Forum Replies Created
Sounds like you are not doing all that badly financially and okay on the home front as well. This is a very difficult one.
My daughter is now 15 and I know that if I hadn’t made the effort to CONNECT before she had reached about 12 it woulddn’t have happened.To connect before they are teens is absolutely imperative I think.
I sympathise with your dilemmna.
I think a lot depends on your whole relationship thing with your wife and daughters and it really is a personal call, albeit a v tough one.
As far as investments go you are obviously streets ahead (pun) of me so it would be presumptuous of me to advise. Maybe you could some how work out how to eat just a little more cake!
GiddoA note about real estate agents – and apologies to any on this forum ….this is a generalisation.
USE them for your research where you can. I mean USE them!
Filter any info they give you carefully. Sometimes grains of truth are hidden by shovelfulls of you know what!
They will almost tell untruths sometimes!!?*#!
This has been my experience.
GiddoWhere are all the really flash cars – the benz’s and BMWs ??
And where are the people with more than one car??Is this property investment stuff as profitable as they say? Or do all these investors actually practice sensible spending? Forget the Jones’s.
We too have a mere one (1) vehicle. We find it is doable for us and costs less that way.
It is a 98 model Subaru Forester and is v good for us.
I have other more expensive aspirations but my tussle with temptation has been influenced by my scottish ancestry and my own better sense….. so far….
GiddoNo Techno, I have a 7 y.o. car, but I would love a new car. Maybe that means I am well and truly infected with AFFLUENZA like so many others.
I pride myself that at this stage I have resisted temptation. Get thee behind me Satan!!
I have never bought a brand new car but have bought 2 of my cars in the past less than 2 years old at the time.
I have reason to believe that these new and near new vehicles are v complex and expensive to fix to say the least.
I think that may in part explain why people are buying new. (has a warranty) Also that new is cheaper than ever before in real terms. Some cars now have a 5 yr warranty- that has got to mean a bit of peace of mind.
Sounds like I have almost talked myself into it eh?!
GiddoYeah what is PBT??
Cmon – we want to know?? You have piqued my interest now.
Is 20% good?
GiddoDo you know how many units/houss the council will let you put on? If they allow 3 you better not build 2 as the value of the land content for each may put you out of the market??
Have you investigated cost of building there yet? Half of 550 is 275 plus the cost of building a place. If it is worth 375 does that allow enough to build it and make a profit?
I guess a lot depends on the value of the existing home – is it good or should it be removed and start again? Does the asking price allow for this?
Phew!! so many questions and so little time!
Regards
GiddoThank you all, very sensible replies. I am asking the wrong questions, and looking for the easy way out perhaps.
thanks again.
GiddoA lot of people have read Steve’s book but I am sure there are not many investors around at the moment picking up quality properties under the 11 sec rule.(go on forumites, tell us if you are finding them!) It is hard to find +geared props unless you are happy to go a bit remote.I for one would not be interested in owning 20 properties returning a net of say $20 week each, all in the woop woop. I think I could make $400 a week easier and safer than that.
This would be my approach – it may not be for you.
I would first gain invaluable experience by buying locally, a very ordinary house in a decent street, doing a little reno and holding till the next cycle comes along (we hope), or even selling immediately if you can turn a profit.
This way you will learn heaps about financing, council requirements, the market in your area and much more.After that you will be in a position to work out your own strategy, one that suits you.
Some people never sell, some do renos, some look for houses on large blocks thay can develop a bit…etc..etc…
I am a big fan of Steve’s but I do not follow ALL his strategies.
i think you need to develop your own way of making a $$ out of property.A strategy that suits your own and spouses personality.[biggrin]
Cheers
GiddoThis may not be the experience of others but when I got my website done, I found I was the one who had to design it!
This is despite my wish to simply give the designer the information and let them design it. After all I dealt eith a firm who advertised as website designers.
Maybe it is because I have an individualistic (read pigheaded) bent, but nothing that he came up with looked quite like what I wanted. So I designed the whole thing on WORD with pictures, captions the lot and let him build it. Anything I let him do, I had to rehash afterwards.
The fellow was a young man who was into computers and I found it difficult to talk to him. I am not a computer I guess.
Good luck with getting what you want!
GiddoI have been in sales too and even sales of carpet for a while. I cannot forgive that shop assistant for her attitude but I can definitely identify with her. Floor covering was the most mind numbing, difficult things I have ever sold. Nonetheless she should be taken out the back and given a severe talking to!
One thing I did learn is that polyprop is the cheapest type carpet and has few disadvantages.
One disadvantage of POLYPROP is the fact that it flattens out more than others. You know, doorways, hallways etc – when polyprop flattens it does not spring back up again, even with vacuumimg and cleaning. So if you go for it, make sure it is low pile so the flat spots do not show as much. WOOL is a no-no – reacts to perspiration for a start – can be difficult to keep clean.
One synthetic which is next up the ladder from POLYPROP is NYLON.
