IP4- I'm on a roll
- Thread starter travelbug
- Start date
Quite a real possibility, but as RK says; "the risk is with the investor; not the investment".
One of the critical strategies in investing is risk management, and this includes the very real possibility of losing a job (or in your friends' case - more than one job), getting injured and not being able to work, long vacancies in the IP's - just to name a few.
I find it has been a very good policy to over-estimate the expenses and under-estimate the income.
Expect the best and prepare for the worst.
Nicely put BayView.
Tincture of time often (not always) can be forgiving to investors over-paying or not assessing yields and cashflows properly.
There are multi-factorial elements to all aspects of success. With property investing.......right property, right tenant, right finance, right investor mindset, right contingencies (insurances, income proptection, TPD, life, etc., etc). All of these are within the influence of choice that the investor makes.
It's up to us to be at sea with our sail set and hands firmly on the rudder otherwise we will be at the mercy of the winds and tides. We cannot control everything, however we can control ourselves and mitigate that risk
As BV opened...."one of the critical strategies in investing is risk management"...and this comes down to the decisions made by the investor.
Expect the best and prepare for the worst.
Nicely put BayView.
Tincture of time often (not always) can be forgiving to investors over-paying or not assessing yields and cashflows properly.
There are multi-factorial elements to all aspects of success. With property investing.......right property, right tenant, right finance, right investor mindset, right contingencies (insurances, income proptection, TPD, life, etc., etc). All of these are within the influence of choice that the investor makes.
It's up to us to be at sea with our sail set and hands firmly on the rudder otherwise we will be at the mercy of the winds and tides. We cannot control everything, however we can control ourselves and mitigate that risk
As BV opened...."one of the critical strategies in investing is risk management"...and this comes down to the decisions made by the investor.
Expect the best and prepare for the worst.
Congrats travelbug
Are you still putting the Avoca Beach one away too?
Are you still putting the Avoca Beach one away too?
Very happy and excited for you too Travelbug, my kind of lunchdate, sweet.
Can you reccomend me some insurance if property prices come crashing down? or if I lose my job?
Or do I have to wait for the govt to bail me.
Hey guess what the U.S govt is doing. Cant afford to make your loan repayments? Give the mortgage to freddie & Fannie and just pay rent until you can afford to start paying mortgage repayments again.
How good is that? Bloody fantastic!
Yeah yeah prices will double every 7-10 years, woopiedoo =). I hope my salary increases with it as well, and I hope everyone elses does too!
congrats
Thanks everyone
Only just got back from a weekend away. Not celebrating unfortunately- just renovating.
I mowed a lawn for the first (and I hope last) time in my life.
I know how to edge strip shelves and lots of other cool stuff.
Anyway thanks everyone.
Michael- I knew what the link was before I even looked.
I know, I know. Thank you for your words of encouragement. I always enjoy your thought provoking and insightful posts. You should start a company- lifestyle choices or the like. You have certainly have a way with words. I'm playing my own game now. I'm happy with what I achieve, whether that be more properties (or not). Thanks again.
Rob- Yes pity I missed you last time. How did the shopping trip go? Did you like what Sydney has to offer? I still haven't learned to use the new cappuccino machine even though my hubby left instructions when he went away. But I'd be cutting my own throat if I did because now he has to make it all the time.
BV I'm a bit flat out at the moment to seriously look but I can't help browsing. I've almost hit the wall with St George so will speak to some other banks after I get my end of year reports in and DVD made. I'm a teacher and make a kindergarten DVD for graduation day. Kids first year of school complete with make the parents cry music.
My goal was to purchase 2 more in 2009. IP 2 was purchased in 2008 and I was chuffed about that. If it hadn't been for Somersoft I may have stopped there. I'm a procrastinator and not a risk taker. I'm still not but because I have learned so much this year from this site, reading books and seminars I understand the risk. I very much over estimated the risk before. I know this probably sounds like a broken record but "I wish I had known this stuff years ago". I sold my first IP in 2001 because I was worried about interest rate rises. Rent hadn't gone up (but then again I didn't know if it should have gone up). I was ill informed. Not anymore. That's the difference. Getting knowledge has allowed me to set goals and work towards achieving them.
I'd like to buy more and will keep looking but I'm no longer putting pressure on myself as I have achieved this years goal. Now to set next years.
Cloudyday- I have less than 50% LVR so not worried. We live on my hubbies wage. Mine is for traveling and whatever we want so not worried about that either. My properties as a whole are almost CV neutral so rises won't worry me (my wage can cover any shortfall). Thanks for your concern though. I know a lot of people are highly geared.
Proportunity- Avoca Beach? I think you are thinking of someone else.
My hubby can't get over it. He knows what I'm usually like in making decisions. I procrastinate. I rang him at work the night before buying and told him he had to look at a property before work the next day. I told him we are going to buy it and he needed to be there to sign the contract. He said "OK what is it?"
He's so easy going. I take him for granted. I should stop that.
