Forum Replies Created
Last week I settled on a property for $40k with a 90% LVR leased the day of settlement for $120 per week.
I am still buying property as an individual (not in trust) and I am up to double digits in the number of properties me and the bank own together.
The deals are still out there to be found.
I know it is starting to sound like a looped recording, but you will make money when you solve a problem.
I went to an auction on the W/E a four B/R house with A/C, on three acres 40 Minutes to Dubbo I could lease it any day of the week for $140 per week. The bidding reached $30k. At that time the winning bidder was left to negotiate with the auctioneer. It was a mortgagee sale.
The problem that needed solving?
The land was leasehold and the property needed tidying up.
Solve those two problems and you would have been able to make a clean $80k out of the transaction, or just keep it as a rental.
Hope this helps.Returns are eroded to some extent by park fees. Capital growth is going to be slower because the block is a saleable commodity if you want to sell or not.
That said people can make money out of it – just look at the true value of what you are buying. Hope that helps.Conduct an impact/probability analysis.
I would say the impact is high, the probability is low.
You can get Public Liability insurance only policies. Try a broker.The best fish that got away was a fish that taught me a lesson. I had a chance to make a good $100k profit over 1 year. I needed a partner and couldnt find one. I had to back out of the contract under a finance clause. It was SE QLD and the $35k purchase price represented a minimal risk. I now know that my family are destined to be 95%ers.
Here are our low rates for today. Just keep in mind, we will beat any rate that you are quoted at anytime. Even if you can’t get the offer in writing, tell us the lowest rate you are offered, and we will beat it by a full percentage point! And at FantasyLandMortgage.com, we never charge anything. We can even waive your mortgage tax if you don’t feel you should pay it.
I am going to tell them the best deal I can get is a -100% rate.
That is fantastic.
As long as the grasshopper can blame everyone else for his situation, he is powerless to do anything about it.I have purchased cashflow positive property from day one.
As I have said before the best deals are not on the internet (they dont make it that far). They are on the street.Buying and selling
Fear of loss works both ways. Say to the agent, “Oh fair enough, if you get another one similar in the future will you give me a call”?
If you are investing – you will be buying with your head based on the numbers. He wants you to buy with your heart and come in strong with a good offer.
By turning the tables on the agent, and allowing him to “fear” the loss of a sale you can bring balance back to the relationship. In most cases I think the agent will backpedal at a rate of knots.Just houses, I think with $1m capital the lenders would look at you as something of a good risk.
I think you would be in a pretty good position to negotiate cheap money. Given your ability to negotiate interest in advance as well, you could probably get into some higher risk investments with a short trun around. I know it sounds trite and I dont yet make $200,000 per year from property, but it strikes me that you only need to make $100,000 twice, or $50,000 four times to get your return.
What I do is buy cheap property (most under $50k) from motivated vendors. I have bought houses as cheap as $23,000, I then value add (extra bedrooms, new aesthetics etc…) and rent them out. I bought a small commercial property about 18 months ago for the grand price of $18,000. It is on nearly 1 acre of land on a busy intersection. I did have it rented for $90 per week as a bit of a favour to someone. Rather than rent it again, I am installing a “Business partner” and entering into a profit share arrangement. Apart from having all of the costs paid (rates etc…) I will collect $10,400 pa in my capped share at $200pw. Thats a %57 gross return on my investment. As a plus the business partner will need a house, and I have a house that was purchased for $27,000 that returns $130 per week (25%). I know this is peanuts compared to some of the big deals that people do. But it is easy to do and easy to replicate.
I am just arranging my first rent to buy deal. I can see that this is the way to go – and the 20% would not be too much of a problem. My first deal involves a motivated vendor who took any price at auction for a house in a mjor regional centre. I onsold in five days for 4.7 times (does that mean 470%?) the purchase price. ( I dont want to publish numbers in case the buyer frequents these forums)Sad to say but the best deals are found on the street, no the internet.
I think I could get a solid 20% on your 1m, excluding Capital growth.
I get that on my own money.For sure. I was being a little (just a wee) bit sarcastic.
I dont want government assistance.Off topic but please let it go.
