wise westan

I agree Alf regarding moving from residential to commercial.

Many of my positive geared friends are doing the same. I just don’t have enough properties in the first place to diversify.lol

alf

>I reckon westan may have it together

he so does, he is all over it

>here he is selling some of his properties and moving into >something thats going to give him better returns.

yep – who wouldn’t? But again as richmond says he’s already said where, and why etc

>i get a feeling with steves book and the lessons of negative >gearing that everyone is on the bandwagon for positve >cashflow properties.
>Now you have to go to extremes to find one.

it depends what you call extremes. i live in inner city sydney and put it this way i had to go more than five K away from the CBD to find positive cashflow properties (*understatement of the year* heheheh!!!) Is that extreme? *shrug*

>Steve however can buy 25 in one hit?.

Yep but don’t forget he has 130 properties to leverage from – their increasing value and/or cashflow.

>I know some of you are going to say there out there i just >dont think its as straight forward as looking in the regular >places.

ummmmmm……not wanting to sound facetious but I have found all my properties in the ‘regular place’ which is a real estate agent’s ‘for sale’ listings.

>Maybe you may get the odd one

well how many do you need? i’ve been buying the ‘odd one’ at a rate of one every three months which I intend to continue doing. There are more deals that i’ve seen than i can buy myself. All the successful investors will tell you that- because it’s true.

>but boy if you dont wear glasses when you start youll need >them buy the time you finished. Then you have to be so quick >other wised half the country is storming to the same >property..lol

I would agree that if you are looking to buy and you find a deal, don’t dick around, move, take action, do your numbers, have your lawyer lined up, your finances sorted, put offers in, be decisive. As a beginner (if you are one) you could do worse than following dolf de roos’ advice – look at 100, put offers in on ten, three will be accepted, you end up buying one. Get his book ‘real estate riches’ if that doesn’t make sense to you at all. Basically, by looking at 100 you’ll learn the market – and spot a good deal when you see one – by offering, you’ll learn when you’re too low (all ten rejected) and too high (more than three were accepted.)

You are right – someone else will find the same deal and buy it, if you don’t.

The first deal I ever found was for a 3 bedroom house for 29,000 (a dump though) – freehold and on a whopping 1600 sqM of land, complete with sitting tenant at 90 per week who’d been there ten years and wanted to live there till he died. Section already half-way subdivided, 5K from beach in booming/hot capital growth area 2 hours from capital city. I dithered. i missed out!
The house was sold for 27K.

i was bummed! That is until i found deals even better than that.
really and truly.

>I think to start to find them in the very near furture one will >have to think outside the box and do something different.

true. can’t hurt.

>Steve was doing it when others were selling negatively >gearing.

yep – but don’t forget 90 percent of properties will be negatively geared, so there are always going to be more people doing that.

>Steve is looking and doing commercial properties now i >believe.

I know steve has bought blocks of flats before. when I first started looking at property I found a block of 8 flats that I was interested in, in a city fringe light industrial suburb adjacent to a shopping mall and the major employers. Although the returns were OK at somewhere around the 12 percent mark and more if i’d negotiated it down, I wasn’t comfortable with the ‘all eggs in one basket’ factor at that point in my investing life, plus the land content isn’t as much part of the value as with single houses. I feel as though land content is the real long term valueable thing in RE investing and so I went for houses and I don’t regret it. However I do see that at that end of the market there are less buyers, bigger numbers with less work (maintenance of a block is less than on 8 houses, for a start)
and that I may one day work my way up to commercial residential property. Commercial non-residential property doesn’t really interest me, at this stage.

>property prices have skyrocketed

yes and unlike the sharemarket I don’t think they will ever ‘skyrocket’ down again although you can get plateaus and slight downward trends. So basically get in the market and stay there, i believe houses will never be this cheap again….

>make your money first westan then share the info >cheers…..Then write a book

yeah i want westan’s book too

cheers-
Mini

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