Hello all,
This is my first post, hopefully of many. I have greatly enjoyed reading posts from fellow investors while gaining priceless information from the wealth of knowledge that is in this forum!
I’am 19yrs old, living in sydney. I have purchased one apartment in sydney CBD and one apartment off the plan in brisbane CBD.
I have just finished Steve’s book, and feel energised and ready to purchase my first +CFP!!
Seems like there are many people in my shoes, in that we are looking to purchase our first ‘real’ +CFP and are finding it a bit difficult.
I have tried realestate.com.au and have found that when you search for a property for 0-100k you get lots of results, but they don’t tell you the expected rental and the other thing is that properties sub 100k are in areas that I have never heard of. So I’m finding it difficult. I am looking to buy and hold with +CF.
Can anyone please suggest some methods that have worked for you?
I’am aware that now may not be the best time to purchase (since prices may be slowing down a bit – I don’t beleive in a bust – slow down is more realistic). But I have a short term goal of buying a +CFP by the end of january.
Thanks for taking the time to read my post and please reply!
Julian
i know how you feel. what i do, is i have a map and i circle all towns, suburbs in a 3 hour drive radius. refine your searching to those area’s and the price range you’re looking at. ring real estate agents up (preferably on their mobile) then hit the road. leg work and time is what you will need to find the deals. I havent been able to come up with a quicker way then that.
Hi Julian,
And Welcome to Property Investing.com, theres not many ways to find +ve cash property, but calling up agents, reading newspapers, internet searching, word of mouth are many of the ways.
Though some of us have other ways to quickly navigate +ve cashflow properties, but you will find it hard as many of us, wont reveal the locations or the resources we use.
Though congratulations on your 2 properites you have acquired.
cheers
s.i.sSave on a regular basis
“People forget that by saving just $3 per day and investing it sensibly over a working life, you’ll end up with around $1 million.”Thanks Shaun
That seems like a good idea, I think I will try calling some agents and see how much of the leg work they are prepared to do for me. Can you suggest any area’s that you have found to have the right features eg (average 3 bedroom house price of around 100k and solid rentals while being near a major cbd etc…) I’am not asking for a one minute answer to the property game, rather just some pointers in the right direction from people who have DONE it before.
s.i.s – Thanks for your reply also, seems you have some ‘secret’ methods that you are using. Are these methods working for you?
Keep the replies coming – Thanks heaps!
Julian
Hi Julian
Well done on your two properties. [
] I bought one and a half when I was 19 (two tier marketed, but offset by buying Grandad’s half of his house with Grandma) and I thought I’d done really well. You’ve exceeded that though.I’m guessing that you have a full time job and can afford and qualify for loans etc. My advice is to not get so hung up on sub $100K properties. Chances are that they are that price for a reason, and the rental returns in the towns may not be the best. For instance, a property that costs $70K more to buy, may only rent for $20 more, and as a tenant, which would you choose?
Talking to RE Agents is the best way, and looking at private sales also. Doing this though you need to know your rental market.
Cheers
MelI havent found any (yet). still looking..
I cant even put you in the right direction as the area’s im looking at (ACT and surrounding districts) will have different needs then the area you are in, sorry about that []
ring RE agents, go to open houses, read news papers, circle properties that meet your criteria, if they dont give the price, ring them prior to open house. there is no easy way, if it was everyone would be a millionaire by now.Thanks so much for your insight Mel,
And its good to know there are other people who have purchased property from a young age.
Yes, I do have a full-time job and so far as how well my properties are doing now:
Sydney apartment purchased for 210k in march this year and already it is worth 285k! I have a great tennant on a one year contract for 270 p/week.
Brisbane off the plan contract for 245k in september this year and now it is valued at approx 285k – completion mid next year. Not a bad paper profit, and rentals will be 340 to 380 p/week as it is in the center of the city and a top quality apartment.
Mel, can I ask how many properties you own now?
Thanks, Julian
Julian, that’s good news about the growth. Well done.
