Forum Replies Created
Repairs and maintenance are always a juggling exercise. I do not save for repairs though.
I have mostly positive cashflow properties. Some, which I have had for a while and have the loans paid off, now provide the extra money for maintenance. While interest rates are low, I have channelled quite a lot of money into good quality maintenance and some capital improvements.
If interest rates rise, there will be very little surplus for maintenance. Though, if I’m up to date with it all, then not a lot will need doing for a while.
In a major emergency, I have equity and serviceability enough to borrow for repairs. I dislike paying extra interest payments, so only in an emergency, or if I can gain via more equity or more rent, would I borrow.
If you want to get out of a hole, first stop digging.
Wahoo Picklesam, congratulations! If you want to make it a better cashflow, you could put some cash into the loan to lessen the interest costs.[biggrin]
If you want to get out of a hole, first stop digging.
KP, Based on your figures, that is an 8.96% gross return. If you can get interest rates of 6.5% or thereabouts, it leaves just under 2.5% for agent fees, council rates, insurance, repairs & maintenance.
Not a bad return by any means in today’s market. Check if there is likely to be any more rent increases in the next few years, as you may need them if interest rates increase.
Don’t forget a QS report. It can add a little back in tax depreciation.
If you want to get out of a hole, first stop digging.
Ha! Steve you have touched on my biggest secret. I got to where I am by my belief that God would see me right.[biggrin]
It can be tricky to decipher exactly what the Big Guy wants but I tend to go in the general direction and if all is well, I keep going in that direction in my investing. Any major hiccups to any deals, and I see it as a warning and get out.
My Christian faith has served me well and when you’re on a good thing, stick to it.[cap]
I also try very hard to structure my wealth toward ‘passive income’ for which I don’t have to do anything ‘hands on’ to get it. I see many wealthy people who are so tied up in responsibility for their incomes that they don’t ever have the time to sit back and enjoy it enough.
My goal for wealth is to have a good team working for me and who work independantly without needing too much of my input. That will result in a good passive income to me whether I am nearby to oversee things or not.[biggrin]
If you want to get out of a hole, first stop digging.
SANF= Sleep At Night Factor.
If you want to get out of a hole, first stop digging.
Originally posted by kay henry:Some people might be interested in this. It’s in Brisvegas, and stars the Reno Kings, Steve McKnight, Dale Gatherum-goss, Michael Yardney and some others
Even if you can’t go to it… I always find it interesting to see what Seminars are on and who is hanging with whom in the guru scene
https://www.propertyinvesting.com/renoking.html
kay henry
Little known is the fact that Les and I have been invited and will be available throughout the weekend to meet workshop students and try to answer questions. Just don’t ask me all the hard one’s.[blink]
If you want to get out of a hole, first stop digging.
I do NOT set any targets to wealth. I have high aspirations but no set final goal.
Why? Because I don’t want to hamper myself with limits. Achieving milestones along the way is fun and satisfying but my nature will always want more.
I think investing is a bit like driving a car. So long as you are getting there at a reasonable speed in relative safety, you are doing all right. If you take a wrong turn along the way, don’t be afraid to back up a bit to see where you went wrong and choose a better direction. We all want the thrill of the speed and the wind in our hair, but moderation will get you there, garanteed.
For a starting figure of passive income to live on in the future, I want $50k net each for Les and I. By passive, I mean that I don’t have to be there with a hands-on approach to get it. My PM’s can just keep stacking it away into my bank account, whether I am around or not. Couple that with a growth portfolio which will get better and better within my lifetime, and I will be comfortable, but of course I will always want more.[biggrin]
If you want to get out of a hole, first stop digging.
Hello Peter,
Thank you very, very much for the insight into your personal life. I feel I should almost call you ‘Mr’ Spann or Your Worship but I am too cheeky for that.[biggrin]
I, having been raised on a farm, and leading a rather simple life, have never dreamed that life could be exciting as yours. It scares me a bit to think that there is so much you can do and have when you are a multimillionaire. For the moment, my comfort zone is so not up there with you, but I’m working on it.
