I'd say he's dreaming and still 15%-20% from the highs.
where is the bargains in Perth
- Thread starter MJD
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I'd say he's dreaming and still 15%-20% from the highs.
That's my biggest concern.We have 38 units and "0" income, and I will be retiring from my paid employment this year, and living off rental income.
close to shops?
schools?
public transport?
community facilities?
a river instead of a beach?
Forrestfield is not my kind of place to invest for resi - comm yes - but resi i htink your money - in that price bracket - is better spent.
but again, that's just my opinion and certainly not worth the ones and zeros this post makes up.
Perth is a cashed up bogan city, so most suburbs are bogan areas, but don't let that dissuade you, bogans have money too you know!
When you're talking house prices, land component is a big factor, 3x1 on 1000sqm and a 3x1 on 400sqm are going to be hugely different, even in forrestfield. So, hard to say whether that's a good price and what to compare it to in other areas.
Need somewhere to park that car in the city... hows public transport?
Public transport? Whats that?
I hear what ur saying, I live in Forrestfield. We bought because it was affordable and 5 min from work(Kewdale). U need to keep in mind that a heaps of people work in industrial areas and don't rely on PT, and with another boom I'm guessing alot of the new jobs will be in these areas. ie steel fab, machining plus fly in/out workers. Dont get me wrong I would love to buy in Applecross or Shelley but at the moment it aint a reality.
I hear what ur saying, I live in Forrestfield. We bought because it was affordable and 5 min from work(Kewdale). U need to keep in mind that a heaps of people work in industrial areas and don't rely on PT, and with another boom I'm guessing alot of the new jobs will be in these areas. ie steel fab, machining plus fly in/out workers. Dont get me wrong I would love to buy in Applecross or Shelley but at the moment it aint a reality.
Kathryn we have been using LOE for a number of years now however not fully without a PAYG income. I hit the DSR wall a few years ago because our PAYG income was not adequate to substantiate further borrowing. To get me around that issue I implemented a cashbond structure to increase DSR and keep borrowing. We will continue this structure to top up LOC's once payg is done away with all together.
Correct, borrowings for lifestyle wouldnt be tax deductible however with LOE you are not paying income tax in the first instance. So from a cash flow perspective you are effectively living off equity without the need for a cash injection back from the ATO anyway.
I have mentioned before in other threads over years gone by that some times investors can be their own worst enemies by distractions of whats tax deductible and whats not that some times we can lose sight of the forest for the trees. In the big picture or scheme of things does it really matter if some costs are deductible and others not if one's portfolio is already self sufficient in the first instance - I dont think so.
The poor and middle class think cash flow. If they choose to go into business or invest they try to build multiple streams of income from cash flow, whilst the rich and wealthy slowly build their capital, the equity in their properties, in their investments and in their businesses.
The Australian economy is based on capitalism, so while the poor and middle class are busy working hard and building their cash flow – because that’s what the “system” teaches them – the rich/wealthy are quietly building up their capital base, their equity and living on that for income.
This is a complete paradigm shift in thinking for some who have or who are just being exposed to the idea for the first time.
I hope this helps.
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One can be cash flow positive after tax as opposed to positive geared.
interesting, as I feel the biggest lesson of the GFC was about cashflow.
Correct Ausprop, cash flow (or rather lack of) experienced by the masses (poor/middle class) .
Yep....the fundamentals are looking good for Perth again....
Not as good as Sydney....but definitely second best!
Not as good as Sydney....but definitely second best!
Yes thanks for the thread kick start again redwing..good to review once more.
