How do I go about getting life/accident insurance?
How do you keep will up to date - do you see a solicitor every time you change it? If your assets are constantly changing, do you need to keep changing it or do you use clauses to cover all assets?
where is the bargains in Perth
- Thread starter MJD
- Start date
How do I go about getting life/accident insurance?
How do you keep will up to date - do you see a solicitor every time you change it? If your assets are constantly changing, do you need to keep changing it or do you use clauses to cover all assets?
guys... trying not to get excited but very initial reports from the coal face suggest that the perth market may finally be back. I am in regular contact with an agent in dunsborough that tells me prices have really moved over the last couple of weeks with a lot of the older stock clearing out. i have heard mandurah of all places (and owning propertythere i can attest to what a dog its been for years now) is going off. allthe areas i track such as claremont, floreat and subiaco are pretty much cleaned out. a near city agent said yesterday he feels that sellers are back in control and he is now confident to push buyers around a bit.
where to next???
bargains... I think they were june 2009. if you do want to buy in Perth I think the only way isup from here on.
where to next???
bargains... I think they were june 2009. if you do want to buy in Perth I think the only way isup from here on.
Just PM'd you Hagel.
your initial will can usually be drafted to adapt to your changing certain circumstances by using broad references. E.g. "my children" not Nigel and Arthur.
you can pull them off of cleardocs but i havent looked at them before. a cheap stop gap option if anything
this is great news to me, settled on 2nd IP in July last year. The place is 10 mins from the airport and 10 mins to the city, so hopefully demand for fly-in, fly-out with the project up north pushes up the price.
When I first came on this forum I was inspired by this thread and its associated threads: http://www.somersoft.com/forums/showthread.php?t=57859
I noticed neither of you congratulated her on her purchasewhen she blatantly stated it would be -ve cf which I admire. However, I can't help but feel that she is so happy, and I want to be in that position too without much delay as too many properties have slipped by me already because I haven't taken the plunge. I feel that although its -ve geared, Dianella is a "less risky" proposition for a 1st IP rather than Armadale or Karatha - despite the -ve gearing. I'd go so far to say that Kim5 will be a very happy camper in 2 years as it'll most likely be +ve cf then whilst I'm still searching for my ideal +ve cf property.
Sorry if I'm wishy washy. But I my original problem problem remains with my crappy choices of:
a. Do nothing
b. -ve cf in near metro (<10km) - Kim5
c. +ve cf in far metro (>10km),
d. +ve cf in regional or
e. +ve cf other investment types (office, shares etc.)
Hi
Thanks i'm glad my story inspired you!
I see that you are a newbie and you havent bought your first ip! My suggustion would be to start with something small like a unit < 2 - 7 K's from the cbd. You really cant go wrong with something this distance from the CBD. Good CG, always good rental demand.
I too suffered from analysis paralysis when i first started out, trying to figure out what my best option was and what strategy I should follow. I think the most important thing to do is to just buy something and learn from this experience.
As a newbie to the game all you have is the theory behind you, as you buy more and more properties you will gain the skills knowledge and experience of others here like Nathan or Rixter who are very well developed and have perfected their strategies.
I agree with Rixter in that you dont have to get it right you just have to get it going. So buy something anything a small unit a house, something that will have reasonable capital growth and not too negatively geared so that your cashflow is impaired. You might not know how/where to buy the positive cashflow ips like nathan for instance but you shouldn't expect yourself to have the experience to do it yet because you are new to the game. Try to just make a start and then with every subsequent purchase you will refine and perfect yourself and one day you will be like a veteran.
The worst thing is to do option A nothing. You will miss out on fantastic growth.
You will learn along the way and dont worry about not having the skills or experience at the start. You can do all the reading have all the theory but when you really start to learn is when you put it all into practice. That is the only way. Thats how everyone starts.
Choose a strategy stick to it buy the ip. Perhaps later on down the track your strategy might change because the first one doesnt suit anymore.
Mine is negatively geared. Its rental yield is 5.5 atm. It should only take perhaps 2-3 years before it is more neutral I think. But this is a guess because i'm new I cant say for certain. It was something I could afford costing me $210 K. I could only get a loan for $199 K. Now I have $15 K in savings and will be re-building my buffer over the next 3 years until i'm ready to buy #2. I will either use the built up equity in my 2 properties as a deposit in 2012 (hopefully i will have enough equity to buy the 2nd) or i will use cash savings again.
Get in the game mate
Good luck
Whether you think you can or think you cant you will be correct. You see its all about perception. What you perceive you believe.
I hope this helps.
Hey that sounds like Lil Skater's Tag
__________________
Whether you believe you can, or believe you can't, you're right..
It is very true however.
Another philosophical statement for you Samwise........
