Forum Replies Created
Dear Chris,
I have greatly enjoyed your enthusiasm and passion for investing, and the way you ask lots of questions – and get lots of replies. You are thinking outside the box. I so enjoyed Woodrows mentor letter (especially about the software and Council regs – which I did figure were all bouncing ’round in your head[exhappy])
I do believe though, with such a go getter, make it work attitude, that before too long you will be giving some great ideas and advice to those following along behind you.
Good on you.
MeegHey Lena,
A couple of things I’d think about. How much you can push the asking price down and still keep your new tenant (old owner) on bourd. How well did they liik after the place when they lived in it and owned it. Also, how easily will you be able to rent it out if the current tenant wants to move out. My husband and I had a few nervous weeks last month after discussing signing a second twelve month lease with our tenant (who we bought the house from almost twelve months ago). This couple had been in this house for almost 20 years, raised their kids in it, and had it immaculate and exactly how they liked it. It didn’t seriously occur to us that they would want out after only 12 months. They weren’t moving away either, potentially to another place in the same town. On the good side, they decided to continue, and a good thing for us is that we self manage this place as we have a good relationship with the tenant. Even though the town is over 100kms away from us, there is no problem, and this all started back in negotiations when we didn’t try to drop his price too much. An excellent tenant is a very valuable asset.
MeegChris,
In Steve’s book – 0-130, he did a deal with the local video shop in video vouchers for tenants who paid on time. The tenant was happy with his new releases, the video shop owner was happy with the extra sales he made with the tenant in the shop, and Steve was happy with the tenant paying on time. Steve’s win-win situations. My husband and I have shamelessly copied the idea, but what we do is this. On commencement of the lease we give the tenant a welcome gift. This could be a voucher from the nursery (to encourage them to garden), or another gift they might enjoy. At Christmas we do the same sort of thing. This strategy reminds the tenants that we are people like they are, working towards our future. Hopefully it adds a facet of humanity and we are not the “rotton landlord”. Often we know the tenants as we have two houses in the town in which we live. Also, it gives us a chance to send them a Christmas card and remind them what Christmas is all about, and that we pray God’s very best for them always. And “yes”, we do actually do that!
MeegSounds great Giullio,
This is not wonderfully healthy but…. pumpkin scallops are brilliant.
MeegHey Paul,
I live in northwest NSW, in a country town. Because we know the area, we have chosen to invest in the region. Not only in our town but in another. Because we are here we know what is going on, how the area works, and what we can expect. We have experienced strong growth on a place we bought for 65000, then spent 10000 on several years back. We have great tenants, but i think we could sell for 130000 tomorrow if need be. The new place we just settled on has 1000sq m to subdivide off the top if we wanted to – right close in town where building blocks are scarce. There is a lot happening out her with mining and natural gas lines and business expansion. Because we live here we are comfortable with our choices. You must do your research whether you do your towns first or your price availability – at the end of the day you want to sleep at night and not be bald with panic. Be comfortable with your choices and your level of debt. And this will become more of a reality and easier to do over time.
MeegSo glad you’re excited Drac. Don’t blow your HSC though. You’ve worked too hard so far not to give it another few months. Find and keep the balance – with your school gear at the moment, your girlfriend because presumably you’ll be working on life together for a very long time, and your future plans of financial security. I think investing is great fun; but the balance of life is important.
Meeg
[grad] – not me, YOU!Hey Shrimpo,
I know you are probably in a hurry when you write, but please also think of us readers who have to translate what you are asking because you’ ve left letters out of words! [biggrin]
Meeg.You might get away with one, but how many commercial premises can you rent to yourself at inflated prices?[hat2]
Thanks Terry,
Does it slow anything down. The family are happy with the sale and everything. It just did cross my mind…..
Meeg The DeegYou are sooooo funny Foundation. That letter is a crack up.I don’t know how you’ll go with it Nathan but give it your best shot [thumbsupanim]
MeegBe careful in asking and involving family and friends (and their dollars). As you are just starting out I think you’ll feel more comfortable and confident after you and your partner prove to yourselves that you can put the hard work in – let’s face it, we have to service these loans for a mighty long time. It may slow down your entry to investing – but if you’re really passionate about it then it won’t discourage you altogether. Steve’s goal setting info is excellent, and can help keep you on the right track. Keep your eye on the big goal, but make sure your smaller goals are achievable.
Just a few ideas
Meeg The Deeg [biggrin]My husband and I (trumpet blast), have three sons, and yes, we are actively teaching them about investing. At ages 11,9 and 5, it is only the 5 year old who is currently interested. They get pocket money from when they start school -70c for each year of life (they don’t get much but they don’t need much). We teach them to Tithe the first 10% (give it to God), save the next 20% and then have some spending for a toy or packets of scoobydoos or whatever. It’s not a big deal, but it’s an active thing we do. Money is a means to an end. You control it, don’t let it control you. We are both heading to 40, and not nearly to retirement. But we are about to sign on another house, and sort of get the boys involved. They are not scared of property investing so that is a big hurdle they won’t have to get over.
Meeg the Deeg
