Jump to content
SAU Community

Recommended Posts

Agree with most of what has been posted on here.

Property should be considered a long-term investment, and as such you have to be prepared to ride out the bad times (such as those at the moment)

But for those looking for the silver lining; remember these times, when the market was bad, this could be the time to invest, and sell (if you have to) when the market is at its peak. I'm sure that in 20 years many of us will look back and say "if only I had 100k to invest in the 20teens, there were some great bargains then. (but you have to be able to carry the debts through the bad times)

As with any investment, some will be better than others. You need to pick the right property at the right price in the right area. Some people can make a fortune being . There will always be a huge rental market at the bottom end of the socio-economic spectrum, because these people will never be able to afford to buy, and they have to live somewhere.

Others pick the right area just before it booms, or buy in an area that later becomes popular and allows for subdivisions (think Prospect 20 years ago, some great bargains)

There are some real disadvantages to building in SA with our land tax, so large portfolios are not very attractive.

I have a reasonable portfolio of investment properties, and have been able to leverage these to get a home and acreage I would otherwise never have been able to afford, so it can work.. (but there have been tough times along the way)

  • 4 weeks later...
  • Replies 80
  • Created
  • Last Reply

Top Posters In This Topic

I thought I would bump this to see if anybody had anything new to add.

Im looking to buy early/mid next year in the under 300k range. I may or may not live in the property depending on what financially works better for me and where the house is located. After 5 years I will be buying a different property in which I hope to live long term, and after 8 years the original property would be fully paid off.

Note these are all loose comments and estimates, but open to hear what people have to say. Where would you buy? What do you look for in a property?

I like the idea in theory Jin Man, but the concept of paying off a $300k house in 8 years is way off base. Just the loan repayments on say a $280,000k loan are $21,000 per annum, then you want to cut $35,000 off the principal per year also? And don't rely on rent, as on a $300k house you would be lucky to get $300 per week = $15,000 p.a but then you have to take out management fees, repairs, vacancy time - it is not as blue sky as some people make out. You also have to factor in maintenance, legal costs, water rates, land tax etc in all of that too - until you own a house you have absolutely no concept of how much it actually costs to own, run and maintain a home.

But hey, aim high - you have nothing to lose. :D - you definitely have the right idea in concept.

on my rental i have in Roxby atm at a minimum ive had to allow an extra 1/3 on top of repayments for all those little things that Andrew said. Dont think you will have no maint issues etc as if you dont have money put away for these little things you will have big problems.

For that sort of money you'll get a small newish home 30km south of the CBD (around Huntfield Heights) or 25km north of CBD will get you an old trust home (around Salisbury/Elizabeth)

Bingo, fairly much the exact places I have been looking, but were would you buy if it was you?

Financially, I have everything under well control, I haven't worked since I was 14 for nothing.

I also think that living in a house before renting it out reduces what you will spend in maintenance when you do rent it. Items are always going to break, interest rates are never going to just disappear and rent is not an income, its a bonus to put towards your loan. Surely if you keep these things in mind there isnt too much that could go wrong.

What are peoples views on apartments vs houses?

until you own a house you have absolutely no concept of how much it actually costs to own, run and maintain a home.

Agree to that

Currently bumped my repayments up so i pay 6weeks repayments every 4weeks.

I figure a little bit of pain now will pay off in the long run

Good work there Nick! We used to do that, but with Carolyn off work with little Scarlett and my work being quiet (change of company and quiet market in general) we have backed off to the minimum payments .... I workout out that from our $3k-odd monthly mortgage payment $2,900 or so of that is the interest :( :( :(

Good work there Nick! We used to do that, but with Carolyn off work with little Scarlett and my work being quiet (change of company and quiet market in general) we have backed off to the minimum payments .... I workout out that from our $3k-odd monthly mortgage payment $2,900 or so of that is the interest :( :( :(

similar to what i was paying, $100 off the loan and the rest going towards the interest.

Its restricting me in going out, which is a pain after all I don't have a wife or kids yet :P but luckily i have a job that allows me to hit the town every now and again :thumbsup:

speaking of which need to catch up for a beer some time, I see someone is getting a year older next week....

Good work there Nick! We used to do that, but with Carolyn off work with little Scarlett and my work being quiet (change of company and quiet market in general) we have backed off to the minimum payments .... I workout out that from our $3k-odd monthly mortgage payment $2,900 or so of that is the interest :( :( :(

WOW!!

Hence why Jin_Man is looking for a cheaper property.

I draw a reasonable income from the Company but even so (if I had a mortgage) repayments like that would be the death of me >_<

I thought I would bump this to see if anybody had anything new to add.

Im looking to buy early/mid next year in the under 300k range. I may or may not live in the property depending on what financially works better for me and where the house is located. After 5 years I will be buying a different property in which I hope to live long term, and after 8 years the original property would be fully paid off.

Note these are all loose comments and estimates, but open to hear what people have to say. Where would you buy? What do you look for in a property?

If your going to rent the house out its best not to pay it off as then the house will have no tax benifits. Best to use the money to invest in buying another house and renting that out and so on.

