How to get the guts to keep going?

Discussion in 'Investor Psychology & Mindset' started by Sam112Ward, 21st Mar, 2017.

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  1. Sam112Ward

    Sam112Ward New Member

    Joined:
    9th Oct, 2016
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    Location:
    SE QLD - not Bris
    Hi there,
    First post so please be gentle.

    We live in Maryborough QLD - PPOR owned in full. We have 3 IP's; a house in Maryborough and a house & unit in Hervey Bay. Current loan $565K, current property value $1.15M

    We're in a position to expand again. The IP's that we currently have are not breaking any records in the capital growth world, although we're only slightly negatively geared so they aren't costing us a lot at the moment either. My dilemma is:

    My brain tells me that we should purchase a good property in North Brisbane. The CG will far out strip everything we have in our portfolio at present.

    But my heart has trouble dealing with the realisation that the rental yield is so much less than our local area.

    How do people decide what to do? Do I buy another property in my local area which researched properly, could very well be rented at more than the loan repayment cost. Or do I purchase a property in Brisbane where the rental yield wont cover the repayments, let alone the expenses.

    Interested in hearing from people who own high yield/low CG properties. Do you regret? Do you stand by your decision?

    thanks..............Sam
     
  2. Propertunity

    Propertunity Well-Known Member

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    19th Jun, 2015
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    3,476
    Location:
    NSW
    Sam, if you do what you've always done, you'll get what you've always got. Is that what you want? If not, do something different.
     
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  3. BKRinvesting

    BKRinvesting Well-Known Member

    Joined:
    15th Oct, 2015
    Posts:
    685
    Location:
    Canberra, ACT
    What's your medium/long-term plan?
    Does the new purchase and numbers fit the plan? If so, then why the concern? If not then why buy?
    Just something to think about.
     
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  4. Tonibell

    Tonibell Well-Known Member

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    Sydney
    Go with your brain.
     
  5. Jess Peletier

    Jess Peletier Mortgage Broker & Finance Strategy, Aus Wide! Business Member

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    18th Jun, 2015
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    Location:
    Perth WA + Buderim Qld
    Check with your broker. If a highly neg geared property is going to stop your investing in its tracks, you may be better off buying something with better cashflow.

    Heavily neg geared properties will kill your borrowing capacity and your real cashflow as well.

    What's your income like? If you're a super high income earner, it may make sense but if you're average income I'd suggest going for something that's got reasonable return would probably be wiser.
     
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  6. MTR

    MTR Well-Known Member

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    Location:
    My World

    I am a big advocate for timing the market, not time in the market, exactly what you are stating, you could be sitting on a property for 10 years and no growth, yet servicing debt. While those who purchased in Melb and Syd recently have doubled their money in perhaps 2-3 years.

    Where from here? learn from this and move on, find markets that are actually rising, diversify your portfolio so that you can ride more cycles and improve your chances of making money
    If you want to play in your own backyard unless a market is currently rising you are still only guessing on growth and could be wrong.

    Start researching on PC, a couple of questions is the Gold Coast actually rising? start reading threads on this, the only real way to find out is phone re agents and many to work out what is happening and if rising what is it that people are buying, houses or units.

    Same as is Geelong, Victoria hot? if so when did it start?? is there still steam in this market?? what is selling etc etc

    Is Tassie a hot market

    All comes back to homework, and finding opportunities, but the bottom line is this is a forum with lots of opinions, but you need to dig deeper to distinguish fact from BS.

    Keep researching, don't buy unless you know stock is low and demand is high.

    All the best

    MTR:)
     
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  7. WattleIdo

    WattleIdo midas touch

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    18th Jun, 2015
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    Location:
    Riverina NSW
    That's not your heart, that's your guts.
     

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