The hardest thing about keeping up a blog sometimes is motivation. Sometimes you feel like you are writing for nothing, but occasionally you get an email from someone asking you a question or looking for advice. It’s great to know someone out there is reading this. I happily respond to all queries even if I am busy.
Just writing down my thoughts has been able to keep my saving and investing plans on track. If anyone is reading this and is just trying to save money by putting it in the bank, I think you are probably wasting your time. I have tried to do this many times, as I have always seemed to spend the money saved, usually on some unnecessary item.
Of course you still need to save, but you need to save for a deposit on a house or for shares in an IPO, or put it towards starting a new business. You need to save with a real goal in mind. I have found that once I decided to purchase another investment property I really had to watch my money so I would have enough to pay for legal fees, accounting fee, loan fees etc. It’s a big difference than just paying your ordinary bills and expenses.
The settlement is for the first week of March and I will own the place outright. I actually get to keep the title! Since the value of house in Australia has appreciated, I was able to refinance that.
Even with all the expenses being paid for I will have another AU$20K in cash. I was going to wait until settlement was over before I put in a new offer, but with the ever decreasing number of cash flow positive properties available, I think I will start looking now. Actually I will be calling an agent tomorrow. Now that I (almost) have my first property in NZ, I should now be able to organize a home loan there.
Interest rates are a little higher in New Zealand but with income from two properties, I should be able to pay off the principle a little and save for another deposit. My loan in Australia is of course higher now and I will have about a $300 a month short-fall from my Australian property and repayments on the re-financed loan, but I should be able to (or plan to) keep up the repayments without sending money from New Zealand to Australia, or Japan if I can keep making some money from my web-sites.
I wish I could put down my goals and people often ask me what my goals are, but it doesn’t really seem beneficial to make a goal like “10 properties in a year” or a “million dollars in property”. My goal is to just to keep going as I am for now, and to stay motivated.
If my business is successful at all and able to generate any income at all, I would like to start investing back in Australia at some stage. I started reading about property in the US, but it seems pretty difficult.