Forum Replies Created
I can`t give you too much info on Rocky other than to say I think you made a pretty good decision.
I agree with Kay.
What good are six properties going to do you when you get $30 a week out of them, if there is a bust you can`t sell maybe for ten yrs in order to get any gain.
Anyone thinks this is a joke look at history once the boom stops it may not move up again for a long time, I know many are saying for instance Brisbane may still go up 25% or so a yr for 3 yrs, I`m not too sure about that one, I would not bet on it.
These properties might not cost you anything but they are always on your mind one way or another.
My advise would be be prepared to work at this point if you want to invest in anything, otherwise put your money in the bank a while biuld it up and keep your eyes open.I`ve lived in Qld for 30 years and have never heard of it!, shouldn`t be to hard to find out though.
Hi Richmond, one of the rehabbers I recently bought is in Park Avenue, and I think we both know prices will continue to climb for a while yet, like I said I only bought mine a month ago and the previous owners paid more than I did…ten yrs ago!, there are still many bargains there.
quote:
Hi markpatrick,
I would love you to elaborate on you comment “North of Brisbane is going to explode in the future, plenty of opportunities, why?….the weather and the lifestyle and the room to breathe.
All other areas will come second in the near future imo.”We are currently trying to learn all we can about Steve’s approach and are looking in Queensland to apply the approach. (Two years ago we went looking for positively geared properties and ended up with a negatively geared one….Great capital gains but we can’t afford to do that again!)
Cheers,
The forum’s newest member
RichmondIt`s about as much info as I can give, without giving away my own plans and reasons for them.
My advise is go for a two week drive up the coast from Brisbane check it all out, that`s what I did and the only way to get a feel for where many will likely retire to in the next ten yrs, I think people like to retire to a warmer climate, they do not want big city, they want beaches, low crime rate, room to move, there is plenty of land up there close to the coast and roads are currently being upgraded costing billions, I have a strong feeling it is only now flexing it`s muscles, and will explode and become the premier place to live in Aussie, from Brissie definately to Bundy, and much much further up, you have the Great Barrier reef and all the incredible islands of the whitsundays not far away. This is the place to invest.This is all relatively untapped imo, and not just with R/E.quote:
Hi Yack,
Your theory, I already did it for many years.
It works.[8D]
JulianI find this comment a bit misleading, of course if you had done it before the boom it would work, anything would have!, it was easy to find + CF properties, but could you do the same now, with the same success…absolutely no chance!.
Also I have met many landlords throughout my years in the painting business and it is only a select few that would recommend it, most lost big dollars and had to slave for years to do it!.
You are assuming a lot who says the property will appreciate in value and without even any renovation?, this method could realistically take twenty years and even then you might make nothing, who knows. You can say who cares I am CF+ but is it worth the effort at all if it`s a pittance for all your risk and you have to spend all your efforts on it, you can`t just buy property this way and forget about it.
It all depends on the market but my thought is that it is better to own ten outright than fifty or however many with a big mortgage, I think it is better to own houses as a way to store your money and get out of the cycle, sooner or later you must buy and hold but my strategy for getting there is different than most.
I would prefer to hold only when I own the property. I`m still learning too but I don`t buy and hold longterm in the meantime so my money is never tied up to long, it all comes down to time.
I see buying many homes, using high equity particularly right now as too risky, what happens if you lose money on twenty properties or can`t rent some or a hundred other problems?, besides this would become a full time job real quick, just finding good deals etc etc.
At the end of the day I hate dealing with banks and don`t like to think of myself as a landlord and with the way I do things now I see some results for my efforts. I take before and after pics of all my houses I enjoy the process.I have in the past renovated a home with a family of six living there, you see I`m a painter so I have done this for 20 yrs.
I let them live there rent free while I`m doing it, only takes 2 to 3 weeks intensive work, and I`m there every day to make sure they are happy as possible, I wouldn`t recommend it, it`s only that I am used to dealing with people in this way everyday, it takes a certain personality type I think.
Failing that I would wait until the tenants move on, they know that my object is to renovate eventually, from the start, so one way or another it works out good, I have some big advantages over your average rehabber in more ways than one.Thanks for the replies!.
No it wasn`t Rockhampton I was referring to, I thought someone might have an experience with zoning issues. I have talked to the council.