I do understand your comment on a ‘bit of flash’. I would consider it so be part and parcel of the art of negotiation, which is what propelled you into this profitable life in the first place.
Don’t dwell too much on what other people think of you. They are only highlighting the fact that you are human like they are, and really, they would be secretly pleased sometimes if you get annoyed with the service. Some people just love to bait and annoy others who are financially secure, just so their own self importance goes up a rung or two. To be understanding of them is all you can do.
Associating with other famous people would probably freak me out. I mean, I see film stars only on the tele, but to actually meet them and find they are human would probably dissappoint me somewhat. I have some, put on a mental pedestal in my mind and it would spoil it to find they are ‘normal’.
The really, truly, most supa dupa thing I admire about your life is the fact that you have your own housekeeper/cook. WOWEE! Now that really gets my aspirational thoughts flying. I want one of them too!
Cheers Brenda.[biggrin]
If you want to get out of a hole, first stop digging.
I have sold a few to reduce debt and reduce my exposure to interest rates. Have another couple for sale but won’t sell unless I get my price or close to it.
On the other management side, I am keeping up the maintenance and doing bits of reno’s. Raising rents a little to offset rising council rates and perhaps future interest rates.
On the buying side, zip. I am astounded that people are still buying really negatively geared investments like there is no tomorrow. Great money for the sellers if they can get it. I have not found any positive cashflow ones for a while now. I wouldn’t really buy now unless I found an absolute bargain, not necessarily cashflow positive, but cheap enough that I could afford to hold it without too much effort. Then when prices rise again, I may cash it in, to reduce debt and further increase my cashflow.
If you want to get out of a hole, first stop digging.
I believe you can have as many cashflow one’s as your equity will allow. Trouble is, if you borrow right up till you have no more equity, how are you going to get any capital growth? You will then have to sit and wait patiently till the market in the mining town rises and you have more equity.
You also need to assess risk. Vacancies equal no rent. That’s gonna wreck your cashflow. Make sure there is enough demand for extra rentals in the area and the mine is not going to fold and kill off the economics of the town.
We are just mostly coming off a capital growth bonanza and may not see it in any spectacular strength for a few years now. Do you really want to buy a negatively geared ip, now, and wait for the value to rise?
A couple more positive ones in a substantial town shouldn’t hurt. Then look else where for a bit to see what else is available. Be mindful of maintenance costs, and rising interest rates as well.
If you want to get out of a hole, first stop digging.
Point number 15 was the most pertinent, for me. My sister and I rarely talk anymore, but she is always sending me jokes from the net. So tonight, I rang her up and we talked for over an hour. Just as well I have a flat fee on my STD phone rates.
If you want to get out of a hole, first stop digging.
Originally posted by Perry:Hi Peter my name is Perry , a Chemical engineer working for an oil and gas firm and this year I’m 24. I have read your fantastic book wealth magic a year ago and is now starting to implement your strategy or your way to wealth. At 24 I’m not a millionaire yet but I will get there. May I ask you what’s the life of a millionaire really like? Being wealthy does it give your life a lot of excitement? I’m quickly climbing my way to the top but what’s the view like up there?
Cheers,
Perry
One who ask a question remain a fool for 5 minutes;One who does not ask a question remains a fool forever.
Excellent question Perry. Peter, got a good answer for how your day to day life has changed? Mine hasn’t altered much at all….yet.
If you want to get out of a hole, first stop digging.
Not only new apartment values can go down.
I bought my own PPOR and thought I’d gotten a bargain at 17% below asking price. This was for an older established house in a country town.
Unfortunately, shortly after, there had been a few mortgagee in possessions being processed in the area. The lenders were being extremely cautious in revaluing properties in the area.
As a consequence, my ppor was revalued one year later at 14% below what I had originally paid for it.[blink]
To my way of thinking, those apartments in your area, would have really appealed to high income earners who have a buy and forget about for about 10yrs or more attitude. They would then reassess things and figure out if it is worth hanging on to, or they have bought a crook investment and should sell it off. Investors like this would buy a few such investments, as well as other types of investing to spread out their risks. While their shares or managed funds are not rising, they may expect their realestate holdings to be doing better.
