Forum Replies Created
Hi Dr X,
Could you expand a little on what a “first right of refusal” is?
I too have a neighbouring house I would like to get hold of.
Would this help at all?Giddo
http://www.standrewsplace.com.au“I am not a religious man; but if you are out there somewhere Superman, save me now! -Homer Simpson
Agree 100% with nearly all these comments.
I am currently wrestling with 2 of my grown up children who “should ” be much further advanced financially than they are.
Maybe they are happy to let ME do the hard yards and when I die they will get it!!?One of them has just bought a 13k motorbike, supposedly to save money on petrol. Now he has to sell his perfectly good 98 commodore at about 3k less than he paid for it just 12 months ago.
Now me, I may be stupid but I reckon I could buy a LOT of petrol for the money outlaid!
This is a youngster who is a GREAT bloke (being my son) kind, generous , harfworking, etc etc.
He earns good money (more than I do) but saves much less than I do.
It is SO frustrating.I love the comment about the light dimmers!
There are a LOT of ostriches out there who somehow are managing to gloss over or forget just how little they are accummulating!
In a lot of cases going backwards I am sure.
I make a practice of regularly checking my nett worth. In my opinion a much better measure than my annual income![grrr]Giddo
http://www.standrewsplace.com.au“I am not a religious man; but if you are out there somewhere Superman, save me now! -Homer Simpson
Yeah i clicked “yes” on a free offer from him one day, and after that he emailed me all the time. I got sick of his presence in my life and so clicked
“unsubscribe” and eventually cleared Hans from my E life.
Nothing unethical though I would say.Giddo
http://www.standrewsplace.com.au“I am not a religious man; but if you are out there somewhere Superman, save me now! -Homer Simpson
You are a legend Dr X and congratulations on your healthy 9.6% gross return, as well as your CG.
The council rates – phwewph to that!Sometimes I have tried to change some peoples limited view of their capabilities but without success.
Most people love to be stuck, and miserable, and if they can make you miserable too, they will.
I am sure that secretly a few of them wish they had your guts.That’s what this business is all about – guts to challenge what you thought you knew to be true.
If they wanna stay behind – letem!![grrr]Giddo
http://www.standrewsplace.com.au“I am not a religious man; but if you are out there somewhere Superman, save me now! -Homer Simpson
I think you can claim furnishings, linen, bits and pieces and even bigger pieces in the very first year if they cost you less than $300.
More than $300 you will need to deprec it over a longer stretch.
I have done some of these and I allow about $7k per unit for all new stuff.
This incl frig, washers curtains rugs, prints etc etc.[suave]Giddo
http://www.standrewsplace.com.au“I am not a religious man; but if you are out there somewhere Superman, save me now! -Homer Simpson
What have you found with your research so far?
I am thinking that there are a lot of ppl with big super / redundancy packages who have bought B & Bs as a semi retirement option.
In my town anyway there are a few of these; and I can’t see how they are inreality making any real money.
Not a living I would say.
They do not need a living, and the B & B is just a lifestyle thing as an income booster and a nice place to live usually.Nothing wrong with that but when looking at businesses I would look out for phrases like “great potential” or “dream lifestyle”.
Depends on what you want. A lifestyle or an income or both???[exhappy]
Giddo
http://www.standrewsplace.com.au“I am not a religious man; but if you are out there somewhere Superman, save me now! -Homer Simpson
I have got 6 units in a regional centre which return nett 7%.
These have a good outlook for Cap Gains growth, as I built them next to an expanding hospital. We are on 83% occupancy and looking at a rent increase at the moment.
They are serviced and short stay. see my website below.
[cap]Giddo
http://www.standrewsplace.com.au“I am not a religious man; but if you are out there somewhere Superman, save me now! -Homer Simpson
er..no[blink]
Giddo
http://www.standrewsplace.com.au“I am not a religious man; but if you are out there somewhere Superman, save me now! -Homer Simpson
Maybe it is now past the time for price adjustments.
