What is your investment stategy for 2008?
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my plan for next 12 months
1. buy IP in Sydney- hopefully a nice little renter to ease the hiding I'll be taking on rates
2. pull $$ from PPOR in expectation that Ralph Norris falls to his knees and begs me to buy some comm bk shares at 8% franked div
3. also hope to progress with our 12 month home reno project - currently into year 9.....
1. buy IP in Sydney- hopefully a nice little renter to ease the hiding I'll be taking on rates
2. pull $$ from PPOR in expectation that Ralph Norris falls to his knees and begs me to buy some comm bk shares at 8% franked div
3. also hope to progress with our 12 month home reno project - currently into year 9.....
hi all
option done
cost under 1%
architect drawing up prelim drawings.
raw site but zoned 4c2 hotel
400mtrs from the terminal doors at the domestic in sydney.
10 storey and on the cards for 200 rooms
dual keys
just in the middle of organising a chain to take the hotel when finished
build is going to be something new for the australasia market and should go at this stage very well once the first is organised you will hear or read.
need to be in and out of council within 12 months of lodging the da and at the same time lodging with the land and enviro court.
hope to have is out in 6 months but will need a bit of a push.
the hardest part at the moment is done for now until it comes out of council.
setup and running our new little commercial lending arm
only doing deals over 2 mil
in the group is
a financial advicer,
three brokers,
two large lenders one local and one overseas
and two smaller lenders.
to date we are doing very well and I hope that the more the merrier.
just organising funding for
a group of gold mines restructured the business and now are in a position to gain funding and they seem to be happy there margin is higher then most as they are not digging out the gold they are rerefining.
organising the funding of a powerstation refinance for pacific island group
looking at 30 mil and funding comming from a indonesian bank in australia.
restructuring a developer that needs to refinance 60 units from one lender and the units have a lvr of over 90%
trying to get funding for a site thath as da for 115 units and he owns the land.
and looking at a liquidator if we don't reorgnise
and got a guy that has started a construct thru one broker and his lvr will be over 85% on completion and his margin is about 8% and the site is 14 storey so not a little deal but holding off one back and restructuring to get another to take out his current borrowing and then restructure the current da to make money.
so lots of fun.
refinancing and selling off 4 nursing homes and 1 shopping center.
so as you can see there is alot around and they are being sent to us no advertising.
we evaluate if we can't do the deal will tell with 2 days and no cost
if we can then the brokers mandate.
plus have done the first on my planned 4 commercials for this year.
exchanged, funding approved, investor money in waiting to settle and number two is lined up.
no money down and money out at settlement.
so looking forward to a very good year I hope.
the year is alot better this year and I hope it carries on in the same vain.
I hope everyone well.
and if anyone knows someone or works in a superfund I am trying to get to a superfund for my mascot project.
not looking at a bank as I have access to them already.
option done
cost under 1%
architect drawing up prelim drawings.
raw site but zoned 4c2 hotel
400mtrs from the terminal doors at the domestic in sydney.
10 storey and on the cards for 200 rooms
dual keys
just in the middle of organising a chain to take the hotel when finished
build is going to be something new for the australasia market and should go at this stage very well once the first is organised you will hear or read.
need to be in and out of council within 12 months of lodging the da and at the same time lodging with the land and enviro court.
hope to have is out in 6 months but will need a bit of a push.
the hardest part at the moment is done for now until it comes out of council.
setup and running our new little commercial lending arm
only doing deals over 2 mil
in the group is
a financial advicer,
three brokers,
two large lenders one local and one overseas
and two smaller lenders.
to date we are doing very well and I hope that the more the merrier.
just organising funding for
a group of gold mines restructured the business and now are in a position to gain funding and they seem to be happy there margin is higher then most as they are not digging out the gold they are rerefining.
organising the funding of a powerstation refinance for pacific island group
looking at 30 mil and funding comming from a indonesian bank in australia.
restructuring a developer that needs to refinance 60 units from one lender and the units have a lvr of over 90%
trying to get funding for a site thath as da for 115 units and he owns the land.
and looking at a liquidator if we don't reorgnise
and got a guy that has started a construct thru one broker and his lvr will be over 85% on completion and his margin is about 8% and the site is 14 storey so not a little deal but holding off one back and restructuring to get another to take out his current borrowing and then restructure the current da to make money.
so lots of fun.
refinancing and selling off 4 nursing homes and 1 shopping center.
so as you can see there is alot around and they are being sent to us no advertising.
we evaluate if we can't do the deal will tell with 2 days and no cost
if we can then the brokers mandate.
plus have done the first on my planned 4 commercials for this year.
exchanged, funding approved, investor money in waiting to settle and number two is lined up.
no money down and money out at settlement.
so looking forward to a very good year I hope.
the year is alot better this year and I hope it carries on in the same vain.