The property market is open for ‘anyone’ to invest into and ordinary Joes who want to invest in spekkie apartments are not dissuaded from it. It is left for ‘Joe’ to work out if it is best for him or if he really should be looking elsewhere to invest.
In my investing, if I am not sure about an investment, I pray about it and ask for the wisdom to make a good decision. It seems to work out well for me and if things aren’t going smoothly with a purchase, I take it as a sign and back off.[biggrin]
If you want to get out of a hole, first stop digging.
Originally posted by Ablaz:Peter
I’m reading your book ATM and its a great read so far.
just one thing i noticed though
page 93 under the heading Security there seems to be a missprint error, it jumps from the topic of security, to somthing about luke rushing out to a fashion parade.
is it just me am i loosing it?
or have i got this one right?Maybe its just my copy.
Regards
AblazAt the start of the Chapter on Renovating for Profit, Peter is meeting with Luke. Probably should have been a spare line spacing and a new paragraph started of Luke rushing off. Tis a little confusing.[biggrin]
If you want to get out of a hole, first stop digging.
With weatherboard houses, you can paint them any colour you like and they come up a treat. Exception to the rule was the smartie who painted his weatherboard house jet black in a protest to the local council. It did not look good at all.
With today’s modern paints, they do last a lot longer than they used to so painting is not such a chore so often.
The weatherboard houses do seem to be on the choicest bits of land too and can achieve very good capital growth.
Cheers Brenda.If you want to get out of a hole, first stop digging.
There is a detailed thread at http://www.somersoft.com/forums/showthread.php?p=53517#53517
A little light reading for you, it goes for 11 pages.
The tips on TV were around a dozen suggestions for how to change negative ip’s into positive one’s. Just a few different ideas you might not have considered before.
Cheers Brenda.If you want to get out of a hole, first stop digging.
Hehehe Jo, You can have my autograph as long as it’s not on the back of a negatively geared purchase contract.[
]If you want to get out of a hole, first stop digging.
Hi all, I have read every page of this thread and nowhere have I seen anyone think of what the seminar presenter has to sacrifice to do such a presentation.
Do you think the presenter just thinks “Hey, I think I’ll do a seminar today and make myself a heap of money.” Think again. There is months of planning, organisation, and rehearsals way before any seminar day comes around. And what happens to all the bargains which the presenter has missed in the market place because he was too busy organising the seminar? He would most likely have been loads richer if he had forgotten the seminar and just stuck to investing by himself.
One reason a presenter may do seminars, and charge a fairly high fee is to demonstrate to his lenders that he has a good regular income and is not totally reliant on Capital Gains for his income as this may be quite variable.
Another reason for a high fee, is that he cannot teach everyone, in all places at the same time. He must select key areas to produce his seminars where the teaching would do the most good.
Seminars are not just one person affairs. There are also caterers, function managers, sound and camera technicians etc. They all want payment for their services and are not going to work for free.
The presenter also wishes to impart some knowledge to you to help you on your way to financial freedom. How effective would the information be if he gave it all to everyone for free. “Pearls to Swine” rings a bell in my mind.
Marc- Matthew 25: 14-30 is one of my favourite Bible texts. Every time I read it, my mind explores it a different way each time.
Off my soapy box now, sorry guys, but I do feel better now.[biggrin]
If you want to get out of a hole, first stop digging.
Reading all these great posts, I forgot what the question was. Was it how I got to where I am now?
I got here now by being in the right place at the right time and was willing to have a go. After reading lots of investment books and attending a few seminars, I formed my own strategy and jumped in boots’n’all. You never know till you have a go.
If you want to get out of a hole, first stop digging.
I haven’t finished reading the book yet. It is a thick one isn’t it? They tend to slow me down a bit.
So far, I am getting a theme of ‘velocity of money’ coming thru. Interestingly there was a comment from Robert that if the realestate market becomes too expensive and he cannot find a great deal, he will move his money into a hedge fund so that at least his money is making ‘something’ while he waits for a reasonable realestate market to return.
The book seems to have a more agressive slant to it and a lot more urgency to get out there and invest with a view to maximising profits.
If you want to get out of a hole, first stop digging.
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