If you don't make mistakes, you aren't really trying
That is the only way we really learn (and from the talented guys and girls on this forum)
Get out there and buy!
Cheers
F
Hey that sounds like Lil Skater's Tag
__________________
Whether you believe you can, or believe you can't, you're right..
Samwise
Haha, find it funny you remembered my sig..And the fact you're giving advice to Samwise, Sam my first name
But good advice Fudge and Rixter. Sam stick to these forums and you will learn the game very quickly
Goodluck
I'm going to go buy something...
Where and what?
For me... i joined ss in march 08 after lurking first for a couple of months. Bought my first property (my ppor) after researching ... including researching suburbs i wanted to buy into for around 6 months/type of property to buy and other important things etc etc Bought in Sep 2008.
So I think 3 - 12 months of learning and researching is a good amount of time to spend before buying your 1st. Anything more than 12 months i reckon is silly. jump in. unless obviously there are reasons why you cant eg your saving up.
i think a few people have missed the point here.
you invest for cashflow, or you invest for growth. once in a lifetime you get a chance to do both.
CF+ property provides cashflow - similar to the investing style of RK in Cashflow Quadrant - and any growth experienced in a CF+ property portfolio is a side benefit, not the primary goal, a bonus.
CF- property can be a dog to hold while you wait for growth. to me - i operate on a CARTON principle..... that is, if it costs me anymore than a carton of beer a week, i'm out.
if you want growth and don't want to pay neg gearing costs, my advice (which sucks and isn't professional) if to x-col with a CF+ property to fund a CF- property.
tie the two together to shut the bank up and repeat ad nauseum until you make yourself sick.
you invest for cashflow, or you invest for growth. once in a lifetime you get a chance to do both.
CF+ property provides cashflow - similar to the investing style of RK in Cashflow Quadrant - and any growth experienced in a CF+ property portfolio is a side benefit, not the primary goal, a bonus.
CF- property can be a dog to hold while you wait for growth. to me - i operate on a CARTON principle..... that is, if it costs me anymore than a carton of beer a week, i'm out.
if you want growth and don't want to pay neg gearing costs, my advice (which sucks and isn't professional) if to x-col with a CF+ property to fund a CF- property.
tie the two together to shut the bank up and repeat ad nauseum until you make yourself sick.
Interesting Blue Card.
I was thinking about this last night.... be interesting to do the (long term) analysis of a CF+ but low/no growth IP vs. a cf- (low yield) but high growth IP and see how they stack up.
For example:
A $400K property near the city grows at 7% in a year... thats $28K growth
A $400K property in the boonies grows at 3% in a year... thats $12K growth
Thats $16K difference... is the boonies property going to be $16K more CF+ than the city one? Thats $300/week. I wouldnt have thought so
Are those figures realstic?
I was thinking about this last night.... be interesting to do the (long term) analysis of a CF+ but low/no growth IP vs. a cf- (low yield) but high growth IP and see how they stack up.
For example:
A $400K property near the city grows at 7% in a year... thats $28K growth
A $400K property in the boonies grows at 3% in a year... thats $12K growth
Thats $16K difference... is the boonies property going to be $16K more CF+ than the city one? Thats $300/week. I wouldnt have thought so
Are those figures realstic?
Been looking for my 3rd property all 3 will be CF- will be able to fund the $300 a week negative. just need the value of each to keep heading the right direction
1st property Padbury $410,000 in 2007 current value $480,000
2nd property Joondalup $445,000 June 2009 value after $10,000 reno $475,000
3rd property looking Quinnsrock, Joondalup,Kinross around the $500,000 mark
PPOR Value $800,000 current loan $170,000 with $202,000 of equity used to purchase the first 2 properties.
All 3 areas have had an average increase of around 12% over the past 10 years just need a 6% increase over the next 10 to keep me happy.
Any ideas happy to hear
1st property Padbury $410,000 in 2007 current value $480,000
2nd property Joondalup $445,000 June 2009 value after $10,000 reno $475,000
3rd property looking Quinnsrock, Joondalup,Kinross around the $500,000 mark
PPOR Value $800,000 current loan $170,000 with $202,000 of equity used to purchase the first 2 properties.
All 3 areas have had an average increase of around 12% over the past 10 years just need a 6% increase over the next 10 to keep me happy.
Any ideas happy to hear
the properties around me dropped about 30% last year... I bet a few owners wish they had CF+ properties in the boonies instead. nothing like watchign your property drop in value whislt you fund weekly losses!
Cashflow should never be relegated to lesser importance than profit. hence the change of my signature
well they could go up, down or sideways, so a 1 in 3 chance?
what's your end goal? a sell down? how much do you have to accumulate and then retreat by to have enough equity to achieve your goal?
