Investment properties.

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NeilPearson
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Re: Investment properties.

Post by NeilPearson »

Bauer wrote:Depending on whose online loan calculator I guess, they are accurate enough for what you are wanting and designed to help customers, not suck them in. ;)
whilest that is true, My gf and I went by an online calculater and it approved us for all this stuff, went into the bank that the online calculator was advertising for and they wouldnt give us sod all.

So we got a mortage broker, and through him we got a loan that suited us perfectly, then i became ill and have been unable to work so we couldnt get a place. so it never eventuated.
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Re: Investment properties.

Post by ysu »

bengatta wrote:I am struggling to think what is a normal investment... especially one that does not rely either directly or indirectly very heaviy on property investors...
Finally! So the problem is that you can't understand how buying up properties directly drives the prices up, or rather how others don't. Fair enough.

But first of all, let's clear something up: I did not offer it as an advice, merely as my view. Opinion if you like.

Ok let's see a few alternatives, then;

Stock market. That does not drive property prices anywhere (directly).
There are many ways into that, you don't have to buy shares directly and chew your nails to bits over them (altho that's part of the fun for some of my friends...) just get some investment portfolio. Some insurance and other companies offer investment portfolios, which are either stock or commodity exchange based, sometimes linked to oil or other specific thing, you can even try and ride the far-eastern wonder and buy chinese portfolios, this is the sort of thing they have tried to offer me recently. Sounds fun ;)

You can invest in currency exchange. It's another fun form, brother has been doing it for a while, it can be very profitable. And risky.

There are many other financial investments, eg government papers (can't tell the proper english name, but I've had a few back in hungary, it's a fairly safe form) but then you can put your money into long term deposit accounts as well...

On the other end of the safety spectrum there are investments, even around properties which wouldn't directly affect the price of housing the way buying them up does, in my opinion. Getting money into the building side would probably have a rather positive effect, instead of the negative one (thinking eg mezzanine funding) - and they are fairly short term, very profitable. Been thinking about it but I simply don't have enough to risk to make it worthwhile.

And of course investing in running businesses can always reap nice profits.

See what I mean?

Disclaimer:
I'm not saying, again, this is what one should do; many of the options around have much higher risks than a simple property purchase, altho it's often offset with the potential for very high gains.

In any case, do your friggen research before going into any investment.
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Investment properties.

Post by DexterPunk »

Shares etc are not something that interests me at this stage. Possibly in the future when I have a bit more money to play with. The idea of buying a place is to avoid having to pay rent... Which I consider to be a huge waste. Renting out that property is a way of helping with the repayments. I don't see any reason why anyone shouldn't be able to buy multiple properties if they like. If that pushes up prices then I'd think there are larger issues that should be attended to and better solutions than simply telling people not to buy them. I thought the lack of housing was the main reason prices are so high?
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Re: Investment properties.

Post by ysu »

DexterPunk wrote:Shares etc are not something that interests me at this stage. Possibly in the future when I have a bit more money to play with. The idea of buying a place is to avoid having to pay rent... Which I consider to be a huge waste.
Yeah, I know what you mean.
Although renting may even be the cheaper option in some cases, on the long term the increase in the property value is likely to balance things (sometimes heavily) in the owner's favour. That's the reason many chose this form of investment.
Consider that if you rent, you don't pay fees or maintenance - nothing. And you usually have to pay taxes after the rental income.

But to buy a really good one which actually comes out positive on the short term (positively geared, they used to call it I think), sometimes needs some careful research and calculations, especially if you need a mortgage to purchase it.
DexterPunk wrote: I thought the lack of housing was the main reason prices are so high?
That maybe part of the reason, or even most of the reason in some places. However, when you see the amount of properties up for sale in some areas, and all going well for extreme prices, you really start to think.
Of course without the actual owner-occupier data it's near impossible to tell what's the truth. And these things have a far fetching effect, too.
One nice example; many people move farther off the city due to the insane prices within. This in turn creates a higher demand for properties farther off - for example here on the central coast - which pushes the prices up here as well. And heavily too.

The property prices around here climbed 3-5 times in the last 10 or so years. That's not natural.
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Re: Investment properties.

Post by c.j »

I don't see there being a problem with buying investment properties, what we need is a cap on personal wealth. It becomes ridiculous to a point if one family has billions of dollars.

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Re: Investment properties.

Post by ysu »

c.j wrote:I don't see there being a problem with buying investment properties, what we need is a cap on personal wealth. It becomes ridiculous to a point if one family has billions of dollars.

Am I a communist? Nyet! Am I a socialist? Possibly...
You're on the right path to become C.J. Lenin!
The problem is; it never worked :D
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Re: Investment properties.

Post by c.j »

Only because people are greedy fuckers. Share the love people...

Sorry o/t Dex. Nothing wrong with buying some property mate. As long as you don't have to live off noodles to pay for it.
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Re: Investment properties.

Post by Hz-Lab »

We looked into buying an Apartment in the City only about a month ago with the same intention as you dex, to rent out for student housing. What we got was massive warnings from anyone we asked advice from outside of the actual real estate agents or the bank. Apparently, and I am merely passing on what I have heard, the student housing market only benefits those who have around 5 properties. Under that and it costs you more.

The apartments get trashed, and you can't say "ah i'll filter out the bad applicants", Cos you never know. And if you use a property management group, which you probably would unless you are either very close to this property or have experience in managing property then there are extra costs, and extra uncertainty.

Lets just say we started doubting it all very early in the piece. Apartments are a very accessible way to get in the market, but maybe not in the student housing sector.

Go do some research, ask questions, go check some out. Worse case scenario, you will become more educated.
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Investment properties.

Post by DexterPunk »

Yeah for sure... I need plenty of time to save for a deposit, so going to learn as much as I can while saving. Definitely not set in stone what or where or how I'm going to buy, but just an idea I thought I may as well put out there. Cheers Hz.
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Re: Investment properties.

Post by ysu »

On the other hand I've heard people making pretty good money off industrial property investments, too. (talked to them)
Buying some warehouse and renting it out. Might worth a look.
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Re: Investment properties.

Post by bengatta »

now i understand so much more now... property investing houses = bad. property investing industrial = good.

somehow mysteriously one means real estate prices must rise hurting our great country, and the other means real estate prices must drop, so we should all rush out and help our country by buying industrial sheds...

do you work for ing?
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Re: Investment properties.

Post by Hz-Lab »

:munch:
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Re: Investment properties.

Post by bengatta »

:teach: :stars: :ymca:
They say, any day you wake up not dead is the start of a better day than it could be...

You don't need a parachute to skydive, you only need a parachute to skydive twice...

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Re: Investment properties.

Post by ysu »

bengatta wrote:now i understand so much more now... property investing houses = bad. property investing industrial = good.

somehow mysteriously one means real estate prices must rise hurting our great country, and the other means real estate prices must drop, so we should all rush out and help our country by buying industrial sheds...

do you work for ing?
You really want to stir shit at every corner now? Do you work for the sewer cleaners? :lol:

Please refrain from asking anything from me from here on. I don't give a fuck anymore, you're stupid beyond help.
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Re: Investment properties.

Post by norbs »

I am getting a bit sick of the petty bickering on here.

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