No, that simply wouldn't work. A comment only makes sense in sequential reading as it responds to an earlier one. It's fine the way it is.Or as a middle ground make 2 separate threads and keep them separate.
No, that simply wouldn't work. A comment only makes sense in sequential reading as it responds to an earlier one. It's fine the way it is.
I believe some good country properties would be interesting for cash flow..... like this 1
http://www.domain.com.au/Public/PropertyDetails.aspx?adid=2007347763
2 bedroom cottage, which you can pick up for $74,000 and with 20% down that would mean you would have to come up with $14,800.....
The expected rents are $150 p/w so gross rent annual would be $7800, lets say $1500 went to expenses and your left with $6000 before interest and tax. $59,200 (your loan) @ 7% interest would = $4144 in interest.
$6000 - $4144 = $1856p/a
Cash on cash return (cash outlayed to cash earnt) would = roughly 13%p/a (but when you account for agent fee's solicitor fee's etc.. it would bring it down a tad)
Theres always money to be made in any market
Have you been to Dimboola Ageo? It's been a few years since I've been there, but if I remember it was a dying town out in the middle of nowhere, ever since the highway skirted it. Did not at all a vibrant town to me. It's all good having cheap property, but you have to have tenants who want to live there. I don't know, maybe you know more about the area, but those are just my impressions from the past.
I think the biggest mistake by the realestate agents, investment property kings, and whoever else that trawls this thread is assuming that everybody that is discussing property negatively in here at the moment:
a) Hates property with a passion
b) Thinks property is a poor investment long-term
c) Is "too poor" to be able to purchase one (6 figures in the bank thanks, I'm fine)
There is a time for everything, cycles are cycles, and when people have a choice of when to enter (or leave) the market they'll choose the time they think is right. I don't think that time is now, right now for lots of reasons put forward in here.
Global recession is coming - US, UK, Japan, Europe, China may soon be experiencing what may seem like a recession.. People only need to half read some of the overseas news sources to see how badly this crisis is playing out. It seems most property investors like to ignore them and dismiss the rest of the world as not being applicable to Australia. Whatever the worst beliefs that have been put forward have been met so far. Even outrageous claims have turned out to become true.
The world's largest investment banks falling over? 95% of people would have laughed at you 2 years ago if you had even tried to suggest such a thing.
We're an island, we're insulated somewhat, but the time will come, is coming (speak to some small businesses out there), for the world economic downturn to hit our economy.
JP Morgan coming out and predicting 1M job losses coming up is in stark contrast to the conservative economists views out there, often sponsored by the major banks mind you. I wouldn't dismiss such estimates so quickly, as the conservative viewpoints have proven to be the incorrect ones so far.
The spin talk all seems to sound like the one put forward by those with shares 12 months ago. Lots of logical arguments as to why this was a never-ending super cycle, lots of nice theories that do make sense, but in the end, a big fail as 12 months later we're heading for 2004 share market levels.
Those perma-bulls that seem to believe that property prices can never ever fall, have plenty of nice charts and theories that the rules are somehow different, may be heading towards exactly the same mistake.
We can all just watch and wait and see if this proves to be correct or not.
There is plenty of caution, even put forward by those in the property investment community if people read around a bit more.
Couldnt agree more gfresh, my dad's builder who builds alot of homes is pulling back production... many of my customers (jewellers) cant even pay a small debt, many of the small business's that are over capitalized will get slammed.....im hearing it everywhere, i.e people in westfields are still paying crazy rents but arnt generating the revenue to keep up.
And i also agree now isnt the time (for me anyway) to buy property or shares (as i believe the worst is yet to come) but when it all falls through the roof perhaps 90% of the population will not be able to afford investment (they will be in survival mode) and thats the time to look at entering..... (of course my opinion and shouldnt be taken as advice).
nothing wrong with keeping that cash in the bank at 7% and wait for the perfect pitch to come to you.
...
No, that simply wouldn't work. A comment only makes sense in sequential reading as it responds to an earlier one. It's fine the way it is.
Well what you call your opinion I call nonsense.
Here you go mate .. you can rant away to your hearts content there.
https://www.aussiestockforums.com/forums/showthread.php?t=9911&highlight=house+rising
I like to keep things as simple as possible.
rising unemployment will mean many holders of single investment property especially, (and ppor) will no longer be able to service their negative gearing = more (forced) sellers.
rising UB + difficulty qualifying for tightened credit will mean less buyers.
more sellers + less buyers means prices fall.
these are basic assumptions, tell me were I am wrong.
Is there any sausage that thinks UB will not rise?
I believe that immigration plus undersupply of home construction, and rental supply, is holding up the market at the moment, that is saving us. I dont believe these factors can hold back the tide.
I talk to RE pros sometimes. Every single one of them tells me prices are falling hard.
Obviously there will be some small pockets that are not afflicted, but they will be few and far between
disclosure: I own my own home outright, and have 1 negative geared IP, which i wont sell unless forced to, and these views represent my opinions only. I am not a RE pro, but have bought and sold numerous properties over 20 yrs.
Something just doesnt sit right with me regarding our banks...... i mean lets say your bank falls over (which is very achievable due to foreign lending) how many other people will do a bank run...... then id like to see the governments guarantee in action (people will storm the parliament house to demand their cash hehe).
"The Gold Coast is at the bleeding edge of what's happening," said Mr North.
"The Gold Coast is certainly facing it more than other areas of Queensland and other states, although Western Australian is slightly worse, especially around Perth
"The Gold Coast will move closer to slowing economic growth and recession than other areas."
...
He said young Gold Coast families on middle incomes who purchased when house prices peaked were now struggling to keep up with repayments.
Many would be forced to sell at a loss, he said.
By next March, 4282 such families on the Coast will be suffering mortgage stress and 1156 of them will be in 'severe' stress, the figures show.
Also likely to be hurt are those classed as 'suburban mainstream', with an expected increase of about 2 per cent to 5779 households and 2394 under severe stress.
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