Shaun,
I read the book pretty recently.
It was worth reading…but I didn’t race out and start looking for pos cashflow properties in the sticks.
I are in the sticks already,and am surrounded by such properties.
Some with asking prices of $400+k.
Average would have to be closer to $260k.

You can only caution newbies…you can’t save them from…[Read more]

All these comparisons with Singapore and Hong Kong…
You need to keep it in perspective. They had massive speculative buying, resulting in huge bubbles, which burst resulting in price corrections. They are gambler by nature..

Talk of US property, where you could buy for 10c in the dollar after the savings and loan crisis in the 80s’,or Japan…[Read more]

Its a great question Steph,

And one that has baffled me too.

Nats gave a good explanation of how a young couple can achieve the dream, and still have a life as well…
But that was at $250k and not $400k….its mind boggling.

And the young professional couple who earn $110k and $50k together…are inherently not savers…they’re party going…[Read more]

Fitz,
If you go through the correct procedure with the serving of the breach notices ( or your PM does) then when you front up to the magistrate he will find in your favour….hence this should be sufficient grounds for the insurance company to pay up…

Reagrding the premium for a portfolio of 20 IPs’….
surely you would be in a good poition to…[Read more]

Well done Shaunwalker,
Good post and good points.

And Yack, good of you to raise the topic. Look at all the response it has generated.

But at the end of the day, you can’t help those who can’t help themselves.

I say stick to your own investing philosophy and let the newbies and lemmings jump over the cliff..

I did, and survived and learnt…[Read more]

There you go again Anubis,

Putting your foot in it again.

Narrow minded and deragotory comments about what you describe as small towns with a few 100 ppls.
At no point did ANYONE much less alvin mention small towns with population based in the 100’s.

Thats your self imposed and limited imagination at work.

This is a huge country….with many…[Read more]

HAHAHAHAHA !!!!
Thats so funny Calvin…..

Hows HBI…he
Heard some bad news…is it true??

Ooooooohh, I take offence to that..
I live in one of those such places…

Next you’ll be referring to the ppl that live there as “shitty” as well..

Well, we get yields approaching 11% on what we do,, with built in equity to boot ( don’t ask how much…you’ll die)

So before you make such aspersions and judgements and lump all remote areas into…[Read more]

Thats a good news story if ever I heard one Derek.

Well done and congratulations.

For Michael, I wanted to add: unless you have a need for the equity (hence money) from your property, for some purchase elsewhere, or for some personal requirement, then I would be hanging on to it and not selling.

At least not till you investigated all other…[Read more]

I missed it Derek, but heard it was good.

Will be trying to catch one in Brisbane next year.

A couple of forumites on SS have given me in depth info on his strategy and it seems reasonable, but bears further investigation on my part.

Michael,
Do you declare any income in Australia to be able offset the rental loss on the IP ?
If not, then all your losses are also capitalised and can be offset agains any gains if you sell.

Also, do you have another market that you wish to invest in? eg.. overseas, closer to where you are residing?

If your plan is to invest further in…[Read more]

What is the possibility of the husbands going guarantor for the IP loan?

Go SuperTed,
You’re on the money.

Australia is far less racist than many countries elsewhere.
I have lived overseas and travelled to many countries and can only say what a privilige it is to live here.
Australia and Australians are far more tolerant of other races than, for example some countries are of their OWN races.

In many countries, it is…[Read more]

More ways than one to skin a cat Yack,

Not all buyers that a “bank won’t touch” are bad risks.
If, of the total market of buyers out there, 20% don’t qualify for bank finance for whatever reason, then that is a huge market to be tapped for vendor financing or any other creative method of achieving a sale.

It is not always necessary to increase…[Read more]

Yack,
Its a valid point you make to sound the warning bells…
But I have to add that this is Steve’s site, and it supposedly is dedicated towards positive cashflow investing.

Maybe a comment from Steve giving an update on his opinion of what to do in the current market would help.

The suggestion that newbies buying for the first time are…[Read more]

Sarah,
We used to arrange FIRB approval for foreign owners.
I guess that having visited the FIRB site you would be familiar with the requirements.

I would suggest contacting some local agents with your requirements ( ie…newly built and previously unoccupied homes, or 50% of a new development)

I believe you can also purchase vacant land as long…[Read more]

Can only concur with what Terry has said.

We recently has a similar problem when a valuer came in under the purchase price by 4k,,,and the purchasers trustee questioned why they were paying 4k over thr VALUATION.

What a joke…my agent argued that the valuation can have a spread of 10% either way and that an EXACT figure doesn’t exist.

Also…[Read more]

Jess,
You want a high ROI on your business to justify the time commitment involved and risk attached to owning a business.
In some instances your ROI will be 100%
It is difficult to borrow money from a bank to buy a business.
Usually the bank wants you to offer property as security against the borrowings for the business.

As a business owner you…[Read more]

Hehe….Roll On The Floor Laughing..

A question for both Greg and Derek,

A lot of these PI books make the comment that “this stuff should be taught at school”

As enlightened investors, can I ask if you in any way attempt to introduce the principles ( no pun intended ) of saving, compounding returns, and investing into the class..or is it…[Read more]

Ahhhhh…Singapore girl…you’re a great way to fly…

Batam was strictly business…well kinda..
Knew a gentleman there who owned a housing estate ( you know the ones…)
Just out of interest, developing is easy there, 25 yr leasehold, peppercorn rent, pre sell the lots before commencng, use the deposit money to clear the land and do the…[Read more]