When you break it down....

[tcocaro]

Guys & Gals..

I always hear about different invetment strategies... solutions.. approaches.... etc... but when you break it down isnt the following correct?

1. If your looking for cash positive investments and capital growth is not your main goal should you not be solely interested in commercial property? Spending your time and energy in solving the hurdles associated with commercial property investments such as larger deposits, vacancy periods.. etc..

2. If your looking for capital growth areas but dont want to negative gear why not have both growth and high yield by simply making such opportunities happen? i.e. development whether its project homes or subdivisions? Rather than spending time and energy looking for a such a property just lying around waiting for you to buy it?

In the end of the day the best property invetment is one that you believe will rise in value and will be positvely geared - is it not...

then why dont people stop thinking about positve or negative as one or the other and simply choose both... through development/subdivision or making it happen....

Anyways in the end of the day these are just opinions... the cheapest commodity in the world as everyone has one...

adios..


quick question... those who search for the rental yield properties which of the following would you prefer... 10% yield in a country town property? or the exactly the same property/land size but within a "bad" i.e. one of the worst around suburbs but which is metro? same purchase price and same yield? - just asking....

 

[Bill.L]

Hi all,

Tcocaro, sorry to disappoint, but we invested for CG AND yield in residential property, and yes they were just lying there to be picked up. Not so easy now but not impossible either.

bye

 

[bundy1964]

Originally posted by tcocaro
1. If your looking for cash positive investments and capital growth is not your main goal should you not be solely interested in commercial property? Spending your time and energy in solving the hurdles associated with commercial property investments such as larger deposits, vacancy periods.. etc..

A good background with residential is a help here too. Houses can provide the cheap deposits needed. Adelaide seems to have gone into -ve gearing mode on commercial anyway

bundy

 

[BV]

tcocaro,

You get better returns in commercial property but
location is very important and the state of the economy plays a big role too. If you are unlucky you may suffer long vacancies.

Can you afford to be without a tennant for 6 months?
On the other hand, with residential property this is unlikely to happen.

Bill

 

[nads]

Well I dont own any property whatsoever, so I wont pretend to be a loungechair expert
But I know that with most things in life, there are always opportunities out there for you if you play your cards right. It doesnt matter if there is a boom or not, if you're smart enough you will do well.
Like an earlier post, I'll be quite happy if the boom is over and people start selling their IPs and investing in shares. Gives me an opportunity to sell my shares and invest in properties that people are desperate to get rid of! Don't follow the "crowd"

 

[Cosmo]

What you choose to invest in is as individual as you are. What do you want to achieve? Do you want to participate actively or passively. What’s your risk tolerance? Etc etc.

For example, my brother has commercial property and USED to brag constantly about his returns verses residential. He now has it vacant. He’s a very stressful guy and now has trouble sleeping at night. Everybody’s different. For him he would have been happier with residential IP’s IMHO. For someone else no big deal.
YOU have to be happy with what path YOU take.

Referring to your quick question MY (individual) answer is neither! My investment technique is negatively geared freestanding houses purchased at least 14 months ago (like my last one) in quality suburbs with quality tenants. I’ve only amassed 3 ip’s and a fully paid off PPOR in 18 years but its been very passive investing I can tell you (suits me to the ground).

 

[duncan_m]

Originally posted by tcocaro
Guys & Gals..

I always hear about different invetment strategies... solutions.. approaches.... etc... but when you break it down isnt the following correct?

1. If your looking for cash positive investments and capital growth is not your main goal should you not be solely interested in commercial property? Spending your time and energy in solving the hurdles associated with commercial property investments such as larger deposits, vacancy periods.. etc..

2. If your looking for capital growth areas but dont want to negative gear why not have both growth and high yield by simply making such opportunities happen? i.e. development whether its project homes or subdivisions? Rather than spending time and energy looking for a such a property just lying around waiting for you to buy it?

In the end of the day the best property invetment is one that you believe will rise in value and will be positvely geared - is it not...

then why dont people stop thinking about positve or negative as one or the other and simply choose both... through development/subdivision or making it happen....

Anyways in the end of the day these are just opinions... the cheapest commodity in the world as everyone has one...

adios..


quick question... those who search for the rental yield properties which of the following would you prefer... 10% yield in a country town property? or the exactly the same property/land size but within a "bad" i.e. one of the worst around suburbs but which is metro? same purchase price and same yield? - just asking....

So, what have your conclusions led you to actually do?

 

[Aceyducey]

tcocaro,

Don't forget leverage.

Well selected commercial property gives a high cashflow return yes. But you need to put more cash into the deal due to commercial lending restrictions.

Residential property provides greater leverage.

Also, while economic conditions vary & affect commercial property significantly, people always need homes....

In any case, you can reach your goals using a variety of very different property strategies - that's one of the beauties of property

The important thing is to become good at the strategy you pick!

Cheers,

Aceyducey