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kay henry
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May 24, 2004 - 4:46 am
Luke,
My information from my bank is that they don’t care how many credit applications you’ve made- they are only interested in defaults. Have you a lot of credit cards? If so, reduce your limit amounts. I am not sure why any bank would care how much credit you’ve applied for- surely they would think you are entrepeneurial if you have bought many cars, computers etc- AND paid them back. Are you sure there’s no black marks against you?
By the way, Luke- if you are really highly geared, and need to borrow the 3,800 on a personal loan and you think your credit record won’t allow you to do so… is getting this IP right now a good idea?
kay henry
kay henry
kay henry
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May 24, 2004 - 4:38 am
I think it’s all about keepin a part of yourself. Would people go to a buddhist retreat (I went on a 3-day one decades ago- little sleep, lots of meditating which I couldn’t do, and no speaking) and walk away a buddhist? Would you go to a home reno workshop, leave your job and become a home reno’er? What if these gurus tell you to chuck in your job and be “financially free”? (I always thought having a job meant you were financially freer than the next guy, go figure).
I think free seminars can be the motivator to probably do something- and to learn a few tricks. I think RE books are FABULOUS and I learn something new every time. But sometimes I see that people make these people out to be gods. Generally, many of them have just been to each other’s seminars and use many of the same ideology and ideas- not that there’s anything wrong with that- but I am wondering what can be picked up at these 3k seminars that can’t be read in a book.
Geo, remember that the “mentoring” you get will be from a salesperson who has gone through a manual and will be providing answers from that. They probably also know to tell you that they have IP’s themself- but if they say they have IP’s in colorado and massachussetts, how will you know?
I think a seminar could probably be motivating- lots of ra ra, and pictures of the guy driving new sports cars etc.. but I reckon the 3k could go towards an IP. And remember, they might say, “well, the 3k course is the beginner’s course. If you want the REAL secrets of the rich, you have to do the 10k course.”
kay henry
kay henry
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May 24, 2004 - 3:00 am
OzTex,
I see where you’re coming from, and sorry to be discussing this wehn we are meant to be dscussing property… but to my knowledge, in 2004, the rules have changed. Your wife need not be involved, nor yourself. You just call the police to their house, and unlike the old days, the woman doesn’t have to request an avo, so she won’t be “wasting your time”. The police charge the guy if they see evidence of violence- it isn’t about her coosing anymore- it’s about the police charging him. Many women chose not to take action in the past. Now the police do it, because society is more aware of the complexity of domestic violence. Let the police sort it out next time he beats her.
kay henry
kay henry
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May 24, 2004 - 2:27 am
Mortgage Advisor,
I see city investments as generally those > 250k, regional as <200k, and country/rural as <100k.
Are there many places in cities you think can be bought for 180k, as per Vikash’s budget?
kay henry
kay henry
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May 23, 2004 - 1:28 pm
Luke,
You could EASILY organise a loan for $3800 in 3 weeks- you’ve got a job, aincha? A bank would love to loan it to you. Seems like you’ve got your credit card under control, so serviceability of the personal loan shouldn’t be too much of a problem? You could always sell your car or something if you have one- but maybe not in 3 weeks. Sis suggested you might be able to get an advance on your pay. Your employetr would probably cought up two weeks pay in advance, but you’d have to worry about what you might live on for those two weeks! Maybe you could suck the life out of your IP, since your wages went in there
Personal loan is a goer, I reckon (or credit card increase, but at much higher interest)
kay henry
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May 23, 2004 - 12:26 pm
Report the guy who is hitting his wife to the police. If you saw a stranger hit another stranger on the street, you’d report it. Maybe if the guy knows people in the neighbourhood think it’s unacceptable, he might stop it.
kay henry
kay henry
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May 23, 2004 - 11:34 am
Absolutely Hux!!! Apparently, they may not show the film in the good ole USA- so much for democracy and free speech huh?
Thanks for the post, Hux. Hope it;s as good as Bowling for Columbine!
kay henry
kay henry
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May 23, 2004 - 3:44 am
Lambsie (cute name by the way- just watch out for the wolfies on this Forum!)
