Investments & Property

[snake]

Who doesn't like to make money?

I am about to enter the housing market with my first investment property.

While other countries have hit mortgage crisis, Australia has sky-rocketed. It is now up there with places such as New York, Hong Kong and Tokyo in terms of property.

So anyway, do you guys invest in anything?

Anyone else have plans of retiring early?

Speak on it...

 

[blackmore]

While other countries have hit mortgage crisis, Australia has sky-rocketed....

ah its still peanuts hal.......

 

[snake]

lol it's all relative bro.

Sure, Singapore is crazzzzzzzzzzy in house prices but Australia is very unaffordable (4 cities in the list of 10 of the worlds most unaffordable cities).

 

[blackmore]

well less time at the pub and more time making cash would be a start...

 

[Ziyad]

Hal,what r u thinking about,renting or buying and selling?

 

[snake]

Ziyad,

I will most likely be renting soon, while buying an investment property. Looking at suburbs with really good rental yield, will be negatively gearing for a few years at least. Hopefully can find a block more than 600sqm...so I have the option to subdivide later on.

I'm new to this though Ziyad...been doing a lot of reading. Just trying to get a feel about the best way to approach this.

 

[Handoyo]

Indonesia

 

[Ziyad]

Well Hal if you think the market is peaking renting is a good idea,what kind of yield will you be getting though?will it be higher than 1% of price? also if the market ur in peaked look elsewhere,unless ur getting a good deal.think of it this way,u usually make ur money when ur buying..
I don't know much about the Australian market other than it's hot,but i would also advise you to look at REITs,they might be a safer option and headache free...check the rates they give and compare them to the rental yields,I would love to know if u got this information.

 

[snake]

Average rental yield in Australia is 4%.

I will look into REIT's. Always been very iffy about letting other people manage my investments...one for trust reasons and the other they always seem to take a big cut from you!

How safe is it though...are you guaranteed a win as long as you have the money to start with and the patience to stick around?

 

[blackmore]

How safe is it though...are you guaranteed a win as long as you have the money to start with......

Whoever tells u that shit are the ones you need to be wary off bro....

 

[blackmore]

Most unnafordable cities in the world to live in...

Rank 2010
Rank 2009*
City
Country

1
-
Luanda Angola
2
1
Tokyo Japan
3
-
Ndjamena Chad
4
3
Moscow Russia
5
4
Geneva Switzerland
6
2
Osaka Japan
7
-
Libreville Gabon
=8
6
Zurich Switzerland
=8
5
Hong Kong Hong Kong
10
7
Copenhagen Denmark
=11
10
Singapore Singapore
=11
14
Oslo Norway
13
-
Victoria Seychelles
14
-
Seoul South Korea
15
11
Milan Italy
16
9
Beijing China
=17
16
London UK
=17
13
Paris France
=19
17
Tel Aviv Israel
=19
-
Nagoya Japan
21
-
Sao Paulo Brazil
22
-
Bern Switzerland
23
-
Niamey Niger
24
-
Sydney Australia
25
12
Shanghai China
26
18
Rome Italy
27
8
New York City USA
28
21
Vienna Austria
29
-
Rio de Janeir Brazil
30
46
St Petersburg Russia
31
19
Helsinki Finland
32
=34
Dakar Senegal
=33
-
Bangui Central African Republi
=33
51
Melbourne Australia
35
29
Amsterdam Netherlands
36
-
Baku Azerbaijan
37
30
Bratislava Slovakia
=38
=23
Guangzhou China
=38
-
Noumea New Caledonia
=40
28
Athens Greece
=40
27
Douala Cameroon
=42
22
Shenzhen China
=42
25
Dublin Ireland
44
-
Istanbul Turkey
=45
34
Abidjan ivory Coast
=45
-
Havana Cuba
47
-
Prague Czech Republic
48
-
Brazzavillet Congo
49
=38
Barcelona Spain
=50
48
Frankfurt Germany
=50
26i
Abu Dhabi UAE

 

[Suneet]

4% is a good yield...

Congrats Hal. Now you take one step closer to a life which will be lived like a 8055

 

[Ziyad]

4% is good to a certain degree but since putting ur money in a REIT isn't constricted by geography you might find better deals than that.Hal,r u taking a loan on the properties you will purchase and of so what's the interest rates?

can you guys believe i had a REIT that paid over 8% easy and it was still hard to convince people to participate.

 

[Ziyad]

4% is good to a certain degree but since putting ur money in a REIT isn't constricted by geography you might find better deals than that.Hal,r u taking a loan on the properties you will purchase and of so what's the interest rates?

can you guys believe i had a REIT that paid over 8% easy and it was still hard to convince people to participate.

 

[blackmore]

Wow 8% is a nice little return Ziyad. It's always going to be difficult to convince ppl about these kinda things tho, ESP with all the scams and hoodwinks around.

 

[Handoyo]

4% is good? What weed are you guys smoking?

A simple fixed deposit in Indonesia can fetch u 7-8% depending on the amount, length and which bank.

Singapore REITs pay about 12% annually, freaking stable and the local currency will only go stronger in the short-medium term.

(Although technically, it's invested mostly in Indonesian properties)

 

[blackmore]

4% is good? What weed are you guys smoking?

A simple fixed deposit in Indonesia can fetch u 7-8% depending on the amount, length and which bank.

Singapore REITs pay about 12% annually, freaking stable and the local currency will only go stronger in the short-medium term.
(Although technically, it's invested mostly in Indonesian properties)

Shhh Han your not supposed to give away our trade secrets!!

 

[Ziyad]

bingo,that's what i meant don't restrict urself geographically if it's a REIT because u will find good deals.btw in my case the REIT % that was guaranteed was 8% but it could go higher depending on market conditions.As for convincing people it wasn't that they thought it was a scam,it's actually because ey didn't know anything about reties and there deals at the time giving higher returns but with higher risks.
I agree with Han that there are fixed deposits even here paying that high,but reits can also be traded and canpayout quarterly.Nothing beats u managing ur own money though especially if u know what ur doing and u like doing it.

 

[snake]

So tell me more about these reits Ziyad...What do you need to get started with them?

I too would prefer to manage myself, but I mean theres plenty of time for that...I'm happy to start somehwere.

 

[Ziyad]

Well if you mean the ones we had over here that was like two years ago but it was a good deal.It's a good way of keeping your money in REIT s instead of just collecting interest in the bank.even though it is easier and headache free ,i would still advise you to research the REIT you choose.there are ones that specialize in certain types of properties and some that are diversified,don't need to tell you which are safer.Don't limit your research there,find out their investment policy.I would highly recommend that you take a look at the fees being charged by those managing it look at the fine print to make sure as well before making a final decision.