Hi Luke,

So did you buy IP’s on the lastest trip. If you decide to fly freedom for the next trip lets hope they get the new air buses up and running on the sydney dunedin route. Those 737 400’s are very squeezy!

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Hi Chevy,

I also agree with derek. This is very sound advice.

Another thing you might want to do is think of the money a seperate smaller sums. Thinking of it this way might help you put things in perspective. ie think about different individual investments that you could gear into rather than putting all your money in one place.

I don’t think you will be giving up work just yet. It would be a shame to start thinking like that now because if you spend some time and come up with a good investment plan you could really have a massive impact on you future by doing something positive now.

Cheers

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Hi Vernon,

This one comes up quite a bit and you will get a full discussion if you try the search function.

Obviously its about mitigating loses. I vote yes for landlords insurance. Others vote no.

Just read your policy and don’t expect it to cover things that it does not. Excesses can be large and as you will read there are issues with the way events are defined so check those out.

Usually landlords insurance is to cover fittings and or contents and loss of income. It is to supplement you building insurance not replace.

Good Luck.

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well done tigers!!!!!

Yeeeeeeeehaaaaaaaaaar

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Hi KRS,

Regrets?

Should have left work 3 years ago. In hindsight the hardest part is getting your head around the idea.

We have left full time employment. Left a job that caused us the rise at 3.40am each day and return home at 9pm.

Now we choose to get up at the respectable hour of 7am.

Don’t be fooled. You may find that you do more “work”for yourself than for your old employer. Now we do what I spent all day thinking about before.

The difference is that is just does not seem like work.

Try this: Do property investment as a second job until the income from it exceeds the income from your old job. You have just proved it to yourself. You no longer need the job. Resign.

If you can’t match your income you need to work out why? Is it a lack of skills, opportunities, motivation or is it just the time.

Make sure you have a plan B. If it all turns to turnips your strong plan B will save you.

Cheers

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Tigers to win by two tries! Fingers crossed!

Cheers

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Hi Grossrealisation,

This is a bit of a confusing exercise. Have to be carefull that you are comparing apples with apples.

In Invercargill we a looking at deals with yields up to 11%.

There are higher yields but I personally would not touch this end of the market.

But we are also looking at deals with rental yields around 6% which serve a completely different purpose.

As the others have said bank online accounts are doing wonderfull things for a short term yield but I have not heard of anyone making their fortune this way!

Cheers

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Hi Richo,

Everyday it seems that I meet someone with new ideas about investing. Each person has a view on where the market cycle is going. Just using the term “market” might whip certain people up into a frenzy. It will be quickly pointed out to us that there is no one homogenus market for anything let alone property. Maybe oil or something but then I’m sure someone could give us a view on the many different markets even for commodities.

Anyway

I like to read alot and talk to as many people as I can about property and things in general. What you will find is that as I said every individual has an opinion.

Talk to as many individuals as you can from different groups and find out what the “trend” amoung that group is. What are people doing? Are they selling and why? Who is buying and why? Talk to older people, younger people whoever. Look closely and business activity. Have a coffee (or tea) at a local cafe and just people watch.

I could just tell you that you should let me do all the hard work for you and find you a cashflow positive property tomorrow. Or I could tell you that I am selling one of my own yielding 10% plus to invest in a new project. However, really what you need to do as an investor is make solid decisions about what you want and why and then find the people to make it happen for you in that particular market. Not the other way around.

For me cashflow investing is all about sustainability. More cash in than out in real dollars (no fancy accounting) means that my entire portfolio pays for itself including maintenance and repairs. Equity gains will allow you to use different strategies to grow your portfolio. Every now and then you may choose to refinance of sell something.

My point is that although my portfolio has reached that point now I am not and hopefully will never be a “yield purest”.

If you are looking for a whole swag of 10%ers just for the sake of it you probably won’t get very far.

Richo, if your market (within reach considering your comfort zone whatever that is) is yielding 5% or 7% then maybe it is better to buy in your backyard but with a different strategy.

You may use a different strategy to make quick cash and increase your deposit amounts or pay down debt. There are so many things to do you could be here all day.

Think of it as a “vibe”. (remember that movie the castle)

The “vibe”for me is that investment property should pay for itself and I should not and do not put dollars in out of my own pay packet. Starting out you may have to modify this a little but try and always think of the end game.

If you a forking out dollars you need to know exactly why and for how long. Think “end game” first and then work out how to make it all happen.

Yield is a tool just like cap growth. It just helps you get where you want to be.

Cheers

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Hi F1Jordan,

Try this;

Part A.

*Take a break and give yourself a bit of time to re-energize. (Try 10 days without thinking about anything to do with investing) after that

*Speak with a broker (experienced and someone you can get along with) and find out exactly how much you can borrow.

*Ask yourself why you want to find a cashflow positive property/s.

*Make a plan of how you would manage the property once you obtain one.

*Make an honest list of your talents that you can use in part B (if it is a family effort everyone should do this). If you want to be corny you can even have a family meeting. There is no point investing if you are the only one who has a committment to it.

Part B.

*Look in all the places you had before. There still are not any cashflow properties, right?

*Make a list of all the reasons you can’t find what you are looking for in those locations

*Now start looking for locations that don’t have any of the attributes on the list.

*Never ever but an investment purely because of a certain gross yield number. Look for fundamental value in the town/city.

*Never ever buy a problem you can’t fix (or have someone fix for you)

*Always use real numbers

*Always ask questions (no matter how silly you think it is – you will be surprised) The other day I asked an agent “so what is wrong with ths property” and got what translated into a long list of obsticles. Sometimes you will get the truth especially when people know that is what you want to hear! I still may buy it!

*Always pay for good professional advice before you make a decision

*Always get and independant valuation

* Get up from in front of the PC and make some phone calls.

Part C

Now get out of the house and make it happen!

Best of Luck on your journey. Hope you have some fun along the way.

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