Have I missed the boat?

Hi Nadine,

As a broadbrushed statement those properties are very difficult to find (a bit like a needle in a haystack level of difficulty) – and those that meet the less than $100K and 11 sec solution would, in general terms, not be classified as good investments.

As you rightly point out the market has moved on and more important consideration needs to be given to the all round quality of the investment.

Derek
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Property Investment Support Available. Ongoing and never stopping. PM welcome.

Hey Nadrob,

Sorry to be the bearer of bad tidings [blush2] but your chances of finding a good investment property anywhere in Melbourne for under 100K is as possible as pigs growing wings and flying south!!!

If you manage to find ANYTHING remotely worth buying in Victoria, it will more than likely be in a rural country town, somewhere out the back of bourke; miles from nowhere!!! And you certainly won’t be paying less than 100K for it!!!

Properties <100K still do exist, but not in Vic, however for properties as stated above, although you will need to look interstate, many will be in remote rural country (mining) towns.

Jo

OINK! OINK! errrr… which way is south ??

The book was great but I don’t think you should take it literally…such as trying to find property that conforms to 11 sec rules, etc.

Surely there is a greater message behind the book…such as developing an investors mindset, and exercising discipline, and getting used to looking at property using the numbers, and taking action.

If you are limiting your search to specifically Melbourne, then the rule to adopt would have to be forget the 11 sec rule. It will not apply.
Does not mean that you shouldn’t invest in Melbourne…

I don’t think the properties mentioned in the book ever referred to Melbourne property, they were all outside capital cities.

I believe Steve has updated his strategy since then anyway…maybe you could attend his book launch in Oct to get an update …

KP

Hi Nadrob
I am in an area also that does not come anywhere near Steve’s 11 second rule, but don’t let that stop you. I just changed tactics and looked for houses that needed a bit of attention, not over the top repairs but cosmetic ones. Bargain hard with the re/agents point out all the faults tell them its going to cost heaps to bring up to rental standard, then put in a way below offer. Best to put it in writing with all the faults listed and see what happens. You will get alot of no your an idiot but don’t be put off.
I ended up with a really nice 3 bed for $20000 under its valued price.
Spend a little bit fixing it up and you will be surprized that some people are willing to pay more rent to live in a nice home. You know business types who want to make an impression etc. Not only that but you have good equity in the property.[cap]
Hope this helps.
Kerwyn

Hi Nadine.

All of the above, plus…

Something to ponder: Entrepreneurs are by definition inventors, lateral thinkers, innovators, people who brake the rules, go against the trend and against popular wisdom.

In post ’90ties depression’ era I “discovered” Regional NSW and the fact that I could buy houses for 60-80K and rent them for 150 plus. I had been investing in Sydney as everyone else did, on the mantra of negative gearing for capital gain.

When I asked my mentors about investing in regional towns they laughed me out the door.
I felt like a fool while they explained to me how I would “never” have any capital growth and I would just work for the bank.

When their wise talk did slow me down for a year, I finally had the courage to dismiss their fixation with capital growth and my best performers are now in regional NSW.

When Steve’s book came out, I did buy it and found it very informative and helpful, but the idea that you could go 2 hours out of Sydney or Melbourne and buy good solid investments was already a thing of the past. An army of investors was then already combing for properties in ever widening circles out major cities and the book only made such army numbers double.

I remember a few years back when the NSW south coast was a bonanza for cheap holiday places. No one liked the south coast and everything worth mentioning was up north. Suddenly someone started a TV series on the South Coast and I remember commenting that this was the beginning of the stampede, and time to start buying somewhere else.

Whilst the crowds filled the real estate agency in Merimbula and Huskisson, I turned to Tasmania where there was a lot of bargains for the picking.
I don’t know how but the rush found it’s way into Tassie and for fear of being run over I returned home to Sydney to relax.

Cost x 2 / 1000 = rent.
I am now on the look for something that fits such criteria in Sydney. If I say I found it I would be jumping the gun….. yet I think I did.

I am negotiating a purchase that if all goes according to plan will work out positive cash flow in the middle of Sydney. Of course it is not a suburban brick veneer 3 bedroom to be rented to a family of 4. That would set me back 4 to 500k and get 250 rent if I am lucky, and no it is not a commercial property.

I am not at liberty to say much more but must stimulate your thinking juices so that you can invent your own discovery.

One think I want to ask. Whenever you find your market, PLEASE do not write a book about how to do it.
I am out of breath from trying to stay ahead of investing “systems” and in Sydney it is so nice and peaceful now that one can even think. Don’t spoil it please [biggrin]

May God prosper you always.[biggrin]
Marc