Presumably you were happy to list it at $265k in the first place.
The offer you have received is 2.9% less than the asking price.Although we should never see a certain percentage discount as acceptable necessarily, it should not be too surprising.
When setting the original price maybe you should have added a little, as a lot of people expect to get a little discount (including me[biggrin])
I think the problem may be that you were not certain what the value was to begin with.
Perhaps you should get some more valuations on the property before accepting the 257.5k.
Sorry to so direct, but that is my opinion put forward.[hair2]Giddo
http://www.standrewsplace.com.au“I am not a religious man; but if you are out there somewhere Superman, save me now! -Homer Simpson
I know an old bloke (probably only65 or so I guess) who is an ex farmer who gets builders to build new places s0 he can sell them for a living.
He is one of those careful, pedantic but clever fellows who is exceedingly careful about how he does it all.
He has enough $$$ from the sale of his farm to have 2 on the go at a time. This way he gets through about 3-4 every year. One starting while another is on the market. he also is always buying blocks of land ahead of time. A land bank.
He does a hellova lot of research into what stuff the young first home buyrs want in their new homes, even down to brands of dishwashers, roof colours etc.
He also is extremely careful about location.
He has a close relationship with one builder who does ALL his houses for him, and also a RE agent who sells em all for him.
He frequents display homes and asks questions.
All his homes are sold fairly quickly to FHBuyers.
He told me he makes about 30 – 35 k on each one. He has no other income so I suppose he ends up with 100k or more a year minus the CGT.
By the way, as well as all the admin work he does he also does the landscaping and little bits to finish off the home.Sounds safe but a bit of cash required to do it.[suave2]
What do others think?Giddo
http://www.standrewsplace.com.au“I am not a religious man; but if you are out there somewhere Superman, save me now! -Homer Simpson
Hi Fharp,
I reckon you could certainly “REPAIR” a lot of these things and claim it as such in a few different stages.I suggest leave it at least 6 months first.
Hope you are making allowance for the repairs in your negotiations. I am sure you are. If so there is not such a problem.
This is not expert advice etc etc…..[rolleyesanim]
Giddo
http://www.standrewsplace.com.au“I am not a religious man; but if you are out there somewhere Superman, save me now! -Homer Simpson
URGENT URGENT
Look at your CG upside.
Is there any?
How much will you make +CF anyway.
If it is $10 per week for one and then $50 per week for 5 props; I would look carefully as to whether there is an upside in CG as there is not much cashflow coming in.Think of it this way – if CG gain outlook is poor; would you borrow say 500,000 in order to make $50 per week – I wouldn’t.
A little blunt but trying to assist[biggrin]
Giddo
http://www.standrewsplace.com.au“I am not a religious man; but if you are out there somewhere Superman, save me now! -Homer Simpson
My first reaction would be to cautious (I am naturally cautious anyway).
I reckon that your attitude to investment is as important as your knowledge. Sometimes more info seems to cloud peoples goals and they get analysis paralysis.[crying]
You know yourself best and can decide I am sure.
As they say knowledge is never a burden; but perspective is very important. Hard to replace a bit of experience, gained gradually.[grad]Giddo
http://www.standrewsplace.com.au“I am not a religious man; but if you are out there somewhere Superman, save me now! -Homer Simpson
Yep Jarrah,
On reflection perhaps my post did sound a little negative.[ohno]Truly, I would welcome more new investors to my town, as activity can only help the market. More investors MUST equal higherprices as time goes on. But a bit more competition for the bargains.[ohno2]
Good point about location though. I only buy in my own town as I know it well enough. At the moment I only buy to do small development jobs.
I settle on a place in April, which is a corner block which can be subdivided and built on, leaving existing residence where it is.
On this I should make some SSS in an otherwise flat market.As the market moves closer to equilibrium and a bit of value, I hope to buy some bargains just to hold till (hopefully) the next rush of price rises come my way.
