property here we come

  1. 504 Posts.
    I am a survivor of the property crash of 1989.

    Have learnt heaps since then.

    Lesson 1, never never sell= you lose big time

    Lesson 2, set goals, budgets, plans at the beginning to survive all 'worst case scenarios'

    Lesson 3, if property prices are high, then interest rates must be low= there will be a correction which you can beneifit by.

    Lesson 4, If property prices are low, then interest rates must be high= there will be a correction in the future, which you can benefit from.

    Lesson 5, Negative gearing means if the current interest rate is 6% then on an investment property the after tax rate is say 3% for those on the highest tax rate.

    Lesson 6, If one has to reduce luxury spending now during a downturn in the economy, in order to achieve 15-30% capital growth on a property investment, what a small price to pay for an absolute return.

    Lesson 7, a tax refund during the lean years more than compensates for the reduction in income yields from the property.

    Lesson 8, You have absolute control over the investment.

    Lesson 9, No fund manager to take up to 5% average growth in fees before returns of income.

    Lesson 10, Use a good tax accountant, expect to spend a great deal of time managing and researching your investment.

    Lesson 11, If you use a financial planner, ask them how much their fees and commissions impact on the investment advice you receive from them, and then
    evaluate the costs, compare to rent returns after tax, compared to cash or interest rates returns on the investment.

    Lesson 12, Talk to your accountant, tax advisor, financial planner, and then evaluate the costs of the advice received, compared to the projected returns.

    Lesson 13, Use your gut instincts, in relation to the property, will it return .03% or .10%. Do the sums required.

    Lesson 14, Make the property attractive to investors.
    Provide dishwashers, modern amentities, close to the CBD, walking distance to entertainment.

    Lesson 15, Know your tenants- are they business, professionals, labourers, tradesmen. all are different.

    Lesson 15, My tenants are business or professional people.

    Lesson 16, I know who my tenants are, and I know what they want, I know where they are going, I know their ideals.

    Lesson 17, I know the tenants I do not want, I know their liftstyle, who they are and their goals and dreams.

    Lesson 18, I know what I want and how to achieve it.

    Lesson 19, I have a long term plan, and absolutely nothing will deter me from that plan.

    Lesson 20, I have absolute faith in my plan supported by substantial research and history on all aspects of research in the industry,


 
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