Forum Replies Created
Hi Cath,
I am also a Goulburn resident. I don’t know of any groups around Goulburn, although there may be some in Canberra.
I think starting a social group would be a good idea. I’ve just bought my first IP using equity in my own home and am planning a trip to the US in August.
The problem is I’m still young so my girlfriend and friends don’t understand what I’m doing and my family is negative so I don’t really have anyone to discuss my ideas and goals with.Is there anyone else on this forum living in Goulburn.
easymoney
Hi Westan,
Thanks mate, once again you’ve been a big help.
About the $20k properties, it’s not the answer I wanted to hear but it’s what I expected.I’ll have to keep saving so I can afford two $30k properties outright by the sounds.
easymoney
Hi Simon,
Thanks for the idea, if the bank knocks me back vendor finance is another good option. I know the interest would be an extra few % but the returns would still be better than here.
One problem I have noticed with vendor finance, is that the vendor’s are wanting the loan to be a term of 15 – 20 years not 30.Another option is to buy two $20 000 properties which I currently have the money for.
Does anyone know if owning two cheap properties outright in the US would help me to gain finance in another year. I would be able to save $5 000 in one year I hope just from rent earned. This money would be sitting in an American bank untouched for one year showing a savings history.
Chris I will keep you posted. 16% is actually the bad properties I have seen many for 25%. I have seen a lot of $20 000 properties (2 units) returning $550 pm.
easymoney
Sounds like a great, safe place to buy into. Think I’ll stick to the US, mind you I’ll be sure to leave my gold here or someone might put a cap in my arse to finance their next hit.
easymoney
Hi Mark,
While I probably didn’t complete as much due diligence as I should have, I’ve just purchased my first IP in Coober Pedy. It’s a dugout in SA where it reaches 45 degrees in summer.
It’s a small town but looking on realestate.com.au the houses i was looking at have risen in price, about 25% from November to February and they have had many sales.
The house I purchased cost $40 000 and it makes $100 pw rent. It has had the same tenants (a 50 year old man and his 90 something old mother) since 1994.
I looked at these figures and thought I have good reliable tenants as long as the old lady keeps kicking, so hopefully she’ll be around for a couple of years yet.Deals are out there, they just have to be found in large and small areas.
easymoney
Hi freedom,
They’ve got it right, you will find much better deals in NZ and being a local you should know the areas much better than us Aussies going over there for a couple of weeks scouting a few areas.
easymoney
Hi Rich,
About the best place to look in Australia is realestate.com.au.
There you will find many +ve CF properties. However most of them are in WA or SA in small towns or mining towns. In this situation you have to be careful as if the mine shuts down your property is not worth <edited> so to speak and could be very hard to rent out.
I saw a three bedroom in Kambalda fully furnished, leased from the mining company for five years paying $240 per week. The owner wanted high 90’s so I offered 95k although someone came in with $101k so I missed out.
The deals are out there you just have to find them then research the area.
easymoney
Hi showbags,
Have you owned a property in your name before or just your wife. Just wondering in doing this if you would qualify for the first home owners grant and free stamp duty.I just refinanced my home through ANZ and upfront I’m only looking at $1300 – $1700 in bank charges.
There was no setup fee but I do pay $295 per year. This includes a $95 a year gold card and bank account with no charges regardless of how many transactions I make etc from their atm’s, and a cheque book.However I had to refinance to buy more property as I am financially poor. If you are not in this situation you may be better off selling your house, which will give you a deposit for your new dream home plus every $10 000 left over can be a deposit for another +ve cash flow IP.
Personally I would do what Steve says and divide and multiply, that is sell your house and use it to fund more property which equals more income
easymoney
Thanks guys,
I have worried about finance as I read in quiggles posts that’s it’s hard to get finance in America for property when you’re from overseas.
I have $60 000 Aussie sitting in the bank as a deposit and the units I was looking at were US$85 so I hope a bank over there will lend me the rest.
I have been told by the ANZ that they can lend me the money here but quite often they wont look at overseas rent as income (bummer I know).
Thanks for the investing idea Simon, it’s something else I can look at if %50 isn’t enough of a deposit but croos my fingers it will get me there.
Thanks for the link to quiggles Paul. I have actually read it before which is where I got the idea to invest in Buffalo. Now that I have the link again I can e-mail it to my old man and give him a look.