I hope everyone well.
and if anyone knows someone or works in a superfund I am trying to get to a superfund for my mascot project.
not looking at a bank as I have access to them already.
I'm living with mum and dad and I want to pay off the IP as soon as I can, so I can move out in a few years and buy my first ppor
I'm thinking of buying a 1 bedder in Mount Lawley for less than $ 230 K close to the cafe strip and city. Great location.
I can get a rental return of $260 a week. Not bad hey!!
I can get a rental return of $260 a week. Not bad hey!!
Kim,
I think you should leave ANZ.
The banks have little respect for their customers so look for the best deal.
I am actually looking at Bankwest as well but not for to deposit money,
I want to refinance. Maybe they can lend me some of your money...
Cheers
Well I've been thinking about it but its a hassle having to go through it all. I dunno.
Kim, if you do that you will end up with a large non-deductible loan (your PPOR), and no loan on your IP. Much better if you have a big loan on you IP instead (and none of your PPOR), as then the interest bill is deductible.
To do this? Smallish deposit (smallest you can do without paying LMI), and put all your spare cash into either a) an offset accout, or b) cash account as you have been doing.
Then, when you buy your PPOR, you either withdraw all the cash from the offset account, or the cash account.
To do this? Smallish deposit (smallest you can do without paying LMI), and put all your spare cash into either a) an offset accout, or b) cash account as you have been doing.
Then, when you buy your PPOR, you either withdraw all the cash from the offset account, or the cash account.
Oh ok, so what you are saying is.
Buy the IP first put for example a 10% deposit down for it. Put the rest into the offset account.
Do you think buying the IP first is the way to go, then buy my ppor?
But will I able to afford to buy my ppor in about 3 years time?
How much do you think I'll need to have paid off my IP mortgage to be able to buy a ppor $230 K unit. I'm thinking half
Hope someone can help!
Yep.
In many ways yes. How soon you need a ppor is a personal issue though.
Depends on what the value of your IP does, and how much you save. Whether you can service another mortgage (for your PPOR), depends on rent from IP, and your income level.
How much do you think I'll need to have paid off my IP mortgage to be able to buy a ppor $230 K unit. I'm thinking half
Deposit for IP, 230K, at 20% = $46K + costs. Deposit for a $230K PPOR unit might be 20% = 46k. If you have 80K saved, you don't need much more in the way of savings or growth. In other words, you almost have a big enough deposit to buy the 2 right now.
You might have serviceablitiy issues though - can you afford the repayments?
If you contact a good mortgage broker, they should be able to help you out with more precise figures, and guide you to the best deals/loans.
Thanks, you bought up some good points.
I think i've decided to start out by buying my first home - ppor
My main priority is to move out of mum and dads in about three years and now that i look at things a bit closer it would be too much of a stretch to service both.
I qualify for a $200 K loan.
My goal is to save approx $ 75 K in the next 3 years.
By then mum says that she will have sold her rental property and will be giving me $50 K.
So I'm hoping to have at least 100 K deposit and get a 150 K loan
I am going to buy a basic 1 bedroom (courtyard, and own laundry is essential)
Mum says that she will go halves in the property, but I think my parents have done plenty for me already. I dont want them getting themselves into more debt when they are nearing retirement.
So I am going to think small to begin with.
I will start with something that I know I wont have trouble in repaying, and then perhaps further on down the track, when I have payed off half of my mortgage I will see how my finances are then and see if I can use the equity in my property to invest.
Perth Property 2008 - 2013
I am interested in further views about Perth property for the coming 5 years. Everyone seems to think the market is flat and maybe now is the time to be buying?
I wonder.
Look what is happening in the US. Prices DOWN 10% in the last year. Some places have falls of 30% or more. And there is no end in sight. Take a look at the CBD market in Auckland as another example of where savage falls have occurred and there is many stories of people loosing the life savings.
It is a bit like the speeding motorist - and the "I won't get caught attitude" - all the other property markets can start to fall, but "It won't happen here". There is a commodity boom, there is large immigration inflow etc etc. We hear all the reasons to support property continuing in the one direction most young people have only ever experienced.
But I wonder.
Is now the time to be FULLY out of Perth property? I sold all but one Perth property in mid-2006, and right now am glad I did so. The final one, which I fully own, I am also thinking of selling. Afterall I can put the money in the bank and earn 8% on it - which is about the long term growth rate of property anyway.
