Investment properties

[Psyber]

I'd need to double check but I think a self-managed superannuation fund is exempt from CGT along with other taxes, and as they can now borrow to buy property this may be the best way to make property viable as an investment. Certainly rents, though claimed to be high by those renting, don't make for a good return on investment by themselves.

Correct rules have recently changed, Super fund properties previously had to be freehold and couldnt have a mortgage over them, this has now changed
You wont get rich on Rentals, you get rich on Capital Gains, to try and get that gain over 2 years is very dangerous especially in this market

Yes, with property you have to think longer term. There have been several times when I have bought property that I may not have been able to even get my investment back in full within as much as 3 or 4 years, but if you can wait for the right time it is a different matter.

I've just bought a house in the Adelaide Hills, and although I did beat the asking price down significantly, I don't think I'd get back what I paid inside two years, let alone make a profit.
But I bought it to live in, not as an investment, and was prepared to pay a bit more than I might otherwise because the house suits me.

[Dutchy]

up the in the Hills Psyber? good work

PLay cricket?, we could always do with some more experience!

http://www.mtloftycc.com

[Psyber]

up the in the Hills Psyber? good work
PLay cricket?, we could always do with some more experience!
http://www.mtloftycc.com

Used to bowl a bit of finger spin and some medium pace, but it was many years ago [I'm 65.]
I may be fitter by next summer though.

[Dutchy]

Former MP Stan Evans played cricket for us until he was 69 so you still have some good years left

[asert]

short term is dangerous and quite often not worth the hassle with loan payments and costs plus agents etc,ive made good money thru the boom but lost in the slump. trick to it is and what took my a while to learn DONT SELL keep it and rent it out and buy again

[Psyber]

Former MP Stan Evans played cricket for us until he was 69 so you still have some good years left

I knew Stan, about the time of the rape allegations and being dumped by the Liberals. I could see why he still won the seat as an independent.

[MagicKiwi]

well thats take out 90% of people very simplistic view
so your saying that even if you have $2k spare cash each month after commitments you cant afford an extra $500- in repayments from your own resources to meet the shortfall from the rental?
Id love you to explain that to me please

Phew, you did everything there Dutchy apart from ROLLS EYES.
Bit like if you can't afford a taxi, you can't afford to go out drinking.
Conservative Dutchy, read the post.
The $2k should go into your primary mortgage, not the rental one.
If you meet the above simplistic view, you will be able to do this.
And be able to cope with any interest rate fluctuations.
I'm only speaking from experience with the way I've structured our investment properties. I reckon we're about six months at the most away from renting our current home as the rent we can charge on it will cover the mortgage. We'll then buy a new place similar to Pysber this time, as it will be our last purchase that we'll live in.

[TEX07]

We had a financial advisor have a chat with us not too long ago and he still recommended getting into shares rather than property especially now as you will buy them cheap! He showed us a graph of when peple sold and bought shares, showed that most of us buy when they are higher and sell when they drop??? We decided to do a small investment prortfolio to have a go and see what happens.

Personally i still want to get an investment property to offset some tax!!!

[mick]

We had a financial advisor have a chat with us not too long ago and he still recommended getting into shares rather than property especially now as you will buy them cheap! He showed us a graph of when peple sold and bought shares, showed that most of us buy when they are higher and sell when they drop??? We decided to do a small investment prortfolio to have a go and see what happens.

Personally i still want to get an investment property to offset some tax!!!

You can offset a share portflio against tax so long as you borrow the money to buy the shares it is possible to to claim the interest. Of course you will need to buy shares that generate an dividend to do the above. The dividends are of course taxable. I personally think the market has some distance to go before it bottoms out. I'm sticking with real estate and cash for at least the next 6 months maybe longer.

[Punk Rooster]

We had a financial advisor have a chat with us not too long ago and he still recommended getting into shares rather than property especially now as you will buy them cheap! He showed us a graph of when peple sold and bought shares, showed that most of us buy when they are higher and sell when they drop??? We decided to do a small investment prortfolio to have a go and see what happens.

Personally i still want to get an investment property to offset some tax!!!

agree Texan- now's the time to buy shares.
If people were selling $300k houses for $150k, we'd be buying them in droves- this is what's happening in the share market curently.
Depsite the latest "slump" (funny how the market initially fell, yet recovered, but this isn't the focus of the media....)
Scaremongering at the moment is fuelling this financial firestorm.
Cool heads will prevail, & now is time to invest!

nb. I invested in Oct 08, & have increased increased my share-value by 10%- that's 10% in 4 months, despite todays current "crash"! (I had gains in the vicinity of 20% recently)
The sharemarket is all about timing.

& who says property is the only way to invest?
tell these investors, who've probably had more negative growth than the sharemarket! http://www.news.com.au/adelaidenow/mone ... 43,00.html