Hi
I’ve spent the last couple of months actually reading all forms of property investing materials, have read Steve’s book amongst many.
The problem I seem to be having is actually getting the rubber to hit the road so to speak.
I use the formula’s Steve does the 11 principle but it seems that eveything I’m looking at appears to be over valued (double in fact).
So, I’ve got the time, the motivation and the areas I think have the principles Steve speaks about, the only problem is the conversion and having the ink dry.
How long did it take you guys to find something worth investing in…….
Hi Melissa
I jumped straight in the deep end after reading one book (anyone can be a millionaire) and got lucky almost by accident. Since then I’ve learned a lot more and am more cautious. That said, I wouldn’t have bought that first property if I new then what I know now. Thank goodness for ignorance! [:p]
Regards
JudiMelissa.
I havent read Steves Book but should as you can always learn a trick or 2.
Personally I think your very wise mulling the Numbers over.
If you dont get the numbers right you wont reach your goal.
Many in Business get the numbers wrong and go broke around 90% of those who start in the first 3 yrs.
Even more dont get the numbers right when Trading(Stocks ,derivatives and or Futures).98% of those fail.Many dont even understand the concept of “Getting The Numbers Right”—ignorance isnt bliss—it can be damned expensive.
You want your first forray into Property to be a home run as that will make the next so much easier.
Look outside your square–trackdown areas where the numbers do add up.Possibly youll need more core funds to pull a property to neutral or Positive.
Look at apartments or units rather than housing.
Just some thoughts as I dont know your exact circumstances.
In answer to your question how long —-Ill answer that in the context of Today—There are opportunities STILL out there.
Originally we bought homes easily rented positive and as all who did in the 90s reaped excellent return.
We now look at sub dividable sites and developement opportunity.See my personal view is that those who missed the boat(and many see themselves in this bind)see owning a home or even a unit even further off than before and the younger people are —well in somewhat of the same boat.All need to keep renting (well thats their thoughts) and rentals are still in high demand infact I have agents phoning regularly looking to sell and then rent those we keep.We have no problems selling off plan.
So thats just thinking out of the square looking at the same market from a different veiw.As an example a very easy one came up last year.
1200 square meters on a corner 190K sub divided off 600squ meters and sold still own the Shack (Its an older style fiberboard in the southern beach suburbs in Adelaide as a $190k property the numbers were sick as a “Cut and Shut” the property now owes me 100k and is valued at 170K nice and positive.
Sorry about the long winded reply hope it gives you something to think about.
John
thanks John and Judi- appreciate the words of wisdom.
Analysis paralysis exists, but instinct is something far more dangerous.
Good words of wisdom John.
And good long winded post.
I could listen soak in and absorb all you have got to say all day!
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This seems to be about demographic arrangements.Originally posted by MelissaB:Hi
I use the formula’s Steve does the 11 principle but it seems that eveything I’m looking at appears to be over valued (double in fact).
Melissa, overvalued by 100%? Those kind of thoughts can have our dea little RE market crumble to the ground! [?]
What is overvalued? I see “value” as what the market will pay. Why, for example, do peoplepay $1 million for a shack in sydney that will have to be pulled down? It’s the land “value”. How is the land valued? From what the market will pay… We can argue that the land, in 1949, was worth blah, add on inflation, and come to a conclusion… but try telling that to the vendor.
RE is worth what people will pay.
I remember looking at an IP of mine and I couldn’t help but think it was still worth what I paid for it 9 years down the track. Fotunately, I waited until I had more of an “investor’s mind”, to sell it, and realised that it was worth what the market would pay. “Value” is in the eye of the beholder.
kay henry
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