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JamesSampson
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@jamessampson
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Post Count: 54
August 31, 2010 - 2:31 am
sounds very risky.
I personally would look in another area where there is industry
JamesSampson
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@jamessampson
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August 19, 2010 - 6:15 am
"Hi James,
A couple of questions:
1. What is your business?
2. What is the business you would suggest for the many viewers on this site?"

Becuase starting a business can be quite risky i sugest you start small while keeping a day job. A online business is great, for example i own part of a company that delivers flowers that are ordered online australia wide. Anything can be sold online so think about what strengths and passions you have and see if there is a market to sell those products over the web.
Start up costs are minimal compared to brick and mortar companies and you can run it in your spare time while you build your customer base.
JamesSampson
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@jamessampson
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August 19, 2010 - 6:05 am
id offer lower. Hehe.
A great question to ask the agent is: Whats the lowest offer the vendor will take?
You may get a suprising answer.
JamesSampson
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@jamessampson
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August 18, 2010 - 7:11 am
how good is that web site.
JamesSampson
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August 17, 2010 - 9:43 am
very true, to give your best years of your life working for someone else is not financially smart.
I just follow what most wealthy people in Australia do, use constant cash flow from a business to buy real estate and other assets such as commodities and shares.
Even though property is one of the best classes to invest in, I still wouldn't sleep well at night knowing i was 100% invested in property.
JamesSampson
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@jamessampson
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August 17, 2010 - 5:08 am
I feel property in most areas will go sideways for some time, perhaps untill we finally break the shackles of the lasest economic woes.
It see it as a smart move, they are getting set up for the next boom in the market.
JamesSampson
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August 15, 2010 - 2:02 am
sorry should clarify they still exist, but not in the areas they used to like close to our big cities or work nodes. Today i don't invest in positive cash flow properties for the main reason they are located (usually) on the fringes of our cities or regional areas. It is always best to invest where there will be constant demand
JamesSampson
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August 14, 2010 - 12:34 am
thanks, they tried to push me into a perosnal loan…
but eventually they allowed me to borrow at the RBA's rate
JamesSampson
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August 13, 2010 - 7:25 am
wow banks are asking for annual fees on top of the interest…didnt know that was happening.
JamesSampson
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August 13, 2010 - 7:03 am
yes it was possible in the past to find great properties close to our cities that provided a positive cash flow. This all seemed to dry up by 2006. Positive geared properties today are usually found in the morgage belt or in regional areas. Areas where i dont personally invest.
Because the majority of quality property is now negativly geared, you can wait 1-5 years before you see a neutral cash flow position. it just is not possible to accumulate 20 properties in a few years in todays enviroment due to stricter lending, higher LVR ratio and most properties will be negatlivly geared.
Thats when you create you own business, until we see positive geared properties coming onto the market again. (that wont be for many years)
JamesSampson
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August 13, 2010 - 5:43 am
Always invest counter cyclically – that is when the crowd is scared to buy (like now). When everyone is investing take caution, it usually means your nearing the peak of the market.
I love the Whitsundays, one of my favorite places. But I wouldn’t invest their personally.
The population is not growing enough, there is no major infrastructure going in and it relies heavily on tourism which always gets a battering during economic downturns.
You will still do well there (5+%) but not as well compared to investing close to the city or work nodes in our Major cities.
The only holiday area i have invested in is the gold coast in Southport and that is only due to massive infrastructure projects including light rail and a huge population explosion.
JamesSampson
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August 13, 2010 - 2:29 am
Linar wrote:
JamesSampson wrote:
If your 30 and you want to retire at 40, property on its own just wont do it for you, unless you have the capital to go out and buy 15 places very quickly.
I saw this many years ago, and as a result started my own business. I can tell you from experiece the true way to financial freedom is working for yourself.
Cash flow as many of you will know is key…property just cant provide that.

Hate to disagree …, but I disagree.
My husband and I started investing in property early in 2004, using firstly Steve McKnight's strategy and then adapting it to suit what we wanted to achieve. I never went back to work after going on maternity leave in late 2004 and my husband stopped working for his employer at the end of 2006. We stopped being employees at the age of 34.
