Interest rates set to rise again!

[Little bean]

Re: Interest rates set to rise again!

---

Originally Posted by Heartwood

Yes, we've decided to put off our own home for a few more years and decided to buy a cheapo investment property in the outback to get things rollign.

Kathy- Can I ask what the basic outline is of what you are doing?
As buying in Sydney hasn't happened for us, we are thinking of next year buying somehwhere a lot cheaper and then possibly renting it out to get our toe in the door and offset our expensive rent. Is that what you are doing?

[Heartwood]

Re: Interest rates set to rise again!

---

Basically getting our foot in the door.
In our case we're looking at a property for $50,000, tenanted at $100 per week with a lease for an additional 12 months. The rent covers the repayments with a little left over. No renovations. Obviously we have to account for rates, insurance and possible replacement if something breaks. The area we're looking at employs 1000 people every year for harvesting, so if the house was empty we would be able to rent it for harvesting season. If for some reason it did remain vacant, we're looking at roughly $80 a week out of pocket. When it does become vacant, we'll go stay there for a week painting and repairing anything that needs it.
In a year or so, we'll get another similarly priced investment property. The plan is to end up like my IL's with over $1.5m worth of investment property in under 4 years. Well that's the dream anyway

[mumma+me]

Re: Interest rates set to rise again!

---

It hurts when you have a property on the market you have been trying to sell for some time and then you get another rise...

[Heartwood]

Re: Interest rates set to rise again!

---

I hope you get some positive news soon Aleza

[mumma+me]

Re: Interest rates set to rise again!

---

Thanks Kathy!

Ah well, that's just how the dice roll sometimes

We have two investment properties atm (one was investment, the other was our family home until we began travelling) but two mortgages is a bit painful when you no longer have a guaranteed full-time income! We were meant to sell it before we left but, well, it didn't!

At least if it all goes pear-shaped we have a bus to live in until we get it together again. Wonder if the kids will be as happy living in a bus when they're all teenagers?

And apparently centrelink frown on paying our mortgage for us nor do they pay us to travel... maybe that'll be in the next election promises?

[Little bean]

Re: Interest rates set to rise again!

---

Kathy- hmmm, sounds like a good plan. Can I ask one more question and ask what area you are looking to buy?
My grandparents seem to own property all over the state and it definitely works for them!

Aleza- I hope you are able to sell soon..

[mummymoo]

Re: Interest rates set to rise again!

---

I think the only downside is that you can't claim first home owner's grant on an investment property. And then you can't claim it when you buy a home for yourself because you already have property in Australia.
That said, it is quite often spouted as the best way of getting on the ladder if you can't afford to buy where you actually want to live.
All the best Kathy.

[Heartwood]

Re: Interest rates set to rise again!

---

Exactly Kathryn. We've no chance buying anything suitable.

Little Bean- I won't tell you the area because I don't want to battle you for the same properties

[Little bean]

Re: Interest rates set to rise again!

---

Oh you rotter!
Now I really want to know...and I promise I won't buy the house next door

..or I could, and then you bought the next, then I bought the next one and then slowly we could take over a whole street!

[Heartwood]

Re: Interest rates set to rise again!

---