I met Nathan when he was a buyers agent for Right Property Group.I purchased a few properties through him. He is one of the nicest guys I have met but i won’t go on about that.

I haven’t been to Right Group meetings for a few years. They used to run fortnightly meetingws for $10. They shared information and talked strategies etc. There was no hard sell. They used to sit down and chat and write you up a blueprint (of your goals, how to get there etc) for free. i don’t know if that is still the case. Mostly I found they gave similar advice to everyone. Buy under market, reno if possible, reval and withdraw equity.
My strategy was initially to buy good yielding under market properties but I was 50 in 2008 and I wantyed to be retired before I was 60 so knew I had to do more than that. Then I bought a place that BADLY needed as reno. it was ugly and i got it cheap (thanks Nathan). My hubby and I did a complete reno in 5 weeks and made a $35K increase in value. We thought this was a good way to increase equity fast so we did that again and again. We made good equity, THEN the boom hit.
Then we sold a couple and retired. Travelling a LOT now.
I haven’t been on here for a long time. Check out Propertychat too. It gets more traffic than this site. Also go to Somersoft. It’s closed now but it’s great for research. You can learn a LOT there. I used to spend hours there searching.

Why don’t you do one of their MAP sessions to help you with strategy.

Or give Right Property Group a call for a strategy session.
I’m saying this in regards to your other post as you seem to need guidance as to what is the best strategy for you.

Wct01 wrote:

Thanks Corey Batt. If one was to renovate and retain to release the equity, how does this strategy translate to wealth creation? At some point, the banks will say enough is enough because I woud have reached my serviceablity and LVR limit.

If you buy well it shouldn’t be a problem.
We have mainly bought, reno’d and rented. We buy cheaper properties and do a complete reno. We have typically increased equity $3 for every $1 spent. And rents have risen, making them CF neutral to CF+ so you are in a better position than before you started so why would the bank say no more?

I had 4 separate IP loans with Comm. When I refinanced all the loans came back with every property listed on it. I told the broker (from the bank) that I did not want them crossed. She assured me they weren’t. HELLO!! It says so on the paperwork.
I refused to sign them. She had to go back and change them so each loan onl had one property listed as security.

They do try it on. Read EVERYTHING carefully.

As mentioned it varies from state to state.

In NSW you can pass on the usage bit if the property has it’s own meter.

Lots of people avoid units/villas/townhouses because of the extra cost of strata.

but if you factor in that you can save $10000 on insurance sometimes the extra cost isn’t that much. Yields are sometimes higher for units etc also to compensate for that. You need to do your research on BC fees. Some are VERY high. I’d avoid those (pools and lifts add extra costs). I wouldn’t not buy because of the water charges though. The actual water charge bit is not usually the major part of the bill (for units anyway).

If you need both capital growth and yield Sydney is not the place to be buying into.

We are at the end of a boom which typically means very little (or even negative) growth for the next 5 years. Rents haven’t moved for a while, which is typical of cycles. Rents should begin to move in the next 12 months.

I have properties in Blacktown and they have doubled in price in the last 4 years.

If I was starting out I would look elsewhere or if you have to buy in Sydney wait a few years.

• This reply was modified 9 years, 6 months ago by  Catalyst.

Great advice by Kinnon. A also think surrounding yourself with like minded people is important.
Networking is the key.

Where are you located? Look up to see if you can find some local meetups (try Meetup.com) or on the forums. Some are formal type meets, others just meet and chat.

I’d start with your local library. Borrow a few general property books and also Property magazines. You can often get free downloads of books and articles and books. But be careful as you get inundated with Emails.

Mentoring schemes do work for some people but a small % of those that join I think. Start by reading HEAPS. You’ll get an idea of YOUR way of proceeding. There are many paths to success in property. You need to find what suits your situation.
Keep asking questions as you go.

The copper pipes were ripped out by thieves so we had to replace some because of that, not because of the fire.

We didn’t have to replace much wiring as the fire was only in the hall and a little bit into 2 bedrooms. The rest was only smoke damage.

My personal opinion (based on research but happy if experts disagree and can enlighten me further) is that it can be expensive if you are just purchasing one property.

There are set up costs plus extra tax (accountant)fees at tax time. I raised the question with several investors and with my accountant. My accountant’s advice was if I was- unless I was purchasing more than a couple of properties in Super- not to bother.

I have many properties outside of Super but decided I had enough exposure to propertu so invested my Super elsewhere.

Just my opinion. I do know many people that do have property in Super. You need to ensure what you want from the property fits with the Super rules.

I have to agree with Redwood. Be very careful. Even the price to set it up varied by thousands of dollars with people I spoke to. Cheap is not always best. My accountant said some people have the setup all wrong.

Good on you for analysing it. Lots of people just read this stuff and believe everything they read.

But-

YOUR rental yield hasn’t dropped because you paid $500K. So your rental yield has increased.

If someone 10 years later was buying that property THEIR rental yield would be lower. But who cares about them! Haha!

Capital and rent won’t increase the same. The both go in cycles but not at the same time.