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$100,000 equity to play with but hubby says WAIT!

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  • $100,000 equity to play with but hubby says WAIT!

    Hi Guys. New to the forum and relatively new to property investment. Have gotten my toes wet with a cashflow positive property in Christchurch (rented).

    We have bought a house in the country where we live and currently have a total of $100,000 equity sitting there doing nothing. We are attacking this mortgage big time and paying quite a hefty amount off it every week, so still the equity grows.

    I guess my question is, what is going to happen? Does anyone actually have a crystal ball they can lend me?

    What about Commercial property?

    I have a very hard time sitting still, I just want to go go go!

    Any or all advice is welcomed. What are you doing, sitting still or buying up? Why?

    Thanks

    Marni

    P.S. I hope to make many friends on the forum.

  • #2
    Marni,
    Everyone knows that a good wife does as her husband instructs - so wait when you are told!!!
    Julian
    Gimme $20k. You will receive some well packaged generic advice that will put you on the road to riches beyond your wildest dreams ...yeah right!

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    • #3
      (.........Quick blanch at Julian's reply. :O )

      What does he want to wait for?
      Last edited by leapy; 19-12-2007, 04:10 PM.

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      • #4
        Julian - Ha ha ha ha ha

        Leapy - He wants to wait for the huge price drop that's gonna happen in about 12 months.

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        • #5
          So he's sitting cross-legged on top of his crystal ball for now?

          Do you know where you want to buy next and what sort of investment property?

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          • #6
            Hi Leapy

            We are open to any opportunities. As long as it's heading us in the direction of passive income. It would probably be residential as we have some experience in this already, however, other things like commercial could interest us too.

            Our rental is in Christchurch currently and we seem to be onto a good property manager there, so more in this area or anywhere south as far as Oamaru would also be suitable.
            Last edited by MarniH; 19-12-2007, 04:29 PM. Reason: add

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            • #7
              If you really want to go go go, then why not consider doing some 'property finding'. That way you are continuously in the market and you can keep the very best ones for yourself.

              John

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              • #8
                Hi there ManiH. I have just read your post.
                Welcome to the forum.
                I really do not think anyone has given you a good answer to the questions you posted, yet.

                Firstly I identify and go along with the "pay the principle - build the equity" thing.

                Most people here would have built their equity also by the lenght of time in the market. In other words times does wonders for property providing you are in the right town.
                It is a strange fact of life but those with the longest life expectancy (some call that youth) are least inclined to be patient and want things to move faster.
                Now sure most towns do something from time to time but those with good population growth tend to be the best.
                Positive cash flow properties tend to be dogs and have lower capital gain but are in my opinion the way to start.

                I do not want to put you down or decry your achievements to date because I admire where you are. But really $100,000 equity (not to mention ready cash) is not enough to consider commercial at the moment.
                Not withstanding that comment I started into commercial 15 years ago with not a lot more than that. I have always been very happy with that property which still has the same tenant but really I would have done a lot better if I had invested in several residentials back then.
                So enough of my comments for the moment.

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                • #9
                  Originally posted by MarniH
                  Does anyone actually have a crystal ball they can lend me?
                  Apparently, there is one close to home:

                  Originally posted by MarniH
                  He wants to wait for the huge price drop that's gonna happen in about 12 months.
                  Has hubby been watching the market for a long time? Did he predict that the 'boom' would go on for about 3 years longer than some pundits expected?

                  Whether you are looking at residential or commercial, I would set your rules, based on your goals, and keep looking for something that satisfies them. That may be next week or next year.

                  Oh, and by the way, one of the rules isn't allowed to be "Will go up in value by 20% in 12 months!" - you make your money when your buy!

                  cube
                  DFTBA

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                  • #10
                    Study the market, keep an eye out for bargains. Definitely not the time to rush in blindly. If you can wait a couple of years, my crystal ball says interest rates will be plummeting, and yields will increase nicely, but there may also be more competition for tenants by then.

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                    • #11
                      Hi all, thanks for all your advice.

                      Glenn, thanks for your comments. You are right about commercial and even though you started with about as much as I did 15 years ago, $100K was a lot more money then than it is now.

                      Well, since starting this thread yesterday, one of those "deals" has fallen into my lap...not saying boo about it right now, however all is going as planned, and hubby is saying go go go! So, I am going!!! And the bank has said YES!

                      Looking good!

                      Cheers

                      Marni

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                      • #12
                        Originally posted by cube
                        Whether you are looking at residential or commercial, I would set your rules, based on your goals, and keep looking for something that satisfies them. That may be next week or next year.
                        or, indeed, this week!

                        Well done - on to the next one now!

                        cube
                        DFTBA

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                        • #13
                          Cube - Might need to catch my breathe first. This one took five working hours to happen from spotting it, to puting in our offer and getting approval from the bank.

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                          • #14
                            That is good going.

                            Has your offer been accepted by the vendors?

                            Paul.

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                            • #15
                              Hi Paul

                              That phone call is due in any minute. Tick tock, tick tock

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