Re building and pest inspections… well, presumably they are reputable companies who do them- it is their bread and butter. They are not paid to give you the all-clear really- they are paid to find problems- and they do, in my experience. Enter property investing with a bit or faith, and have that eroded away as things turn bad- hehe
My advice is DO NOT buy an IP with termites, that needs restumping, rewiring or a new roof. You are buying trouble. Would you buy a car that needed a new engine? Probably not. If there are surface problems with a place… no problems. If there are structural problems, then buy another IP- there are plenty on the market.
kay henry
kay henry
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May 23, 2004 - 3:11 am
Here’s the link to Westan’s charity:
http://www.opportunity.org/
By the way, westan- amazing you’ve become a property millionaire- good for you, mate!
kay henry
kay henry
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May 23, 2004 - 2:56 am
DD,
I am surprised that your tenants who smoked marijuana would make all the holes in the walls! I know other drugs and certainly alcohol, can make people aggro, but pot smokers usually just sit, eat a lot and watch music TV… Glad you got dysfunctional tenants out and better ones in though [biggrin] By the way, what is bong cleaning fluid?? I thought peoiple just washed it in the washing up, like one might an ashtray.
LifeX- not sure if you were using a PM to look after that IP for you. Good reason to use an IP- so you don’t get caught up with other people’s dramas.
kay henry
kay henry
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May 23, 2004 - 2:42 am
Well, thank you Marc… However, I do believe some of us work on a conscious level. You obviously differ on your perspective about that. Nice to see you know more about me than I do myself [hmm]
When I enter a place, I see it not as a series of numbers.. but as a sense of aesthetics which aligns with notions of “value” or whatever… so granite benchtops and vanity- looks good, feels nice, and adds value. Downlights, good quality carpets- the same.
I walk into places and touch things. I am a very visual and feeling person. As my brother says… some people drive along and see real estate potential when they look out the window; and others see trees and the landscape. We’re all different.
kay henry
kay henry
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May 23, 2004 - 2:29 am
Connie,
Seems like you’ve done lots of checking out about this place Good signs of CG etc. However, don’t forget the RE “bubble” is over, according to the Reserve Bank- something to take into account when thinking about CG. So you would be working on fundamentals- as you’ve obviously done- tenancy, population, etc.
If you’ve been told that the place is “17-19” years old, you may wish to get the building date confirmed before purchase. You don’t want to miss out on the depreciation allowance because of some fuzzy guess by a RE agent.
Furnished places can be GREAT for depreciation. However, if anything breaks or breaks down, you’ll have to repair or replace it- that’s the downside. But I still think furniture is a great asset- it means you could get a professional who was in town on a 1-year project, for example, to move straight in, or a student, or whatever [biggrin]
And regarding your emotion.. you are ALLOWED to think the unit is “nice”! You’ve done your numbers and checking- why not buy the nice unit over the other ones that aren’t so nice, if all else stacks up. Emotion is a good thing, I reckon
kay henry
kay henry
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May 23, 2004 - 2:09 am
Vikash Welcome!
On an income of 30k, you would probably only have the capacity to invest regionally. So start checking around for the prices. I use realestate.com.au to check out prices and possibilities of all the places I can. Just click on any state and then start clicking on any place- it will give you an idea of what’s around. I check out thousands of properties- no pressure- best to know what’s around, what’s available, and what you’re looking for.
Also, get a mortgage broker around to your house, to sort out with you what you can borrow. Even one of them on here might be able to give you a rough estimate of what your limits are.
Whilst I agree with Henry somewhat about people who were investing before the internet… I don’t think how long one has been investing means everything. It’s just an age thing. Some people on here have been successful investors and they are under 30. Like Henry said, it doesn’t matter what your net worth is… and I don’t think it matters how old you are… it’s the *ideas* that are important, and you can find them from newer investors or older ones. There are so many ideas on here, and so many people who make their wealth differently, just sort out for yourself what seems useful and what doesn’t. Developing an independent mind will be your greatest tool as an investor.
kay henry
kay henry
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May 23, 2004 - 1:50 am
Gatsby…
You can sack her if you like, but it seems like some responses to you are about taking the pleasure in sacking someone, rather than dealing with the issues of the poor property management (possibly the investors see sacking people as a fun power trip?) From your post, it seems like you don’t have much engagement with the PM. Can you have a long phone conversation with her and tell her what your expectations are? I think PM’s deal with so many *types* of investors, that sometimes they are not sure about our expectations. Given that your PM has been looking after your property for 4 years, perhaps there needs to be a conversation with her to refresh her about your needs. I think most people are amenable to such things. Express your current concerns and your disappointment, and then see how she responds. If she’s defensive, then it may be that the problems will never be resolved, because she might be unlikely to take responsibility for future problems.
I just don’t see the fun in sacking someone. I think mostly that relationships and expectations can be sorted out between people.
If you do feel a need to use a different PM, then I’m sure you’ll treat your ex-pm respectfully when you let her know.
kay henry
kay henry
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May 23, 2004 - 1:31 am
Marisa,
Sometimes, there is a reason property is pozz geared. As depreciator said elsewhere on this site, some people are still paying above market prices to buy a place that might not be worth the sale price, but to still achieve the yield.
