Forum Replies Created
Emotions are often disregarded as feminine, a proof of weakness, illogic, absurd, and in the way of sound business practice.
Yet such concepts are by themself emotional.
Our process of decision-making is based on a big array of values that are stored in our subconscious mind. Many people are totally unaware of the existence of such decision taking values because they themselves did not put them there.
We are constantly subject of the programming of our subconscious by the environment we live in, the type of book we read, the movies we watch, the news, and media in general, our friends and peers, fellow forum writers, all contribute to load our subconscious with the values that will make us say yes or no.
“Don’t be emotional” is a preconceived bias learned from someone else who has repeated it to us and we have adopted. It is an “emotional” response to the person that mad such concept available to us in the first place, and has little to do with logic.
I like the example of Kay who honestly says, we bought the house because it had a purple bath.
Did he actually buy the house only on that “value”? Certainly not. The purple bath has a value that is related to something else of value in Kay’s life, something much more complex. It could be that someone who he admires and would like to emulate had a purple bath, or a number of other factors that relate in logical sequence back to a purple bath. So to say I let my emotion get the best of me and I bough a house because it had a purple bath is not accurate.Yet it pays to know exactly what is that makes us tick and why. Rather than suppressing our extremely valuable acumen by saying only use logic, we should dig in our subconscious and throw out all the junk that has accumulated during years of subconscious programming by a lack and victim mentality media, and perhaps also relatives, friends, peers. A subconscious loaded with the values we want, and have chosen consciously to be there, will lead our decision making in the direction of our target and not in the direction that suits the government of the day, the local newspaper or the local moron at the pub.
Use all your faculties when choosing a deal, and make sure you know what values you are using as parameter.
May God prosper you always.[biggrin]
MarcOriginally posted by Shebb:Okay, I’m new and I have no idea what’s going on.
What’s with the <snip>?
Bizarre.
Well, it can be a number of things, not the least the sound of the Rabby’s scissors . . . .ouch!
Nee just a bit of house keeping by the local (and harmless) moderator.May God prosper you always.[biggrin]
MarcYack, can I borrow your crystal ball?[biggrin]
Seriously, you cannot say that.
It is like saying do not buy shares because they are going to fall sometimes in 5 years.When care should be take and spread the risk, if you want the yields you must go outside the big cities, buy commercial with a v/high risk or venture in building block of flats with an even more uncertain future.
And what is wrong with a 1998 Ford?[biggrin]
May God prosper you always.[biggrin]
MarcI agree. It is much better to have a good inspection yourself, and it does not necessarily cost $1500 unless you go Sydney Perth. I drive if it is under 4 hours; otherwise, REX is a wonderful airline and can be seriously cheap if you buy well in advance. What do you think of $89 for a 400km trip?
Once you know the town very well, have a local street directory with all the bad areas marked (with notes), have a real estate agent that is a professional, an you really trust the local building inspector, well, you can say that you may get away with not inspecting yourself . . . .but . . . .why do it? You are missing all the best fun.
What are you going to tell your children? That you walked in a property to inspect it and the floor boards gave way under the agent and she disappeared under the house?… or that you courageously …clicked on an email?May God prosper you always.[biggrin]
MarcEven if you are in the perfect town with the perfect information and the best due diligence I still think that risk minimisation tells you to buy in different places. I jsut finished settling 2 properties in a place that is super positive, has 20,000 inhabitants and booming work prospects, but will move on and look for the next best town/city. Wrong? Who is game to tell? No one has the cristal ball and so you balance the risk.
It is the same when buy in a big city. You don’t go and buy 20 properties in the same suburb.
There are many circumstances that can change beyond what anyone can envisage.
The worst suburb can get better, the best suburb stagnate, the ideal town can lose it’s source of work, railway shut down, bigger town nearby draw away all the younger ones. Housing commision may sell all the houses and clean up the place.It pays to be on the ball all the time and to have your finger in different pies. “Multiple streems of income”
May God prosper you always.[biggrin]
MarcWell what do you know… ONE voice of reason, thank you Allan.
If there is a powerful book around that will press you to go and DO, that is “The one minute Millionaire by Mark Hansen and Robert Allen”.There will be always people who feel uncomfortable with others people success, and try to knock it in many different ways, not the least using morals, ethics and other measuring sticks they conveniently avoid using on themselves. (I get the “It is easier for a camel to get through a needle than a rich to go to heaven” thrown in my face by outspoken atheist all the time [blink])
Remember that if someone is making more money than you are, it is because he knows something you do not. Learn from the one that DO and start DOING.
Let the judging to God himself.May God prosper you always.[biggrin]
MarcHuu… well, nice going everyone, I seem to have touched a nerve.
Some melancholic, others hopeful, some more steady.Perhaps its time to remember that, “we are what we think”.
We shape our future with our thought. We can think and talk ourselves into recession / depression, or we can think and talk ourself into opportunities and success.How many of you have written down goals, who reads them daily, who has a “prosperity map”?
May God prosper you always.[biggrin]
MarcEzy, the way you can do this is by purchasing a property on delayed settlement, and sign a contract where the owner gives you access to do the renovations. Say you buy with settlement delayed 6 or 8 months. You do your wizz bang, find another buyer after finish and then you can have a simultaneous settlement.
May be there is a way to improove on this so that you dont have to pay for stamp duties by selling from the owner to the buyer and cashing the difference as commision.
May God prosper you always.[biggrin]
MarcI pay 4% on one of my PM, and they do inspections and all the normal things, even get a newsletter with the owners opinion on the market.