America is a big place and I don’t think a few Aussies going over there will send the prices soaring, so once again America here I come.easymoney
thanks foundation that was a good read.
when American properties are paying 25% cocr i don’t think a slight rise in the interest rates will hurt too much though
easymoney
PurpleKiss has it right. Depending on how much money you can finance with 20% deposits you could end up with 4 – 6 cashflow postive properties by the end of the year.
Only pay the minimum deposits you have to as PurpleKiss said all interest is tax deductable.easymoney
byronent makes a few good points but personally i like JasonBourne’s idea much more.
Agressive and very effective, a few blows to the head and he’ll always pay his rent on time.easymoney
Don’t worry I know about the American dollar and why and how it moves.
Once I own the property I don’t see how the US$ changing will make a difference as the American rent will pay for the American debt and the money left over will sit in an American bank accumulating to buy more properties with.
One day I will pay to convert it back to Aus$ when the timing is right or buy stuff in America real cheap then pay to ship it all back over here. It would be much cheaper to buy a Porch in the States and ship it back than to buy one here.One thing I don’t know however is in 2 or 10 years if the interest rates will sky rocket although I suppose I don’t know if that will happen in Australia either.
easymoney
Hi guys,
I think DHA properties are a safe investment in terms of a long lease good tenants having repairs paid for you by the defence force as well as the property being recarpeted and painted. You can claim the depreciation of the property and claim money back on tax.
However as you said you make about 4% on your investment where the banks are now paying 5% and the ACR is paying up to 7%. With interest rates to rise by 0.25% in the next two weeks and another 0.25% in April/May you may as well place your money in the bank and have less stress and hassles.
I think you are better off finding a property which is +cf if you don’t wish to work harder to pay for the DHA but that is just my opinion.
You may have found a good area which is expecting a lot of capital gains in a downward market and in which case I hope it turns out well.easymoney
Like everyone says steve’s second book will help you a lot more as it’s up to date with the current market.
I purchased and read it about two months ago and have since then bouught a property that meets the 11 second rule in S.A. It cost me $40k and the same 50 year old gentleman and his 90 year old mother have been renting it since 1994 (they currently pay $100 PW). Naturally I hope his mother keeps kicking for a couple of years.Try realestate.com.au to find the few properties that meet the 11 second rule but remember the rule is not enough to go by. Do the due dilegence and research the area before making any rushed decisions.
To start you off if you’re from queensland try researching Mount Morgan. You can pick up property for $45 000 neg paying $80 pw. This could be a good place to start, I wouldn’t know as I haven’t researched the area, so make sure that you do regardless of where you decide to purchase.
easymoney
Hi Terryw,
Thanks for the hints, I’ve already thought about what you said about buying more than a couple of properties and don’t worry I plan to.
Sounds like I will let my money accumulate in an American bank and instead of paying to convert it I could even use it as another deposit with the returns i’ll be making.
Thanks for your input
easymoney
Hi guys,
I can’t believe the response this post has received.
I just had to post this reply as I want to be a part of history.
This must be without a doubt the most responded post in propertyinvesting.com’s historyeasymoney
Hi Rachael,
I will certainly keep you informed, however i’m thinking about leaving in August so I have time to properly research everything.
One lady has also sent me a private message so with any luck we may end up with three of us going.
Don’t sell yourself short either i’m sure you will be a great benifit to me as I will hopefully be to you.
As Steve said in 0 – 130 properties with two investors one can be talking to the agent while the other can ask the tenant questions to get a feel for the building and area as well as find out any faults with the property. There are many benefits like that
Not to mention the fact that I bore easily and we will have a thirty hour plane trip ahead of us each way so it will be good to be able to talk to someone who has one strong interest that I have.Hope to talk to you soon
You can email me at [email protected]
easymoney
P.S. Thanks Weston
Thanks guys,
Sounds like I may make the trip at least a few months away Weston. As well as extra research I’ll be able to save a little extra cash for the trip anyway.
When you talk about a good team did you find an account on your first trip or just a good real estate and lawyer.
And what are your views on the blocks of units in the US. Do you think they’re a good idea or have you stuck to houses.
P.S. would you mind stating the cities you have invested in, like you said America is a large place it will give me another two states to search in.easymoney
Me again,
I almost forgot to mention I was planning to go to Buffalo as the destination point unless someone know’s a better city or state
$2 406 may seem a little expensive to spend on an arline ticket plus accomodation but if we can buy two or three properties each it’s much cheaper than paying $2 000 – $3000 per property in bird dogging fees.
easymoney
wealth and the country of dreams is just one flight away
