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Hey all.
I’ll take the plunge.Sheric…..yes you can use your parents equity if they are agreeable. Make sure you document it though and/or enter a Joint Venture agreement with them.
Where I started. I used some of the equity in our house to buy another property. This was the start of my buying. I then looked for another using more equity. I must admit there were times there where I was very maxed out and things were month to month on the bill paying but it was wortwhile.
I also came across deals when I was maxwed out and I used investors money. Sheri that could be your parents. Talk about your time frame for investing and the interest/share you are going to enter the deal with so there are no misconceptions. Be very clear.
I also wish I had sourced a good broker early who was able to stretch my money further tha the bank. Note here a good broker. There are many cowboys but few good ones. This site has a few people that seem willing to share and would be worth chattnig too. Along the way I was never shy to cash in a profit if it put me in a better position. If I pay tax…so be it. Money is money and profit is profit. I have a very actibve method of property investing which has seen me sell 5 houses last year and one for sale now. I believe in making mt money work for me. If I do not think I can get above 20% retuns on my money then I shy away from the deal. (eg. 10% yield and 10% cap growth).
Whatever you do don’t throw your job in and go Fulltime property investing as the bank will more than likely not touch you. Consider work a neccessary evil at present. Use it for deposit raising and loan approvals.
If you want to get somewhere fast remember there will be sacrifices. My family has not had a good holiday for nearly two years as I have been very busy doing property. On the flip side we will have a good holiday this year and our bank balance shows the rewards for the effort.
As to the practical of getting started I must admit to being rather driven. Never so much as to gisregard my family but still driven.
I started by reading everything I could get my hands on. I walked the streets looking at property and called agents all the time. On average when I started I would spend at least 40-50 hours a week (at least) “doing” property.
I imersed myself completely so that I could fasttrack. I talked to those on their way. Guys like Steve and Dave and others. I don’t mind standing on the shoulders of giants as the view is a whole lot better.Whatever you do make sure you crunch the numbers. It is easy to get Excited and carried away with opportunities but make sure they work for you. Don’t be convinced by anyone else about a deal make sure for yourself. If it means missing the chance of a lifetime…..guess what ….there will be another one along in a minute.
I truly believe that the chance of a lifetime happens at least once a month. Be there and be aware. Awareness comes from practice.
Hope this helps and provides some clarity for you guys. I was where you are not that long ago and I am nobody special so you can do it too.
Enjoy
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(Andrew)“Character cannot be developed in ease and quiet. Only through experience of trial and suffering can the soul be strengthened, ambition inspired, and success achieved.”
We are what we repeatedly do. Excellence, then, is not an act, but a habit.”
-Aristotle“The grand essentials of happiness are: something to do, something to love, and something to hope for.”
-Allan K. ChalmersEnjoy
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(Andrew)“Character cannot be developed in ease and quiet. Only through experience of trial and suffering can the soul be strengthened, ambition inspired, and success achieved.”
To be honest Cremin it is easy to miss a post at the moment with the amount of traffic coming through the site so don’t feel to bad. For me I saw it briefly but I have been (and still am) very busy sorting out some deals.
Anyway my story is a house I bought to Renovate about 4 months ago. I looked at the reno costs, etc and decided it would be worth doing (cost – $118K , reno – $30K Resale – $190-200K).
I then looked around the market to see what was giong on. Seemed to be a few renovated properties for sale but upon talking to agents everybody wanted a renovator to do themselves. (gotta love the home improvement shows).
So as a result of that I listed the house for $159K and will settle next week for $158500. I sliced a little bit of potential profit off the deal but also didn’t have to actually organise the renovation. i always remember somethign Stuart O’Neill told me….always leave a sandwich on the plate. That bit of profit is all theirs.
So before costs profit of $40K for a 4 month deal. Gotta be happy with that.
Enjoy
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(Andrew)“Character cannot be developed in ease and quiet. Only through experience of trial and suffering can the soul be strengthened, ambition inspired, and success achieved.”
Hey Argyle,
I can speak from experience that Steve is the sort of bloke that freely shares his experience. I remember when I first started (not that long ago) and could not “find” anything. Steve kept challenging me and I perservered (luckily) and now I feel we have had moderate success with our property. What happened…did the properties appear..no…I just changed my paradigm and allowed myself to see them. I still rememeber my first house which we bought for $73K renting for $145/week. Not an earth shattering figure but it was a start. We are currently selling the same one for $169K Which will allow us to be unencumbered on our own property and we will keep using our house for an equity base.As to needing $10K I guarantee you I could lay my hands on $10K within a week which is not my own (i.e. borrowed). Interest may be higher than normal but I could still get it. There are many ways to get money and use it without having to earn it. I also used to believe that you had to have the money to make money but now I disagree. Money does make money but more importantly so does determination and creativity.
