Forum Replies Created
Hi Ivan. Yeah I know this re: broker giving advice…
:(Anyway, yeah at this stage we are keeping it. It’s truly bounced and found the bottom (we believe). Our March trip will tell us for sure.
I think we could create more equity with the capital we actually do have so it seems crazy to use all of that to pay out a shortfall and start from ground zero again.
I truly believe that with the stuff we will be doing this year and beyond that the loss of $ will be a small number in comparison but wouldn’t get the chance if I used up that capital in paying off the loss.
Will keep you updated.Cheers
Yeah same boat. As my first foray into property investment I naively followed a property “mentor(very loose term)/mortgage broker” into a 10 unit development who bought one themselves.
Down about $150k now but who knows?
Worst part is that this mortgage broker bought one themselves AND convinced all of his retiring clients to do the same, just after being hit from the GFC too :(
Even ran sessions on it multiple times in his ‘investment club’, which people pay for.
Anyway, lessons learnt all round I guess.
Oh and for the record I took up mortgage broking after that to ensure that people get good unbiased and not opinionated advice…If you do hear of any other ways around it Daniel please let me know.
Going to Gladstone in March to see the outlook with my own eyes then will keep you posted!Hey there. Werribee traffic = awful! It’s only going to get worse with the addition of so many (10s of thousands) of new dwellings still going up over the next few years. I’m personally looking at St Albans but for $350k unfortunately you won’t get much land for a development at all. Maybe Deer Park?
Hi there… Im with Giddo and DLPP…
I dont think you’ll get much better than that, purely based on the fact that people will expect to pay less than the ad price.
Maybe next time you’ll have more of a buffer.
Either way, best of luck.
There have been some really experienced posters on your thread, if you reread it again you may find some really useful info.Good luck and Best Wishes,
[happy3]“Practise doesn’t make perfect. Perfect practise make perfect”.
Lee
The book which helped me get started was one called “Real Money, Real Estate” by Brad Sugars.
I have read about 20 PI books in 6 months and it would have to be the most memorable (probably because it was the first I read). But I never read much before reading that one and it inspired me to no end.
Oh, and the stuff listed through all these forums should be resource enough. If we dont list it or talk about it here then just ask!
Feel free to drop me a line anytime for more info on anything. If I dont know I’ll be only too happy to help find out, for learning from each other is why we joined.Kind Regards,
[aacool]“Practise doesn’t make perfect. Perfect practise make perfect”.
Lee
Originally posted by giddo:My only suggestion would be to get a builder, plumber and sparky to look at it and give an estimate.
I always think anything can be fixed up if the structure beneath is sound.
exhappy]Thanks Giddo…
should these inspections be done prior to putting in an offer? Is there a way around this? Otherwise it will be expensive if it works out not worth my while.
Also, the structure would have to be sound because it is 1 of a block of 8 units all of the same structure.
[confused2]“Practise doesn’t make perfect. Perfect practise make perfect”.
Lee
Originally posted by Jarrah:WHAT, NO BILLIONAIRES?! BAH!
Yet…. [smiling]
“Practise doesn’t make perfect. Perfect practise make perfect”.
Lee
Thanks heaps for your story.
That is what I keep missing, real stories about how ppl did it.
Did you turn it into an office? Demolish and rebuild?
It’d be great to know.
As for getting off my chair. It’s a bit hard (I work 6 days a week) and not many (if any) RE agents are open Sundays.
I need to work, being only 22 and not a lot of fin. backing to leave at this stage. So it is real hard to do anything but look at these on the Net and in Newspapers, etc.
Thanks for your guidance.Reg,
Lee
“Practise doesn’t make perfect. Perfect practise make perfect”.
Lee
Originally posted by andrew west:Lee
Im on the bottom rung of the ladder too with one IP under my belt but think that you have missed the point. There is no golden goose that you walk up too with a bucket and then walk away with a 10% yield. If you think that you can buy CF+ off the shelf you need too look somewhere else. But if you do this you will do what have done for a year or so and thats go around in circles. From what I can work out CF + deals are made not found. But more importantly you need to get your structure right to start with.
Andrew
Thanks Andrew,
Iknow that this is the case but what I meant and didn’t say is that you hear all about someone buying 130 properties in 3.5yrs and someone retiring 9 years after being broke and all are very loose stories of theory and share no scenarios of how they actually did it.
I unerstand I will have to “make” +ve CF or Equity but noone tells you how they started do they?thanks again,
Lee
“Practise doesn’t make perfect. Perfect practise make perfect”.
Lee
Originally posted by echidna:I have approximately AUD$230K to spend, so my choice of areas is limited.
I was previously considering Central Werribee.
I was planning to use a buyers advocate to deal with finding
the right property. Can anyone suggest a few Buyers advocates
in Melbourne who have sound reputations ?Any advice appreciated,
Echidna [rolleyesanim]Why previously considering Werribee??
It’s a fantastic value for money spot.
Like Frankston though it has it’s patchy spots. Werribee isn’t the same all over (same postcode, very different tenants). Half way between the city and Geelong it is a wise choice for the money.
Haved lived there my whole life and seriously considering purchasing our next IP along the river in the “old part” of town.
Any questions on Werribee, as a local only too happy to help.Reg,
Lee
“Practise doesn’t make perfect. Perfect practise make perfect”.
