Forum Replies Created
Hi,
I’ve read that servos in country towns, even with 70 000 pop, can be a dicey affair, especially with Coles and Woolies aggressive petrol policies pushing out the smaller operators. But you said you’ve got a national tennant so I’d be happier with a BP, Shell, Ampol etc than Mum and Dad and Dave type operation.
I’m not the cluest about these types of investments but I’d look out (among other things)for;
– is 9% good enough for this type of investment,
– will your tenant stay on after the lease, or
– could you get a new tenant if they moved?
– could you resell if need be
– does the site have other value adding uses etc. etc. etc.Do your due dilligence and if the numbers stack up you could be sitting on a nice little earner.
Good Luck…G7
Hey congratulations that is an awesome story. The thing is what do you plan to do after that, if you brought the money back to Australia during a favourable exchange rate period you’re going to be pretty darn comfortable in life. [king]
A friend of a friend sold up in London, brought the money back to his hometown of Brisbane and immeditely set himself up nicely…for life! [lmao]
Back to you though, what’s your next move are you going to sell out or develop or just hold on for a while? Keep us posted…G7
The massive increase in value is obviously due not only to your renovation but also the property boom we’ve just had. You might actually benefit by staying in your comfort zone a little while longer and just watching and gauging the property market.
I believe one of the best ways to re-motivate oneself is to be totally prepared to just jump on the next opportunity that might come up next week or next year.
This is only my opinion of course, but if you have the financial foundation and hopefully the new found zest to do it all again, then go forth and conquer! [medieval]
Good Luck…G7
Hi Trent, welcome to the forum,
What historical/current data points do you use to identify a positively geared residential purchase … and where can one source this data?If a house you purchase costs you more per year than the revenue it’s bringing in to hold it, then it’s negatively geared.
I’m assuming that accurately assessing a deal basically means being able to compare realistic purchase/ongoing costs with plausible rental returns etc etc …Dont quite know what you mean, but no point trying to turn a simple numbers game into a complex process. Determining +CF is a fairly simple process.
Hope I’ve helped…G7
As Rove McManus would say- “What the?”
If a house you paid cash for is negatively geared you must have a really shabby yield…
I didn’t quite get your post properley Jill, could you rephrase it?
This popped up today on Perth’s continuing property boom.
Check it out at;
http://finance.news.com.au/story/0,10166,16065850-31037,00.html
Good Luck…G7
You shouldn’t invest just because of migration rates rising in the bush. To do this and hope of CG’s because of this wouldn’t be the best move. However, if you believe that this sort of phenomena might be lucrative definately look into it, but I would be wary about doing this solely for that fact.
Do you think I am to paranoid or should I tell this PM to P offNo you shouldn’t do this, you should tell your PM to F____ OFF!
It’s your house, you dont need and cant afford to let people like this manage your investment. You can do better. Keep us informed of what you decide to do and good luck…G7
I dont know anything about Perth but this article about Perths continuing property boom might help you with your investing!
Check it out at:
http://finance.news.com.au/story/0,10166,16065850-31037,00.html
I’ve driven forklifts for $48 per hour on 12 shifts on the weekends (and this rate is certainly not the most!). Being a recipient of union induced employer generosity (ridiculously high pay rates) can certainly help the bank account. And friends have worked night shifts as storemen/forklift drivers for $35+ per hour, in the car industry.
Also up here in the smart state (Qld) there was a job going the other day for a tyre fitter for $37 an hour, boilermakers for $137 000pa and truck drivers for $24 per hour, 12 hour shifts, 5 days a week- imagine the overtime rates!
Obviously this is in the mining industry, but as Dazzling said, off to work for the graduate engineer on a $30k salary package, while the others wouldn’t bother turning up for anything less than double that…Go figure!
That is a great post, I love these types of articles. And also the more negative the better! (seriously). I’m a believer, apparently everybody goes through 2 recessions and a depression in their lives and the baby boomers are yet to have their depression.
Great article, keep them coming…
Each to their own, everybody is different. I believe investing, especially property, is also very much about when and what to sell.
Regarding the PPOR, I’d rather have a really nice PPOR and 5 IP’s than live in a cave for the sake of affording a few more IP’s.
One thing I always consider regarding investing techniques is that Dolf de Roos, advocates never selling and Steve McKnight does, frequently. They are both very successful, so to whichever method you suscribe as an investor, you know that you can make money either way.
Typically most renovators would baulk at $40 000 worth of termite damage. Dont worry about not having the capital for this one, there are plenty of renovator properties that would be quite lucrative and they are everywhere!
Keep looking and you’ll eventually find your ‘worst house, best street’ pot of gold.
The resale prospects could be really tough, it doesn’t matter how good you renovate it, I believe you would have a hard time selling a place next to a pub.
As a historical property you might have issues regarding things like a heritage listing aswell. However, sometimes the greatest profits are made via investments that most people wouldn’t touch.Hope this helps…G7
Unfortunately Amway have given the industry such a bad nameI can understand your feelings but I know many people who have carved out a really nice living from Amway. The problem you are referring to is the idiots who gave Amway a bad name, there is nothing wrong with the business.
Generally though, a network marketing business can be a really good move if people are after a financial ‘leg up’ into other things. Just make sure that whatever business you join has long term viability! Take it from someone who knows[wink]
Good Luck…G7
They can be hard to finance and management fees etc. that are usually involved can be a hindrance to cashflow to say the least…
You might want to come to an agreement with your relative on an hourly rate for their bookkeepping duties or you could say ‘I’ll give you $____ for doing this, that etc.’
You would work out how much is ‘right’ when both of you are happy with a price for services received and rendered.
You may want to check with the relevant Real Estate Institute in the state you are looking at. Or you can do it the old fashioned way, ring up agents pretending to be a tenant and see what you can find out from that.
Yes they are difficult to finance and the fees involved with investments like these can be prohibitive to say the least…
