Originally posted by Sweet:
is it a good idea to subscirbe to Steves method and only read books that follow his ideas?

I believe anyone who understands only one method of property investing is doing themselves a disservice. The key is to understand more than one investment style/strategy/approach and work out which suits…[Read more]

Hi Mike,

I deleted the post for the reason I mentiooned in my comments.

Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958
Skype – derekjones2113

Hi Giddo,

And that is why long term investors generally do very well.

Imagine 5%/annum for 4 years and then a period of high growth.

Your high growth comes off a platform of 20% growth compounded and tucked away against your bottom line.

Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958
Skype – derekjones2113

Hi asdf,

I would never say never but I am pretty comfortable in the belief that there is still some time to run in Perth it is just that at the moment it is not the right time to be buying (without lots (and lots) of good research) because of the irrational behaviour of so much of the market.

I might also add that John Edwards (Residex) has said…[Read more]

Hi Zpeterd,

Suggest you give Slater and Gorton a call. I suspect there have been ‘adjournments’ or ‘out of court settlements’ and as such we may never know or we are going to have to wait a little longer.

Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958
Skype – derekjones2113

Also be aware that some insurance companies won’t pay out if the PM has not been doing their job. Some PMs will use the I won’t particularly worry about this as insurance will cover the default/

When push comes to shove insurance companies like to see their interests are also being looked after by a pro-active…[Read more]

Hi Julie,

The WA property market at the moment (mid March 2006) very much reminds me of Melbourne, Sydney and Brisbane ~ 3 years ago when people were paying too much for too much in the mistaken belief that property always goes up, and as quickly as it was at the time.

I believe a similar scenario is playing out in WA at the moment as ‘the herd’…[Read more]

HI Phillip,

At the risk of being howled down and called a ‘Sad Sack’ again I’ll make the observation that these sorts of decisions should have been made before purchase and as part of your research.

A crucial aspect to successful property investment is to know what you are faced with, what you can afford, what value can be added etc and as…[Read more]

Hi Julie,

Thank you for those kind words – they are appreciated.

Don’t be scared to ask those questions – no doubt someone was thinking the same thing anyway and the answers you get here, while not necessarily all exactly the same, are being provided, in the main, by property investors. Surely there is no better group of people to learn from.

I…[Read more]

Are you managing this property yourself as vacancy rates in Perth are currently running at ~1.2% – at this point the ‘advantage’ is all yours.

Under WA legislation you are entitled to raise the rent by 10% or up to market rates. It would seem that this tenant is almost on a subisidised rent scheme, and you are subsidising him.

I would not be…[Read more]

Hi Brad,

Where is your property?

Vacancy rates (the market) will largely determine what you can do after the expiry of the lease.

Leases can also have 6 monthly reviews written into them.

If you do decide to keep this tenant ensure that you are ratcheting up the rent in line with market forces. If they are a ‘good tenant’ then maybe slightly…[Read more]

Hi Kelbert,

Just had a look through todays real estate section and noticed that $300k will struggle to buy you a 1 bed apartment in Subiaco. A quick skim over the ‘To Let’ section tells me that most purchases in Subiaco will have a lousy (and I do mean lousy) rent return.

A skim of Mt Lawley For Sale and To Let section has a similar result.

In…[Read more]

Originally posted by wealthangel:
all of my properties are CF+

Hi WA,

You haven’t identified where your properties are located and this may be important.

As i understand it (one of the brokers will correct me if I am wrong) If they are in more distant places a no doc loan may be a little difficult to obtain as some no doc lenders are averse to…[Read more]

Hi Kelbert,

A fairly safe approach and if your objective is long term growth then you should be fine. In saying that I would also suggest that you establish why you are investing and some timelines to help you along the way.

You will need to check your cashflow projections as rental returns in Perth are not flash at the moment and as such you…[Read more]

Hi fbd,

If you set up your line of credit for $200K and only use $100K then you have at your hands an additional (and easily accessible) $100K. This will remain in the account until drawn.

In essence your first $100K is deposit for property one and the other $100K is available for another deposit.

In setting up the initial facility of $200K the…[Read more]

Hi LA,

I have a mate, Terry Watt, working at Prime Real Estate http://www.primerealty.com.au/ – they are based in Joondalup so may not be to your liking. Equally he may be worth a call.

Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958
Skype – derekjones2113

Originally posted by iamsooty:
The other thing we did was ask everyone who offered us advice about the properties they owned, and about any recent purcheses they had made. Got to tell you, a startling amount of ADVISERS and REAL ESTATE agents either do not own their own property or have not purchased in recent times. This is important to me ……[Read more]

Hi Ryan,

The first trip (prior to purchase) is not deductible rather the expense can be claimed against as purchasing costs and used to offset any capital gains tax liability in the future.

If on the other hand you visited after purchase this trip is deductible under most…[Read more]

Hi Andy,

Pending the outcome of your various investigations there is another thing you may want to try Andy.

You have some months before bub is due and in this time your wife will continue to work. Pretend she has stopped work and milk her salary off into a ‘do not touch account’ and see what living on one wage is really like. You may find that…[Read more]

Hi L & S,

That is a very good point you make.

Buying an investment property is often hard enough – to go somewhere out of the comfort zone is another challenge to an individual’s state of mind.

For some it is relatively easy, for others impossible.

Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958
Skype – derekjones2113