Originally posted by speights boy
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Anyone thinking of liquidating any of your investments ?
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Originally posted by speights boy View PostCorrect.
A blast from the past Davo with you displaying healthy scepticism.
How to maximise return from $300k, 12-24 months
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I'm tossing up to sell one and pay off my PPOR mortgage in full. I'm crunching the numbers at the moment but looks like this would reduce outgoings by about $20k after factoring in mortgage costs and rental income (cf+). Also, just got pre-approval to buy another and I am looking... Don't know if I'm coming or going right now! My plan is buy and hold but part of me is thinking no PPOR mortgage would be nice.“Our favorite holding period is forever.”
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Originally posted by donthatetheplayer View PostI'm tossing up to sell one and pay off my PPOR mortgage in full. I'm crunching the numbers at the moment but looks like this would reduce outgoings by about $20k after factoring in mortgage costs and rental income (cf+). Also, just got pre-approval to buy another and I am looking... Don't know if I'm coming or going right now! My plan is buy and hold but part of me is thinking no PPOR mortgage would be nice."DEBT BECOMES IRRELEVANT WITH INFLATION".
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Originally posted by Frezzinghot View PostNice indeed! You must be tempted. Once the slump comes you have a lessor chance don't you think?“Our favorite holding period is forever.”
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Originally posted by donthatetheplayer View Postbut getting rid of that PPOR loan is a good risk minimisation strategy I think. And I'm all about low risk. Decisions decisions..
How is that low risk?
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Originally posted by Gary Lin View PostIn order to pay off say $200k of PPOR mortgage, you forgo $500k+ of future gains by retaining the property for another 10 years.
How is that low risk?“Our favorite holding period is forever.”
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Originally posted by donthatetheplayer View PostThe $500k of future gains is potential. The mortgage repayments (outgoings) are certain. I get your point Gary and this is the toss up. I recall you don't have a PPOR mortgage? Aren't you foregoing possible future gains? Based on your argument shouldn't you be drawing down funds against your PPOR to buy more property?
Also need to pay for 20k reno maybe less, so all together total PPOR 240k loan when the dust settles, which is peanuts really.
I say it's 12 o'clock now. A lot of people (on chinese forum) are wondering if a correction will come, as John Key suggested (how many properties does he has?), but they all want to buy when prices are down!
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Originally posted by Gary Lin View PostI do have a PPOR mortgage, in fact it is getting bigger as I will need to put some small personal loan into the Avondale Heights property I just bought... so yeah I have drawn down some funds (less than 100k I think) to buy this one.
I say it's 12 o'clock now. A lot of people (on chinese forum) are wondering if a correction will come, as John Key suggested (how many properties does he has?), but they all want to buy when prices are down!“Our favorite holding period is forever.”
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Originally posted by donthatetheplayer View Post12 o'clock possibly. We won't know until after the fact. I wonder if prices will double over the next 10 years. The ten year time frame is an average not a rule. Given the increases in past few years history would suggest the gains won't be so great going forward. I don't see a drastic price decline in the near future - low interest rates, limited supply, high demand. I also don't see 20% yoy gains. I'm thinking about my cashflow and knocking off my PPOR mortgage would allow me to put feet up on the beach in Thailand if I wanted to Or I carry on for now and sail my super yacht over there in 10 years...
I have heard stories of young investor cashing up then spending 6 figure sums on holidays and toys, then using the remaining 200k or so looking at Hamilton commercial properties right now.....
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Originally posted by Gary Lin View PostWell it all depends how young/old you are and when do you want to cashup.
I have heard stories of young investor cashing up then spending 6 figure sums on holidays and toys, then using the remaining 200k or so looking at Hamilton commercial properties right now.....“Our favorite holding period is forever.”
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I sold a large block of flats whic I wasn't planing to sell, it was buy and hold. It was somewhat under performing when you have naighburs dumping TV and furnitures on the driveway. Also gross yield was 7% in Central Auckland, still negative cash flow. After rates, Managment and insurance.
BUT the value from what I paid for it doubled in 3 years so I sold it.
and completely paid off commercial property we own that is returning 70k a year.
so, sometime it's not a bad idea to sell provided you can have better use for the money/ equity and improve your position.New Zealand's #1 Marketplace for Property Investors & Sellers!
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