We now control a multi million dollar portfolio and have our own property development company. I "work" two days a week doing all the paperwork and my husband works about 5 hours a week chasing up the more technical aspects of our developments.
While the market has changed since 2004 there are still plenty of opportunities in property. Property gave us the freedom to work for ourselves as well as cashflow. It took us 3 years to get there and have been "there" for 4 years now and still full steam ahead.
I get to take my daughter to school every day and sit in her class and read with her and the other kids. I know every child in her class. I get to crawl around on the ground with my three year old boy, playing "tractors". A couple of months ago, I took my 8 month old son to Europe for three weeks and spent the whole time with him in a backpack right next to me. We slept together, ate at cafe's together and explored Europe together. What third child gets that sort of attention? My husband spends his days on our farm building things, growing things and hunting things. Oh, and he spends more time playing LEGO than any adult should!
Property – it will set you free.
Cheers
K
That is a real success story. You now have a property development business, which goes back to my point property investing alone as an employee cant provide the cash flow you need to expand quickly.
It is the business model you use that is very important to cash flow and tax savings.
JamesSampson
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August 13, 2010 - 1:59 am
YIP, only because i cant stand the stories. there always the same and dont actually give you any information you can use.
JamesSampson
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August 10, 2010 - 6:53 am
If your 30 and you want to retire at 40, property on its own just wont do it for you, unless you have the capital to go out and buy 15 places very quickly.
I saw this many years ago, and as a result started my own business. I can tell you from experiece the true way to financial freedom is working for yourself.
Cash flow as many of you will know is key…property just cant provide that.
JamesSampson
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@jamessampson
Join Date: 2010
Post Count: 54
August 10, 2010 - 6:40 am
Land tax is run by the state governments. So it all depends on where you property is located. For example in the NT they pay 0 land tax on any purchase. In QLD like many states i think its only if your combined land value exceeds 750k you pay land tax.
If you only own one unit then most likly you will pay 0 land tax, unless its on the sydney harbour or something
JamesSampson
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August 6, 2010 - 7:28 am
Most suburbs in Brisbane still have a very tight rental market, according to the latest data.
Its a case of the data not matching what I see on the ground. Looks like it is a local issue, thought this may have been seen in other areas as well.
JamesSampson
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August 5, 2010 - 11:19 pm
reggie5005 wrote:
wonderland wrote:
I heard that the market is steady at the moment. I'm just worried that if i buy now, and property starts to get cheaper later on in the year, i'll be kicking myself!
Thanks for your advice.
Like others have been saying education is number one, you need to know what your buying and why. My piece of advise is that you need to look at property investing as a long term investment not short term, Property will fluctuate from time to time but I don't see it dropping substantially, there is still way to much demand and not enough supply in the right areas provided you do your homework.
My two bobs worth
cheers
Yes. And i also believe it is best to acquire properties not buy and sell. There is just too many hands in your pocket such as CGT stamp duty ect when you buy and sell real estate. Buy and hold for the long term. You not buying the market, but time in the market.
JamesSampson
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August 5, 2010 - 7:18 am
you can find the property yield for suburbs in most of the Property Investing magazines like Australian Property Investor. You can also do a calculation yourself on a property you are looking at:
weekly rent x 52 divided by purchase price x 100.
Remember higher yield can mean lower capital growth. You can find very high yields in outer suburbs or regional areas. Personally i stay away from these areas and invest where people want to live -close to work and infrastructure.
JamesSampson
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August 5, 2010 - 5:11 am
Buyers agents are a tricky one. They can be a great service if you dont mind spending the money. From your post you sound like many of us who like to save money where we can.
I sugest reading books doing a few online courses and become an expert at it yourself. All the information they use, you can use such as sale price data, historical growth etc.
Choosing the right proeprty is not rocket science as many in the property industry will lead you to believe.
JamesSampson
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@jamessampson
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August 5, 2010 - 5:01 am
you get the same information in a good book or online education courses. The seminars i have been too have been very dissapointing.
They give you only so much, then you have to pay silly prices to get the real information.