Jump to content
SAU Community

Recommended Posts

Actually merlin I am about to sell ONE of my investment properties to fund the purchase of an 89 model GTR.

If your interested, its:

$95,000 2 bedroom 1 bathroom townhouse in a low income area

rental return $120 per week, already tenanted.

And as for the "dumbest idea" someones ever heard.. its really not that retarded.. if you buy 4 cars, sell them for a profit of 5k each thats a 25% return within a few months.

Particularly if you sell them once the 15 year rule is abolished and nobody has r32 sevs compliance yet.. r32 prices will skyrocket.

  • Replies 43
  • Created
  • Last Reply

Top Posters In This Topic

Property value doubles every 7 years.

It's more like every 10years, but is subject to so many variables..

There is also risk here:

Interest rate rises -  if they go up from 7% to say 9% - that's an extra $140/week that i need to provide

No Tenant - have to be able to afford periods with no tenant for a while

Property Maintenence - have to factor in maintenence costs.

You picked a crap area - need to do research to make sure property will appreaciate at higher than average

Risk prevention:

1) No Tenant: Landlords Insurance - CGU is one company that's offer's landlord insurance, depending on how many properties you have it can be as low as $99per year.. covers vary, but roughly covers you for malicious damage, theft, and tenants doing a runner, and they rental coverage for up to 13weeks.

2) Interest Rates: we always budget 2% over the current market rates, regarless if it's a development project or another investment property.

3) Property Maintenance: "well that's not a risk" that's included in your budget.. everythinf else is covered under Home & Contents or Landlords Insurance.

4) Choosing the right location: well my line of work revolves around property, each quarter ourbank managers arange a meeting with a company called charter keck cramer The give advice to state/federal governments & reserve banks.. so they are the best in the biz (they also have some free info for download from there site. However based on our needs (and these will differ from everyone esle, so go seek a professionals opinion) generally speaking about the "Melbourne" market, you'd like to stay within 7-13k's of the CBD. However Melbourne's CBD appartments are a no no at the moment and docklands is not so bad if you're happy to wait around 10-15years to reap your rewards .. simply "demand vs supply" the only thing docklands has for it is > keyword > "water views".

It's more like every 10years, but is subject to so many variables..

Risk prevention:

1) No Tenant: Landlords Insurance - CGU is one company that's offer's landlord insurance, depending on how many properties you have it can be as low as $99per year.. covers vary, but roughly covers you for malicious damage, theft, and tenants doing a runner, and they rental coverage for up to 13weeks.

2) Interest Rates: we always budget 2% over the current market rates, regarless if it's a development project or another investment property.

3) Property Maintenance: "well that's not a risk" that's included in your budget.. everythinf else is covered under Home & Contents or Landlords Insurance.

4) Choosing the right location: well my line of work revolves around property, each quarter ourbank managers arange a meeting with a company called charter keck cramer The give advice to state/federal governments & reserve banks.. so they are the best in the biz (they also have some free info for download from there site. However based on our needs (and these will differ from everyone esle, so go seek a professionals opinion) generally speaking about the "Melbourne" market, you'd like to stay within 7-13k's of the CBD. However Melbourne's CBD appartments are a no no at the moment and docklands is not so bad if you're happy to wait around 10-15years to reap your rewards .. simply "demand vs supply" the only thing docklands has for it is > keyword > "water views".

Thanks for the advise, i'll definantly check them out. I'll be talking to my financial advisor about it later this month anyway. I work in construction management (which is a great industry to work in for that sort of thing) and have been bugging our development guru with non-stop questions about it!

I worked on some of the docklands apartments actually, they aren't that great, the finish quality we were seeing was crap, and about the only attraction was water front view

a sort of "OK" book to read is : 0-130 properties in 3years (~something like that).. A lot of things I don't agree with but it's an OK book that gives you the basics of investing in property.

Is that book by McKnights? A guy here at work bought it and its doing the rounds at work.

heres an idea

pull a cosy 480million us dollars out of ur account, buy au dollars with that... hold onto it for a few days while it climbs. then sell sell sell

i must admit the government doesnt like what that guy did but hey, he made quite a killing

get a loan, negative gear it (has many advantages such as tax breaks) and if you buy wisely you will only have to pay a small amount each week on top of the payments. later on when ur older you be laughing. also capital gains with property now is looking positive- however i really wouldnt rely on houses doubling their value each 7 years. its may have happened in the past but prices can dramatically fall aswell.

the higher the risk, the higher the return. if you want a 100% secure investment then something like a government bond is the answer, but remember the returns aren't that great. however, after studying finance for 3 years ive found out that financial advisers are nothing but scum. they are extremely unethical and in some cases all they do is give you advice so their own personal portfolios will increase in value. the answer is to look around and do research before you invest in anything

a sort of "OK" book to read is : 0-130 properties in 3years (~something like that).. A lot of things I don't agree with but it's an OK book that gives you the basics of investing in property.

By Steve McKnight. Reading it atm :D:P

Out of curiosity what don't you agree with?

- J.

