Yet another Gladstone Property Drama

Discussion in 'Investment Strategy' started by Bejay, 3rd Sep, 2017.

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  1. Hwangers

    Hwangers Well-Known Member

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    agree with you there, its up to the individual profile - although personally I don't understand why people are fixated on whether one strategy is superior to another. End of the day its about researching the market well, conducting your due diligence thoroughly and if you can time it spot on with a healthy dose of luck, then it doesn't really matter which strategy you pick - there are winners and losers in all market conditions across every strategy.
     
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  2. Eric Wu

    Eric Wu Well-Known Member Business Member

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    I know what you mean, ppl who are on high incomes, they have lots of options, primarily investing in CG properties to start with, then use other strategies to increase rent. not the other way around.
     
  3. Sackie

    Sackie Well-Known Member

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    If you look at my posts in general, you will see that I say many times there is no 1 strategy that suits all and everyone has to invest according to their own risk profile and financial situation.
     
  4. dabbler

    dabbler Well-Known Member

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    And what you going to say/do if your own succumb to market forces ?
     
  5. Trainee

    Trainee Well-Known Member

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    Problem is passive income on a geared portfolio where your cashflow is a sliver of the rent has its own risks. Interest rate rises etc. Longer term capital gains even out and compound.
     
  6. Sackie

    Sackie Well-Known Member

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    Agree and when I say 50k passive income I am more referring to a debt free asset. My own strategy for some time now with regards to real estate in Australia has been to create chunks of equity via adding value and then paying down debt, then doing the process over and over. Yes the portfolio size will not be as massive as it could be because my overall LVR is very low, around 20% now, but the cash flow it generates is substantial.
     
  7. Sackie

    Sackie Well-Known Member

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    Don't get why they annoy you... they sound like good deals that will eventually be worth the effort once subdivided. :)
     
  8. Sackie

    Sackie Well-Known Member

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    The number of properties is really not a meaningful measure. People can have 6 properties that are far superior to a portfolio of 20, with less risk taken on.

    Anyway it sounds like you have strategy that works for you and your goals, so that's all that matters.
     
  9. Jaxon Avery

    Jaxon Avery Well-Known Member

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    Haha I actually don't work for the company, think I would rather save the $10,000 for their fee than hire them to do what I can
     
  10. Jaxon Avery

    Jaxon Avery Well-Known Member

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    So what are these better options??
    how could one use them?

    can you give a real life example you have done?
     
  11. Jaxon Avery

    Jaxon Avery Well-Known Member

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    Your right the exact amount of properties means nothing and I wasnt trying for that to be the talk point. but Its more of the point I am not at the stage or in a position were negative gearing is even an idea worth exploring.

    I would rather under buy and build equity while having an income stream that puts back into the properties and slowly makes a renewable income for me.

    Leo I still have a lot to learn, how would you move forward today if your earning say 60k a year and have two properties
     
  12. Angel

    Angel Well-Known Member

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    O dear, Bejay, what a pile of dribble responses you have received. I actually have dealt with children going to uni and a loss from a previously awesome investment at Gladstone.

    I am not familiar with the Gladstone market at this time. You are wanting to relocate for your career so you might as well move to Brisbane. Tick. Renting your new home initially will give you time to locate something else that you may wish to purchase once settled in your new position. Tick. You will initially be restricted financing another property but this may improve as you pay off any debts and have stable employment.

    As for your financing your children while they are at uni, a reality check might be in order. What are you going to do if your daughter decides she doesn't want to do all the hard work that Medicine demands, or doesn't get the OP? Allow her to work this one out for herself - assuming Dad doesn't pay her living costs. A lot can change for a 13 year old too in the next 6 or 7 years. Are you aware of the drop-out statistics for students who go to uni straight from school? There are several reasons why delaying study for two years after high school can be a good idea, but that is not the question you asked.

    The only idea posted previously about your situation that I would look further into was to sell the acreage if it doesn't seem rentable and to keep the smaller property that does rent easily. Given how difficult it has been to rent out homes around Gladstone, only you can work out what is the easiest solution. To do this, have a chat to a few different agents to get their opinions on what is currently selling easily and what is currently renting easily. With this type of information you can make an informed decision. You don't want to have any long vacancies with no income and a mortgage to pay.

    Is it feasible to remain living on your acreage, working from home and selling the other property? Would this potential sale give you any cash buffer to cover the repayments until Gladstone's economy picks up a bit? Your daughter can maybe aim to do a science degree locally or online while she is working out how she can fund any longer-term studies. Better still she can get a job if Dad is about to change jobs himself.

    Please don't get distracted by all the other nonsense about capital growth and cash flows, particularly coming from Egos who know nothing about Gladstone itself.
     
  13. Sackie

    Sackie Well-Known Member

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    This is not the thread for this discussion. Can PM me if you like mate.
     
  14. bob shovel

    bob shovel Well-Known Member

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    keep reading the forum and working out who's who in the zoo. Plenty of info in here
     
  15. Sackie

    Sackie Well-Known Member

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    I'm a sheep...:oops:
     
  16. bob shovel

    bob shovel Well-Known Member

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    a wolf in sheep's clothing? :p
     
  17. Sackie

    Sackie Well-Known Member

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    Your gonna get me in trouble... stop it...
     
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  18. TMNT

    TMNT Well-Known Member

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    many are quick to jump on anyone who has bought in gladstone and similar areas, esepcially those that have bought multiple

    some might be greed, some might be ignorance, some might be those that fell for the sales pitch,

    I cant see these areas recovering back to their peak prices for say 20 years to be honest, assuming average growth
     
  19. Ems

    Ems Well-Known Member

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    We have recently sold 2 in Gladstone. Purchased 2010 and 2012 for a combined loss of $450,000. We held on hoping things would improve, in the meantime bleeding money each month. We decided to sell as we believe it would be years (Maybe never) to get back to the price we paid.

    We were young, naive and fell for the sales pitch. Our own fault. We have learnt a lesson (A very expensive) lesson.

    All the best to you, I know what you are going through.
     
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