All these options require more valuable cash to be sunk into an asset that is not going anywhere soon. Far better to sell or be patient for at...
81 Seaview Road, Tennyson for a holiday house?
The cash flow on residential property in Australian capital cities is currently pretty poor especially with P&I. Sell up instead of holding.
Depends all on future capital growth outcomes. In Australia, this is uncertain with low inflation and 40+ years of high capital growth.
In a low return scenario, drawing on equity for negative cash flow is high risk. IPs should be modelled on 105% debt and cash flow positive....
I would ride it out and have a plan to upgrade your PPOR.
Be frugal to leverage into high growth assets and businesses - not Australian residential property as the forecast returns in Australian capital...
How much do you spend on your PPOR? - An asset that generates no income but gives enjoyment and peace of mind. Many property investors make large...
Your own holiday home - no booking needed, go there whenever you like, some maintenance done whilst on holidays to balance the relaxation time...
I have held 2 IPs in Adelaide (units 5kms from the CBD) from 2007 with capital growth being less than out of pocket expenses over 12 years. So if...
If you have the finance to proceed and can service the commitments with growing income/s, why not work towards a high quality PPOR? I found a...
The cashflow from residential real estate is far too low a return to be a good retirement strategy - The holding costs are far too high....
I prefer not to go down a path of debt to be serviced by income from wages. Dangerous to recommend that people take on too much debt.
Only buy IP in any market in Australia if cashflow from IP can pay P&I repayments at 105% leverage. Buy a CG tax free PPOR instead and upgrade...
Thanks Sam for your post. Cash flow is the most important criteria - especially during periods of tight credit that we are experiencing now. With...
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