And in 5 years from now, if property has remained flat (or god forbid fallen like in other parts of the world) I will be a lot better off having earnt 8% each year on the funds.
I suggest that with high interest rates, that look likely to rise further, and the huge run that Perth property has had recently (well above the 8% long term average) that we will see at least 5 years of basically no growth, but would not be surprised to see prices being 10% to 15% lower in 5 years than what they are now.
Afterall Perth is not ammune to the credit crisis and the flow-on effects of this.
Any feedback is welcome!
I am interested in further views about Perth property for the coming 5 years. Everyone seems to think the market is flat and maybe now is the time to be buying?
I wonder.
Look what is happening in the US. Prices DOWN 10% in the last year. Some places have falls of 30% or more. And there is no end in sight. Take a look at the CBD market in Auckland as another example of where savage falls have occurred and there is many stories of people loosing the life savings.
It is a bit like the speeding motorist - and the "I won't get caught attitude" - all the other property markets can start to fall, but "It won't happen here". There is a commodity boom, there is large immigration inflow etc etc. We hear all the reasons to support property continuing in the one direction most young people have only ever experienced.
But I wonder.
Is now the time to be FULLY out of Perth property? I sold all but one Perth property in mid-2006, and right now am glad I did so. The final one, which I fully own, I am also thinking of selling. Afterall I can put the money in the bank and earn 8% on it - which is about the long term growth rate of property anyway.
And in 5 years from now, if property has remained flat (or god forbid fallen like in other parts of the world) I will be a lot better off having earnt 8% each year on the funds.
I suggest that with high interest rates, that look likely to rise further, and the huge run that Perth property has had recently (well above the 8% long term average) that we will see at least 5 years of basically no growth, but would not be surprised to see prices being 10% to 15% lower in 5 years than what they are now.
Afterall Perth is not ammune to the credit crisis and the flow-on effects of this.
Any feedback is welcome!
Does it really matter?
Only you can answer that question. What are your goals with property? What is your timeframe to achieve those goals? What strategies do you use to gain equity/cashflow/cash from property? If your goal was to hold onto a few rentals for the very long term why would you bother with whats happening to price now? Does it really matter? For example, one of my folks places (Kew, VIC) went from $160k in 87 to $330k in 80 then down to $250k in 92. Now its worth in the seven digits. I for one am pretty tired from hearing whether the market is going up one week down the next or whatever. So much of the stress from people come from the fact that they have no clear goals with their investing and any bump in prices or confidence scares the hell out of them.
Only you can answer that question. What are your goals with property? What is your timeframe to achieve those goals? What strategies do you use to gain equity/cashflow/cash from property? If your goal was to hold onto a few rentals for the very long term why would you bother with whats happening to price now? Does it really matter? For example, one of my folks places (Kew, VIC) went from $160k in 87 to $330k in 80 then down to $250k in 92. Now its worth in the seven digits. I for one am pretty tired from hearing whether the market is going up one week down the next or whatever. So much of the stress from people come from the fact that they have no clear goals with their investing and any bump in prices or confidence scares the hell out of them.
It DOES really Matter
Poster above, Yes it DOES matter.
Your investment horizon is not relevant. TIMING is EVERYTHING.
I wonder how the 'long-term' Japanese property investor in the 1980's thinks about the long-term? Bet he/she didn't figure it meant more than their life-time.
Or the Singapore property investor in the mid-90's who today still waits to get their money back.
If Perth really is at it's peak for the next several years, then the long term is nonsense - we all aim to maximise our returns given our risk profile. As Warren Buffet once said, Diversification is the way the average person hedges against ignorance.
In my particular case I am 42. I intend to retire in 2 or 3 years. I don't like the thought of having 'dead' funds tied up in a non-performing asset (Perth property). This said, if I was 22 and intended to retire at 62, the same view would apply.
Poster above, Yes it DOES matter.
Your investment horizon is not relevant. TIMING is EVERYTHING.
I wonder how the 'long-term' Japanese property investor in the 1980's thinks about the long-term? Bet he/she didn't figure it meant more than their life-time.
Or the Singapore property investor in the mid-90's who today still waits to get their money back.
If Perth really is at it's peak for the next several years, then the long term is nonsense - we all aim to maximise our returns given our risk profile. As Warren Buffet once said, Diversification is the way the average person hedges against ignorance.
In my particular case I am 42. I intend to retire in 2 or 3 years. I don't like the thought of having 'dead' funds tied up in a non-performing asset (Perth property). This said, if I was 22 and intended to retire at 62, the same view would apply.