While I am on a roll I have been thinking that property investors should be elligible for “Exceptional Circumstatces Assistance” much like farmers.
Farmers provide a service the Govt. cannot
So do we
Famers are subject to the vagaries of uncontrolable circumstances (weather)
So are we (economic factors)
Farmers stand to loose everything if a few bad things happen at once.
So do we.
Am I the only person who sees the world this way?It is so nice to be back in this forum.
What you are all describing is what I have experienced so I dont need to get into anything to detailed.
Dr X – great topic, it has struck a chord with many people.
I live in small country town and desperately want to talk to people about my investing, (I find it really exciting to talk to people who are into it) and want to listen to people talk about theirs too. I feel really isolated when I comes to having people to talk to.
I am out of my tree at night, I am like a runner waiting for the starters pistol, problem is that the people I want to talk to dont work at 11pm. I dont have people who I can call and get excited with. (if that makes sense)
I agree with the comments about people with big disposable incomes, I see them in their new cars, renting a nice house, with harvey norman “no deposit” furnishings.I Drive an ex taxi (cheap to buy, cheap to run) I live in a below average house, My tenants all live in nicer houses than me!. I buy clothes for around the house and even some business shirts and ties from Vinnies, I buy specials every day at the supermarket, I dont take many holidays, I do some work on properties myself (plumbing, some carpentry, tiling, etc.. – this is where my holidays go) To the casual observer I probably look like someone who is pushed to make ends meet.Every spare cent we have goes into building wealth.
I am reaching a critical mass, the hard slog of the last few years is starting to show real benefits.I forget the author, but I recall reading about a response to “the” question that went something like this.
1: What do you do?2: I invest in property.
1: Oh, I am not interested in money like that – I dont want to be rich. I want to concentrate on important things like my family.
2: By investing in property I dont have to work in a job, that means I can spend more time with my family, the income allows me to buy better health insurance for my family, to buy a very SAFE car for my family to travel in, I can also provide better opportunities for my family in education, entertainment and personal development. The list goes on – Better shoes = healthier feet…. etc…
The investor then looks at the person and says so you dont want to spend more time with your family??
or something like that. It was profound at the time anyway.My extended family are being left behind to some extent. I have offered them the opporuntity to be involved in some of my projects (especially when I have needed more capital) but now I dont need capital, and I dont offer. It was always the wrong time for them – Funny that?
I am only just starting to employ other strategies. All of my portfolio until now was just buy rent hold (and some reno) I can see that to have explosive growth I need to get into the rent to buy market, wrap people into homes, and continue to buy below true value from motivated vendors.
To the person who said we dont make a contribution to society that is a huge mistruth. Without the private rental market, there would simply not be enough public housing to go around, we provide a service that the Govt. cannot. That is why the Govt. help us to do what we do with tax incentives, and help tenants to get into our properties.
So much for not getting into detail…..
More than four and they sound a little like an American seminar.
100 dollars in education(books and the like) is cheaper than a 100,000 dollar mistake
No one ever went broke making a profit (dont get greedy or always look for the killer profit)
Make something easy to buy and it becomes easy to sell. (Vendor terms)
You make money by solving problems that other people are not prepared to solve
Look at what everyone else is doing and run 100 miles in the opposite direction.
Seek advice from people who have done what you want to do, not “armchair experts” or “keyboard warriors”.
You profit when you buy.
Build relationships with people
The laws of the universe apply to investing
I can think of more but then what willl I put in my book?
Property boom? its still happening isnt it?.
“Where?” is the question.
In the last year I have been doubling values in country NSW, and QLD (with +CF property) and have lost value in Sydney with a property I have owned for four years.
So I think there are booms within downturns and vice versaThanks for that I will ensure that final sale takes one year or more.
cbellesini – are you saying that if the “income” is taxed by personal income tax therefore CGT is not applicable?mcubed
I believe with the FHOG you have to move into the property WITHIN 12 months of settlement – so you have 12 months after it is settled to move in.
Also providing you’re not in a defacto relationship (or married) with someone that has previously owned a home and got the grant, you should get the grant.
We’re with Yack. If it’s not banked by the due date – we chase it up – you can’t afford not too.
When it comes to monies owed for rent, you need to be vigilant
