CITR Property Thread

[BOMDC5]

Insured?

Yeah im currently going through court to get what is owed to me.. Real estate says its not their fault. Insurance company is incompetent.. and here we are..

[cordz]

Yeah im currently going through court to get what is owed to me.. Real estate says its not their fault. Insurance company is incompetent.. and here we are..

What's sort of tenants were they?

[cartoon]

What's sort of tenants were they?

Bad ones!

[hello]

bump.

[gunpoons]

hey lads, this is my investment property which is currently on the market up here in the city of Inverell. it has a 335sqm footprint on a 860sqm block in the most desirable subdivision in town. it is less than 2 years old, returns 400pw rent and rates are $1800per annum, asking price is $429k but you know i'll look after you if you on a Honda
click the link yo! a picture tells a thousand words
http://inverell.ljhooker.com.au/NYH8U

[cartoon]

Nice looking place!

[Setanta]

Congrats...
A four car garage with a workshop at the rear would be perfect tho... lol

A garage with 8 berths, 2 hoists, room for beer fridge, TV, pool table with a 1BR loft and kitchen/living room would be paradise.

But I'm not allowed to have one

[Swoopdown]

Im into property. Bought my first back in 99 and after making plenty of mistakes feel like I'm finally gaining traction.
I figure I got to get into something that's going to finance my dream NSX because my day job certainly isn't.

[plAythiNG]

Getting pushed to buy a second inv prop as there is such a high demand now and dont want to buy it in a years time if prices keep on rising.. thughs

[Swoopdown]

Who is pushing you? Unless your doing it for yourself it will end up a fail.

Don't know your circumstance. So wouldnt be so stupid to give you any of my thoughts.... other than don't take advice from anyone with invested interest and don't take advice from anyone that hasn't got a substantial folio and net worth that they have made through property. I can gauruntee you that most financial planners, accountants, real estate agent etc are financial retarts that struggle to pay the rent even though they drive a nice car.

Im on less than average wages and am liable to tell the boss to go jump and end up unemployed so I make sure that my folio is balanced and doesn't cost me anything. I usually buy 2 cash flow properties and the 1 growth property. I make sure I spread the love across the country and buy in all states and capitals as well as regionals. And where possible never use the same bank twice.

[plAythiNG]

The reason they are pushing me now as opposed to buying in 12-18months is they want to alleviate any further rise in property value shall i purchase down the track... personally i rsther it being all with one bank. So much easier to manage. More importantly more bargaining power

[Swoopdown]

Well if you planning on buying in Sydney then now is probably not a bad time rather than wait 12-18 months. I believe its heating up but yet reached the feverish levels that Sydney got to last time so though there have been price increases already.

If you already own one in Sydney then it makes sense to look in another state IMO. Think about how property moves in price. It goes in cycles and each capital has its own cycle. So why would you just want to ride one cycle?

Regarding banks most brokers will tell you to go with one bank but its because they are very short sighted. All they look at is the best interest rate/least fees they can get you. That's there job.
Think about this. If you got 2 or 3 houses with one bank they are usually crossed. So what happens if you one house goes up in price and you want to access the equity and the other has gone down in price a little.... Then your ass raped and cant move on. Even if they are not crossed then most banks (certainly the big 4) have a all moneys clause which pretty much means that if house number 1 is not going well they can take hostage not only house number 1 but also house number 2.

Much better to get a second loan on house number one and use that as depots with bank number 2 for house number 2. Protects you also if house number 1 (or 2) goes ass up. It might cost you 0.1% interest rate and an extra $800 set up fee for the new loan but then you protected from the back and will find it much easier to buy your 3rd and 4th house. Well worth the extra $200 interest a year and $800 additional setup fee (both are claimable).

Food for thought.

[plAythiNG]

in short I work for the big four and in Home Lending ;p

agree with what you say in having each property not cross collaterised also!

ill speak to my folks who have had a nice proeprty portfolio and see their input..

[Swoopdown]

That's great so you know about all money clauses and why you should not be borrowing though the same bank then, even if you get a small discount.

I liken it to modifying an engine to chase top power figures at the expense of bottom rage, mid range power and reliability.... Seems silly to me.

Keen to know where your looking at buying, what type of property (unit, apartment or house) and why. Im also keen to buy in Sydney again but I am a bit torn at the moment and I know that some of my own prejudices are getting in the way of my decision making. I don't know if my prejudices are justified.....??...

[felixR]

Interest rate dropped again!