Forum Replies Created
Growing your knowledge through reading books, contributing in the forum, asking questions and actually inspecting a number of homes (especially the ones nearby) is a great way to overcome your lack of confidence. This is important so that you gradually build your skills and knowledge especially as you continue to buy more properties in the future.
If it's for an investment property, then aim to start small first. The reason is because if you stuff up in any way, then at least your you only started off small, and you built experience.
If you feel that it's more than just a lack of confidence, and it's really that you don't have enough time to do the research, then using helpful services may save you time. Although if you really do plan to make investment property an endeavour that you want to do more of in the long term, then it's best to try and figure as much things out for yourself (and not just delegating it all on a buyers agent).
I also don't think that any of them would be considered as a hotspot, especially when you compare returns that you can get from mining boom hot spots.. Although, those 3 areas that you mentioned can be considered regional major hubs, which you may be able to find a number of positive cashflow properties, and cheaper properties than in metro CBD/coastal areas.
Economy in those 3 places are much better than more isolated regional towns.
What's your aim with these places?
hey investor sam,
Congratulations on going down the road of investing in your second investment property.
Do you have any cash saved up or were you keen to only use your equity?
Hey insanowayno,
Like you, I’ve also immersed myself in property investing. I’ve mainly focused on positive cashflow investing which has helped improve my serviceability and my income, and helped to ditch my own job!
Good luck on your journey, and we’re all here to help you out.
Muz,
Other popular Australian authors who give slightly different or totally different views than Steve include Jan Somers, Margaret Lomas, Michael Yardney, and I've seen a number of other books that talk more about renovations and/or flips and making money off that.
Oh and if you just want a quick overview of the Negative Gearing Strategy in Australia, you can just checkout wiki's explanation, which has some good references for more reading.
Another method would be to use realestate.com.au or domain.com.au but type in the keyword "mortgagee" so that your results are only those that have mortgagee in them. This could be a faster way for you to find them.
However, be aware that not all property ads on those websites which are mortgagee in possession actually advertise that they are so. Sometimes you just have to ask the seller/real estate agent.
opee,
Melbourne CBD areas tend to have very few CF+ properties, unless you are willing to pay a higher deposit or add dual occupancy features.
Have you considered looking at positive geared properties around other parts of Victoria, especially check out regional hub towns, which have the combination of positive geared prospects as well as postential for capital growth?
That would be a better option than investing in Sydney or Brisbane, because if you invest outside of Melbourne but still in Victoria you can still inspect it easily if you're willing to go for a bit of a drive.
For me, I read the saving 10% rule in a number of wealth related books and I began implementing it myself. This actually works. After a few years, I had actually saved up a couple thousands of dollars which I used to buy my first IP. What makes it work even better is if you do it automatically so that you don't have to actively think about it every month and do any effort.
Set up an automatic payments system so that you set aside 10% of your income and then it goes into another separate account that you never touch unless its for achieving a particular goal, especially a goal for investments or building wealth through business.
Hey Michael,
I grew up around Parramatta so I know the area well.
Apart from that experience, I'm also an active positive cashflow property investor.
I've checked out Granvillle and Blacktown areas, and generally, I've found more CF+ properties around the Blacktown area. So if that's more of your strategy, then around Blacktown would be good.
Although I think it may also have to do with the fact that the Blacktown are is much larger area than Granville (therefore, higher potential supply) as stated above.
Same here.
In figuring out which is "better", depends on which perspective you're looking at it with.
As an investor, I much prefer houses, because of the ability to increase the value of land, the ability to add value in creative ways, and the fact that you don't have to pay for strata fees which can be a drain on cash. Houses can be more profitable generally, although there are cases that I've found in which apartments can be just as profitable or even more profitable, especially in booming, high-demand areas.
Personally, for my own lifestyle, I also prefer a house. More privacy and bigger space, ad greater ability to renovate and change it to my liking.
Well I think many first home buyers will be more prone to consider buying new homes, considering the very generous benefits.
But in light of scrapping the first home benefits for buyers of existing homes by the end of next month, I think that we'll be seeing more first home buyers purchases before Sept 30th. I actually know of 2 first home buyers who are friends who are in the process of buying beofre the deadline.
Like you I did something similar.
I was doing a uni degree in Sydney, but I figured out that experience was the most important thing to get to my goals fastest. I left my degree for a bit, and did internships/volunteer work and worked to get experience while also studying my degree by correspondence. I believe the real world experience is most important thing to be successful for your career, especially while you're young.
Good luck! You mentioned you wanted to be a developer, did you mean a real estate developer?
Gday Pale Ale,
We’re keen to help you as best as we can in the forum.
What kind of investment properties are you looking for, and what’s your investing strategy?
When you asked about which report was "better" than the residex one, what kind of reports were you looking for?
Also, "better" really depends on your personal investment goals.
I've checked out the Residex reports myself, and they didn't really suit my needs to look for and analyse positive cashflow properties, which is more related to my goals.
If you use a property manager, you could ask them about the demand for rent to own. Or if you don't have one now or even if you do have one now, do ask around with other property management services around your area. They will help you out with some ideas especially if you give the explanation that you would probably go with their service if they are helpful. They are very knowledgeable about the demand.
Another good way to see if there is any demand for it is to start advertising that you are offering rent to buy. This is the only real way that you can measure to see if there is demand. It shouldn't cost too much to do the advertisements, and if you do get interest, and a tenant under those terms then it can help your situation, so it may be worth a try.
Me too!
I looove to travel, but I tend to like doing longer stints of travel as well as do some volunteer work when I can. Travel and volunteer work are what I'm really passionate about.
The last 3 places where I travelled for a longer-than-average period of time were Bangladesh, Thailand and Taiwan.
Other hobbies I have are doing Body Combat classes, and other martial arts classes, and gym training.
I also enjoy learning languages. I've been learning French and Chinese over the past few years.
Bonjour a tous!
Nin hao!
I agree. Stick with the forums.
What's awesome about the forums is that you get a number of different views and perspectives from many successful and active investors (not just one view from one mentor).. oh, and its free.
Also, with the forum, you can ask any sort of question any day and at any time, so it suits your needs and timeframe.
santh wrote:He goes back years and years ago when it was very easy to make money in real estate. He made his wealth buying properties out in the country and they were always properties where the mortgage repayments were equal to or less than the monthly loan repayment. He NEVER bought a property where the rent couldn’t pay the mortgage off.
Now that worked well a decade ago when you could do that, it isn’t applicable in today’s market .. and now he just makes bucket loads of money buying his books and attending his seminars while he tells stories about the ‘dark ages’.
He is NOT up to date with today’s market and he’s out of touch with how to make money in ‘today’s real estate market’.
There are still properties throughout Australia where the mortgage repayments are equal to or less than the monthly loan repayment (even with the other expenses like council rates, insurance, etc).
Properties were cheaper back when Steve started investing, and prices may have gone up, but rents have gone up too and I still find a number of positive cashflow properties.
When I started, mind you, they were not very easy to find. However, once you figure out the patterns of where to look and how to look, you begin seeing that there are actually quite a number of them popping up regularly. Also, it does take time and effort to find and research positive cashflow properties in Australia, but they are there.
Welcome Daveski!
What brings you to the forum?
We're all here to help you out as best as we can.
Whenever I want a street level view, or even a satellite view of a property so I can see how it is situated compared to other suburbs or major locations, I use the Google Maps website – https://maps.google.com.au
This can be very useful.
