Forum Replies Created
Hello Kiwi-Fulla
My husband and I started property investing in 2001 and have bought, renovated, flipped, wrapped, etc since that time in Aust and NZ. Although some of our properties are returning 12%+ we always seem to find cashflow an issue. I think that it is all the accumulated costs, accountancy, solicitors fees etc that is part and parcel of running the business.
Last year I formed a company with 2 other property enthusiasts to purchase properties on options. We found the economy here (particularly with some developers 'falling over') not suitable. Although properties were cheap enough and the sellers were keen to look at our offers, the developers at the other end of the deal were a little less enthusiastic. Just not confident about their security and the end profit for them. Also, on some of the bigger deals, there was the worry about obtaining finance.
The 3 of us have put that business venture on hold, while we, as individuals pull some more cash together to start up again when the economy improves. I searched, instead, for something that is booming in the economy (why try and swim against the tide). It is my motto to strive and prosper….but I have had enough of the delayed gratification and now will only put my time into something that will make fat profit fast.
I would be interested to know how you guys are finding it in this economy.
Regards
Belinda
http://www.striveandprosper.comHi guys,
My husband and I have been keen property investors since 2001. We knew that we were going to use property investing as a form of generating income and wanted asset protection against law suits for our rentals, so we were advised to set up a Discretionary trust, which we did in early 2004. It is, essentially, setting up a business status.
With it, however, comes all the increased costs of running a business. We pay standard accountancy fees to have our individual returns done, as well as accountancy fees for the company. These are about $3,500 for a standard year and much more if we have been actively buying, renovating and selling. Little things like, getting power activated on one of our houses varies by $150.00 between what is in our own name and what is in the company name. That goes for insurances, vehicle registrations and just about everything.
Last year, we were advised (and I have to agree) that we would have been better waiting until our profit margin increased before starting the structure, as the structure added so many unexpected costs.
Our cash flow had always been an issue with investing (though we have become very astute at spotting a really good deal and acting on it quickly) until now – I have started a very lucrative home business with fat profits fast within months. So, at last, this discretionary trust is beginning to really work for us. With the accumulated 'losses' held in the trust, we should not have to pay too much tax this year.
Weigh up your positives and negatives. Pay a few hundred dollars to speak to your accountant and get proper advice before you jump in, just because someone has advised you that there is better asset protection against law suits and bank troubles with your properties held in a trust structure.
Do your research and do what is right for your circumstances.Good luck
Belinda
http://www.striveandprosper.com
Clint and Neety,
My husband and I have done well over the last 9 years of property investing. Thankyou Steve and others. We keep going forward, but many times have had to take baby steps because of our income and the expenses of bringing up kids at the same time. We always look at returns, positive cash flow is our thing, but there have been unexpected costs along the way, particularly with accountants fees and costs associated with running our Property Company.
We slowed down for a while, but now is a great time to get back at it and we are really looking to increasing our portfolio again. I thought it necessary to secure our finances now (in case of job loss as I see this as the greatest risk) and increase our family's cash flow so we could continue to strive and prosper. I just had to think outside the box. I agree with you Neety that if income is limiting progress is limited.Cheers
BelindaHello Plasse41
How difficult is it to deal in Real Estate in India. Have you good connections there? What's the communication like? It's somewhere I've not considered investing before. It's all the taxation stuff that I find a worry. It's difficult enough dealing with properties in NZ personal tax, 2 x company taxes, Bas statements etc. I couldn't imagine putting India on my list. However, if the returns are there……must do some research….
I will strive and prosperCheers
BelindaHi,
It's interesting to read these comments about Roy McDonald and One Life. Has he been laying low for a while. I just received an email from him. I'm not sure where he got my details, though I into wealth creation an I am on a few forums etc. Though his ad is appealing, there are better, cheaper and easier ways to strive and prosper. I won't be going to his free Creating Financial Success seminars. I doubt he'll teach me anything that I can't find out for free.
Cheers
Belinda
Other than expected administration costs, has anyone had any disaster stories in 'purchasing' using Options??
Baylbr
Hi,
We have had a few properties in Invercargill – Suzanne Kempton in the rental section of Harcourts, 182 Dee St Invercargill Ph: 0011643 214 2048 goes well. Communication lines are always open. They are all pretty busy over there.baylbr
Hi everyone,
Has anyone got any details about whats happening in the NSW town of Gloucester?? I've heard that Gloucester mines are researching new mine sites and/or expanding existing mines and that a company called Lucas Energy is already laying gas pipes. They are expecting population growth in the town and rental shortages. I guess that this will this will mean increased rental returns and capital growth. Real Estate wise, the town still seems quiet on sales. Is it because only the locals seem to have any information on future development in the town. Is it a good time to buy up there?baylbr