It springs back better and cleans well.
However it is a bit dearer.
I too would go for a fleck or modest pattern – not a wild pattern of course but something with mild variation.Regards and sympathy from a former floor covering salesperson
GiddoHi Prop Passion
Sounds like you are in a strong position to push yourself a bit more and make some $$$$$$.
I would start familiarising yourself with council requirements, do research on what units rent for or sell for in the area and generally start learning about development. Go to open houses, scan the internet for info and prices, and surround yourself with people sympathetic to your cause. ( I put off getting going for a few years because of the fear/peer factor – it is easy to do.)
As you learn more you will become keener to get going and become a property developer.
You will get heaps of satisfaction out of starting a development and learning by doing.Giddo
Hello all,
Unit in backyard OK, I have done this. Watch out for Council who will maybe want you to replace sewer. Also significant headworks charges sometimes, not to mention surveyors, solicitors etc. watch out for your new neighbours – will you be comfortable having close neighbours when it is done?
Like Rick,I would sell house then move into unit and then sell it next year.Maybe then go and do it all again!
GiddoHello Jenny 1 and Neo 25×5 and all those other unfashionable “lesser” consumers out there!
I am proud, nay, even a mite smug (naughty of me)about the fact I drive a 7 year old car and live in an unglamourous house and do not surround myself with baubles.
I reckon there will be a lot of big consumers out there who are in for a big shock when their debt chickens come home to roost! Large chickens.
I cannot see why people do not realise that they cannot go on spending more than they earn.
I believe I saw stats the other day to indicate that the household savings rate has slipped from around 16% in early 80’s to a current figure of
minus yes minus 3%. You know what that means!#*!
The truly shocking thing is that the debts seem to be mainly for depreciating consumer goods.
I can hear them chicken’s wings flapping in the distance!
[blink]
GiddoHi Redhaven,
Both sound like very good deals to me. I am not sure the market is yet falling in all areas, but I reckon it will.
Like Foundation, I would be scared of wrapping except in a boom market. But that is just my humble O.
Good luck
GIDDO[exhappy]HEY MATT P,
I live near you, in the nearest regional centre – TOOWOOMBA – 90,000 people. That is bigger than Mitchell isn’t it. We are only about 4 or 5 hours drive away I reckon.
Giddo[blink]
Hi Pagey,
Let me answer this from a different perspective.
If you keep the land or build and keep it, your “sleep at night” factor will diminish.
You have a little family on the way to worry about already. Mince on toast – yuk…
If you sell now or soon and take your loss, you will get rid of the bad taste, in fact almost as soon as you get on to another investment. You will remember the lesson though.
Too many fleas to live with.
Nice to see I am not the only one who has ever made a mistake!
regards
Giddo[cap]YEP, you could retire young with property.And I am certain that you will NOWORK because of your well developed goals and your youth.
I am not sure about your figure JASON – your figure of requiring 700,000 cash in 7-10 yrs time to retire on. Wouldn’t the inflation dragon burn some of that value between now and then? And what about from then until you retire?
$45k pa may not buy much in 30 years time. This bloke is only 23 I think.
Maybe have it all in rental properties, then you can adjust for infation as you go along.I wouldn’t like 700k in cash investments to give me my wage each year.The 45k would buy me 3% less each year(inflation).
regards GIDDO[cigar]Thank you all,
Yeah Wilandel you are probably right, I probably did notread the book very well. Actually I enjoyed the section of the book about the mappers and can see that this is the way to go.
There were other parts of the book that described the cashflow positive concept; seems to me to be a whole different concept to what the mappers were doing. So the book did confuse me a bit in that way; but it was still useful though.Terryw and Michael white, what you say makes sense to me.
Maybe I should sit down and read the book again. It seemed to me the book was suggesting two conflicting strategies. i.e. looking for a heap of CF+ properties to get a cash flow; or finding a place where value can be added reasonably easily, and selling on. Certainly I am not in favour of buy, hope and hold. That will only work if I buy just before a boom.
Tell me if I am being too negative about the concepts Steve espouses. Anybody out there get cashflow positive property and then add some value through thoughtful changes and sell on for a good profit? I am talking about now, not last year or the year before?PLeaseeee tell me I am wrong and it can be done.WHY WHY WHY should the owners of the discussion board put up with nasty posts.
Do not put them in their own corner – just do not allow them.
After all, the purpose of the board is to exchange information and learn, not exchange verbal hits.
I think the current method of locking up discussions that have escalated beyond the bounds of “niceness”.
GIDDOHi Shaztaz and CRJ,
What would be better – 130 properties in the bush CG neutral – or 20 or so in a small city with CG potential?
I guess it all depends on the investor’s own circumstances and whether they need the income straight away; or can wait for CG…[comp]I would feel v uncomfortable owning a whole heap of non CG potential properties. I reckon I will make it up as I go along – to suit my own preferences. To each his own….
Cheers
