Forum Replies Created
- To all of you who have written derogatory post about Craig I have a simple answer? He is a millionaire many times over out of property investing and you are not?
Wow Kerwyn, pretty strong words…hope you’ve got all your facts straight on that one. How many is many ??
When you get to his level I will only gladly listen to your views.Well let’s throw the dice and take our chances…what’s the level Kerwyn ?? Craig said at the seminar when he was 28 his level was zero ?? Are you saying only multi-millionaires have a valid view worth listening to ?? Surely not….
I believe Pegasus’s question at the top of the thread asked for all experiences…good and bad.
Cheers,
Dazzling
“No point having a cake if you can’t eat it.”
Hi Annette,
My wife also did the 5 day PM course here at REIWA last year and topped her class with 99.5%. Having sat with her from 3 to 8 in the morning learning all of the regs on exam day…I can guarantee you it ain’t rocket science.
Not to take anything away from the wife, but at 35 and with a tad of prop. knowledge behind her, it wasn’t exactly hard, and competing against 22 and 23 yr old ‘wet behind the ears’ girls wasn’t much to compete against. These are typically who you are handing your IP over to…maybe you copped one of them ‘managing’ your place.
It staggers me how these young girls straight off the street with a 5 day course under their belt and zero experience in both life and property can call themselves a “professional”.
Not sure I agree with Zucan about them earning “seriously good money”…depends on your definition I suppose, but there is a reason why there is a severe shortage. I’d put forward the ol’ ‘meat in the sandwich’ syndrome, along with low pay. Anyway…I digress.
The lecturer of the course was very knowledgeable on all facets of PMing in WA and she’d be worth having a chinwag to. I think her name was Rhonda something from Star Prop. Man. Haven’t actually used them ourselves, but I hear they only do PMing…no sales…which helps them focus.
Cheers,
Dazzling
“No point having a cake if you can’t eat it.”
I was under the impression there were two copies of the certificate of title – the Original and the Duplicate.
The Original is always kept at the Titles Office and you never have access to it. The Original deed never leaves the Titles office.
What you receive if you own your PPoR outright is the ‘Duplicate’…although confusion sets in as people refer to this document as the ‘original title deed’. Its not really, but when I hear this said I just let people run with it ‘cos it just creates confusion and people get so deflated when they don’t get the “Original”.
The ‘Duplicate’ is the document that the Bank holds when it holds a mortgage over your property.
If you lose the ‘Duplicate’, you’ll need to jump through quite a few hoops, including signing a stat dec. signed by a JP and resubmit to the Titles Office with a fee.
They’ll check all relevant details against the Original Title Deed and re-issue another ‘Duplicate’ certificate to you.
I must admit some of the older ‘Duplicates’ on A3 or so parchment look really snazzy, especially with all of the fancy handwriting and the history of previous owners, but really, the best place for it is to be fully paid off, and then remortgaged to the hilt and sitting in the banks vault.
We took ours to Snap Printing and got a full size coloured copy all framed up for about $ 65. Looks pretty nice, and serves the purpose that your wife intends for it, without putting the ‘Duplicate’ copy at risk.
Cheers,
Dazzling
“No point having a cake if you can’t eat it.”
Having just spent the last 10 minutes reading all of the above really intelligent dross, the only thing I can suggest to lift the poor hapless chaps and chapesses in NSW and Vic is for all of the vocal greenies to finally take a back seat and allow some lads to start ferociously drilling and digging some dirty big mines to lift your end up a bit.
I mean, Qld and WA like helping you out and all by paying some of your debts that you continually rack up. I guess Melbourne & Sydney being;
” Australia’s global cities: its creative hubs, its centres of finance, business, research, innovation, sport, entertainment and fun. They should be magnets pulling young Australians where their futures can be made. “
Underline that word should. What a load of old cobblers. Written by myopic Melb & Sydney journo’s who’s small world doesn’t extend beyond their small daily existence…who are quite happy to feed this dross to a like-minded myopic public who lap every word up as gospel.
