Hi,
Im one of these real competitive types, so when i see someone like Steve with 130+ properties i wonder how i can go about getting say 200 properties..(exageration).
Im interested to get invovled with property investing, but from what i have read so far it doesn’t make sense.
I mean how can i get by when my loan repayments are more than what my tennants will be paying in rent?
And isn’t this scenario going to be more difficult with each property i add to my portfolio?
These are the big questions that im looking for answers on.
I also realise that “apparently” some rental income can outweigh the loan repayments, thus making it positively geared/cashflow. BUT HOW CAN THIS BE?
I assume that loan repayments would average about $500 per week right? But where in Australia are people paying $500+ per week in rent? The average is what like $250?
Please let me know.
Hi,
Well, it is harder now to find +CF properties but not impossible.
In my opinion good property investors solve problems that most can not.
You have just outlined one, have a go!Best of luck.
Hi Mattlach
I see you may not have seen his latest book titled 0-260+ properties in 7 years. Now that’s raising the bar….lol
On a more serious note I understand as Steve says in his latest book that he now owns very little property, having split the partnership with Dave Bradley he is now starting all over.
Having siad that he did buy loads of property before the boom which went up in value. That is not the only strategy he uses as I understand it from chatting with him and also being involved in the Premium RESULTS Mentor program over the last year or so.
So where does one start, good question.
Steve’s latest mantra is “Buy a problem + a solution = a Profit”
So the buy and holds are largely off the list unless of course they can be postive cashflow and I know he is currently holding at least one of these.So looks like the renos, developments etc are the choice for the current market. And as you can guess the market changes so our strategies need to move with the market.
Have a look at his latest book because he talks a bout all sorts of things like money management etc.
There is also the RESULTS program which I understand is starting again early this year. It is a very reasonably priced program and the mentors/coaches have a wealth of knowledge to impart and are also great people to boot.
So in answer to your question, no negative gearing ( if that’s what you meant) is NOT the answer for most people.
If you have more questions then keep posting I’m sure you will find the answers if you continue to communicate, I know I have. And as Martin Alyes so eloquently puts it. If you don’t get the answer, aska better question.
Hope this helps
SueMIT | Owen Real Estate
Email MeOur Qld wrap company built up a portfolio of 180 properties over a 7 year period so I assure you it is not impossible.
Whilst i accept that locating a Positively geared property is getting harder to find in the current climate bear in find that in addition to the rent you also need to consider the Building Allowance and Depreciate write offs that you are entitled to claim.
In addition, loan fees and set costs can be claimed dependant on the nature of the expense.
The non cash items make a signifcant difference in your monthly affordabilily.
Cheers
Richard Taylor
Residential & Commercial Finance Broker.
Licensed Financial Planner. Ph: 07 3720 1888
[email protected]
Looking for life cover – We Guarantee to beat any quote you have in writing.Richard Taylor | Australia's leading private lender
“All things are possible until they are proved impossible – and even the impossible may only be so, as of now.”
Pearl S. Buck
1892-1973 NovelistMIT | Owen Real Estate
Email MeThankyou for the advice.
But i am only 21 and am looking to get involved.
Should i be looking at more the “no money down loans” or something like that?
So once i have 1 property, how do i go about buying another one? I have heard i can borrow against the equity of the first one or something? Can you guys please elaborate a bit more about this – in plain english please, my property lingo is a little dodgey just now.
Which books can you recommend which really cover the whole “Beginner/start up” right through to seasoned pro’s??
Thanx.
Once you buy one you can then keep on saving and wait for equity to build up to buy the next. As a property increases in value, you can increase your loan on the property. This extra money can then be used as deposit for the next one.
You can also do things to increase the value quicker (= more equity = more deposits = more properties) such as renovating.
Terryw
Discover Home Loans
[email protected]
Send an email to get my newsletter.Terryw | 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
But how do you find cashflow positive properties?
You would need a large deposit of your own cash for that loan right?
Which books can you recommend??????????????
Hi all
I think you will find Steve did the odd buy,reno,sell for cahs flow and deposits etc.
Celeste
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