“An hour with a wise man is worth 100 books”

No wonder these property investment seminars are so expensive.[]

Battz

Leonid,

The internet is a great source of information, where you can obtain population trends, capital growth, rental averages, vacancy rates, percentage owner occupied v rental, unemployment rate, employment split industry by industry, current projects, proposed projects etc etc.

But in my opinion you just can beat going to the towns and…[Read more]

Cheap advice? You know what they say about paying peanuts……[]

Great, thanks for the reply!

Cheers,

Battz

Too true slatzagain, in relation to prices moving up in spurts, thats why a mentioned a 20 years period, there will be a boom somewhere in a 20yr cycle.

My uncle built in Paradise point in 1980 (a good 1km from the water) Cost about $100k all up. Valued at around $400k now.

Battz

Good points Polar,

I agree that you should not be contrained by your own “rules” of investment. I look at them more as guidelines. And yes Steve’s book is a great read, and the information contained within it is worth significantly more than $30 you pay for it. I took the book with me recently on a 3 day trip to buy property so I could refer…[Read more]

Brett,

You will find positive cashflow properties in Adelaide. They may not be in Norwood, Skye or Glenelg, but they are there.

Cheers,

Battz

MiniMogul,

Very well said. How many times do we here people tell us how cheap houses were 20 years ago, and “if only we had of bought 2 or 3”. But they forget that at the time (20 years ago) the houses seemed expensive, that is why they didnt buy 2 or 3.

Again, in 20 years time we will look back at a house, say Paradise Point or Runaway Bay on…[Read more]

My Father-in-law bought one about 1 yr ago. Has only had it rented/hired during the holiday periods and has cost him over $20k in repairs & improvements in just one year.

In saying that I sat down and did the sums with him, and if he had bought right (ie No repair costs) and he ACTIVELY marketed the houseboat to maximise the letting, then yes,…[Read more]

My Father-in-law bought one about 1 yr ago. Has only had it rented/hired during the holiday periods and has cost him over $20k in repairs & improvements in just one year.

In saying that I sat down and did the sums with him, and if he had bought right (ie No repair costs) and he ACTIVELY marketed the houseboat to maximise the letting, then yes,…[Read more]

Interesting Thread.

However I disagree that postive cashflow investors are the ones whom are pushing prices up. By definition positve cashflow investors want to ensure that the purchase price is low enough that they are able to make a profit. If prices are inflated they will walk away.

For example if a house is in a regional area
is returning…[Read more]

Brett,

Christies has had a poor name in the past, and is known as a high crime rate area, hence it is affordable coastal property.

In saying that it has the potential for solid capital growth as Adelaide has been hit by the “sea change” trend. It depends if you are prepared to accept a negative cashflow position for the sake of long term…[Read more]

I was lucky enough to get to the Expo early on Friday, and Margarets stand was quiet and I actually got to spend approx 15mins talking to her one-on-one. Very friendly and very helpful.

After that a crowd started to form around her, and I decided to stay and listen to questions that other investors had. One question related to her views on…[Read more]

Thanks for the revised figures. On a subjective note, are they “good” figures?

I intend heading off to do some negotiating tomorrow, any last minute tips?

Unfortunately its not local, so I have a few kms to do to view the property/negotiate.

Cheers,

Battz

Thanks for the time in crunching those figures for me. Initially I had just used Steves “11 sec rule”, however as this will be my first IP, I was unsure of the approx amount of the “other costs” such as insurance/rates.

I was actually looking at a 90% lend, which I suppose I should have mentioned. SO it is about $9000 deposit + costs. I will…[Read more]

Simon,

Thanks very much for that. I have read Steve’s book, but i just thought I’d throw the figures at the forum to see if I had missed something, or in case I had miscalculated.

Cheers,

Battz

thanks Westan,

Property price is $94,000, rent is estimated $200 p/w.

Low vacany rate for long term lease
Population growth low, but around 2%
Capital Growth for area last 1/4 was 10.5%
House built prior to 1985

Any suggestions/advice re further investigation required?

Cheers,

Battz

Thanks Terry,

I too have heard of it used with commercial, but didnt know if it was common in residential. I suppose its just one of those things, just ask the question to the vendor, you never know!

Battz

I suppose that is why the banks have the properties independantly valued. I can see the “for” agruement, that if the bank believes that the property is worth say $280k, yet the buyer has managed to purchase it for $250k, he buyer has simply negotiated a good deal.

I do accept that it does seem to border on fraud by telling the bank you paid…[Read more]

picja1,

Re the 100% finance loan at 7.9%, is that one through Liberty that was in the latest Money magazine?

There always seems to be a catch with these 100% loans, either higher interest rate or requiring minimum asset.

Can anyone tell if there is one out there with no catches?

Cheers,

Battz