I’m also confused how this high level analysis actually helps Mr & Mrs Average purchase an investment property where local issues over-ride the macro level fluff. They need to get down in and inspect the weeds of individual titles, not take a satellite fly by. Maybe I’ve missed it ??
Cheers,
Dazzling
“No point having a cake if you can’t eat it.”
Hell of a deal F. Well done.
Any time you want one of those high paying full time research jobs (up to 4 K p.a.) givvus a hoy.[biggrin]
Now how does that Perth list compare with Sydney and Melb….are you guys still ahead ??
Cheers,
Dazzling
“No point having a cake if you can’t eat it.”
Or it could be a little industrial shed where the carpenter has signed up on a secure 5×2 lease where he pays $ 80 p.w. nett plus GST plus all the outgoings on the shed…in which case it is wildly positive. Like 7% plus.
Assumptions are a wonderful thing, but distort the figures dreadfully if slightly out, especially with an example such as Jensshed has suggested, where the gross numbers are so small.
What are the other cashflow details Jensshed ??
Cheers,
Dazzling
“No point having a cake if you can’t eat it.”
Hi Jensshed,
On first inspection it passes the 11 sec guide….80 p.w. —> 40K.
I reckon your example would eventually look like this ;
Capital
PP = 29K
SD = nothing I believe at this level ??
All other costs to acquire ~ 1KCashflow
Loan of 30K
Interest p.a. @ 7% = 2.1 K p.a.
Ownership total outgoings ~ 1 K p.a.
Total cost to hold = 3.1 K p.a.Rent = 4.1 K p.a.
Positive cashflow = 1 K p.a….(look out for those faulty water heaters – they’ll eat that up in no time)
Your gross rent = 14.34% (52*80 / 29000)
Interest = 7%
Outgoings = 3.44% (1/29)Therefore your +CF% would be {14.34 – 7 – 3.44} = 3.9%.
Pretty good stuff. Good luck with your endeavours.
Cheers,
Dazzling
“No point having a cake if you can’t eat it.”
Whenever our group purchases a new title, we get the accountant to set up a new company and new trust to put it in. Costs about 2K.
Hardest thing we find is deciding what the company name and trust are going to be called. It’s pretty tough work, but hey, someone has to do it.
Trust owns the prop and the company is the trustee. We control the trustee.
Never any linking between props. You come across some clowns in life…and you never want your financial freedom to be put at risk due to them and their silly whims.
The other advantage we find, other than asset protection, is our Land Tax bill is kept to a minimum. Multiple properties are not being lumped on top of one another against the same legal entity (be it person or company) and therefore the SRO’s silly compounding formula for working out Land Tax assessments never cuts in. Beautiful.
Good luck everyone.
Cheers,
Dazzling
“No point having a cake if you can’t eat it.”
Hey great. Well done for getting through. Bet you had as much fun as we did.
Our group started in Feb ’90. I pulled out at the end of ’91 and jumped across to Petroleum, but the rest of my mates stayed their and finished 4th yr in Nov ’93, so I suppose they all finished a few months before you started.
Yeah, Bairdy the little Maths Lecturer with a big beard and little blue thongs. The only lecturer I’ve ever met who rolled up in shorts and thongs. As I had a big beard at the time, we sort of got on pretty good. Wouldn’t be able to pass his units now though. Unless the numbers have a dollar sign in front of them nowadays, it sort of washes over the top.
Good luck in your endeavours. Just out of curiosity, why can’t the Mining industry retain it’s personnel ?? Out of my year, 2 out of the 19 are left. The other 17 have moved on….that’s only 12 years out of college. Looks like you are looking for a shift also after 7 years.
Cheers,
Dazzling
“No point having a cake if you can’t eat it.”
Fair enough Simon – perhaps it was a little melodramatic but you get my drift.
In terms of ‘boom’ vs ‘today’s’ market…what’s the difference ?? Depends where you are sitting surely ??
Over in Perth it’s steady steady as she goes. We didn’t enjoy the dizzy heights and party time that you chaps had in ’02 and ’03, but then we aren’t suffering from a hangover either that y’all are enduring now in ’04 and ’05.
I don’t have access to all of the fancy curves and data (where’s Foundation when you need him ??) but I suspect the eastern seaboard is still ahead of our growth, despite your recent dip.
