Kristine..]

Gordon

Are both your properties family homes?

Perhaps you are ready to try something left of centre, and the thought of just buying more houses isn't appealing.

When my daughter bought her first place in the New Year, it was one of six town houses. Although it seems ridiculous, she now has a long term plan to buy all six properties. This may take twenty years, but rather than buying all over the place, this simple aim means that, in time, she will have control over the entire project with all sorts of management benefits eg exterior presentation, no need to have consensus with other owners, etc.

Gordon, what are your long term aims?

Why not consider (for a moment or two) aiming to own an entire complex instead of scattered properties. If this thought appeals, it would give you a direction to focus on. eg buying into a block of, say, six good quality units in your general neighbourhood (you know the socio-economics), with the plan of buying all of the units over time. If neighbouring properties come up for sale(either side or adjoining along the rear boundary), buy them, too.

In other words, instead of 'property investing' as a generic term, think what it means to you in a real and practical sense.

In thirty years time, would it make sense to have bought within a defined geographic area, or two in Melbourne, one in Adelaide, three in Brisbane, etc

When we are not acting, it is usually because we are missing some vital point. Buying just for the sake of buying leads nowhere. Buying with a specific and well defined purpose galvanises us into action and the opportunities miraculously appear.

Take the dog for a walk and give yourself some creative thinking time. You may surprise yourself with the thoughts which come to mind when you give yourself permission to develop free radical thinking!

Cheers

Kristine

By the way


I decided about six weeks ago that what my husband 'needed' was a block of flats. He was less than impressed with the idea - and blocks are not all that easy to come by - but various projects have come up for discussion over the past few weeks.


However, on the weekend I heard about a small block of fairly old flats, rather dingy (! eerk is a better word!) but cheap. I am now in the process of organising finance for No. 1 Son (who is 21 & half) to buy the block. He has condescended to buy them on the proviso that it doesn't cost him anything. He also doesn't want to see them. In fact (being a Capricorn) once he stopped arguing with me about buying them he said "Mum, as long as the money goes in the Bank I don't care what they look like, where they are, who lives there or anything else about them for that matter!"

Gordon, perhaps I should adopt you? Do you need another Mother? It is my Mission in life to encourage people to become more prosperous. Let me encourage you that your next purchase is not too far off!

PPS

No 1 Son also has a serviced Student Apartment which he bought 'Off the Plan' when he was 16 half with the $4,000 saved from his weekends working at the local BiLo. This second purchase will not cost him anything.

 

[abcdiamond]

Kristine

I like your way of thinking..........

Why not consider (for a moment or two) aiming to own an entire complex instead of scattered properties.

I'll keep an eye on the properties next to my local IP, see if they come up for sale.

Better still, i'll drop them a line and ask if they are considering selling!

 

[Gordon Gekko]

Kristine,

Thanks for a great reply

Originally posted by Kristine..
Gordon

Are both your properties family homes?

$450k family home and a $265k IP

Gordon, what are your long term aims?[/B]

My long term goal is to retire in 20years (56yo) with more than enough IP's to support our current lifestyle

And about buying a block of flats, by doing that, i feel that i would be putting a lot of my "eggs" into one basket.

And Kristine, one mother is more than enough....thanks

GG

 

[Kristine..]

Actually, Gordon

The basket and eggs thing is a bit of an anomaly.

The eggs are, after all, still separate eggs. The basket may in this instance represent the market per se, the eggs individual properties.

By having a multi-tenanted property, you actually spread your exposure to income risk.

eg

One $400,000 property, One tenant, One Income

One $400,000 divided into eg 3 Flats, Three Tenants, etc

With one property, no tenant, no income

With 1/3 property, you are only short 1/3 income etc

But for someone deciding to buy 'all' the units in a complex, again the same thing applies. Six separate titles, six separate incomes, six separate expenses, but only one management (yours) to deal with.

Thus, the rather ordinary mission brown block built circa 1968, can be transformed into a smart, modern block, if the ownership is held by you.

Thus, improving the capital growth on the property as a whole.

Gordon, free radical thinking will produce results. Immediately thinking 'Oh, I don't like the sound of that' produces nothing.

Just for the exercise - just for the exercise - do a bit of doodling and calculating on the idea of buying a complex. One at a time. Over eg ten years. Pick one nearby you - just for the exercise.

Or even - just for the exercise - imagine buying a four unit complex 'off the plan' from a local builder / developer (I'm sure there will be projects just like that underway right now in your local area)

Just for the exercise - do some costings, get a quote or two from a broker, work our your tax position - just for the exercise!

Instead of buying 'another' investment property, why not plan - just for the exercise - to buy four next time, not just one?

Gordon, you have greatly dissapointed me in refusing my offer to adopt you.

However, set the bar as high as your imagination will allow, take a good long run at it, and you may be very surprised at what you can achieve.

Just for the exercise

Cheers

Kristine

 

[Aceyducey]

Originally posted by Gordon Gekko
I am in a great position to go forward !! But i am too scared

Gordon, this has been a good thread, but it's focused on solving a problem.

You don't actually have a problem - you have a fear.

Can you define clearly what you are afraid of?

Write down your fear as clearly as you can. Then look at how realistic it is in an objective structured manner. Analyse each part of your fear - what does it mean? how does it affect your behaviour? how realistic is it?

Fears have a way of dissipating when you take a good hard look at them.

At the end of the process you may still decide not to buy more property at this point, but it will be your decision & based on the situation, not influenced by your fears

Cheers,

Aceyducey

PS: You might consider some life coaching if you really feel you need help to address your fear. Go have a look at www.newinsights.com.au for more information

 

[miket]

Analogy of investing in property now a days

Come on in! The water is beautiful.

