Forum Replies Created
Great Idea Thanks Simon!
We learned you can’t smell cat’s pee on internet photos either. And were very glad we went to personally inspect a property that looked fine but made us pewk!!
Diane[blush2]
Hi Anne, this is an interesting topic.
We did the opposite. With what we learned from Steve’s first book. We bought 2 IP’s, both with P&I loans and both with 20% deposit, they are both +ve, in the country, but in areas where they are achieving growth also, slow but better than money in the bank.
As we don’t own our own home, or much super, we then bought a -ve geared property at $10,000 under market value. We did this as we can afford the repayments, there is nil vacancy in the area and capital growth is much better than in the country.
I know it goes against grain on this site,but also believe each situation is individual. For us finding another large deposit was going to take two more years and the area where we bought is a long established good growth area, that we have personal knowledge of.
Time will tell is this is wise or not, but having these properties gives us options also.
I wish you every success, dianeThe real estate agents we have dealt with in SA have been telling us about easements on the properties we have looked at/bought.
Diane
Sounds like you may have come to a hurdle but you must be an achiever and hard worker to be a manager at 19, and have bought your first property.
Try to find a solution to overcome your cashflow challenges and keep your chin up, you’ve achieved lots. Every error is a learning opportunity.
All the best for the future, Diane
Appreciated reading your reply Brenda.
thanks, DianeAppreciate that Robert. Our gut feeling wasn’t good. Just had to check we were on the right track.
Thanks, Diane[smiling]
So our mistake was to do the place up before we got tennants?
We have spent our days off doing repairs and maintenance before we got tennants. We couldn’t rent them as they were. We thought we would get better tennants for freshly painted, carpeted, air-conditioned and well maintained properties.
We put up a carport and that was expected of us – by the property manager – it also added value, & was supposed to discourage the tennant from parking on the front lawn under the tree.So now our tennants don’t want for anything we seem to have shot ourselves in the foot??
[biggrin] Diane
Hi Mortgage Advisor,
yes we have some equity available but not the approx 20g for deposit + costs. And the biggest hurdle we have had is that the bank valuers have been valuing the proerty at so much less than what the agents say it’s worth. We know it will always be less, but we have had one valued twice and the valuer only budged $1000. They seem very conservative in regional areas.So while we could sell for $20+ more than we paid the bank valuation only went up $1000. Not very helpful.
Diane
Merry Christmas Everyone.
Enjoyed reading all the posts here, thanks.Here’s our effort for 2004.
1. Jan – Were working in Vic & renovating our newly aquired first IP, when we got a job offer so moved back to SA and started a new job as well – all in 3 weeks!!2. So happy to be near our kids and Grandkids again.
3. Bought a 2nd IP in March.
4. May – Third son was married to a gorgeous girl. We are sooooo lucky to have 3 lovely daughter-in-laws.
5. Bought our first ever shares, through advise of seasoned friend. They are doing so well we wish we had bought more.
6. September bought IP3 our first city house! Loved the fact there was nothing to do and tennants moved in immediately.
7. Job going really well we have found our niche here and love the work and the people. Accepting more responsibility and being rewarded.
8. November – moved our 98yr old Grandma from her own home of 68 years to a nursing home. Very difficult “giving” your Grandma to someone else to look after. She has coped remarkably well.
9. Read Steve’s second book.
10. December – had 3 lovely Christmas gatherings with family. Privileged to have Gran join us for one!
Next Twelve months.
1. Use time off more wisely. We have spent heaps of time spoiling everyone since we returned. Now we want to establish hobbies and exercise regimes for ourselves and our health.
2. Pursue our desire to own a set of four units.
3. Pay extra amounts off our city property.
4. Have a really good relaxing holiday.
5. Do nice things to surprise people.
6. Keep reading this forum.
Wishing you all health and happiness in 2005,
DianeMerry Christmas to you all.
We have had success in 2 “small” towns that are outside major regional centres. They are serviced by a school bus and senior citizens bus! Our property managers have worked well on our behalf and we have had no problems. Both have increased in capital value, we have had one 12 months and the other nine months.
We found real estate agents in the areas who listened to our requirements and were happy to help us find properties that suited us.
The only thing slowing us down is we ran out of 20% deposits, required in regional SA, and it will take time to buid up that amount of equity again.
Wishing you every success, Diane
Hi All,
I did scroll fairly quickly but do believe I haven’t seen my favourite mentioned, iePretty Woman
Think everyone should see it once a year!!Also enjoyed The Three Amigos and Dave and the American President.
Yeah for girlie flicks.
Diane
Congratulations lifeX and well done.
