Forum Replies Created
Just logged on to have a quick squiz and low and behold, Steve and Dave are parting company.
I must say I was a bit suprised. I thought you guys seemed like you were glued to the hip, so to speak. Good luck for the future guys!
Business partnerships are hard to maintain over a long period of time. But the most important thing is that your friendship will still remain. And really that is the most important thing. Because lets face it, friendship is priceless. I guess both of you guys have matured in your investing and in business over the years etc. Naturally, you are both ready to move out of your comfort zone and embark on your new journey with the new found confidence and skills that you have aquired over time.
I would like to sincerely thank you both for providing myself and my partner the inspiration and confidence in investing in property. We love your books and your website. And seriously if it wasn’t for you guys we would not have believed that we could own nearly 2mil in property etc today!And the best part is that we get an income from it too!
And a special thank you to Steve for your inspiring comments that you wrote on my book that time you were in the Perth Convention Centre a couple of years ago.
When ever I think that property is too hard or that the tennants are giving brain damage etc, all I do is read that page and give myself a good kick up the bum and just keep going.
Keep up the good work and best of luck!Hello,
Thought I would add my 5c worth. Finding positive geared props in Perth is difficult, but it depends how you look at it.
I remember a little while ago that when Steve was last in Perth he told everyone there that the ’11 sec solution’ is only a guide and that you generally don’t buy them positive, YOU MAKE THEM POSITIVE!
How true is that!
Currently our portfolio is positive geared and all we did was to read lots of books and try out the ideas that suited us. Believe it or not we have just recently bought a couple positive geared properties in
Perth (or should I say we turned them into positive).To give you an example of the two recent purchases;
1) A brand new display home and the builder pays the rent for 2yrs with 3x3x3mth option.
2) 5km from the city and we have 3 students renting each room out for $180pw each.So sometimes you need to think outside the square and anything is possible. And the most important thing to do is keep an open mind and keep learning.
(By the way, thanks Steve love reading the forums).
Hope that helps. (Sorry if it was too long etc)
[exhappy]Hello everyone,
I saw your question on the forum and thought I would throw in my five cents worth. It is funny we were just talking about this same topic today and thought we could shed some light on a strategy that has been very successful for us and will give you some food for thought as they say.
A way that we have found to help us not only pay for our mortagage, but gives us a small passive income on our own home; which we use for investing.
We have a property that is close to the city and near Curtin Uni and we rent out a couple of our rooms to overseas students for about of $150-200 per week (inc breakfast or/and dinner). So we receive about $300-400 per week in rent. This leaves us about gross $50-100 per week in our pocket once we have paid our mortgage and expenses etc.
We have an agency that pre-screens the students to suit our situation, like non smokers etc.
We generally have a student in the rooms for most of the year, but when it is almost time for them to leave or if it is during holiday time we simply advertise in the paper under short term accomodation or ring the agency.
We have found that the students are very well behaved and consciencious and great fun to be around. Since they are here to learn, you will find that they are on their best behaviour anyway.
(The beauty of this strategy is if you didn’t want to live in the home and wanted to rent a house you could still do that and you have your mortgage paid for by the students etc. But if you wanted to experience other cultures etc, it can be quite rewarding.
This strategy is great for helping you reach your goal quicker since someone else is paying your mortgage; the rent is a little more than normal; good accomodation in good locations is hard to find; gives students security being with a host family or couple. Plus you can keep an eye on your property by being there too).
We are in the process of upgrading our home for a bigger one and implimenting this same strategy. We have decided to live in this next home as we thoroughly enjoy the experience.
We have decided that as Steve had done with some of his previous properties, is to unlock the equity by selling and using that to get this bigger home. It will mean that we have a smaller mortgage to begin with and since their is no captial gains on it either.
We could have simply kept it and continued to rent ot students, but the properties where we live are getting more and more expensive and will be well over a million if we don’t do it now.
Our strategy is simple,” 4 green houses, one red hotel”. The key to winning in the game of Monoply is to have as many of these red hotels as possible, which increases your chances of receiving income (rent) everytime someone lands on your square.
Or we could have simply split the profit as many times as possible to buy multiple properties. We have decided against doing this as we want to maximise the capital growth in our area. This strategy helps us also receive cashflow too. So it is the best of both worlds.
Hope that this helps. Sorry for it being so long. I promise to make it shorter next time.
Thanks everyone.
( I really love reading the forum and Steve great website by the way! I read it everyday)
Edwardo
[party]