I am lucky here as I can watch what is happening in the larger centres and it happens here maybe 12 months later (albiet to a smaller extent).The last boom was like headlights approaching from over the horizon – we could see it, plan for it, before it arrived.
Not a bad thing to have on my side. It was the same with the more recent decline in prices (about 15%-20$ here)
It had dropped in Sydney for about 12 months before it dropped here.
Because I have had valuations done I know pretty much what the last boom has done for me. It probably wasn’t quite as good as for some others but I am comfy with it.Our stuff went up by roughly 90% over the period of the boom. I am v happy with that.
I am more cautious than some others! (lost ALL my $$$ in business in my 20’s and never quite recovered from this)I will be more ready for the next one too, thanks in part to PROPERTy INVESTING website.
Now I have rambled and forgotten what I am responding to.
Oh yes, yes a bit of negativity there from me I suppose but I am thinking of how I would feel if I was just starting out and the market was flat and I didn’t know much about adding value.
I hope this clarifies[mellow]my previous post a bit.[party]Giddo
http://www.standrewsplace.com.auKNOWLEDGE IS POWER
Hi Steeno,
You have already found out that the CF+ props have dried up since the last boom. [glum]
I don’t think they will reappear till the market drops further or rents shoot up.
Certainly you may find a few in rural areas but these are more risky.
I hate to be a wet blanket but at the moment, an investor needs to be pretty creative to make a prop cashflow pos. Think change of use etc.
I suggest you keep on with the education process, read books etc, network with other investors such as this forum, and most of all dont ever give up.
At the moment it is a matter of positioning yourself for the next few years – no rush in my opinion. Everything is a matter of time and experience.[biggrin]Giddo
http://www.standrewsplace.com.auKNOWLEDGE IS POWER
Thanks Foundation,
I have read your very good posts before and I have a lot of respect for your good advice. You are one of the legends of this forum(and there are a few too).
I guess you are right about a lot of commodities gaining in cost quicker than my real estate. (inflation I think it is called)
I sincerely hope I am not in the position of ever having to swap my properties for health insurance or – even meat or vegetables.[biggrin]
At the moment I am trying to resist a yearning for bananas. i believe they will be expensive and higher in value on a % basis than my land and buildings.
The thought of trading my properties for a million dollars worth of beer truly boogles my mind? What brand would I buy? Where would I store it?? Will it’s value keep increasing. Sadly I think beer is like fruit and veg it has an expiry date where re does not.[blink]
The only things I suppose I may have to consider would be swapping it for GOLD , SILVER or IRON ORE. Nah In am too scared of losing it.
On second thought I have decided I will stick with the RE. [evo]Maybe I will just use a bit of the income to buy beer and veges.
Despite the foregoing disrespectful facetiousness, you do have a good point about the dangers of inflation.[goatee]Giddo
http://www.standrewsplace.com.auKNOWLEDGE IS POWER
Oh how I wish I had been as smart as you are when I was in my early 20’s!!
You doing v well at this stage, just planning your investment. A lot of people don’t get around to it till later in their life.(I am one of them)
There is absolutely NO DOUBT you will do well in the long term.I am not a big fan of losing money each year hoping that CG will help me out later on. (OK just before a boom)
I prefer a cosmetic reno, or a light development perhaps in these times.
Maybe you could find a large corner block somewhere that is able to be subdivided.?Best of luck – you are winners already! [biggrin]
Giddo
http://www.standrewsplace.com.auKNOWLEDGE IS POWER
Hi leewizza,
You are one brave person.
My only suggestion would be to get a builder, plumber and sparky to look at it and give an estimate.
If you have a v good inpection service then maybe they could help.
I always think anything can be fixed up if the structure beneath is sound.
Sounds like you’ll need a big box of paracetomol to get thru this one![exhappy]Giddo
http://www.standrewsplace.com.auKNOWLEDGE IS POWER
Sounds like the biggest question is
“Will the value of the property RISE?’
I have no idea, like the others.
Good LUck![evo]Giddo
http://www.standrewsplace.com.auKNOWLEDGE IS POWER
