Forum Replies Created
Hi All
Just thought I would add a bit more
I personally dont think you get all the answers from a book, seminar or other people they just give you Ideas and it is up to you whether you do anything with them, But Steves says quote” It,s my sincerest wish that this book will help you to acheive your life goals. In order for this to happen you must accept responsibilty for turning theory into practice. It will be easy to read this book, but the challenge will be to move out of your comfort zone and take action” end Quote page xi.
From this one could assume that you will receive enough theory from the book to be able to start practising.
I personally beleive that this book does deliver enough information to be able to get started it just requires the reader to put it into practise.
Most people are too rivited in fear to take in the info and then apply it instead of blaming the book look at yourselves and ask why you cant use the info.
ErikaHi Still in school
I hope you dont do all your calculations like this as I fear you will end up with alot of -ve geared properties.Your above example which gives you 16 weeks “profit” if you add in the $1200/y in rates that leaves 6w”profit, now lets take out management fees 8% leaves 2w “profit if you rent it once per year that takes another weeks profit and we havent started on maintenance yet.
A PROFIT only occurs after ALL outgoings have been taken out. Now this property might be positively geared but that is not the same as positive cashflow.Hi everyone
Its great to hear everyones point of veiw. We also have 3kids, one income. I plan never to go back to formal work next year when our youngest starts school we plan to increase my investing time so that my husband can stop formal work in about 3 yrs.
Mel my point about a plan was not just setting your goals but writing down how you are going to acheive them. Property investing is like owning a small( and hopefully large) business the first five years are the toughest.
We are about 3 years into our 10 yr business plan and each year we reveiw how we have performed and whether we are still heading in the right direction.
ErikaHi Still in school
How is your positive cashflow $60.64/week what about all the other out goings?
How did you get a 30yr loan at 5.25%.
Note again this is well over the 11 sec
rule
ErikaHi Lizzy1
looking over your figures you have left out management fees on the rent. I also find that the 11sec rule doesnt always give you a cashflow +ve place. Maybe someone else can explain how hey have done it. In steves book the first property he buys the rent is 2.7 times the purchase price/1000 and he only makes $1000/y if it fit the 11sec rule he would make a loss of $621.
So if someone has a working example I would love to see it.
ErikaHi Arty
Did the everest book say that you could discover and use the authors proven approach to be able to climb everest yourself?
From the front cover I can understand how people were under the impression that the book would contain everything they needed to know to become financially free. People are always under the impression that you will get something without working hard or paying for it. That is why most people never become financially free.
One question I have for all these seminar and book junkies, have you sat down and written your own business plan on how you are going to get rich.
By the way we have also been to other people seminars and bought lots of books but along the way we realised we needed to write down our own plan.
ErikaHi All
I would have thought that areas with high number of rental population is good, wont this mean that there are always people looking to rent. I Agree with Mel that it is more important to look at vacancy rates,high vacancy rate even in a high rental area is not good.
ErikaHi All
I have never had a problem with renting our property but I do know of people who have. What is the vacancy rate at the moment?
C2 yes I think they view Cullen Bay as a success,From an engineering point of view it was a wonderful project and it has provided Darwin with a 24hr safe mariner.
Remember with Darwin that not only are people transient but so are companies.
ErikaHi C2
I Worked for Sharon E as one of the lab Techs when were you at the NTU?
ErikaHi C2
I worked for NTU from 90-93 in the science dept. I was a Lab tech in a previous life and for the NTU set up prac classes for Biology and Chemistry.
How are you involved with the uni?
My Hubby Built one of those upmarket suburbs Cullen Bay that was one of the reasons we were up there.
Having lived in various places over the last 10 yrs it has made me realise how hard it is to walk into a town and know which is a good area and which isnt.
ErikaHi everyone
Shaunwalker maybe you should look on the NTU’s site they only give casuarina and Palmerston campuses. I worked at the uni when it was at Larrakeyah and to my Knowledge it moved to casuarina. It used to be the hospital before that.
I also own a rental up there and payless than 10% commission I think it is 7.5% off the top of my head.
You are right about rental returns much better in Jan than Oct so try and have your leases fall due at this time.
Good suburbs anything near the water as for housing commission houses they are spread throughout most suburbs.
ErikaHi David
Why such long vacancies.
ErikaHi Polar
Yes we fill in the form to vary our tax paid so that we get more take home pay each month. The form is fairly easy to fill out I beleive if you have to pay tax at the end of the year the tax dept frowns upon. The extra money we get in our pay goes straight to our investments usually in a redraw facility on a loan to reduce the amount of interest paid and to store it until we want to buy another investment to use as maybe a deposit.
We figure that we may as well have it sitting on our investment loan rather than the tax dept having it for 12 mths.
ErikaHi Sue
It should be written in your management agreement how much they can spend before contacting you. Alot of people say $150-200. We rent and I know that the owners are contacted for every little thing so they must have put $0 in this space. So take a look at your mangement agreement and see what you put. If you want to be contacted every time put $0. This is not word of mouth, the other point is that you may need to give notice that you are breaking the agreement like 1 mth
The locks ask why they were replaced and how did they do it 1 mth before settlement. Where did the washing machine and fridge go?
remember legal action costs money is it really worth it or should you just move on.Erika
Hi Rexgal
As a newbie I think now is a good time to let you know that you will not receive advice on whether you should buy a specific property or not.Only you know if this fits your investment criteria. Maybe the first place to start is to look at what you want from property investing, do you want to be a developer and onsell when complete or a renovator or like many on this forum buy property for cashflow.
Is this a good investment only you can answer thatErika
Hi
Most PM can tell you what it is. You can also watch for youself how fast properties come onto the market and then get rented, if they are rented as soon as available then the rate is normally low. If you talk to the PM you might find out if sometimes of the year are better than others like if you are near a uni at the start of the year lots of people are looking for accom.
ErikaHi again
5% Vacancy rate means that if a PM has 100 houses on his books 5 would be vacant at any one time.Hi Daisii
We rent our PPOR because we move often and our rent is subsidised. But having said that we can afford to live in an expensive place for less than the loan repayments would be. We ahve friends who live in a $900,000 house but it only costs them $400/week to rent. They invest in property and all their interest payments are tax deductable someone else is helping to pay off the mortgage. Now if they wanted to live in a place where the properties are positively geared I would think it is better to own it yourself as the interest repayments would be less than the rent someone correct me if I am wrong. So I guess it comes down to where you live and if you can put up with renting. One good thing about renting is that when ever anything goes wrong you just ring the PM and they get it fixed, Our hot water system died the other day one quick call and 2 hours later a new hot water system, GreatErika
Hi Helen
We first learnt about vacancy rates while renting in Darwin. At 2% the owners had it good as most places got snapped up quickly but when the rate rose to 5% it became a renters market and owners may have to drop their rent to attract a tenant.We have rented now for about 12 years and found this to be fairly true wherever we go.
ErikaI appluad you Scotty
Most people have dagsthedud mentality and fear if they post where they have been looking they will all vanish.
Your kind of reply is very imformatve and I will be looking out for your name as you are prepared to give real advise in helping people.
Erika