Thanks again everyone.
Only just got back from a weekend away. Not celebrating unfortunately- just renovating.
I mowed a lawn for the first (and I hope last) time in my life.
I know how to edge strip shelves and lots of other cool stuff.
Anyway thanks everyone.
Michael- I knew what the link was before I even looked.
I know, I know. Thank you for your words of encouragement. I always enjoy your thought provoking and insightful posts. You should start a company- lifestyle choices or the like. You have certainly have a way with words. I'm playing my own game now. I'm happy with what I achieve, whether that be more properties (or not). Thanks again.
Rob- Yes pity I missed you last time. How did the shopping trip go? Did you like what Sydney has to offer? I still haven't learned to use the new cappuccino machine even though my hubby left instructions when he went away. But I'd be cutting my own throat if I did because now he has to make it all the time.
BV I'm a bit flat out at the moment to seriously look but I can't help browsing. I've almost hit the wall with St George so will speak to some other banks after I get my end of year reports in and DVD made. I'm a teacher and make a kindergarten DVD for graduation day. Kids first year of school complete with make the parents cry music.
My goal was to purchase 2 more in 2009. IP 2 was purchased in 2008 and I was chuffed about that. If it hadn't been for Somersoft I may have stopped there. I'm a procrastinator and not a risk taker. I'm still not but because I have learned so much this year from this site, reading books and seminars I understand the risk. I very much over estimated the risk before. I know this probably sounds like a broken record but "I wish I had known this stuff years ago". I sold my first IP in 2001 because I was worried about interest rate rises. Rent hadn't gone up (but then again I didn't know if it should have gone up). I was ill informed. Not anymore. That's the difference. Getting knowledge has allowed me to set goals and work towards achieving them.
I'd like to buy more and will keep looking but I'm no longer putting pressure on myself as I have achieved this years goal. Now to set next years.
Cloudyday- I have less than 50% LVR so not worried. We live on my hubbies wage. Mine is for traveling and whatever we want so not worried about that either. My properties as a whole are almost CV neutral so rises won't worry me (my wage can cover any shortfall). Thanks for your concern though. I know a lot of people are highly geared.
Proportunity- Avoca Beach? I think you are thinking of someone else.
My hubby can't get over it. He knows what I'm usually like in making decisions. I procrastinate. I rang him at work the night before buying and told him he had to look at a property before work the next day. I told him we are going to buy it and he needed to be there to sign the contract. He said "OK what is it?"
He's so easy going. I take him for granted. I should stop that.
Thanks again everyone.
Good work on number 4!
that sounds miles off to us but we'll get there one day.
I've gotta ask though, do you have kids? I'm finding these two little pieces of heaven are really biting into our investing budget at the moment.
that sounds miles off to us but we'll get there one day.
I've gotta ask though, do you have kids? I'm finding these two little pieces of heaven are really biting into our investing budget at the moment.
I've gotta ask though, do you have kids? I'm finding these two little pieces of heaven are really biting into our investing budget at the moment.
I started our property journey with a one year old..nine years down the track we now have a 10 year old, an eight year old , and a property portfolio spread across Australia. Wife has always worked part time too.
Thanks Rixter, I know it can be done so we'll do it. I'm was just grumpy because yesterday I bought some stuff for the kids and it just seems a fair whack of $ (boring stuff like bedding etc)
Feeling better today, just ignore my grumpy posts...
Feeling better today, just ignore my grumpy posts...
LOL! You know, the older they get, the more they want. The good news is that you survive.
No.It.Doesn't.
Not should the fact that it doesn't mean property is a bad investment. But let's keep to reality here.
but but but.. Sydney has been in the bottom of the market for 6yrs.. it has to double soon
Kidding.. as Nathan has shown there are markets within markets, and with a plenty of DD there is money to be made. Congrats travelbug
I've gotta ask though, do you have kids? I'm finding these two little pieces of heaven are really biting into our investing budget at the moment.
We do have kids (4 in total) but they're grown up.
I know how expensive they can be.
We started investing late. In hindsight though we should have bought earlier.
I bought our current PPOR in 1994 with 40% deposit.
My previous PPOR cost $50K and sold for $122. Our one now cost $217K.
But at that time getting a loan of over $100K was pretty scary.
What I didn't take into account either was that I had just finished UNI and was used to living on one wage plus my wage increased every year. So we could have afforded it. It would have been nice to get that last boom.
Never mind. I'm here now. Next one around the corner.
Unconditional as of yesterday. Glad we asked for 10 day cooling off.
Finance was done in a few days but the strata company was not listed on the contract so it took a while to get that.
Everything looked good. There is $176,000 in the sinking fund.
That's a little better than the one I bought last year that had $30 (yep $30- not a typo).
Finance was done in a few days but the strata company was not listed on the contract so it took a while to get that.
Everything looked good. There is $176,000 in the sinking fund.
That's a little better than the one I bought last year that had $30 (yep $30- not a typo).