I completed 14 trnsactions over the last year and for some of those I had to be very creative as money was not there. Deals still happened and I still made money. In one case I found the deal and an investor financed it and we split the profit. After al;l some profit is better than none. From that deal alone I made $20K (before tax) which would have been enough to get firing.
I have also stepped up my investing in the last month and have 13 houses under contract at present. I will be seeking another 13 by christmas and another 13 by end of financial year. I am no Steve McKnight and that is encouraging as I am living proof anyone can do it. Steve and Dave are exceptional but it does not mean that we cannot be above average and or exceptional ourselves. For me I have no desire to reach the heights Steve and Dave have but I know that my path lies that way (if on a lower rung).
Set goals, strive for them, desire them, make them real to you. Read books and other literature that will help you with goal setting and mental attitude. I personally have found it very helpful and I am currently reading an Anthony Robbins book. There are other great books out there (John Burley, Robert Allen, Steve McKnight….search for books in the history).
In Short Argyle……you can do it if you want to. Never accept no, turn it into maybe….then when you get the maybe turn it into a yes…It lies a lot in your belief in yourself. For me the gates opened when I realised that.
Keep on going and I hope to see tales of your success here soon.
Enjoy
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(Andrew)“Character cannot be developed in ease and quiet. Only through experience of trial and suffering can the soul be strengthened, ambition inspired, and success achieved.”
Another Brisbanite. Good. Need more of us to buy houss and stop the flood of mexicans….he he he……. Mate I will be organising a Brisbane get together soon so keep your eyes peeled to the forum. Got a few things on at the minute so I will try and get a date sorted.
Enjoy
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(Andrew)“Character cannot be developed in ease and quiet. Only through experience of trial and suffering can the soul be strengthened, ambition inspired, and success achieved.”
Accountant – Dale Gatherum-Goss
http://www.gatherumgoss.comSolicitor – Where are you. In Qld I use David Barlow 3229 0494. Very switched on and competent. Let him know I sent you and he should take care of you.
Hope this helps.
Enjoy
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(Andrew)“Character cannot be developed in ease and quiet. Only through experience of trial and suffering can the soul be strengthened, ambition inspired, and success achieved.”
The easiest way to do it if you can afford it is to buy theunits cash then refinance them the nex day based on valuation. You may want to do a valuation first to ensure this tactic will work.
The alternative is to find a lender in NZ willing to lend on valuation rather than purchase cost.
Enjoy
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(Andrew)“Character cannot be developed in ease and quiet. Only through experience of trial and suffering can the soul be strengthened, ambition inspired, and success achieved.”
Where are you situated Matty ?
Enjoy
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(Andrew)“Character cannot be developed in ease and quiet. Only through experience of trial and suffering can the soul be strengthened, ambition inspired, and success achieved.”
Hey Brizza. No such insurance for no tenant but you can get insurance for loss of rent, damage by tenants.
As to the discounted rental income. Sometimes it can be as simple as finding a lender that will do the deal. It may take time to find them but it is worth it. Most lenders have different criteria and a good broker should be able to help you out.
Maybe Stuart will put his thought in here.
As to being scolded hopefully that will not happen. Most people here are about helping each other win. The only other competitors in your race are you and yourself.
Keep on asking questions and welcome to the forum.
(Don’t forget to use the search function).Enjoy
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(Andrew)“Character cannot be developed in ease and quiet. Only through experience of trial and suffering can the soul be strengthened, ambition inspired, and success achieved.”
Hey Pete,
I have done very well out of Brisbane over the last while but that was also before prices increased to the level they are today.
I will still expect to buy properites even in this market but instead o 7-8 per year it will probably drop back to 2-3 while the madness reigns. Many people are saying that prices will contintue to rise (BIS shrapnel) …I guess we will see.Enjoy
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(Andrew)“Character cannot be developed in ease and quiet. Only through experience of trial and suffering can the soul be strengthened, ambition inspired, and success achieved.”
I am not an accountant and as such it would be worth checking with one but…..my understanding is that if the gain is made over there and brought back to OZ you would face CG as in every profit for CG.
