Hello guys, New to the site but very keen to start a portfolio while i am young.
I have been browsing the local papers and internet sites for awhile now and want to invest in my first property. My problem is i cant find a property with A good return that matches weekly rent/house value. Has it got to the point that the market has gotten out of reach of how Steve refers to the 11 second solution in his property scanning and is there another approach i should look at? All help/advice is welcome and will be taken on board.
Thanks.
yes is the short answer,
However all though there are many ways around it , such as buy a property you can sub divide sell half the block and clear some debt and hopefully get your property into pos cash flow. maybe Rent individual rooms rather than a whole house, renovate to increase yield, take a gamble and buy in a mining town or soon to be mining town. research research research.
However my view is this…Steves approach was achievable with relative ease when he was one of the few doing it. Now every monkey wants in on the bandwagon and a free ride to property wealth. Unfortunately now that the bandwagon wheels are in full motion and every mum and dad investor wants in on the latest sunday BBQ conversation those towns where steve invested arent neccessarily good investments any more becuase once the yeilds become unservicable theres very little else driving demand. In many ways the paradym has shifted back to what steve was rebelling against, ie buying in high demand areas such as capital cities for example. Steve was smart he was well ahead of the pack, saw an untapped opportunity ignored what everyone else was doing and told him to do and made his fortune (or so he says). You need to think intelligently about the future, have some insight into whats happened in the past, theres a lot of benifit in hindsight but how does it effect the future in your chosen areas your considering to invest in, Its not just about property but the whole dynamic of things such as changing demographics, cultural change, economics, population growth, supply and demand and the way society functions as a whole. Sorry I know that sounds like a wank but my point is this…Dont just focus on some Formula you read in a book.
Hope this helps
No you dont sound like a wank – and thanks for all the advice.
I was just curious if people were still able to use this solution as reading the book i thought that it may be unusable these days with the increase in both interest rates and increasse in property value, further doing research i found that it didnt work out for myself and didnt know if it was due to the areas i was looking or what i stated before.
All good advice W4 .. at the heart of it though is you must do that which YOU feel fits YOUR approach .. dont just go out and grab something – have a plan .. an approach .. and DO crunch the numbers (so YOU understand em) … the stayers about the place have their own way – yes read the books – dont blow ya dough on all the seminars necessarily (if ya like that stuff .. AMWAY is safer LOL) … and dont give in to those who have the deal of a lifetime .. it'll usually take that long to recover
Believe none or what you hear, half of what you see, and a third of what you read .. distill it .. and get out there.
Understand all is as long term as life .. 35 is a long way a way at 20 .. and 40 is a long way a way at 25 … it matters not .. if ya young, take a breath, take ya time .. dont cripple ya life in building … but build ya protfolio over a realistic time frame .. and trust YOU.
Best wishes W4 .. go get 'em kid
R
Event Horizon wrote:However my view is this…Steves approach was achievable with relative ease when he was one of the few doing it. Now every monkey wants in on the bandwagon and a free ride to property wealth.You'd be surprised.
Many people talk about doing things, but few ever actually take action. It's also why the diet industry is worth billions – no-one ever does any exercise, but everyone talks about it.
Think about your own circle of friends and relatives (not including this site) – how many of them have actually gone out and bought even ONE IP?
The stats are something like only 30% of all properties are bought by investors, and out of those only 5% has more than 1 IP. Many with one end up selling it and never buy another.
Only 1% has more than 5 IP's
On top of that, buying property is not easy – it involves lots of emotional stress for most, dealing with agents, lots of searching, organising finance and signing forms and contracts, getting inspectiones etc – which adds to the pain barrier that people will simply not go through.
They always have a reason not to take action; kids school fees, high interest rates, media reports, they need a new car and so on.
warnett4 wrote:Hello guys, New to the site but very keen to start a portfolio while i am young.I have been browsing the local papers and internet sites for awhile now and want to invest in my first property. My problem is i cant find a property with A good return that matches weekly rent/house value. Has it got to the point that the market has gotten out of reach of how Steve refers to the 11 second solution in his property scanning and is there another approach i should look at? All help/advice is welcome and will be taken on board.
Thanks.
Have a look at this:
https://www.propertyinvesting.com/forums/property-investing/help-needed/4323727?highlight=positive%2Ccashflow%2Cafter%2Ctax#comment-168663REAL ESTATE OVER TIME HAS CONTINUALLY PROVEN TO BE SOUND OVER ANY TEN YEAR PERIOD/AND LOCATION IS STILL THE MOST VITAL INGREDIENT. THOSE THAT HAVE BEEN ABLE TO HOLD ON THROUGH BAD MARKETS AS IS CURRENT ARE THE BIGGEST WINNERS IN TIME
Hi Bruce
I think most of the older investors on the site agree with you but before your 3rd Post any chance you can take the CAPS off as it is very annoying to read a post like that.
Richard Taylor | Australia's leading private lender
good point LA aussie,, I have one aquaintence my age in a better position…….the rest of my friends are first home owners or renters ……..its true enough…… you have to have drive and passion in anything to get ahead…thanks for the reminder…though it does feel like we are all a bunch of monkeys sometimes……….and we are growing to unsustainable levels (us investors)………. perhaps its all sustainable and we are just at the beginning of the new norm……
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