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| eRRaTiK |
Anybody bought their own home and/or an investment property (or two or three or more)? What about shares, futures, options, other?
Just wondering if any of you fun people are also in the investment game and would like to share their experiences.
I've chosen property as my vehicle.
I know buying my home off my parents was as nerve-wracking as hell but I'm glad I did it as it's setting me up for my next investment and a working towards my financial goals ie. to be financially free before I hit 35.
I'm currently looking to buy my first investment property. So much knowledge to take in but it's pretty interesting stuff. |
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| pkcRAISTLIN |
yeah, one of my best friends is an estate agent and property investor and he's taught me a lot. property is a sound investment for people of our age. the sooner you get in the better. i have one investment property currently looking at adding another one or two in the next 12 months or so.
i think lilith is a self-proclaimed slum lord too. |
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| eRRaTiK |
I'm assuming that you bought in Tassie? When did you purchase and how's the rental and capital growth?
Does FHOG apply in Tas? |
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| pkcRAISTLIN |
| quote: | Originally posted by eRRaTiK
I'm assuming that you bought in Tassie? When did you purchase and how's the rental and capital growth? |
yeah, i just moved out of the place i bought. i bought in march of last year. im not sure about the capital growth as an overall projected percentage, but its currently worth about $30K more than i borrowed for it, and house prices have doubled in hobart every nine years since the early 70s.
as far as rental return, my payments are roughly $13K a year, and my rental income is $10K a year, after tax considerations the property is only costing me about $30/week to own (as far as mortgage repayments go). tax time is now a pleasure coz negative gearing ensures a return, though this year not too much :(
| quote: | Originally posted by eRRaTiK
Does FHOG apply in Tas? |
yeah, this is why i had to live there for 6 months. was expensive! |
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| eRRaTiK |
Is the grant 7K in Tas?
I'm doing the same thing. I settled in April so will be moving out in Oct and rent the place to my folks.
Man $30/wk is pretty good! Perhaps you could push the rent up by that 30 to close the gap, or 35 and have it positive cashflow.
The story is similar in Syd and Melb. 7 to 10 year cycle, and over the past 40 years prices have doubled (some even more than double). Entry costs are somewhat challenging now though. |
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| kelsta |
It's property for me too :)
We bought our place two months ago to live in, made use of the FHOG. Not sure if we will rent it out in the future but will most likely use it as leverage to purchase another investment later down the track. One mortgage at the moment is enough :nervous:
I researched a few different investment choices before deciding on property and considering the way things are looking it was a good choice to get into the market now rather than later.
I have some shares lying around that were given to me as a 21st present, no idea where they are at but I'm going to start looking into it. |
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| eRRaTiK |
| quote: | Originally posted by kelsta
considering the way things are looking it was a good choice to get into the market now rather than later. |
definitely!
good on you Kel. It's ALWAYS better to get into the market sooner rather than later (forget about what the newspapers and commentators say) :)
affordability is already an issue and over the next 5-10 years it's only going to get worse for the average investor looking to enter the market or even people wanting to buy their own homes. |
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| pkcRAISTLIN |
| quote: | Originally posted by eRRaTiK
Is the grant 7K in Tas? |
yep.
| quote: | Originally posted by eRRaTiK
Man $30/wk is pretty good! Perhaps you could push the rent up by that 30 to close the gap, or 35 and have it positive cashflow. |
maybe in years to come (esp after my fixed interest rate finishes) but for now negative gearing is the way to go. that means i get $10K a year tax free :)
| quote: | Originally posted by eRRaTiK
The story is similar in Syd and Melb. 7 to 10 year cycle, and over the past 40 years prices have doubled (some even more than double). Entry costs are somewhat challenging now though. |
yeah, which is why getting in ASAP is the way to go. simply put, prices increase faster than our incomes or savings. so the longer you wait to enter, the worse shape youre going to be in more often than not.
| quote: | Originally posted by kelsta
It's property for me too
We bought our place two months ago to live in, made use of the FHOG. Not sure if we will rent it out in the future but will most likely use it as leverage to purchase another investment later down the track. One mortgage at the moment is enough
I researched a few different investment choices before deciding on property and considering the way things are looking it was a good choice to get into the market now rather than later.
I have some shares lying around that were given to me as a 21st present, no idea where they are at but I'm going to start looking into it. |
kel, youre sounding like the mature nerd these days. im very proud :p
the best thing about property imo is that people will ALWAYS need somewhere to live. sure, you can make a killing in stocks if youre clever and lucky enough, but if you buy property sensibly you'll always be able to find someone to rent it from you. and house prices NEVER go down, as long as you look into the future long enough.
with housing affordability at an all-time low, theres still so many people needing to rent.
and then there's all the cool things you can do with tax :) |
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