Enjoy
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(Andrew)“Character cannot be developed in ease and quiet. Only through experience of trial and suffering can the soul be strengthened, ambition inspired, and success achieved.”
One other thought is to also find a mentor. Learn from the horses mouth….
Enjoy
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(Andrew)“Character cannot be developed in ease and quiet. Only through experience of trial and suffering can the soul be strengthened, ambition inspired, and success achieved.”
One other thought is to also find a mentor. Learn from the horses mouth….
Enjoy
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(Andrew)“Character cannot be developed in ease and quiet. Only through experience of trial and suffering can the soul be strengthened, ambition inspired, and success achieved.”
Well done Westan. It’s been good to have you in the community.
Enjoy
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(Andrew)“Character cannot be developed in ease and quiet. Only through experience of trial and suffering can the soul be strengthened, ambition inspired, and success achieved.”
Knowing you Nessie there are probably a lot of Bullseyes going on.
I here what you say about rushed decisions. On the flip side though I notice how easy it is for me to make decisions now compared with when I began. The numbers fly through my head and I am able to provie very quick responses for people.
Time does train the brain as well.Enjoy
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(Andrew)“Character cannot be developed in ease and quiet. Only through experience of trial and suffering can the soul be strengthened, ambition inspired, and success achieved.”
Hey HWD….what is true market value ?
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(Andrew)“Character cannot be developed in ease and quiet. Only through experience of trial and suffering can the soul be strengthened, ambition inspired, and success achieved.”
Anastasia,
Long time no see.That is a toughie to answer. Brisbane has done well and so has Sydney.
As I put in many posts I ask of you what your end goal is ? What are you setting out to achieve in property ? Are you a mass collector like our benefactors Steve and Dave or a renovator like the Doidgy Brothers (Paul Eslick and Geoff Doidge) ? Do you want cashflow or cap gain ?
Personally I buy for cashflow and when and if Cap gains hit hard I sell off some stock to fund new cashflow areas. So for me I would only sell Bribane if I could get casflow elsewhere. But that is me. I only sell when opportunities present themselves.
Where do you want this Journey to end ? What path to you want to tread ? Remember that there is no right or wrong here……just different choices.
Hope this helps Ana.
Enjoy
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(Andrew)“Character cannot be developed in ease and quiet. Only through experience of trial and suffering can the soul be strengthened, ambition inspired, and success achieved.”
Interesting thread.
One of the things I do when I buy is make sure the numbers work. I don’t speculate. So as far as me driving the market up…..I don’t think so.
I guess my question though is what is defined as a property investor ?
Anyone who owns a house …… you need to own five houses……what and who defines property investor.
There is no doubt that the market is experiencing strong growth and many people will be hurt in the future. I remember being hurt in the Share boom because I couldn’t moderate my greed gland. This time I am using my head not my heart. To buy the numbers must work. To be honest I have cashed a few properties in that has allowed me to pay down my house significantly.
This will give mea very cashed up position for the future.
So as to property investors driving the prices up I can’t argue but I can be aware of what is going on and not get caught up in the frenzy.
Only buy when the numbers work…..If they don’t work, don’t buy.
Time will heal this problem..be patient or get creative. There are always way to have cashflow in any market….find the tools and utilise them.If you have a plan with goals and only do those things that get you closer to your goal then you won’t go wrong…If you buy because things always go up and there is no plan then good luck.
Happy investing…………..
Enjoy
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(Andrew)“Character cannot be developed in ease and quiet. Only through experience of trial and suffering can the soul be strengthened, ambition inspired, and success achieved.”
My only thought on this one Staurt is if you buy well and the property fits your goal, does it matter what the prices do ?
To ask if Brissie will fall or gain is also very ambiguos. Brisbane is a very big place. I listened to Michael Matusik speak a few weeks ago and his firm predicted that SEQld would see an average growth of 14% for the next few years. To me that is great but that also means some places do 1% and others 25%. An a average is just that. Sorry for the lack of a straight answer Stuart but where in Brisbane do you want to hear about ?
Enjoy
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(Andrew)“Character cannot be developed in ease and quiet. Only through experience of trial and suffering can the soul be strengthened, ambition inspired, and success achieved.”
Hey Gordon,
What are the estimated numbers on property two. That will help crunch the numbers.By the way….greed is not always good unless you are greedy for time and control of your life. Even then greed is probably not the right word.
Enjoy
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(Andrew)“Character cannot be developed in ease and quiet. Only through experience of trial and suffering can the soul be strengthened, ambition inspired, and success achieved.”