Sorry I have to completely disagree there Ryan .... tax benefits are only useful if you have bucketloads of income. And even then, in saving 40% tax, you are still losing 60%. Always better to have an asset fully paid off, no matter what.

yeah it's the old "pay $2 to save $1" (negative gearing).....not very sound investing.........very long term proposal

I've always tried to make my investments earn me "$2 for every $1 spent" (positive gearing).........makes you money straight away.....much harder these days unfortunately

Hmmm just got my statement in the main...

originally took a 30yr loan one year ago when i bought the unit, and due to increasing my repayments the current loan period left is 14yr's 9 months!

cant wait to see how much further its reduces with the increased payments again :thumbsup:

Amazing what a little bump can do eh Nick?

simple things like changing monthly repayments to weekly can also save you bucket loads in the long run!

just check out the calculators..http://www.banksa.com.au/personal/home-loans/tools/home-loan-calculators/repayments

on a 300k mortgage, you save around 100k in interest over the life of the loan

Edited by Tommmo

simple things like changing monthly repayments to weekly can also save you bucket loads in the long run!

just check out the calculators..http://www.banksa.com.au/personal/home-loans/tools/home-loan-calculators/repayments

on a 300k mortgage, you save around 100k in interest over the life of the loan

Damned straight! That's why I pay my mortgage weekly. Any little trick you can use to help you out you've gotta go for it; every cent helps

yeah it's the old "pay $2 to save $1" (negative gearing).....not very sound investing.........very long term proposal

I've always tried to make my investments earn me "$2 for every $1 spent" (positive gearing).........makes you money straight away.....much harder these days unfortunately

If you can positive gear that is great but prepare for the government to dip their hand in, in taxes. Especially if you are already earning a decent amount. I have balanced both scenarios and it all comes down to the individual, what you earn, what the property/s make... etc.

It is true... every cent or dollar counts; including each one from the sale of my GTR :( time sell so I can be in more debt... :wacko:

Damned straight! That's why I pay my mortgage weekly. Any little trick you can use to help you out you've gotta go for it; every cent helps

agreed,

although i don't get out as much I would prefer to know that I'm eating into the mortgage on my place.

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

    • What does it look like with highway driving? And yes, I had a similar thought as Duncan. It looks quite similar in my Stagea and I have made myself accept it as normal. Might have to look into it some day  
    • While I was waiting for the new parts to come in for the charge pipe and radiator I decided to do some turbo modification. The drive pressure (exhaust backpressure) was a lot higher that I thought it should be. For 32lbs of boost drive was 55lbs. The turbine housing is a 1.10AR and my turbo builder has suggested to go to a 1.25AR. To test if a larger AR would do anything to reduce drive pressure AND not spend any money I decided to hog out the divider in my current housing. I removed it from the inlet and the whole way through the housing.  After reassembly and testing it doesn't look like this modification did anything for reducing drive pressure or requiring more fuel (making more power). Oh well, it was worth a shot. We'll get some data at the track if it makes it past the 60ft. I also machined a $7 shift knob off Amazon to fit my Stillway shifter since I didn't like the Stillway shift knob. Next on the list was the radiator replacement and fabrication of a new intercooler tube that had no silicon coupler. No pictures of this - I was short on time each night after work to get this done and didn't stop to take pictures.  Next was to get the clutch disks out and replaced. Previously when installing the dogbox I had ordered a set of the same sintered iron disks I had been running because I switched to the 26-spline input shaft. I thought it was odd that they didn't have any markings or brand name on them like all my old disks had but installed them anyway. At the track I could not get the clutch to lock up using my normal strategies. After two track nights I reached out to the clutch manufacturer and ask their thoughts. They said they had to switch the material out because they were having trouble getting the original material and that this new material would not take to being slipped very well.  So out with the first set of 26-spline disks and in with the correct material 26-spline disks. While I had the trans out I added an inspection/service hole. I've wanted one of these for a while. Now I can have a look at things and change the front cover shimming when needed (clutch wear). I hustled and got the clutch change done in a few hours on a Saturday. Hopped in the car and drove home. On the way home I did a 1-3 pull. When shifting from 2nd to 3rd the core plug in the back of the cylinder head popped out and dumped all the coolant. Thankfully I was only 30 seconds from home and coasted it there. Datalog showed nothing unusual and 2.5psi of coolant pressure. That plug has been in there since 1992 but I guess it worked its way out. Pulled the trans AGAIN and replaced the plug, JB welded it in, and made a brace. Also deleted the head drain I had added in during the bearing issue fiasco.  I am currently changing my boost control plumbing to make it cleaner. After that is done I'll make another attempt at getting past the 60.
    • Are you 100% sure this isn't tune related?
    • 140-150 across the board. At this point hoping the grounding harness fixes it. My grounds are all tied to the chassis and none to the battery. For SR and KA that’s never been a problem for me but had a few other guys here and Reddit who told me RB really like a very solid ground setup tied to the battery so going to try that next, I’m stumped if that doesn’t do it. Never had a car have spark and fuel and not fire off before. Only thing I can think is the spark is intermittent/weak because of grounds nothing else really makes sense at this point 
    • I am having close to the same issue. Can you help me with what wire you grounded to get your pump to trigger?
×
×
  • Create New...