I own 8 properties at the moment (only 1 in my name, all others are joint ownership), and our family trust has 2 under contract – completion 2006, value increased by $60K each since purchased [
]. Also purchasing an office, and a place in regional NSW in the trust – settlement probably in January.With your QLD apartment, I would like to advertise for a tenant as close to (but before) settlement as you can. If it’s a big block, that will all complete at once, you could have some ‘fun’ trying to get yours tenanted.
Cheers
MelWith your QLD apartment, I would like to advertise for a tenant as close to (but before) settlement as you can. If it’s a big block, that will all complete at once, you could have some ‘fun’ trying to get yours tenanted.
Cheers
Mel
[/quote]Congratulations on your success!
May I ask, why do you use a trust for your investments? Is this something you can explain easily?
Re: QLD apartment: It was suggested to me to avoid the problem of sudden burst of supply that I drop the rent by 5 or 10% to ensure that I get a tennant locked in then later I may raise the rent to the market levels. Is this somehthing that is common?
Julian
Julian
The dropping rent by 5 – 10% is a good idea, we have had an IP in innercity Brisbane for two years. It has only been without a tenant for 1 week and we now have a good agent. My wife and I adopted the strategy of dropping it to begin with and that helped to get a tenant (it was brand new as well). We changed agents after a huge problem and our new agent had to get new tenants straight away. I suggested a rent price again a little lower than market($5) but he got me $10 more and a tenant to move in straight away.
Where is your Brisbane IP?
Thanks heaps RugbyFan!
My QLD investment property is called ‘Metropole’ on Mary street in the Brisbane CBD. It is a one bedroom with a blacony but no parking.
Has anyone heard anything about Metrople?
Can I ask you a few questions:
1) Where is your investment located?
2) What did you pay for it?
3) And whats the new agent?Your reply will be much appreciated!
These forums are a great learning tool! Its such a good idea to network with fellow investors and all grow in knowledge by sharing.[
]Keep up the postings!!!
Our investment is in New Farm (not actually inner inner city but close enough). New Farm is across the river from the CBD (West).
It is a 2 bed/2 bath with balcony and underground c/p in a small 3 level security complex (40 units) with a pool in the middle. It is 5 minutes walk to the ferry and the bus stops virtually outside.
It cost us $230,000 in 2001 and we got $250 rent. Because it was new we were able to depreciate everything and so it did not cost us much ($10 a week). We now get $270 a week (cf neutral).
Our previous agent was sending us statements saying she had deposited the rent into our account but for the last three months did not. When we discovered it, it took us some stern letters to her, the threat of legal action, and bringing in the QLD dept of Fair Trading to get our money back.
The new agent who is fantastic is Prime Property.
Barbara Mules is the contact and her numbers are 07 3377 4888 or 0411 966 655. They have done two property inspections in six months without even us asking. They are based in Toowong (just outside the CBD) but will definately do inner city for you.Good luck with them.
BTW, trusts are good but not if you only have a few IP’s. You have to pay Land Tax from the very first dollar if you have bought through a trust. If you buy as an individual you have a threshold of $275,997 (land value of course)
If you would like the land tax and stamp duty rates for all states I would be happy to email them to you. I have them in a spreadsheet
Guys, you’re focussing too much on this land tax issue.
What I’m focussing on is being able to distribute the income to where it can have the most benefit in my family, and be taxed the least!! You cannot do this when owning in your own name. If you save $5K in land tax, but have to pay $10K in income tax cos they are earning so much money, surely you are worse off than if you had a trust, paid $5K in land tax, but saved $10-15K in tax because of your structure?
You are also not protected if people wish to sue you whereas you are using a trust.
Cheers
MelHi Julian,
Were abouts in Syndey are you based? You mentioned an off the plan purchase in Mary St (Brisbane CBD), the one you are talking about is it the new apartment building that is being currently built that will be the highest apartment building in Brisbane, if so i have seen the plans to that, and i have heard good news about that one, i have a few friends who have also purchased off the plan on those ones.
lol, yes i do have other resources for tracking down +ve cashflow property, they do work and quickly can idnetify areas that are not touched or about to go boom.
