Aus,
I tend to shudder with the speed wobbles when I build up momentum, like my old holden I drive.

Jhopper,
its funny how the same principles are there in every industry when you look…hmmm.

Spanky,
Great attitude. I too find it degrading when a good discussion breaks down to a squabble. We need more like you to keep these boards positive. I have noticed a generally brighter attitude across the board as a whole….Spring is sprung and the flowers and the deer are looking forward to summer fun.

Lifexperience

Michael,
You seem to have magnificent enthusiasm for property investing so here is what you should do.

1. To overcome any analysis paralysis/ procrastination, the only cure is the exact opposite. Make a clear decision and stick with it until you acheive your objective.

2. Then write down WHY this is so important to you.

ie: in 30 days I will make a decision. It will include the exact number of properties my partner and I need and by what exact date. It will also include the exact plan to get there.
(A conservative suggestion would be 3 million dollars worth of positive cashflow properties in 2 years returning 10% minimum cash on cash/equity return. And 3 million dollars worth of potential capital gains properties, purchasing 1 property per month to meet this deadline).

And maybe I am missing something obvious, but why don’t you take out a 100% mortgage on your existing acreage and pay off your ppor. This would convert 100k of your non-deductible debt into deductible debt. This would
mean that you only then have $80k of non deductible debt which is only $2500 worth, at the high tax brackets, you would save a year by negative gearing………………………… surely $2500 a year ($48 a week!!!)isn’t going to stop you investing for 2.5 years?

Decide this very instant the exact date when you will have a clear goal formulated, ……………..if you can’t do that and stick to it…..you have a serious procrastination problem.

CALL THE WITCHDOCTOR, WE NEED HELP….!!

You have a good contingency plan, NOW you get to do the fun part of a plan to making millions!!!!

[biggrin][biggrin][biggrin]

Lifexperience

My dear resi,

I will try to address your initial post simply

[][][][][]

resi, resi, resi….. I hope that you don’t frown as much in real life as you do in your posts.

I am concerned that you get upset by mere technicalities in an open discussion, maybe I can help you with your broad opening posts so as to induce a discussion more exact to your intentions.

PM me if you want.[biggrin]

Lifexperience

Road Trip…. I love Tom Green[clown]

Lifexperience

I work in a brick factory and I see the product that goes out as seconds.

There is a reason why they are sold cheap, and it is not because they are the same as good quality products.

In fact the industry standard in Australia has a very low quality control standard even for the so called “quality products”

Imagine pavers that crack and disintegrate after you walk on them a few times. I shudder to think at the money and back breaking labour wasted in laying some of the seconds that are out there. The good products are of fragile enough build but at least are guaranteed.

No refunds once laid if the seconds are stuffed unlike good quality full price ones.

Make your own mudbricks is my advice if you want to save a buck, or even buy good used ones.

You are taking a gamble that you will end up with some very expensive biscuit dust within seconds when it comes to brick products.

BUT…****HOT TIP**** Try going for the products that are the “wrong colour” rather than seconds that should be coated in chocolate and sold as tim-tams.

Beware, there are many brick and tile products that go out as seconds that an 8 y.o. kid could easily break in half with their hands

I think bargains are great, but as a tradesman I know the devastating effect of using poor quality products in the long run.

oh.. and while i’m raining on this little party, cash only gets you back to a reasonable retail price with Harvey Norman, they over inflate all their prices because of the 18 month interest free thingy. Taking good advantage of people who want the fanciest/shiniest thing they can buy (but can’t really afford).

So just a balanced word of warning for anyone reading this thread with rose coloured glasses:

Cheap poor quality building products can be more expensive in the long run!! just because you paid less to start with doesn’t mean you got a true bargain.

Please continue with the suggestions, I’ll be quiet now.

Lifexperience

Marc1,
I have noticed that a lot of your posts follow robert kiyosakis opininion that your advisors in wealth strategies must be someone who has created wealth.

I personally agree, and I think that this point is valid to point out in this thread.

If you were to ask a rich man about the best way to get rich, I doubt they would say “slowly”.

The more i think about it, the only influence that could possibly have such a negative influence on someone as to suggest that you should only look at plans and goals that get you rich slowly, would be one of two people.

The ignorant and/or the deliberately cruel.

Unless you actually enjoyed making money slower than you could be.(ridiculous)

The rewards and potential leverage of things that you could do with your life are unlimited by $$$ if you have unlimited amounts of money at your disposal.

DISCLAIMER FOR NOVICES: TAKING UNEDUCATED RISKS WITH MONEY IS GAMBLING AND WILL LOSE YOU A LOT OF MONEY EVENTUALLY.

and a second time in case you did not understand>

DISCLAIMER FOR NOVICES: TAKING UNEDUCATED RISKS WITH MONEY IS GAMBLING AND WILL LOSE YOU A LOT OF MONEY EVENTUALLY.

As cameron pointed out

That being said, you can limit the amount of money you lose and still aim high. WHY AIM LOW?

Your SANF (sleep at night factor) should(and can be) just as peaceful making money fast or slow.

Please. please people, don’t let the limited and ignorant views of people stuck in the RAT RACE drag you in……….there is more to life!

All you have to do is aquire the knowledge.

To have a glimpse at the opportunities financial freedom would give you to enrichen your life and then do nothing is an ignorant, selfish, disgraceful spit in the face of life.

[drummer}

ptooooooeey

Lifexperience

pekay, Sounds interesting, do you know who gets the property title (them or you as the investor).

What other info do you have on them?

Lifexperience

It seems like good positive cash deals.

If you do 5 more deals the same with your remaining 85k equity, you should be spinning another $12500 per year.

So $17500 return on 100k equity (effectively a no money down scenario) is an impressive 17.5% deal on your equity and still hold the properties for capital gain.

Even if you wrapped, you would have to put a lot more time in, and still only squeeze out 30 – 40% returns at best. Of course, you would be getting the deposits back to do twice as many deals.

If you are happy with this level of return,…cool[cap]….easy money!!!

But, if you deep down in your heart want more, then you may have to become much more aggressive in your investing. Do not settle for a good deal, if you really wanted a better one.

I would suggest you revisit your investing goals and time frame to see if these investments help you on your way to your end aim.[biggrin]

Lifexperience

If your average wage is about $45000

After tax, your average income is about $32000

At affordability of 35% of your income towards housing, this allows about $11500 for rent ($220pw) for the average earner.

If you talk about yields of 5%-7% then your average houses are only worth $190000 or so (bare with me as i redo your calcs wayne)………..

Rents have dropped in melbournes eastern suburbs as a lot of people are buying their own brand new homes further out on no deposit deals Divine homes and a heap of others.

There are not many people at the moment that would say there is going to be increased demand for expensive houses that are 30+ years old in the next 2 – 5 years.

For these reasons I could see a lot more drop in the sales of houses in this melbourne ring.

The market will choose a fair middle ground for the average house which is worth $190000 based on rents and the $300000+ price tag currently based on a high demand (it is still closer to the CBD at the end of the day.

My guess……..a drop of maybe 10 – 15 % again for a short period more.

My two cents[biggrin]

Lifexperience