Forum Replies Created
Hi Tugger, make sure landscaping is really going to bring the additional dollars, do some research on similar properties, talk to a few agents and get them to appraise the property and ask what features are "selling" at the momet in the Hobart market. You could even "list" the property for sale in the local paper (tiny classified add – private sale) and see what buyers/inquiries you attract and most importantly what they are afer, inexpensive and effective.
Regards
Sit down with your partner and work out a plan, property investing is just a vehicle to help you realise your goals and dreams. Get a few books on PI and start "sculpting" out a plan based on what you want to achive, then go buy some more property.
I say, start researching inside yourself, as In what is it that you want to achive from investing in property. Property is just a vehicle to get you closer to your dreams/goals…
Hi Mariegold, buying a house is easy as long as you can afford it. For example $10K is 10% deposit on a $100K property. 5% on a $200K property, etc.
My point is, it all depends on how much you earn (your ability to service a loan), and how well you have managed to stay out of debt (credit card, car, furniture, etc).Yes, I read the same, however like duckster I could not see any comments regarding infrastructure developments, etc.
If you build them they will come… well I am not so sure…Hi Mixedup, Ron Forlee books are a great starting point.
In regards to building costs, you wont find them in texts. The easiest way would be to talk to builders in your area. Just ask the question.
I have built in the past at around $1000 x sqm (mythical in some areas).
Happy investing
It is also important to understand that accumulating properties is just one aspect of full time investing, however like any other successful business you need to sell something. This is what full time investors do, I do. You have the properties that you hold for your long term wealth/goals and you sell some others via wraps/lease options/renos/developments, etc. For those of you that are thinking tax, this is just another cost of operating your business. I am sure Apple pays tax for selling Ipods…Most people don’t need to become full time investors, a handful of good performing properties can set you up for life, you just need the discipline to pay off debt and enjoy the passive income coming in. Investing full time is like any other business, it is hard work, some people go full time for the wrong reasons (i.e. I hate my job, I hate my boss, I hate the commuting, etc) and do not have a strong enough WHY and hit a wall very quickly.
Hi Elly, this is a very personal question.Is there any way you can do an extension to your current place, get it revalued and leverage into IP?With the extension you may also have that extra space you need for your children, etc. See, you have no guarantee that your purchases will grow up X over the next few years, the only thing that is guaranteed is the rental income you get every week from your tenants.
the good old "chicken close" pitch, never works…
I am with brookelea, in fact, the forum (layout, colours, etc) looks actually better on my Imac than on my Windows based laptop. I love my MAC.
I would aim to keep the business separate from the properties (in a different entity), just in case one goes down, the other venture would be "protected".
Not buying more of those $60K houses getting $160PW rent…if only I had bought a dozen more!
Terry is right, you do need a Buyer's agent license. In regards to being a spotter, what do you consider to be a good deal? what is your experience? How many IP's do you own or have negotiated in behalf of clients?
I am with Devo76, you only need a handful of properties to set yourself.
Surely, Russell Crow’s Cowper Wharf $16 mill. apartment is not going to be worth $32 mill. In 7 years (using the mythical 10% growth), however as we saw in the last boom between 2001 and 2004, properties that had a lower base, had a more dynamic growth. They had “room” to grow. I believe that it is easier for an area with a median price of say, $250K to double up in ten years, more so than an area with a median price of $2.5 mill.I have been investing for over 7 years, and there is always something happening in the world economy, local economy, the sun, the sunshine, the neighbor, etc, that stops people from investing. Some of my “chicken little” acquaintances have seen the last 7 years pass by and have nothing to show for.You can always work hard at a job and do nothing and withdraw your super in a time like this.The problem is that the average investor only knows how to speculate on growth and have no exit strategy when they buy. If you have 5 properties fully paid at the time of retirement, averaging $300 pw rent x 5 properties = $1,500 per week. (in today’s dollars), it doesn’t matter if they grew up in price, you still have the cash flow to support you. Off course capital growth is always welcomed, however the deal needs to make sense today, not based solely on growth. NO ONE has got the crystal ball to predict growth.
The right time to buy property is when you are ready.
Hi Wealth4life, current property data supports what you are saying/hearing. I would also use what happened in Melbourne as an example, the inner city, more affluent areas had a great run, while the outer/greater Melbourne area did just ok.
Finding that middle ground is where the money is…
Happy investing
Hi Macnatt, mackar has described the process quite well. I would also follow his recommendation on getting a professional to do it. Bear in mind that “greedy” professionals would want to re-do all the stumps, however this may not be necessary. Get a couple of opinions/quotes.
Also sometimes, depending on the situation, you can get away by just capping, which is just filling the gap between the stump and the beam.
they suck!, depending on which side of the negotiation you are…
Hi there, here are some stats on Bellbird
Median: $242K
12 month median growth: 13.5%
10 year avg growth: 11.1%
Median rent: $190p.w.
Gross rental yield: 4.1%
Source: Australian Property Monitors
I have a few IP’s in the area, and one specifically in Bellbird. Couple hours from Sydney and half hour from Newcastle, it is just a matter of time, me thinks anyway… The last cycle was very kind to the area.
Maitland had 20% median price growth last year, wait for the ripple effect. Personally I am “heavily” invested in the Hunter. There is something about wineries, tourism, coal mining, Newcastle port, and the Blue Tongue brewery that I just like too much …LOL
ahh, and heavily discounted properties as well…
Happy Investing
Hi there,
I like to see it as bunch of Gazelles traveling in a pack as opposed to one gazelle traveling by itself. If the pack gets attacked by a lion and one gazelle dies, it does not really matter as there are many others in the herd to breed and keep going. If there is only one gazelle and gets attacked by a lion, ……….
How does this translates to property, simple: if you have one property and the tenant leaves or any other problem arises, you only have one source of income (you become the lonely gazelle), however if you have 130 properties and 1, 2 or 5 tenants leave, you have the other 125 properties to support your portfolio. Hope this makes sense.
The more good performing properties you have, the easier it gets.
Happy Investing
Hi Leroy,
Attend your course with an open mind; take lots of notes and start working your plan. Keep that energy up and don’t let anyone get in the way of your dreams
Wish you all the best