The house I bought which is in a supposed flood area has never actually been affected by a flood, the land was though once back in `42, but houses with the same zoning and flood levels two doors away have sold for $200,000, same size block similar house but renovated, the CBD is pretty much a flat area and I was told floodmaps were alll done by helicopter which means they may not be accurate, which I know to be the case.
In my experience for example in Brisbane for years jindalee and many other areas went under in around `74 and the problem did play on the minds of those buying in the area for some time, many of these homes went under to the roof, but still the homes were selling and in this current boom it is all but forgotten.I just want to clear up my business is buy rehab sell within a year I do not know if I would hold any properties longterm, so the flooding issue I suppose is not as big an issue for me.
I like the prospects for quick profit over the next 1 to 2 yrs.Even the flood area houses are only marginally cheaper than those that aren`t, at the end of the day if Rocky doubles it will make very little difference.
I personally stayed away from those because I could, but right now I think if I had the money I`d buy up.I have thought of everything believe me I have been into R/E investing way before this boom came along and have predicted almost to the dollar the increases in the areas I look at, if only I had more money to invest!.
The reason I didn`t do what you mention was purely personal reasons, I have put my money into a ten acre block which is my dream block.
My main object is to outright own my house and land at this point, in another 12 months I`m hoping to accomplish it but it may take a little longer, but ten yrs…no chance I`m not that patient.
Also I have taken 6 months off to work on my land.
Finally I want the money to be honest, I have never had anything much as far as material possessions, I grew up in a big family always struggling for the next dollar, as soon as I see enough profit I bail, I generally think around $100,000 I know this is a lot sometimes I do sometimes not quite.
I have a bit of a passion for turning a rundown third world shack into a house I myself would want to live in but it is draining so I like to get out, pay all my debts and then get back in somewhere else.Also if you continually tie up your equity you are burning the candle at both ends, all your properties will have a big mortgage and if the market dives, homes become difficult to sell, interest rates go up and you find it difficult to tenant some properties you could be in big, big trouble, especially if you are getting in the market at this point, a very bad idea imo.
Terry I disagree some regional areas are going through some major roadworks and where they are placed makes them the perfect investment imo for CG or CF.
Guys if you cant find tenants the home is worthless unless you want to live there.
It could easily cost you money and headaches with little prospects of CG.quote:
house 11) When you purchased your investment?
may
2) How much you paid for it?
27,300
3) What structure is the investment
buy and hold
4) What is the weekly gross rent
110
5) What your net Cash Flow is
115 per week minus $11 per week management and
$1300 per annum rates and insurance.house 2
1) When you purchased your investment?
june
2) How much you paid for it?
16,000 plus 10k renovation
3) What structure is the investment
buy and hold
4) What is the weekly gross rent
95
5) What your net Cash Flow is
115 per week minus $9 per week management and
$1300 per annum rates and insurance.house 3
1) When you purchased your investment?
july
2) How much you paid for it?
19,000 plus 10K renovation
3) What structure is the investment
buy and hold
4) What is the weekly gross rent
115
5) What your net Cash Flow is
115 per week minus $11 per week management and
$1300 per annum rates and insurance.totals:
82,300 investment
12740 in my account every year AFTER costs
net cashflow yield – about 15 percent.cheers-
MiniMini is this still possible?, in your area and how much probs do you have finding tenants?.
Thanks Andrew but I don`t really want to kick them out, just don`t want to get into problems with lawsuits etc.
What go around comes around imo, I like to give people the benefit of the doubt and a little leeway since I`m now in the position to.Guys, is the NZ population growing or diminishing?.
This is lightyears from what I do.
Could come unstuck buying properties in Melb or Sydney right now this is common knowledge.
I would even be suspect about inner Brisbane right now.
North of Brisbane is going to explode in the future, plenty of opportunities, why?….the weather and the lifestyle and the room to breathe.
All other areas will come second in the near future imo.No I won`t have the property in five years.
I am expecting to rehab the house and know this will bring around $60,000 profit, that to me is worse case, it`s very possible I could make much more from the value of the land only.
I never buy houses long term but I am now considering it, usually I rent my houses rehab them and resell within a year.
I am a tradesman and do most of the work myself.
I never concern myself too much with tenants as it`s just icing on the cake for me.