May God prosper you always.[biggrin]
MarcThank you for the suggestion taurus, I never heard of that area so I will check it out first.
Yes, I agree that we all make our choices and have our reasons for what we do.May God prosper you always.[biggrin]
MarcThe “town house” was a cheap city house, close to the central city station, for the country folks that came in the train to the city for buisness and needed to stay in town for some brief period of time. The true blue town houses are today relics and cost a mint, and look like s**t despite the hundred of thousnads thrown at them by the caffe-latte generation that inhabits them today in Newtown, Balmain and similar places.
By extension today any two storey house sitting on a narrow parcel of land with or without adjoining walls, (adjoining walls are a no no for most councils unless it is the garage wall) is called a town house.Yet if you have two townhouses separated by a garage it is a “duplex”(?)… There is no hard definition for them realy, and it varies from council to council anyway.
May God prosper you always.[biggrin]
MarcMartin, so Steeve book is outdated. What did you expect for a RE book written about 2 years ago?
A useful investment book provides valuable information to investors about negative and positive cash flow. Such concepts are market neutral and can be applied anywhere on the planet anytime. The variation in our local market has no bearing on the values of the book. Did Steve promise you to freeze time and allow you to make 1998 deals in 2004? Well the time machine has not been invented yet my friend.
You seem to have more issues about other people’s success than you have with your own success or lack of it. I would start with concentrating on your own goals and forget the others. If it bothers you that some have 100 properties, there are some I know who own 1200 properties and counting. Did they cheat because they started in the seventies? Did you miss the pre 1987 prices bonanza? What about the 1991 price bonanza? Did you catch the cheap prices in the NSW South coast 3 years ago? Well my friend as you are here typing away at your local whinge, some good deals are being done by others as we speak.
I just finished counting $2800 from rent that came in my bank account being for 2 weeks rent from a block of flats I bought in XXXX a month ago, positive to the hills.Steeve book is not as good as it is purported to be? Good news, books never are the ultimate response to life. Napoleon Hill wrote a book some 50 years ago, entitled Think and grow rich. It is an all time classic, it has answers to most questions people pose themselves today, yet generations have knocked it and dismissed its claims. Horses for courses, may be investing is not for you after all.
May God prosper you always.[biggrin]
MarcAgree word for word with Marisa, and no she is not my wife.[eh]
8 to 10 weeks tops.The rest is up to you. To bring European tourists or Americans is a good idea but I would not bet the farm on succeeding. I looked into holiday house on the east coast (NSW south coast) before the TV induced boom there and got big red numbers that made me walk away. With today’s prices, it would be a proverbial liability.
May God prosper you always.[biggrin]
MarcMonopoly, I agree that building is a headache guaranteed, but as far as making money by building it is in direct proportion to the value of the land you are building on.
In Sydney for example, if you have a property with a good size land and an old house on it, if it is in a cheaper suburb you may be OK in renovating. If you are in a better suburb, you are wasting your time renovating if the house is too plain, you are better off bulldozing it and building new. No hard rules, but the suburb and the market determine what is best to do.May God prosper you always.[biggrin]
MarcI wonder if <snip> is the sound of the scissors making Banderos more presentable?
May God prosper you always.[biggrin]
MarcCan somone describe the court case in question?
May God prosper you always.[biggrin]
MarcMost certainly agree about Pretti, he is not my PM by the way, but he seems to be very popular with investors and had an exclusive “Current affair” program dedicated once.
He inspects a house “live” and debates among other things the need for re-paining a wall becuase the tenenat put a nail to hang a picture on it. His exit phrase from the place was “See you at the tribunal!”
May God prosper you always.[biggrin]
MarcAgreed, Sydney is a 5 to 7% market for PM, I pay 6%, in Campbelltown and in Liverpool but I pay 8.5% in an outback town in Queensland.
PS actualy I just worked out I only pay 4% in Liverpool (The Professionals)Not sure about the advantages of rent only managers. We had to change from an agency that manages 1300 properties with 4 PM, to one that has 300 and 2 PM, becuase they did not give a stuff about one of our IP being vacant.
On the other hand I hear that Pretti in Fairfield West have 2500 properties to manage and they are proverbialy tough on bad tenants, to a point that one of their PM was killed by an insane teneat.
Owners love them, and if you go to the residential tenancy tribunal you are bound to find Mr Pretti there or one of his associates, they live there.
Who else does PM only in Sydney?May God prosper you always.[biggrin]
MarcKarl and Rita, remember that if you are not embarrassed by your offer you are offering too much hehe
May God prosper you always.[biggrin]
MarcKarl and Rita, please disregard the locals bickering, it is part of the amusement, we all do it to entretain ourselvs.
As to your question. For 170 a week I wouldn’t pay more than $80k but that is just an intial mental approach, there is certainly much more than that to consider. If the property is in NSW, (and please do not reveal the location) you may be able to squeeze 10 or 15k off the price no problems in the current climate.
Have you researched the town/city for potential growht, work availabe etc? No point having the best deal in a town with no work and decreasing population. You need to research also the location itself, housing commision vicinity, local no-go-zone, contamination of the soil, roads widening, noise … not intending to scare you this are all remote possibilities.
Remember to take out building insurance plus landlord insurance. If you take out NRMA insurance they do not offer landlord so you may have to go for the one the RE agents offers. Others like CGU and Alliance have it all in one. Compare prices, CGU is on the dear side.
Do yourself a favour and buy Steve’s book, and read it, it shouldn’t take you more than 2 days to get through it. Lots of good advice there.
Good hunting!
May God prosper you always.[biggrin]
Marc