Cheers,
Dazzling
“No point having a cake if you can’t eat it.”
Unlike Suds, my expectations w.r.t. vehicle type have been completed filled. I suspected this forum would of attracted middle of the road type people, trying to improve their lot in life via two major means, investing and practicing frugality in their discretionary spending.
What’s the difference between frugality and stingy ??
Good on you though Suds, I fully encourage a person to speak their mind, especially when it throws a cat amongst the pidgeons. Perhaps you are disappointed because your expectations were based more on the perception of wealthier people you see in the media – rather than real people…who knows. Hell, that’s gettin’ too deep.
Anyone got any really cool trailers ?? I just bought myself a second hand 10×5 tandem lock up galvanised trailer with a ramp from an ex-policeman who did a sterling job making it. Comes in real handy for the IP’s and also carting the quad bike around. Fantastic – this is real boys stuff here. [biggrin]
Cheers,
Dazzling
“No point having a cake if you can’t eat it.”
make sure you write subject to finance and costs related to the purchase so you have a security blanket to get out if needs be.Absolutely, as well as the other 7 or 8 really tricky little ‘get out’ clauses that you’ve picked up at the latest property seminar. Load the offer up with as many ‘get out’ clauses as you can possibly think of. Gotta love those security blankets.
That way, the Vendor, after having a jolly good chuckle, will have no qualms at all in tearing your offer up and throwing it straight in the bin.
Two days later when you find this out – if the Agent even bothers to notify you after your Mickey Mouse offer, you’ve gotta make a choice. Walk away from the property or sit down for another hour or so and do it all again (the Vendor and her Agent will tire of your petty games very quickly)…this time however, actually mean what you say and make a dinkum offer.
IMHO, if you are so scared of the deal and want all these ‘get out’ clauses that the gurus have taught you, don’t make an offer. Saves everyone alot of time. Vendors aren’t dullards, they eventually want as much clean cash as they can get off you put on the table.
voigtstr – walk into any REA in Hobart and ask to view a bog standard O&A form, sit down and have a jolly good read.
Cheers,
Dazzling
“No point having a cake if you can’t eat it.”
The Darwin market is interesting like that. Land is very cheap here, but building a house is extraordinarly expensiveOK…so how do you interpret the market will perform in the next 5 years given that ?? I know nothing of Darwin, but I imagine the old ‘land appreciates – buildings depreciate’ still holds true ??
I imagine the price of the land is largely due to the fact that there is so much available.Scarcity surely creates demand, which pushes houses up. What are you projecting the 500K spec house will be worth in 5 yrs time ??
Cheers,
Dazzling
“No point having a cake if you can’t eat it.”
Hey Cabo Wabo,
Off your specific topic…but anyway…
Couldn’t help but notice that you are currently in WA and are a Mining Engineer. Did you go thru WASM in Kal ?? If so – what year ??
You don’t by any chance know any of the following people (Wuss, Junky, Yuk, Corby, Patto, Flan, or Bubba). God knows if any of them are still in the industry. I was Chooka or Bigfoot…depending on how many beers I’d had. We were a culturally sensitive bunch us lads.
Is Muki still teaching Electrical there – or is he dead ??
Cheers,
Dazzling
“No point having a cake if you can’t eat it.”
Cheers mate.
Hey Redwing….shhhhh…try and keep the good thing we’ve got going over here in Perth under your hat…don’t go telling our secret to those people living in West NZ and southern PNG. [biggrin]
Based on the published figures and increased equity, might be time to trundle back to the Bank for another loan…whaddayareckon ??
Cheers,
Dazzling
“No point having a cake if you can’t eat it.”
Hi Scarlett,
If you want my advice I would seek out independent professional advice from your accountant. That way, you’ll be sure of getting unbiased, professional correct advice.
Hang on….I’m not an accountant so I couldn’t possibly give that advice….scrub all that.
Just wait ’til the tenants call up and ask for you to change their tap washers at $70 a pop…have a chat to Landt64…hey a tip…I’d draw the line though at providing your tenants with free tissues so you can go around and wipe their noses when they want to have a little bleat.
