Strategies that went pear shaped over last decade

Discussion in 'Investment Strategy' started by MTR, 23rd Feb, 2017.

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  1. Gockie

    Gockie Life is good ☺️ Premium Member

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    I've got one in Scarborough QLD, still very early days in hosting there. However, no, actually, it doesn't have to be shiny and new! Just has to be clean and tidy and bright.
    Screenshot_2017-03-18-12-41-10.png Screenshot_2017-03-18-12-39-19.png
     
  2. MTR

    MTR Well-Known Member

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    That's great, so out of interest what are you expecting in terms of yields PA????
     
  3. Gockie

    Gockie Life is good ☺️ Premium Member

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    A local agent who specialises in short term lets said to not expect to make a profit in the first year. But after that.... :)
    And there is the demand for it.
    I really bought the house for the location though... flat land, 250m easy stroll to the beach and I can make it higher density as its zoned so that I can build up to 12m on the land. It's a 50% wider block than the standard for the area too, water views from the street which is dead quiet.
    So...location, location, location = potential potential potential. :)
     
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  4. MTR

    MTR Well-Known Member

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    I think Redcliffe will be getting a train line????? not watching this market, heard this some time ago now
     
  5. Gockie

    Gockie Life is good ☺️ Premium Member

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    Started operation Oct 2016. :)
     
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  6. MTR

    MTR Well-Known Member

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    that is brilliant, they had been talking about this for years and years, finally happened
     
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  7. @KMJ

    @KMJ Member

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    Gee you "gurus" love to poke and prod one another :)
    Ouch .. some of those towns mentioned in that article have really gone downhill in the last 6 years.

    Other horror stories include; flooding, termite infested houses (from not doing regular building inspections), OTP apartments, the forestry investments many accountants were promoting back in the day ....
     
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  8. MTR

    MTR Well-Known Member

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    Got an email today regarding Vendor Finance? I wont see this strategy has gone pear shaped as I don't know, but don't hear about this strategy these days? Perhaps 10 years ago it was very popular Rick Otton anyone recall this guy?

    Anyone using this strategy?
     
  9. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    I did a few in the past before becoming a lawyer but never again. Too many issues.
     
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  10. Perthguy

    Perthguy Well-Known Member

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    I think it is safe to say it went pear shaped in at least some instances.
     
  11. Lacrim

    Lacrim Well-Known Member

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    Only up to Kippa Ring though. Still have to hike it via bus, foot etc to Redcliffe.

    I have an IP in the area East of Oxley and the area is ok but not Airbnb material one would have thought.
     
  12. Gockie

    Gockie Life is good ☺️ Premium Member

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    Unfortunately I have to +1 on this... #live and learn.
     
  13. Jingo

    Jingo Well-Known Member

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    Hi MTR,

    Some of the strategies above worked for a while, but haven't endured the test of time. At the moment Apra is reminding us of the risks in over extending. Interest only loans have been all the rage for many years and have worked well. These are now being limited.

    A reminder that over extending is never wise - never know when rules are going to change.

    The government is continually under pressure to review negative gearing, capital gains tax, etc, meaning that an investor has to be able to adapt their strategy.

    Regards Jason.
     
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