*edited cause I was wrong*

Sorry not ING...that was what was stuck in my head...I meant Heritage National Mortgage Trust (sound the same though :() and it was 9.5% not 10%

For those that wanted to know, contact:

enquiry@rfa.com.au or go to www.rfa.com.au

As far as I remeber it was funded through property as like most retirement villages..they get to keep the housing after the occupant dies and re-sell it onto another couple for a stupid price....the cycle repeats.

It was based on it being a secured 24 month fixed term though....6 months gave a 7.75% return.

Either way there are 100,000 better get rich quick schemes...you've just got to put in the effort and time.

By Steve McKnight. Reading it atm :(:D

Out of curiosity what don't you agree with?

- J.

Don't get me wrong, the book makes a lot of sense and he's on the money "to some extent" with the way he goes about his portfolio, I just don't agree with his choice of locations. The fact I can buy some property for a ridiculous price like $50, $90K or whatever that's located 150+K's out of the city purely for it's positively geared return and some "future boom" is "in my mind" a little silly and risky. You can source properties closer to the an established or soon to be established "so called boom" in metropolitan areas that don't have that risk associated with country locations.

To be honest the book bored the hell out me... but it's still a good read to get the basic understanding of the property market.

I think he just made some examples using country locales but then again I ain't finished with it yet. I've read a lot dryer material on the subject though :(

What other books do you recommend on the subject Mesh?

On a side note, have you read any of the stuff by Jan Somers? Interesting how she talks about negatively gearing property and how Steve (like Robert Kiyosaki) is pretty much against it. I would have thought positively geared property makes sense but you try and explain it to some people and they can't get their heads around it.

- J.

The Jake, the last book I read before that, was called "Charlottes Web" or something like that. I'm not into books, can be bothered sitting in one spot for too long... and don't believe everything I read either. Unfortunately the world we live in everyone has an alterative motive, book or not. So I guess most of what knowledge we have is based on others failure's and sucess, the opinions of professionals we pay and then we make an educated decision on what path we take.

thankyou merlin! much appreciated,the somersoft link is wonderfull.

im 19 i have quit my dream (training as a pro golfer) and im about to sell my car and into property investing, obviously there are a million questions running through my head, and i am currently doing alot of research. planning etc...

this site seems great for help and advice so thanks for the link.

heres a thread that will help with advice to anyone with little clue about to get started in property.......http://www.somersoft.com/forums/showthread.php?t=14845

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now



  • Similar Content

  • Latest Posts

    • And if you want more power, more reliably, and cheaper, go get the Aussie RB... The 4L Barra and put that in instead.
    • No cats will keep discolouring the rear bar. Sends white paint a weird yellow stain. Cut and polish normally gets it out, but you'll be doing that every fortnight I found.
    • Both heads will be equally reliable or unreliable depending on what you do to them.  Stock the RB26 head will flow more. You have access to the stock intake ITB manifold on the RB26 cheaply which flows really well(1000hp+).   Arguably more aftermarket support for RB26, though in Aus we love our RB30 SOHC heads too.    The only downsides to the RB26 head is if you have a VL commodore and want to keep the SOHC look.  Where you may have an issue is drilling out the rb30 block for the bigger head studs but if you are building a big power motor you'd probably put bigger studs on the SOHC head too.  This is just about finding a good machine shop, sometimes easier said than done.  RB30 head worked can make big power just like a Rb26 head, so really it actually more comes down to what your preference is for your car.  People now even making billet versions of both.
    • 2630s work perfectly well. There is something to be said for just using the 30 head, as it saves all the pain of the conversion, still makes tons of power, still sounds cool, etc etc. 2630 will obviously make more power again, but the differences are not stupidly big. It really depends on whether you're racing for sheep stations or not. If it's dead serious, then it's a 26 head. If it's just for fun, it could go either way. But the 26 head and the effort to get it set up, etc etc, is part of the fun.
    • I've been building a 26/30 for a few years now. I've had the head built with all the good stuff. I had a 32 gtr but blew it up and yes its all going into a vl but im looking for some advice from some RB nuts on pros and cons on putting a 26 head on a 30 bottom end is it worth it Works are as follows Head -Extensive porting 1mm oversized supertech valves Supertech double springs Supertech valve guides Supertech titanium retainers Tomei solid lifters Tomei 270 x 10.25 cams Head drain Bottom end series 2 rb30 block Cp ceramic coated pistons Eagle rods Romac balancer Oil restrictions  O ringed blah blah spent a fortune And will get a girdle because the 30s arent used to handling that much rpm Nitto billet oil pump Hypertune plenum 6boost mani Refurbed astra pump thats the cover for it in the boot I did have a precision 6262 but sold it because drag car life. Currently building the ass end full 4 link floater rear end with a 2 speed  But the dilemma i have is my mate rekens I should just stick with the 30 head for reliability. Has any one had any issues with mounting the 26 head ie compression blowing gaskets etc. Just looking for some advice from people who have gone down this route. Here's some photos. Blew the oil pump in the gtr and decided to rip the motor out at the time and do a full build only to find it had been a repairable write off so went down this path.     
×
×
  • Create New...