I’ve found dry crackers are quite adequate for all residential Landlord’s to survive on. Noodles…geez, we used to dream of affording noodles…
My suggestion is to run the bean counter off and seek independent legal professional advice about dragging his sorry butt through the courts….but hang on….can we now trust the lawyer…does she know her stuff ???
Sorry – I’m having a flippant moment. It ain’t much fun when the people you supposedly rely on pay big bucks to get it wrong. Talk to people you trust and get a good’un on your team.
Cheers,
Dazzling
“No point having a cake if you can’t eat it.”
Adam,
The income side of things seems OK, especially if you can secure one of those 10 yr leases.
My only concern would be the capital growth of such a property. Land value being only 24% (120/500) I would expect that the place might take a fairly large dip for a few years.
You might find in 5 years time the figures might look like (240/480)….that is the land has doubled and the bricks and sticks that you paid 380 for might only be worth 240. You’ll get buku depreciation from the ATO for sure, but your equity has spun it’s wheels and gone nowhere.
Our lowest criteria for land value is 70% with our latest purchases ranging from 84% up to 93%, all with nuetral CF on a 100% lend. Just our preference.
Good luck with whatever path you move along. With your heavyweight income, lots of options there.
Cheers,
Dazzling
“No point having a cake if you can’t eat it.”
I’d suggest that, similar to the common saying “your expenses will rise to meet your income” your personal definition of “wealthy” is actually a moving target – depending on your station in life. Peoples perception of everything is always relative compared to what they know in their little world.
Having been exposed to the Sultan of Brunei and what he is capable of, we good folk in Australia have absolutely no concept of what true wealth really is, and what it can do. Try kicking 350 people and all their luggage all ready for take off, off your plane and leave them all floundering at the airport because you want to go somewhere just at this instant.
Someone with a 100K PPoR with a mortgage on a salary of 25K p.a. would probably consider someone with a 300K PPoR without mortgage on a salary of 40K p.a. wealthy….ad nauseum…and up the food chain you go.
Someone elderly & stressed out at work would probably consider the young surfies at Byron Bay wealthy (time and stress wise).
If you are purely talking dollars, I reckon real wealth is when that wealth transforms into power.
I can remember people saying Frank Packer was wealthy as he was able to pick up the phone and say to the Prime Minister of the day “I need to see you, I’ll be over in your office in an hour.”
Apparently real wealth is exhibited by his son, who has reportedly picked up the phone and said “I need to see you, be in my office in 30 minutes.”
I’ve found there is no point comparing yourselves to others. We are just way too different. Just paddle your own canoe and be happy.
Cheers,
Dazzling
“No point having a cake if you can’t eat it.”
Originally posted by landt64:I can’t believe it.
With residential tenants – I certainly can. We put up with it for years…but no more.
Take comfort from the fact that there is a permanent solution to this simple example you highlight – along with the myriad of other small but expensive and inconvenient whinging from residential tenants.
Your choice.
Cheers,
Dazzling
“No point having a cake if you can’t eat it.”
Thanks everyone for their thoughts and opinions. It’s amazing the variety of opinions on the forum.
We’ve already booked a session with our mentor and banker at home. The wife and I will sit down and go through this ‘plan’ to get us where we need to be.
I am now wondering if I will actually see more of the wife and kids by being a full time property investor…hope I’m not jumping from the frying pan and into the fire.
Got to do something but, this digging holes in the ground over here is really getting a bit long in the tooth.
I’ve also taken your advice and will start splashing out a bit more on the fun side. It’s quite tough for us guys to do that….I used to be able to play heaps, it’s a skill I have lost and will need to pick up again.
We’ve booked a horse riding exercusion the first week back, up at our holiday shack for the girls. They’ll hopefully glean some great memories from that.
Just hope we don’t get into that dreaded territory of “But Daddy can I have a pony ??” “But honey, we don’t have anywhere to keep it.” “It’s OK Dad, the pony can sleep in my room, the bed is plenty big enough !!!”
Cheers,
Dazzling
“No point having a cake if you can’t eat it.”
