HI,
I have just finished reading Steve’s book “From 0 to 130 properties in 3.50 Years”. I found the book to be very inspiring.
My husband and I are in our late 20’s.
We (so far) have 2 investment properties and hope to expand this.
The 1st one is a unit in central Melbourne which we purchased 6 years ago, the 2nd (which we have just purchased) is a commercial retail freehold in regional Victoria.
We paid $86,000 for our unit and get $230 per week rent.
The commercial property was bought for $185,000 and we get $272.00. We decided that this was a very good opportunity…AS there are not many properties selling for less than $200,000 and even less are making money, due to the increase in property prices and not a lot of change in the rental prices.
I like the theory behind the 11 Second solution..and it worked for my unit but doesn’t really work for our commercial property..
I think that it might no longer relevant to the current property market prices….
Could people give me their ideas on what they think, based on current property prices, would be seen as a ‘good’ return on a property now?, As I’m starting to think that the days of positive gearing properties no longer exist.
Thanks…Pen[baaa]Pen,
Just went to an Investors Club meeting, where the head honcho stood up and told everyone that these CF+ props were a fantasy and to get back to the good old fashioned solid CF- props.
I nearly coughed my dinner up.
I’ve currently got 19 on my list that are all seriously CF+, with another two that came in this afternoon, one which easily gets under the 11sec guide…
There’s lots out there – keep looking.
Cheers,
Dazzling
“Go hard or go home”
Hi Pen
The market has certainly changed since you purchased 6 years ago (well done a great deal you got).
Today if people are buying to put money in there pocket (cash positive properties) then they have a few option
1.don’t buy, because cash positive doesn’t exist in Vic in 2005.
2.work incredible hard to find the rare cash positive deal
or
3. go off shore – I’ve been telling people to buy in NZ people since 2003 today i see the opportunities in NZ disappearing as they did in Oz in early 2003. Now i’m buying in other markets showing a 16-25% return (not OZ or NZ). Personally i think it will be a long time before the market conditions are right for me to follow the cash positive strategy in Victoria.Dazzling- i’d be interested in the figures on your deals as i know cash positive deals are rear. I’m inclined to agree with the “head honcho” that they are a fantasy (certainly in Vic where Pen is). However what a joke saying the good old fashioned – geared. So much for wealth creation, you buy one property and then you’ve stuffed your servicability ! It takes you years to save the deposit to buy a second one that takes money out of you pocket every week! Negative Geared will create wealth only if the price goes Up.
regards westan
I live in New Zealand and for a fee find cash positive deals there, email me at [email protected] to join our database
Hi Pen,
if you enjoyed Steve’s 1st book, you should have a read of his 2nd, ‘$1,000,000 in property in one year’. It’s a good follow on from his 1st one, and being written in 2004, covers some more up to date issues for these times.Cheers Shellby
I am inclined to agree. If he is talking about cashflow positive proeprty in whoop whoop with a population of 500, then I can’t see how these can be good long term investments.
Good high growth potenital cashflow positive stuff is another matter.
Terryw
Discover Home Loans
Mortgage Broker
North Sydney
Click below to email meTerryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Hi Pen
I totally agree with Westan that positive cash flow properties are very hard to find in Australia especially NSW or VIC. But I do dissagree with him that they are getting to be harder to find in New Zealand.
I am living in Melbourne now but until recently lived and breathed real estate for a living in Christchurch, New Zealand and have brought over the past 8 years 11 properties. I get emailed to me on a weekly basis up to 4 positive cash flow properties a week and that is without me even trying to find them, they do pass Steve’s 11 second rule and are residential property.
So keep looking and don’t loose faith as they are out there but you will probably not find them by just sitting in your study at home but talk to people in the know and have your feelers out so that when a great deal comes your way grab it.
Happy investing and don’t listen to the gloom and doomers.
Regards
Trish Clark
Hi Trish
This is why i say they are harder to find. I’m not being doom and gloom just saying like it is. And this is like it “really is” not just the way i see it.
Firstly remember that not all deals showing 10% returns are worth buying.
Trish i’ve been buying for myself in NZ since june 2003 and have personally purchased over 25 homes. In June 2003 you could drive into most cities and pickup 15% returning homes at will. Today you can’t. I’ve purchased on behalf of our clients over 100 homes in the past 12 months and they certainly are harder to find than 12 months ago. I’m talking about good properties, yes there are 10%+ returns all over the place but this alone is not enough of a reason why anyone should buy them.
I know your trying to encourage Pen but the deals are disappearing who knows by the end of the year maybe earlier NZ will have gone the way of Victoria.regards westan
I live in New Zealand and for a fee find cash positive deals there, email me at [email protected] to join our database
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