I reckon, if a place is old, might need rewiring, restumping, new roof, etc etc, then you might be paying for land value only. Many rural places have land value of only about $1000. So if you’re paying 50k for a place, but it is gonna cost you another 50k to fix up.. will it still be pozz geared? Or would you have been better off buying a place that is 100k, has no problems with it, has more potential for CG, has a larger population for tenancy etc.
You would still want to “buy well” even for a pozz geared place. While I know the theory is that CG is a bonus for pozz geared places, and income is the most important factor, if your income is less than expenses (and some of these places may have a pozz cash flow of $25-40 a week- meaning that rewiring etc might eat away all your profit) then you might want to give that deal a miss.
Cheapies are great! But you’d want a cheapy that is not gonna make it an exxy! Whilst repairs will all be tax deductible, your gold mine might close down just after you’ve purchased it.
kay henry
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May 23, 2004 - 1:06 am
Misty,
It IS a hard call. I know people say ot pay off your PPOR asap because it is non-tax dedictible (in investing terms, a liability, not an asset) however, I would be putting that money into IP’s. I don’t have a PPOR myself, and I am not sure I’ll ever have one (maybe when I’m much older), so all my money is cash generating, or “working for me” as they say.
It probably all comes down to a comfort thing- if you want your PPOR to be safe, then pay it off. Or gamble a bit on investments. Probably your accountant could do a bit of a projection thing for you and tell you where you’d be in 5 years time financially if you bought the IP. 50k for an IP these days is cheap (if it’s a good one). I’d go the IP.
kay henry
kay henry
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May 23, 2004 - 12:46 am
Marc said:
“I like the example of Kay who honestly says, we bought the house because it had a purple bath.
Did he actually buy the house only on that “value”? Certainly not. The purple bath has a value that is related to something else of value in Kay’s life, something much more complex. It could be that someone who he admires and would like to emulate had a purple bath, or a number of other factors that relate in logical sequence back to a purple bath. So to say I let my emotion get the best of me and I bough a house because it had a purple bath is not accurate.”
hmmm- interesting analysis there, Marc… bizarre, but interesting. Noone I know has had a purple bath, Dr Freud, but I thought it was cute. Also, I don’t emulate others, I just live my own life. I am an anarchist by politics and nature, so I don’t have heroes, guru’s or mentors- I just see others as a bunch of folks, all with their own ways and desires, and I have mine. I *like* some people more than others, but I don’t try and emulate anyone. Pointless task, in my opinion.
I am not sure I let “emotion get the best of me”, but nor do I deny emotion. I am quite happy to love the places I buy. It may seem like a pathology to some, but it makes me happy
kay henry
kay henry
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May 23, 2004 - 12:18 am
wezwaz,
Yes, I see where you’re coming from. But I would be trying to make that 300k into 800k, retiring later, and then having 80k to live on. Yes, you might be right in thinking that people who can’t live in 30k per annum are messing up their finances. But you’ll still have tax taken out of that money (it’s profit) so you’ll only be living on about 450 bucks a week. I know you say this is only a starting point, but if you are only living off the 30k, you are really only able to raise rents or make profit in shares. What if some of the shares fall to pieces one year? Then you might only have 10k to live off per year. Risky. I reckon only superfluous money should be risked. Leveraging is good fun, but only when it isn’t leveraging your bread and butter.
kay henry
kay henry
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May 21, 2004 - 3:29 pm
Marisa, emotion does come into it for me. When me and my then partner bought our second unit, we looked at it and said “awwww- purple bath!” and bought it The fact that it was a really good buy helped
I LOVE real estate [inlove] If all else stacks up though, I am not sure why emotion would bother you, Marisa. People DO use emotion to purchase things- I wouldn’t buy a white care because I don’t *like* white cars. Aesthetics are important to me, and I would probably have an issue purchasing a place if I didn’t like its appearance. Go figure, I am not a calculator or a spreadsheet. I like the houses I buy- and why not?
The good thing is, there are so many hundreds of thousands of houses to choose from! So you can pick what you want- based upon numbers, emotion, and whatever other criteria you want. If you see a house, and don’t like it, there’s probably another one with the same numbers, that you DO like. I wouldn’t feel too worried about it- we’re emotional creatures.
kay henry
kay henry
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May 21, 2004 - 3:11 pm
Chan, I believe most here would not hold that view. As stated, I respect the many languages that you personally speak, and I feel the poorer for only speaking one language. And yes, I agree, even those who have English as their first language are not perfectly correct in spelling and grammar, and I include myself in that. This Forum is about property- and it’s for all of us. It’s richer for having posts from people of all cultures, ages, experiences, and perspectives.
kay henry