I'm sure you've heard that before. Only seems you think it's maybe murky or too cool. Nah, it's all about how comfortable you feel. We're the same, can go for more but are sitting comfortable for now on the side but at least we've been in and cooled off so to speak. How long will the climate stay favourable? A long time... but it all depends where you plan to swim. Like up on the Sunshine Coast for eg. you can swim pretty well all year round in some parts. In other parts of the country not so good.

Study your area of residence first as that's the place that you have the feel for. If your hearts set on other areas then study it well. Talk to people in their front yards or where ever on how the market seems to them in their area.

We did that and never looked back. Occassionally we visit the area to just feel the market. I tell you, we come home feeling happy as Larry.

Time for a quick dip, what do ya say?

 

[ocean view]

How different we are & how true about fear.
I read these posts & think to myself that fear is the cancer. I have none when it comes to property. But then again I would not buy any HOME either.
But Gordo I would be stressed going to bed knowing how much unused equity I had spare in your situation.

I understand the feeling ,,same as the start of my buying days.

Confidence is the answer. You don't seem to be in any pattern to worry from looking from my angle. Why not get a line of credit approved to cover 5 yrs repayments just in case. Surely that will take fear away. 100% BORROW FOR LOAN &&&&/ If you get a lemon at least you have no worries on repayments. Anyway not many Lemons purchased using this site. To much information can confuse one,,,,,,,, Read Brenda's tales again that should help you to
Relax

good luck

 

[Shaggygirl]

Kristine

You can adopt me!

Shaggygirl

 

[Kristine..]

Oh goody!

Now, dear daughter, come close and listen up -

The first lesson is

Property Investing is great fun!

The second lesson is

The first purchase - if structured properly - is the only one which you need any money for

The third lesson is

The deal of a lifetime comes around every Tuesday

The fourth lesson is

Only the property with your name on it is of any use to you

The fifth lesson is

Too much is never enough

The sixth lesson is

Never mind if the place is not to your taste, if the numbers stack up, buy it

The seventh lesson is

Take a deep breath, go out for dinner, and do it all again tomorrow!

The eighth lesson is

Laugh all the way to the Bank!

The ninth lesson is

It doesn't matter whether you buy at the top of the cycle or in the depths of a recession, quality property will forgive you very quickly

The tenth lesson is

Quality property, like beauty and daughters, is in the eye of the beholder.

Therefore, even the derelict house or the one next to the service station or the one on top of the hill (well, actually, not good feng shui by the way, so forget about the place on top of a hill in an exposed position) will, over time, repay you for your faith in it.


Shaggygirl, we all need mentors of one kind or another. The forum, in its own way, is a sort of generic mentor.

However, too many cooks can spoil any broth, and as we all have an internal mentor, it serves us best to listen closely to our still, small voice which comes from inside.

When we are ready, there will be deals aplenty. But until we are ready, all we will do is create anxiety and a feeling of helplessness if we try and press ahead of our 'own' good judgement.

Fools rush in where Angels fear to tread.

But then again

Fortune favours the Brave.



Thank you for reverse adopting me.


I am happy to sensibly encourage you to become all that you can be insofar as property investing is concerned.

Love and Kisses

Kristine

 

[yadreamin]

KRISTINE
yea l,m up for adoption as well.
You give great advice on clearing the mind and being open to what is around us.drop me an email when you find another prop if none of your family are interested.!!!l would love to know your son,s thoughts in 20 years time on this property he never wants to see.
l am also stuck and unable to move on at present l will take the wisdom of all the replys here and hopefully get going again.The Perth market is so crazy at the moment .vacancy rates are high as well.l will be happy when the share market cranks again and everyone goes back to that investment,
cheers yadreamin

 

[chris1]

Kristine,
Following your reply to our post re; first Ip, and the subsequent pm you sent, I feel as if you have already adopted me!!
I hope you recieved my return pm ( I read you didn't recieve some pm's ).
I love to read your replies, you are so sensible and caring (as well as soooo knowlegable!!) Please keep on posting and sharing with us, you are a breath of fresh air!!!

with thanks
Mrs Chris1

 

[Piffin Yonnies]

Kristine,
I second all the praise heaped upon you above, your posts are magic and always inspire further thought which is something not easily achieved.

Take a well deserved bow.

Piffin.

 

[Tony]

Hi Guys,
Haven't met Kristine before, but without doubt she is my fav person on this whole forum. Her posts are always thoughtful, encouraging, respectful & usually spoken with the thoughtfulness of a nuturing mother. So mum, would love to eventually meet you and maybe even do property development/reno together someday (or at least watch the process).

Regardless, love your posts & keep on posting & investing

Regards
Tony

 

[Kristine..]

Oh my Goodness!

Now, now, children, no pushing and shoving.

Yes, yes, I'll adopt all of you (except Gordon "sob!") provided that you keep your rooms tidy and eat your brocolli! All of it!

Mmmmm. In fact, if I did adopt you all, I'd have to invest in a great, big, large, huge house with lots and lots of bedrooms and ensuites and probably a heated indoor pool and a conference centre and and all sorts of other things as well.

? Would a caravan park do just as well?

Yadreamin I would love to email you but you don't have Private Messaging or Emailing turned on at your Profile page.

Thank you all for those unexpected kind words. And now we should all 'beam' positive thoughts at Gordon so that he can pull his gumboots out of the mud and race out and invest in something spectacular which wouldn't have occured to him last week!

Cheers

Kristine