Join Australia's most dynamic and respected property investment community

making money from property now

Discussion in 'General Property Chat' started by MTR, 14th Oct, 2015.

  1. MTR

    MTR Well-Known Member Premium Member

    Joined:
    19th Jun, 2015
    Posts:
    7,318
    Location:
    Perth, Melbourne, USA
    Any suggestions..... Westpac announcing interest rate rise, game changer?

    Where from here? we can not depend on markets continuing to rise, what will you do now.

    Me.... I will continue to complete ongoing projects, and focus on cash flow and reduce debt just in case IR continue to rise

    MTR
     
    Perthguy likes this.
  2. D.T.

    D.T. Adelaide Property Manager Business Member

    Joined:
    13th Jun, 2015
    Posts:
    5,571
    Location:
    Adelaide, SA
    Firstly, I think its mostly media sensationalism.

    Doesn't change my strategy much - similar to you, finish current projects.

    Then buy stuff that makes money NOW (from umv or reno or dev), not rely on growth that may or may not come.
     
    Perthguy likes this.
  3. Biz

    Biz Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    1,472
    Location:
    Sydney
    Great title for Jan Somers next book.
     
    albanga, York and DanW like this.
  4. WattleIdo

    WattleIdo renovating Premium Member

    Joined:
    18th Jun, 2015
    Posts:
    1,809
    Location:
    Central West NSW
    I'll be doing the same - on a much smaller scale. Should be able to start renovating house of horrors after this weekend. Would so love to quit the day job!
     
    KayTea likes this.
  5. DanW

    DanW Well-Known Member

    Joined:
    26th Jun, 2015
    Posts:
    400
    Location:
    Sydney
    Let's see what the RBA does first.
     
  6. MTR

    MTR Well-Known Member Premium Member

    Joined:
    19th Jun, 2015
    Posts:
    7,318
    Location:
    Perth, Melbourne, USA
    I think they will drop rates, whether it's passed on will be the issue.
     
  7. JDP1

    JDP1 Well-Known Member

    Joined:
    20th Jun, 2015
    Posts:
    2,838
    Location:
    Brisbane
    not a game changer by any means; will likely discourage exorbitant spending on RE , which is already being discouraged by APRA. Almost guarantee the other banks will also raise...
    Likely will hear less of stories that were there 6mo-1yr back eg hole in the ground in Sydney going for a million bucks type stories. Might still hear about selective properties eg GW places going for grossly overvalued prices; but that will be driven by money that is not subject to anything in Australian finance.
     
  8. datto

    datto Well-Known Member

    Joined:
    23rd Jun, 2015
    Posts:
    1,390
    Location:
    Mt Druuiitt
    OK the goal posts have moved further away.

    The way I see it, property investors are like farmers. We have ploughed the fields, planted the seeds and the rain has finally come.

    It has now come time to harvest the crop and take it to market. But don't take everything to market as you'll need some for the cold winter.

    Just enjoy some of the spoils for now and try and create some synergies that will multiply future output.
     
    Gingin, albanga, HUGH72 and 3 others like this.
  9. MTR

    MTR Well-Known Member Premium Member

    Joined:
    19th Jun, 2015
    Posts:
    7,318
    Location:
    Perth, Melbourne, USA
    The reason I started this thread was because many on this forum have made property gains either via equity or selling over the last 3-4 years. However, this was only possible due to strong property/boom markets.

    What strategy can we use if all markets turn, not wishing to be negative, just trying to work through this.

    I guess I can do nothing, but that will be a hard one
     
  10. datto

    datto Well-Known Member

    Joined:
    23rd Jun, 2015
    Posts:
    1,390
    Location:
    Mt Druuiitt
    One strategy is to wait for the proverbial to hit the fan and watch the market tank, devastate the economy and ruin the livelihoods of many individuals. Then buy up on the cheap.

    Ah capitalism. All is fair in love and war.........and property investing.
     