Lee
It’s about time someone said it. Well done!
I too believe it is impossible to find these CF +ve properties.
Not one so called mentor or even guru investor seems to be able to tell us newbies how to do it without maing no sense.
All I want is for someone to write a book or hold a seminar which isn’t about purely motivational talk and 1980’s investing strategies. CF +ve is something only achieved with 50% (exaggerated) deposit or with millions to invest on a development.
If these gurus were so good at it and had sooooo much wealth, why the hell are they charging drug money to listen to them hype you up?
And why are they even doing it? They surely couldnt be short of cash…If anyone can answer the common forum topic of how do I start without beating around the bush I would be happy to hear it.
I’m super keen to learn all about the world of investing and have done nothing but read books, listen to successful people and browse these forums for months and months on end.
I haven’t found a positive CF property and I’ve been looking for a good solid 6 months.
Sorry to sound so negative but like the last post, I am just frustrated that all I want to do is learn and noone is willing to give the answers. Not even if you pay for their books!
If someone can prove us wrong then please do, we’d love to share the facts not the theoretical preachings pulled out of outdated books.Thx,
Lee
I would recommend “Real Money, Real Estate” by Brad Sugars. It was the first property investing book I have ever read and I wasnt much of a reader either. It certainly opened my eyes and now in the last 3 months I have read about 15 books on PI.
If it wasnt for the eye opener that Brad Sugars’ book gave me I wouldnt be on the fast track to wealth today.
I only have one property but in the last 2 months, I have researched, had a loan preapproved for my second property and drawn up my plan to retire by age 32. That’s 10 years away and very acheivable.
Best of luck on your journey.
Let us know how you are tracking,Regards,
LeeOriginally posted by mum:Hi Lee
How good are you at spreadsheets?
It is not too hard to write a spreadsheet for yourself. It just takes time and effort which you may be better using looking for good properties. A few hundred dollars buying good software easily pays for itself if it means you can easily do what-ifs to your scenarios.
If you do decide to write it yourself, just remember to take into account all expenses including repairs (you will need to estimate this as it depends on the property and the tenants), management fees and all government charges, taxes, levies, duties, etc.
Margaret
Thanks Margaret,
Can you suggest a couple of programs I might wish to look into paying for? I am terrible with Excel…
If I have to pay, then I have to pay for it.
Thanks again,“Practise doesn’t make perfect. Perfect practise make perfect”.
Lee
My bad… Sorry
“Practise doesn’t make perfect. Perfect practise make perfect”.
Lee
Only advice I can give you is wait until you have saved some more money (eg 5%) and are finished your apprenticeship. It’s all very well to invest and rent out your house you buy but what happens if you cant find a tenant for a few months of the year. Can you afford to pay the $1400ish mortgage each month.
By buying an investment first before your own home you wont get the FHOG either.
Something to keep in mind. Ultimately you know your financial position better than anyone else. When you are ready good luck.
Make sure that any risk you take from here on is a well calculated one.
Best of luck again…. [smiling]“Practise doesn’t make perfect. Perfect practise make perfect”.
Lee
Hi there,
Best of luck with your plans…
I bet you know hundreds of ppl our age that are spending all they earn (if not more) on a day to day basis with nothing to show for it. Good on you. The only advice I can give is to keep your dreams in view 24/7. eg, keep a picture of that 911 on your desk, in your car, in your wallet and on your roof above your bed. Soon you will be able to taste it and that will make you want it more.
Keep those dreams close to you.
It’s good to hear of someone in a similar boat to myself though.
I too bought my home at 21 and now one year later the property is worth $300k and we owe $250k.
I would love anyone elses advice as to how to go about buying our next property and where to start. My wife and I both have great incomes so capacity isn’t an issue.
Everyone I seem to get advice from all talk as if us youngin’s have $$$ to invest. No liquid $$$ and little equity at the moment. Just a real keen attitude and willingness to learn.
Please any advice would be handy.LW
Thanks everyone for your help. It seems that my only option is save money… pour money into the mortgage… Maybe I’m a bit impatient at times. I only have say $50k equity in my current home and by what everyone is saying here… The only way to invest in property is if you have much more equity or cash…
Is there any way to do it without having to wait years?Thanks,
Lee
LW
Originally posted by Property Passion:Might i suggest to talk to a broker? just so you can make sure you have the right loan structure in place for your home, and any future investment you might make in the future.
“It’s not how much money you make, It’s how you spend it that matters.”
Aspiring property developer
Giulio Taranto
Am currently in discussions with one at the minute. Thanks for all your advice. I hope I can make it work for me. I look forward to sharing my successes with you all in the not too distant future… It’s rare to find someone who takes the time to help another person achieve their goals.
Thanks again.LW
Originally posted by mapleleaf:Let me know if we can send you our template we use (a simple spread sheet…)
We also recomment Steve’s 2 books!
Good Luck,
Mapleleaf
Achieve the Dream!
thanks heaps… please send to [email protected]
also, please name these 2 books
tah!LW
Thanks heaps guys…
when you say create equity by renovating, does this mean backyard, etc?
We built our home and inside has all you need. eg, 4 b/r, a/c, porcelain tiles, etc… however we have no backyard at the moment (just dirt). Front yard is lovely and looks a treat.
Do you suggest that we save the money for the backyard or refinance it onto the mortgage?
Regards,Lee
LW
