Hey Jenny….long time no hear,

Posted something this morning that fits perfectly into this category, fleshed it out a bit since then…see below ;

One of our recent acquisitions was a basket case block value jobby on 1-1/2 acres with six dodgy 35 yr old sheds.

The place had been advertised for over 9 months on the internet only with absolutely…[Read more]

The biggest tip dollar wise I utilise nowadays that I didn’t realise when I started is ;

Always have the title of each property in a different ownership structure to minimise land tax.

We haven’t in the past, but now have every property in a slightly different ownership structure, which in my state has reduced our land tax bill…[Read more]

Marisa,

When I was back in Oz I noticed the drop in yield as well with CIP’s. All of the Fed. Govt leases used to be ~ the 7% mark, but now the developers and owners are getting greedy and lowering the yield down to that level for ‘also ran’ tenants.

I’ve seen a pattern of late where Eastern States investors are snaffling up good Perth props on…[Read more]

Scale is an overpowering thing, isn’t it ?? It changes your thinking, your opinions, your tactics, the assets you buy, the tenants you attract, the finance deals you cut and basically your entire outlook.

I should probably retract the initial ‘poxy’ comment. This probably got you offside. If a 100K house is your pride and joy that you are…[Read more]

Hi Sosau,

We have been leasing out 6 industrial sheds of varying sizes on a 1-1/2 acre block over the past 3 months or so.

Our mix in m2 are { 90 / 110 / 255 / 365 / 215 / 255 }.

What we’ve found is the little 100m2 sheds lease out very quickly. We wish we had 10 of these, they would have all gone. The downside to these, as Michael pointed…[Read more]

Don & Liz,

Who said anything about tying up your entire net worth in one building ?? What are you talking about ?? Owning a 13 MM block doesn’t preclude you from owning other assets ?? You need to widen your scope just a tad.

Multiple tenancies are the norm, locked up with long term iron clad leases with blue chip tenants like top 100…[Read more]

I read somewhere a while back, this person’s definition of a stress free lifestyle was based on her ability to have the following ;

1. A nice PPOR in a decent area free of debt.
2. $ 10 to 20 K cash in the bank, or enough to easily overcome any imminent bill, such that walking to the letterbox and flicking through the ‘window type’ letters was…[Read more]

Hmmm,

A few comments on the above comments. These are just a few examples of why we pulled out of the RIP game…being the puppet on the end of the residential tenants string whenever they call up is not my idea of savvy investing. Each to his own though.

1. “$700 damage to the credit card, and everyone is happy”…ah, except the chap who pays…[Read more]

I don’t have a time budget and when I’m in Australia on “time off”, when I actually work on the IP’s, couldn’t think of anything worse.

My working life is so strictly regimented time wise, I reckon I’d turn into an autotron if I tried that carry on with the time in Oz.

Like at exam time at Uni, or when a big lease deal or contract is about to be…[Read more]

What’s the big deal about owning a large quantity of properties. I’d go for quality every time.

I’d rather own one office block worth 13 MM, than own 130 poxy little houses / units / flats worth 100K each. What a nightmare. No thanks.

I’d be very happy to be in the ‘under five’ class.

Cheers,

Dazzling

“No point having a cake if you can’t eat it.”

Thanks for all of the responses. It’s funny when family priorities and finances clash to see the differing opinions, probably based on people’s different backgrounds.

Oshen, to answer your question, no my parents didn’t have any IP’s at that stage when I turned 18. They accumulated 7 or 8 great little properties before (mostly in Geraldton -…[Read more]

Hi Marisa,

If you are looking for a larger industrial property to lease, give me a tingle, I have an absolute cracker for lease in a prime spot.

In terms of CIP vs IIP, we only own IIP’s at this stage, but are seriously looking at CIP’s in the CBD and in my opinion they seem alot better, attract a better class of tenant, but more importantly the…[Read more]

It sounds as if you guys also don’t buy into the old furphy of “If in doubt, seek independent professional advice” that’s glibly trotted out as a cure all for any situation.

Great if we were all autotrons, but when human error, laziness and inexperience / incompetence are thrown into the mix, sometimes these professionals don’t cut the…[Read more]

James and Anna,

Well done for contributing to the forum. Hopefully people learn from you as you have from them.

I liken your choice (which is your full right) to attempting to travel down the road to wealth as quickly as you can on a busted tricycle with a flat tyre and wonky handlebars, when, parked in the garage you have a souped up Ferrari…[Read more]

Up to a point Redwing,

My personal philosophy with all buildings has always been look after the roof and the roof will look after the building and stop further damage and more importantly painful whinging from tenants. The 4K you spend on the roof might save you 20K damage next winter. Wet timber for termites, stains on ceilings & walls / mold…[Read more]

AXJ,

From where I sit, I concentrate on the ‘steak’, the bit that actually makes you the serious money, and with all houses it’s really really old – like a couple of billion yrs old.

Depreciation and cashflows regarding the box on top are the ‘peas’. Accountants always get in a tizz over those because it’s their area of expertise.

Now if you…[Read more]

You’ve got a bog standard situation there, where, without you knowing it, are probably not the one who shall make the final choice.

On a scale from 0 to 100% economically speaking, you’ve got an array of choices.

At the 100% economically good level you’ve got the tiniest run down dump in Drossville that you could purchase and somehow exist, with…[Read more]

Hugh,

Absolutely. Wife is all for it..no obstacles from me.

It doesn’t infer we are going to abandon them, but it does mean they’ll be going through a few of the hard knocks to toughen them up a bit. I find the city kids growing up now are complete Nancies and wouldn’t know hard work if it bit them on the bum.

One things for sure, we won’t be…[Read more]

Couldn’t possibly expand Tom.

This site only encourages fully lawful ‘by the rule book’ techniques.

I suggest if you have trouble, ask your friendly lawyer type to intercede. 10 weeks and alot of cash and stress later, s/he will still be pumping out a flurry of threatening written letters to people who sometimes aren’t literate and throw…[Read more]

Hey Wylie,

Our experience has been to choose the eldest and/or most responsible of the occupants and make them sole Lessee. That way we have one point of contact for all official and unofficial communications, and if we find out other people in the property have been playing up, we make the sole Lessee responsible and you achieve a touch of self…[Read more]