hwd007 – a.k.a ‘The Devils Advocate’,

Do you have to have a go at everything? There were people in this post asking for basic assistance in judging a property for cashflow at a glance. There have been several people offer assistance and you seem to always come back with an obvious what if and poke holes in the assistance they’ve offered?

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Hmm property value / 10 to get rent ? hope this is not the only measure of cash +

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Yeah I’d hope not either. And having read previous posts in the thread you might have found a few.

Hi Evelyn,

You’ve taken the first step in identifying that property investing is a great opportunity. You now need to sit down and work backwards. What I mean by this is first set some goals, work out what you ‘want’ out of investing (is it a weekly income, to build wealth for future retirement..) and most importantly put a timeline to all of this. You then need to take an honest look at your current financial position and outside commitments. From this point, bring everything together and look into some investing strategies that will allow you to achieve what you want.

Without knowing your level of debt, income etc. I would suggest that off-the-plan buying would probably not be a wise way of starting out. This is considered ‘speculative’ investing in that you’re hoping the returns will eventuate. You may wish to look towards buying property for cashflow returns to begin with to assist in paying off your current debt and providing a solid base to build on.

Hope I’ve helped, Leigh

Hi,

Just a small addition.

An easy way to get the same result as the 11sec rule (10% return) is to drop the ‘000 and x 2 to find out the desired rental return.

Example:
Property value = $60,000
Drop the ‘000 = $60
x 2 = $120 weekly rent for a 10% return.

If you’re good with numbers you should be able to see the picture without thought.

$35k = $70/week
$50k = $100/week
$75k = $150/week
$162k = $324/week

Working backwards – halve the rent and add the ‘000.

$120/week = $60,000
$50/week = $25,000
$182/week = $91k
$200/week = $100k

Hi there,

I’m employed by Centrelink [], I get paid to surf, snowboard and learn about real estate. It’s not all that it sounds though, I have to go to uni once or twice a week [].

I do my part in the summer teaching kids and people with special needs how to surf and sail.

Leigh

hi guys,

There’s a previous post over the last week about Richmastery’s seminars. I attended the intro seminar and the 3 day one last year.

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Their event is long 10-hour days, too.

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24 hours – 4 hours sleep between days = 20 hours in my calculations! Well it’s actually about 40 hours of learning contact (not including lunch/dinner/breaks) for the three days because you start 8am the first day and finish 6pm on the last day. It’s pretty full on and you get a lot of unexpected things happening. One of the really good aspects of the seminar is that they try and mix in a bit of light entertainment into the seminar so it’s enjoyable (and so that you stay awake!).

Everyone that attended last years was wrapped with the seminar, some of the guys I spent a lot of time with commented that it was the best seminar they had been to, and they listed about 20 other seminars they’d attended. One even thought he got more out of it than the $50,000 Henry Kaye seminar he’d just come from!

Phil and David know their stuff, and they’ve got a very good business going for them. They also own and run the NZ Property Investor Magazine. You’ll hear one of Davids stories about his positive cashflow nursing home he purchased and renovated. Does $100,000 a year positive cashflow after expenses sound like a good purchase?!! The seminar isn’t about commercial property just residential, but they open up your context a lot during the seminar.

Their software is great, takes 2 mins to get a 95% accurate calculation of the properties financials including 10 year projections (estimated of course), tax rebates etc etc. They also include their own bank application form (which apparently all banks currently accept) which all of the financials are generated from their aquisition software complete with your personal financials, current portfolio details etc which have all been previously entered and saved into the software. All you need to do is print it off, add the date and a signature and your done! Good for applying to multiple banks. They also have a portfolio manager and contract clauses you can put straight into purchase contracts.

I also bought the seminar video recording of last years event which if anyone would like you can email me at [email protected]

Overall, the seminar was great and so is the software (but I haven’t seen other products to compare). I know for $700 I certaintly couldn’t be bothered making my own or hunting around for 6 or 7 other products to do the same job (but you wont get the linked benifit of information being shared between the different software programs).

They’ve also just written a book with Brad Sugars which I’ve just started reading, this could be a cheap preview of what sort of stuff they’ll cover. It’s called Real Money Real Estate.

Leigh []

I enquired about this one with my accounting lecturer at uni. He said that you should be able to claim the seminars as an expense for 2002-2003 as an educational expense incurred to generate a future investment income.

Maybe this is why he’s lecturing at uni instead of owning his own practise? I’ll be getting my tax done in the next week or so I’ll let you all know the results.

Some banking ones:

If you use an eftpos card for transactions consider getting a VISA debit card (wont let you go below $0). This way you can put all of your transactions (except ATM withdrawals on the credit function and you wont pay any transaction fees.

The Adelaide bank offers 5% interest on their savings account with access via a cheque book or debit card.

Close accounts you dont use, or consolidate several accounts. This could reduce monthly account fees and also government fees.

If you’re a student St. George and Westpac both offer really good student accounts with no fees at all (to a limit).

John Burley’s books (seven secrets of the rich – I think) gives good advice on managing your finance, including a debt terminator which shows you a very effective way to quickly reduce your debt. (It’s also a great real estate book covering, positive cashflow, wraps, no money down etc). An interesting one from left field that he mentions is that most travel insurance (personal belongings) is a waste of money because a lot of home & contents insurance policies cover you for this.

Oh… and avoid breaking traffic rules!!

Bring on the clowns?

Hey C2,

You should be looking right into doing some investing if you can get loans at 2.5%. What are the basic qualifications for these loans and what sort of fixed rate and duration can you get on them? If I was in your position I’d be snapping up properties left, right and centre by using Australian JV partners!

Stuart,

As mentioned above, I think there is a lot of interest on the site at the moment for;
1. Aussies investing in NZ.
2. Unlimited finance techniques.
Something else I personally think would be good may be a comparison between the Australian and overseas markets i.e. Can you predict trends in Australia by looking at the American market (things like interest rates and loan products, vendor finance etc).

Cheers, Leigh.