Hi MKB Online,

Terry has mentioned some really good points, Here is my view based on owning a franchise in Melbourne, We own a TATTS Franchise by the way.

• We use our business as a third income, My wife and I work some where else as well, why? Some times in business it can get very quiet, At the end of the day if it is quiet you will still need to pay bills at home and also you need constant cash coming in if you want to invest.
• When we started the business, My wife and I both quit our jobs to work in the business, after 6 months my wife wanted to kill me, can you honestly spend 24/7 with your partner?
• Are you able to work 7 days a week? If you get sick are you able to afford to hire some one else to work for you?
• RISKS: We live in very interesting times and as Terry mentioned RISK is really big for small business.
• Also they try and sell you the idea that you are your own boss, but in reality your landlord, customers and banks become your boss.

For me personally having a business has been great, its been one of the best education tools of my life. 

But i would never risk the both of us working in a bussiness.

Hi Goatus 

Im an ex agent from melbourne, so here is my opinion

Ways to see if your dealing with a good agent

1) ask them what properties they have sold in the area in the last 6 months, have they got material ready to prove this 

2) how do they value properties, do the use rp data, gut feeling "etc"

3) most important testimonials or can you call a current vendor to see what they think of the service so far

I wouldn't personally give the two properties to the agent, use one of properties as leverage

if they provide good service and they get you a good price then give them the 2nd property to sell

for fees like Jamie said what's more important the price they sell it for or the commission you pay

after you see three agents you will get an idea what the average sell price will be and also the average fees

Rather then setting out one fee maybe you can do some thing like this "eg"

500k – you pay 3%

530 k you pay 3.3 

For marketing: internet is a must

a board is good

newspaper starting to die out and very expensive

Hi brendon 

Welcome and we are all here to help. One thing I learnt from this forum is that you will get both positive and negative opinions in terms of the property market. Who is right? Well no one really, some people will make allot of money and some people won't in these times.  I'm only 5 years older then you and I sold  two out of my three investments  properties . Properties

has changed my life for ever, we are very comfortable finically. My family at the time said don't buy , it's bad to own properties but thank god I didn't listen to them. For me property does not interest me at the moment, but I invest in other things, I keep regular contact with this forum because I have met some really good people and the market is always changing so I need to ensure that my knowledge is kept up to date

Budget, learn about money, learn how to negotiate and learn to take rrisk team up with a good broker, Jamie or Richard ffrom here can help, get a good accountant  and a lawyer 

Also just because you live in Melbourne it does not mean you can invest in other states!!'

Hi D Wolfe, Thought it would be a good idea to reply while I am having some lunch in my office.

Interesting article though, but being only 10 days into the new year it is too early to speculate on how things are going to turn out.

My view has always been this, In boom and bad times, Each suburb, each state and house type will provide a different result, some being positive and some being negative.

I strongly believe the Melbourne market is going to be a flat for quite some time, allot of changes  are happening within the market place and I also believe the government is going to increase the VCAT fee’s. This is only going to hold buyers more back.  Also a few friends who work in real estate (property managers) have said that 2012 the amount of times they went to VCAT was astonishing, Allot of people just cant pay the rent. 

Sure interest rates are going down, But are banks tightening up their criteria? (just a question lol), The rental market in Melbourne as well has been interesting, There is a huge demand for rentals but people are not prepared to pay the amounts that landlords want. My generation the famous Y generation is even more interesting, Friend who lived with just one house mate are now looking for another house mate. People are opting to share more. Demand for renting might be their but people are also looking at sharing.

For me I almost have my deposit for another IP ready, But i will not be rushing to buy, There are going to be some great bargins in the near future

Wouldn't ARA require funds for stamp duty as well?

Jt7 I can do one better lol

my wife an I have a sub news / Lotto store, I get the AFR every day for free and take it to my work, I can return it on Sunday and get a full refund, also the coffee shop across the road  will gives me a free coffee every day providing  I give them the Herald sun 

again by Sunday I can rerun I lol 

done,

Hi Matt,

It is always a good idea to look at other ways at generating income, When i first started buying property I always did a couple of things, I was working full time in logistics and I was working one day a week at a phone store, The full time wage I used to save in an ING direct account and the Phone store was for living expenses.

All great things do take time and even at 28 I will do a couple of things to get extra money, I work full time as a State manager for a shipping company, we own a tattslotto store that provides extra cash flow (two years ago it was eating my cash flow lol) and as of MARCH I will be lecturing at a TAFE in Melbourne ( twice a week).

Hi Matt,

It is always good to look at other ways at generating an extra income, When I first started buying property I was working two jobs at the time, One for living and one for saving. 10 years later at 28 years old, I still do a few things.

1) Full time –PAYG as a state manager for TAS/ADL/VIC in shipping, 2) Tattslotto store – 1.5 years ago it was eating my cash flow but a bit of changes have made it turn into a good business 3) I will be lecturing two times a week at TAFE, I will be teaching logistics, on a Saturday morning and weekday.

I am always working on another concept but we are having issues in getting a license (BLA in VIC is getting tough)…

But in saying that before you look at a new concept have you looked at your personal budget?

If not have two columns INCOME VS EXPENSES, Out of the income expenses is there any expenses you can cut?

Even if you can cut only $50.00 from your week budget over a year that = to $2600.00

Hi Jamie,

You and I must suffer from the same condition lol, I don't think I will ever retire as well, I love what I do for a living and its part of my life. After reading Richard Taylor API article (100 times) it has motivated me to become finically free to have more "options" and it also has pushed me to do some thing I love for a living.

your 2nd point is spot on as well, If you cant reach a certain finical goal for what ever reason at least do some thing you like and enjoy.

Life is not about how much money you have sitting in the bank or what material objects you can buy , Its about having a strict balance between, Having enough money to do something usefully, good health, satisfaction and purpose in life, How ever being fincialy free or close enough is a great feeling, Less stress = Good health = more oppurtunties due to motivation

You will also be surprised that once you do some thing you like the amount of opportunities that present them selves are endless. 

Before I got married I asked my wife this, Kid or Shoes, She wants Shoes,

Thank god for that….