Can understand the rewarding feeling as we recently purchased a property from one RE company, it was valued at more than we paid by the bank, then when we got the Re company who handles our property management through they said we paid at least $10,000 under market value.
This is our first city property and we also experienced for the first time – having tennants paid up and moving in within 5 days! They would have been in sooner except we had to wait for our days off to do some minor repairs!
So it’s great to share your experience and give encouragement to others.
Keep up the good work, Diane[thumbsup2]
Hi Everyone,
I agree with comments on teaching students about money & finance.
We have 3 sons, all taught the same, one budgets and invests, the other two live week to week. Personalities, maturity and lifestyle choices are varied in all 3 and we have learned not to compare anymore, as all 3 are happy and responsible.One thing close to my heart, is that so many young people have no idea about money at all. I have worked in primary and high schools as an SSO, and now as caretaker of caravan park with a kiosk; so see day to day, kids coming in with no idea of what their $2 can buy, or how to work it out. I see it as a whole society problem not just schools – families have responsibilities too. Actually, what’s even scarier is that many come in with $20 not $2, and still have no idea!!
Anyway….
Congratulations to Chris, your willingness to learn is commendable and we wish you every success in your exams and for your future.
[thumbsup2]Diane
Hi Ronulas.
sound like you answered your own question ie you don’t really want or need to sell.
Being in SA I don’t know anything about Sale but it sounds like you are in a good area.
Rents here rise annually, so why not speak to your Property Manager about raising the rent. That sounds feasible if it hasn’t gone up in 2 years and will improve your cashflow.As for adding improvements, we have only been landlords for 12 months, and initially wanted to do lots of improvements to our properties, but now have decided if tennants are happy with things the way they are we would leave them as is. All are in good condition with good appliances etc.
Hope this is food for thought as each situation is individual.
Regards, Diane
Hi Steve,
I always look forward to your newsletters and the positive encouragement.We are so grateful for your insight. Just over 12 months ago we heard of and read your first book. We had no home of our own and little to show for our age (45 approx) including under $20,000 combined super, due mainly to having worked our own, not entirely successful businesses.
Anyway with limited savings and inspiration from your book, plus lots of helpful advise from forumites – we have just bought IP3.
Just wanted to say a BIG thanks and encourage others that it is possible. We have followed the due dilligence “Buyer Beware” and been very careful, done lots of research, & lots of the clean-up, painting and gardening and learnt not to tell our rellies what we are up to (avoiding lots of negativity).
We are still excited about the future and would like to get a set of units next. We have learned interesting things from real estate people, bank managers and friends who have been interested in what we are doing.
Anyway…….Thanks
Tony and Diane
Hi Shane,
Here is SA a maisonette is normally semi-detached unit, with 2 3BR homes joined in the middle. Many were originally built by the housing trust.
You need to research the areas they are in and the rental return etc.
We haven’t bought any but some people have done well with them.All the best, Diane
I agree with both the above.
In such uncertain times Mr Howard has shown leadership and direction and made positive impacts.
We need strong leadership, that is not easily swayed by media speculation.
Will be interested to read other people’s thoughts.
diane[mellow]
Hi Hobnob,
while I’m not that experienced – I am old-fashioned in that I would advise you to clean up your debts and start with a clean slate for your “new life.”
You are doing so well at paying it off and although it must seem like a long, hard slog, however in reality what’s another 9 months?
Then what you save and buy – you will never look back on and “say” – yeah but $xxx is still what I’m carrying from my past.
Hope you get the gist….
Wishing you every success, DianeHi Emc,
in the last 12 months we have bought 3.
Two are in regional areas – we started off buying just outside big regional centres that are getting very expensive, and have been happy with +ve cashflow and increase in value.
As we didn’t have any more cash for 20% deposits required for regional we have used the equity to purchase a city property. We took the plunge and borrowed the full amount and this property will obviously need us to put money in each week.We are in a position to do this and know this will increase in value much quicker than our country properties, plus there is a nil vacancy rate on rentals.
Along the way we have looked at heaps of properties and got to know quite a few real estate agents.
From this we have decided we (personally) would never buy a property without seeing it ourselves first. There are some real shockers which look very nice on the internet. Fortunately my husband has good knowledge and we have not paid for a building inspection until a house has passed his own inspection first.
All coastal areas here are now expensive, as well as along the River and in tourist spots, like the wine regions.
The market here is still growing in areas, although not as quickly as it was, in other areas the boom is just beginning. There are new areas opening up and developing quickly.
It pays to do plenty of research, talk to locals or get local papers, and we find Steve’s Buyer Beware kit invaluable.
Hope this helps a little,
Diane
