Post to Facebook on 30/6/2018 at 12:54 AM
Commenting on “The 44 Melbourne suburbs where most houses sell for less than $600,000”
https://www.domain.com.au/news/the-44-melbourne-suburbs-where-most-houses-sell-for-less-than-600000-20180629-h11zn7-442060/
I did not, do not and will not put all my eggs in one basket. I diversify my investment to minimise risk. Property is one in my investment scheme.
You reap what you sow; and if you do not put in time and effort to learn about the real estate industry and all the associated risks, you are going to make big and expensive mistakes.
I repeatedly said that knowledge is power. If you do not do desk and field researches, you have no idea how much you can get for your money, now and in the future.
It is important to attend open-for-inspection and auction, especially when you are not ready yet to buy. Obviously you have other commitments and cannot spare the precious weekends to inspect properties when you do not even have the finance ready. If you have no time now, how will you find the extra time miraculously when you start house hunting?
Many years ago, while most investors were looking for properties in the $500K or more, my budget was just under $200K to $230K. I paid 10% as down payment (deposit) upon signing the sale contract. The rent received was more than enough to cover interest and principal repayment for the loan, all rate and charges plus other expenses.
Instead of spending $600K on just one property, one can buy 3 x $200K. Lower price properties are easier to rent out, and therefore it is unlikely all the 3 properties are left untenanted. However, if the $600K property is untenanted, the loss will definitely affect the hip pocket.
Can you think of other advantages using such strategy?
Where are these properties I invested in? They are all in the suburbs mentioned in the news article.
What about the capital growth? They are worth around $450K to $500K now, more than double the original the purchase price.
I put my money where my mouth is!
Thank you for reading.
Commenting on “The 44 Melbourne suburbs where most houses sell for less than $600,000”
https://www.domain.com.au/news/the-44-melbourne-suburbs-where-most-houses-sell-for-less-than-600000-20180629-h11zn7-442060/
I did not, do not and will not put all my eggs in one basket. I diversify my investment to minimise risk. Property is one in my investment scheme.
You reap what you sow; and if you do not put in time and effort to learn about the real estate industry and all the associated risks, you are going to make big and expensive mistakes.
I repeatedly said that knowledge is power. If you do not do desk and field researches, you have no idea how much you can get for your money, now and in the future.
It is important to attend open-for-inspection and auction, especially when you are not ready yet to buy. Obviously you have other commitments and cannot spare the precious weekends to inspect properties when you do not even have the finance ready. If you have no time now, how will you find the extra time miraculously when you start house hunting?
Many years ago, while most investors were looking for properties in the $500K or more, my budget was just under $200K to $230K. I paid 10% as down payment (deposit) upon signing the sale contract. The rent received was more than enough to cover interest and principal repayment for the loan, all rate and charges plus other expenses.
Instead of spending $600K on just one property, one can buy 3 x $200K. Lower price properties are easier to rent out, and therefore it is unlikely all the 3 properties are left untenanted. However, if the $600K property is untenanted, the loss will definitely affect the hip pocket.
Can you think of other advantages using such strategy?
Where are these properties I invested in? They are all in the suburbs mentioned in the news article.
What about the capital growth? They are worth around $450K to $500K now, more than double the original the purchase price.
I put my money where my mouth is!
Thank you for reading.