    Last edited: 14th Oct, 2015
    Bunlee, York and JDP1 like this.
  11. Biz

    Biz Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    1,472
    Location:
    Sydney
    Nothing really changes for me. Even with all the hoopla going on I have just stuck to my plan of buying well located properties then making them cashflow positive with reno's and granny flats. I've always seen capital growth as being fairy dust in a way, never set out to specifically chase it.
     
  12. D.T.

    D.T. Adelaide Property Manager Business Member

    Joined:
    13th Jun, 2015
    Posts:
    5,571
    Location:
    Adelaide, SA
    If the market isn't growing (as Adelaide hasn't been in the past couple of years, still awaiting boom) make your own growth via renovations, subdivide, house extensions or simply buying under value. I'm not just promoting Adelaide as an answer - I assume this is available in every city if you know where to look.

    If it's cashflow positive then it doesn't cost you anything to wait for next round of growth. But stuff waiting :)
     
    mini2 and KayTea like this.
  13. Scott No Mates

    Scott No Mates Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    5,544
    Location:
    Sydney or NSW or Australia
    Wait for the "mortgagee in possession" sales to hit the market then go shopping.
     
    mini2 likes this.
  14. MsAli

    MsAli Well-Known Member Premium Member

    Joined:
    18th Jun, 2015
    Posts:
    1,147
    Location:
    Sydney, Australia
  15. Rumplestiltskin

    Rumplestiltskin Well-Known Member

    Joined:
    1st Jul, 2015
    Posts:
    402
    Location:
    Perth
    Don't forget you need to leave something in fallow.
     
    datto likes this.
  16. Natedog

    Natedog Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    273
    Location:
    Melbourne
    I had fixed my rate on my 2nd IP purchase from memory at 8.5% back in 2007 because everyone was concerned rates would be up over 9%!

    So rates at near 5% across all my properties now isn't a big deal.

    I am still sticking to my boring buy and hold forever strategy.

    Just like Jan would want.....
     
  17. Bunlee

    Bunlee Active Member

    Joined:
    18th Jun, 2015
    Posts:
    37
    Location:
    Sydney
    I don't have the requisite skills and the time to make money from the market now. However, I will be looking down the track to buy another investment property in Sydney if there are relatively significant falls in the market.

    Will be looking for a 2 bedder unit, walk-up, three story & garage number around Dulwich Hill, Allawah, Summer Hill & a few other areas.

    Starting research now and see if something pops up on the radar in the next year or two. 1 purchase only for me.

    In the meantime pay $10,000 pa off Investment Property Loan (4 years to go @ 4.99% fixed), $3,000 pa to wife's super (guaranteed 18% return), 9.5% employer payment to my super and a bit of cash buying direct Aussie shares.

    Fairly conservative strategy but I am sure opportunities will come up or be made for the more adventurous here even in more difficult or constraining time.

    Best to all
     
    WattleIdo and KayTea like this.
  18. Simon Hampel

    Simon Hampel Founder Staff Member

    Joined:
    3rd Jun, 2015
    Posts:
    1,647
    Location:
    Sydney
    Who, ironically, won't be writing another book because she has retired and is living off the proceeds of her property portfolio.
     
    DanW, charttv, Hanison and 1 other person like this.
  19. DaveM

    DaveM Adelaide Buyers Agent & KFC Strategist Business Member

    Joined:
    14th Jun, 2015
    Posts:
    2,096
    Location:
    Sydney & Adelaide
    There is always money to be made. Whether its a different market/location, selling peak holdings to allow reinvestment in future opportunities, paying down debt etc.

    With the removal of the glut of new rental properties due to the significant reduction in investment purchases and other investors cashing in by selling, rental demand will grow as the rental pool reduces, putting upwards pressure on rents. So you can do a renovation to increase yield.

    0.2% from westpac and some dumb news article isnt the end of the world, not by a long way
     
    DanW, Eric Wu and skater like this.
  20. skater

    skater Capitalist Premium Member

    Joined:
    18th Jun, 2015
    Posts:
    1,411
    Location:
    Sydney
    Absolutely agree. Although not the end of the world........it doesn't mean I have to like it.:p