Anyway Julian, im also around your age, what do you do for as work? and impressed to know there are young females out there who are keen property investors.
cheers
s.i.sSave on a regular basis
“People forget that by saving just $3 per day and investing it sensibly over a working life, you’ll end up with around $1 million.”Hi Julian
I wouldnt bother trying to ring or email the agents. I would just go around and see them. I found this much more helpful.
As Steve Mc said in his melb seminar. one agent said to him “one investor in his office is worth much more then 200 emails”.
I have freinds that are agents and they just ignore investors calls and emails in the current market. They in their own words have become content and arrogant. I hope this helps.
Regards Bear
Hello,
back to the initial topic:
How to find +CFP’s in Australia??You don’t find the best deals … you create them… please stop and think about that…
I think that trying to constrain yourself to the sub $100,000 might actually be a hindrance…
s.i.s – Thanks for your reply also, seems you have some ‘secret’ methods that you are using. Are these methods working for you?There are no secret methods and they have all been discussed on this forum and elsewhere… just use the search button!
*******
Rugbyfan,so do you have an IP or not? [xx(]
******
Trust are the ONLY way to go IF you are serious… and want to save money in the future…
Pin
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http://members.freeib.com/?mforum=generalinvesting
General Investing Forum for the Best FREE general investment information.
There are no secret methods and they have all been discussed on this forum and elsewhere… just use the search button!Hi pinit2000,
i have to debate what you are saying, but there are different methods and strategies, that are giving people the edge on advantage. Yet many of us, will keep low on telling and revealing on how we are able to do so.
cheers
s.i.sSave on a regular basis
“People forget that by saving just $3 per day and investing it sensibly over a working life, you’ll end up with around $1 million.”
Quote:Hello,Rugbyfan,
so do you have an IP or not? [xx(]
******
Yes two infact. One bought in 2001 – Brisbane (cash flow neutral) and one in Sydney (-grd). Both have increased in value a lot. Both were bought well before I read the book and looked at cf+ properties.
I am very new to the cf+ scene.
Hi sis,
You may not tell them but I will
(and already have … if they would only use that search button…).Pin
P.S: Hmmm, OK you are right there are one or two things I wouldn’t tell but not so that I “can keep an edge” but for other reasons…
Let me leave you with this thought… You can give the absolute BEST info to people serve it in gold, diamonds and ivory… but only less that 1% actually listen to what you have to say… (this is so true it is not funny!)
I actually wrote a bit about this before… I even said that when I find a great spot to invest in I would let people know.. actually Cairns is one of them… but you know what… it is not going to make a bit of difference… I guess you will experience this with time…
I give great info to people I meet, but if they don’t ask questions and have an inquisitive mind I don’t shove it down their throat… no use wasting time, but if they do… I let them mine to their hearts content!
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http://members.freeib.com/?mforum=generalinvesting
General Investing Forum for the Best FREE general investment information.Hi Pinit2000,
To some what you are right that only a few people will act upon, areas that are said and told to be a good place to purchase, when talking on here.
Though some of the people i network on here, i can admit that if any good place or location or some where that we or i have not checked out, or heard of. The case then is to check it out, and find out as much as possible, although, i think it would be better to keep, good possbile locations to yourself but point out the more obvious which people know.
Just that you dont want to miss out on a good deal, cause there might be other investors who are keen and interested and read everything on these forums.
cheers
s.i.sSave on a regular basis
“People forget that by saving just $3 per day and investing it sensibly over a working life, you’ll end up with around $1 million.”
] I bought one and a half when I was 19 (two tier marketed, but offset by buying Grandad’s half of his house with Grandma) and I thought I’d done really well. You’ve exceeded that though.
]
]. Also purchasing an office, and a place in regional NSW in the trust – settlement probably in January.
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