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Hi Jenny,
What a great story.. Yes always buy the worst house in the street or the diamond in the rough as we have a few times and it has paid off. My wife and I brought a property off as private sale because she was going though marriage breakup. She wanted to sell for $70,OOO and house was a dump, no tenants for 12months as they shot through and trashed the place, He hubby started doing a home reno job including structual (opening up a wall between dining and lounge for more space) there was no laundry and the entire kitchen was ripped out. I studied the area and the price of 1/2 alone in the area was about 75,000. I knew that the house was free if I went ahead. I offered her $65,000 but her ex would not agree but she came to me later and said that we can do $70,000 as sale price and she would give me $5000 cash towards reno costs…(not bad). In the end we spend 2 months fully renovated the place and spend 15000 on expenses. new carpets, polish floor boards, new inside paint job. gardens etc. house came up looking a million dollars. we rented it out for $200 per week and sold 18 months later for $175,000… all because no-one wanted the ugly duck!!! go for it my friend … cheers John
Hi Steve,
I wanted to firstly say thank you to you for being an inspiration to me. I related to you from the moment i started reading your first book. I am a 34 year old christian who is searching for Financial freedom so I can serve others (give of my time) and one day help others to achieve their goals, helps and dreams. I have been passionate about property investing. i am married with a 2 and a half year old daughter with another one on the way. My wife is a stay at home mum and I work full time at Telstra. I have made money from buy and hold (capital growth) and buying old queenslander and renovating. I have a team of tradesman who do the work and they have become our friends. Your books have helped me to change my way of thinking from capital growth -negative gearing to positve cashflow deals. I am looking at my local market in Toowoomba QLD as the rental returns are great and properties are cheap. I have been afraid of getting into too much debt and that has been a setback to buy more. I have my PPOR and one IP (next door) which i picked up for 165,000 and is currently renting for 220pw after painting the inside only. The house needs exterior paint in which I am in the process of doing. I have my place with about 200,000 equity. Should I sell my home and use money to buy say 10 positive deals or use equity??? Our home was purchased for 145000 18 months ago and we spend 80000 on renovations. turned a 3 bedroom 100 year old queenslander intoa 4 bedroom, 2 bathroom(one is ensuite) new 2 pac kitchen, laundry, dining room and 2 sets of french doors out onto deck..The agents have valued our home around the 350,000 and my LOC loan is 150,000. Should I sell or use the equity from our home??? would love to hear from you .thanks steve
my thought is new or old as they will both continue to appreciate in value over time. If the numbers stack up on paper than it doesn’t matter to me what the property is like. If old then you can renovate for some serious dollars as for new than its harder to add percieved value to property. I have renovated 3 old queenslanders and made money on each of them. I dont buy for tax advantages to claim the depreciation. with the old properties-they were diamonds in the rough and we made a difference to their final presentation. Most new homes built these days are mass produced by large builders who sub-contract subies and the standard and quality isn’t always there. I am only generalizing here but some look the same and they build new estates that look like a lego city complex. Older homes have more charm and character and and structurally strong even after 100 years. In the end its your choice my friend
JohnWhoa, You guys are all over my head!!! Can someone please please explain what a HBT and family trust and trusts involve and why set them up. What does a trust do? how much does it cost?? WHAT ARE THE BENEFITS??
cheers
JohnBenno,
If you can’t find them you create them. Try to think outside the circle, try to find a solution to a problem that others find to difficult to deal with. can I ask why you are trying to find a postive CF property to offset a negative one. Is this for tax purposes??
I also suggest to find properties that are in the 150,000 – 250,000 bracket as you don’t have to borrow much money and when you go to sell them , its going to be to a specific target audience (ie first home buyers,investors looking for good returns) once you start getting into the 300K over , you find that it takes a lot longer to sell.This relates to the QLD market . good luckspend less than you earn (golden rule)AND PAY YOURSELF FIRST then all your bills debts later. this is delayed gratification and over time the compound effect is enormous… buy things that appreciate not depreciate in value and askyourself is it a want or need before you buy.. cheer John Rizqallah
look into the deal. If the figures stack up them go for it. Dept of housing rent your property from you over a 7 year lease which means they will guarentee rent for that time frame whether you have a tenant in the house or not. They will pay for new carperts and paint the house after the 7 years is up . The idea behind this is a long term ivestment and you rely on capital growth over the 7 years.. Go for it
