shares drop 30 percent and banks not safe, page-5

Im out buying....again

Just got back from Berwick in Vic.

There is a massive amount of action out there......

That Eastlink thing looks like it will help the area over time.



Anyway.....thanks all that helped with the research.

I ended up buying 3 houses in a row off the builder in trouble.

Seemed easier than funding him and less risky for me.

Gives him immediate cashflow to continue on his merry way with his other projects.

He loses here but im sure he will make it up somewhere else.

All 4 bed, 2 bathroom of nice sized lots.

very nice finish to them, good builder, but bad money manager.

Bought for $250,000k each...yes I stole them...lol

Including stamps/fees etc costs me $800,000

valuation $1,260,000 or $420k each.

About 63% LVR.


Will cost me $5000 month

Agent said he will get rent at $350 week x 3 within a month.

$5000 - $4200 =

will cost me $200 week when rented less depreciation interest claims etc.

About break even I would think or close enough.

No money down and $200 week for 3 new houses....lol

Who said property buying was a bad thing.

Might hold for a year or 2, see the market cycle head back north and sell out into the next BOOM.

Although not my usual buy in area...being about 30kms from the CBD.

I can however see families that may be struggling or people with Mc Mansions innercity and in distress heading out that way to buy in the next 2 years.

First time Ive bought in or near Melbourne.

Nice place Melbourne, damn cold but nice.

Had a look around the innercity as well.

Toorak looks like a nice area.

Im into the 18/1900 Victorian type homes, I do have a couple.

St kilda had some nice homes too.....and the main street there was good, cafes were cool.

Im sure its a good spot in summer.

I might be back for another look around in the coming weeks.

Anyway gotta love what some call " buyers markets".