Forum Replies Created
“But Kay, the story would be short, because so much of it revolves around “secrets”.
Richmond, you crack me up!!!
SIS, I know you feel like we ‘get at you’ with doubt, but why shouldn’t we?Others with spectacular results (steve, brenda irwin, etc) have been happy to share their stories. You KIND of do, but always short-circuit with ‘secrets’.
things are secret, in my opinion, because they are illegal, immoral, or just wouldn’t work if everyone did them.
that’s fine, I guess, you don’t have to tell and your life and your decisions are your own, but it does make me want to….take you with a generous pinch of salt, because no matter what you say, you could be just completely making it up. or omitting a few salient facts like how much capital you had, how much help you had, and how you got the capital in the first place.
I don’t think (domino effect, the licorice allsort principal, or whatever you ‘call’ your secrets) that there is a property investing strategy that between us all we don’t already know about. but I sure as hell know that you *want* us to think there is…
I subscribe to KPI magazine and The NZ property Investor, and i occasionally buy API from the news-stands. i used to get API all the time, until I discovered the NZ ones, and seeing as that’s where I am investing for now, I find it useful.
but yeah, industry magazines, no matter what the industry, are invaluable.
A lot of the things I know about NZ, I picked up from the mags. i.e. someone was asking about subdividing in NZ. I remembered one of the articles in KPI about ‘the 17 steps to subdividing your property’ and just basically looked it up.
yack, on re-reading your post, I noticed – as usual – you never miss an opportunity to diss a) seminars and b) cashflow investing do you?
Well, as a person who hasn’t missed an issue of API magazine, you’d remember the article comparing two case studies, one negative geared, and one CF+ve, which came out better? CF.
Marginally. but that was right in the middle of the boom. it would be better than ‘marginally’ now.And as for seminars, magazines don’t replace seminars, just like books don’t replace movies.
both have their merits.land appreciates, buildings depreciate. Strata fees, blech.
i think stick with houses + land.
they’ll be the ‘gold’ of the future“SIS
So you are one of the people who believe that there cannot be a bust? “Of course you are partly right in that property busts are more mellow than share busts.
but still,
I think its’ selective ‘believing’. Of course everyone who owns property in Aus doesn’t want there to be a bust. the ones who are the highest geared and therefore are most vulnerable will want it least!!
i think a lot of negative gearers wouldn’t be looking forward to paying in to a property for six years while it loses CG or stays the same (still a loss, compared to inflation)
I think everyone who does not own property in Aus but wouldn’t mind, will be selectively listening to the ‘data’ and ‘opinion’ that says that prices will soften, crash, flatten, drop, correct, or whatever jargon you want.
i think if serious ‘softening’ does start to occur, it will occur in Sydney first, then Melbourne, then Perth, then Brisbane last, in exactly the same order as those regions boomed.
Has Sydney already started ‘weakining’?
or should that be ‘melting’???You were asking about wraps. Basically in a wrap you become a financier, and you make your money on a margin between what it costs for you to borrow, and what it costs the person buying the place.
the hardest thing about wrapping is finding and qualifying a lead. Most people who you would wrap to wouldn;t be able to get finance the traditional way, (not even low docs) otherwise they would. So a high end property doesn’t really go with the usual kind of wrappee. Also bear in mind that if it was a 5 percent yielding property, a tenant would be able to rent the identical place for half what it would cost them if you wrapped it to them at 10 percent. Plus they would have all the maintenance and strata costs too.
I just very much doubt you’d find a suitable person to wrap the property to. Remember you have to mark up the property too, to guard against default, and then if you did, there’s always the possibility that the wrappee would last about 5 minutes and then default, and what would you do then?
I sound negative about wraps and I’m not really, but i think they are a strategy perfectly suited to a house that is going to cost a tenant the same price to rent as it would to buy,
as in, cashflow positive properties at the lower end of the market.
just my 2 cents.
Just whack it on the market and let the market get you the highest price someone is willing to pay at that time.Any alternatives to an agent sale sure saves you commission, but how will you market the property?
cheers-
minifabulous benson!
” going dressed as a hippee…no shoes, no bag, no pens, scratch the head a lot, blow the nose, cough, clear the place out pretty quick eh? good tactics?”
elves, that won;t work, because people will mistake you for me… hee hee…
Does anyone wanna (kay?) email me your mobile number on the day? I was gonna come on Sunday, but now, I am torn, because my love-of-life is arriving back from a tour, and we’ve only seen eachother for 2 days in the last 27 and love-of-life just SOOOOOO WON”T want to come to the expo, I very much doubt. But let me work on it. I may be able to have my cake and eat it too, so to speak….
cheers-
minimight be a last minute thing,
PPS
Might have to get a quick ‘MiniMogul’ t-shirt made up at the Paddo markets on Saturday, just in case…nothing wrong with multiple streams of income, I’m all for it, in fact that’s my strategy! not just with property.
I just reckon that a lot of the ways property gurus teach investing only really works (is replicable) in a boom. but CF+ve investing is replicable over and over no matter what CG is doing. Hence 370 in ten years, carrying the 130 in 3.5 years figure on at Steve’s success rate, is possible – and only 10-15 by Margaret’s method.
A ten year period should include one whole ‘property cycle’ so you would get a growth cycle in there anyway, where even ‘non CG properties’ go up
“im always talking about investing or property if thats what the converstation is about, but anyone here can talk to me about property all day long and no… lol i wont get bored… “
totally agree SIS, viva la forum!
Richmond, ME me me, what about me, why don’t you want to come to Sydney and meet up with Me Me ME
pick ME
cheers – Mini
Oh yeah, answer the question, I reckon my properties have gone up 50-60 percent, based on what i see for sale in those areas and comparable houses. Also because there used to be 300 properties for sale and now there are only 30. Demand and all that. Add to that my 20 percent returns which are really only 10 percent because half of that is holding costs, and that’s not too shabby. Plus don’t forget I wasn’t even doing it for CG, which i thought could be negligible, I was doing it for CF to get my income up.
Anyway now that I feel confident everything is working out, after a year things are settled, maintenance is fully sorted, I am ready to gear.
Oh here’s a cute thing, I swapped a week’s free rent ($115) to some new tenants I found out were professional gardeners at an old people’s home after discussion with my rental manager. The rental agent has since been to inspect what they’ve done and she says it’s sensational and that they’ve done an enormous amount of work. Planting etc. Cool eh.!
Improving my property just in time for valuation at minimal expense!I agree. Lomas is about exciting as an Anita Bell book.
And of course Steve isn’t God, God has his own web-site
by a spooky coincidence, and if this is deemed to be advertising, then remove it, but you did ask what you should do with 42k and so here’s my answer. we have a property we are bird-dogging which is purchase price NZD 42K, which means less in AUD, you’d have enough to cover the other purchasing costs, and it’s a 16.1 percent return. It’s a 3 bedroom home on 1200 squ metres, polished floorboards, in really good condition, and the vendors (a retired couple) want to stay on as tenants for a bit. There’s no visible damage or maintenance needed that Leigh could see when he photographed the house, and I have 8 very good high res pictures. i think you would really be amazed at how good this house is for the price. Also, it’s in a town with very strong rental demand, i think last i asked, there were 70 people on the waiting list for a house, and zero properties for rent. I have successfully bird-dogged four properties in this town before, apart from my own properties, and one I helped my parents get.
To be quite honest with you, if our customers don’t want it, I’m going to do my very best to purchase it myself. even though i should probably think about diversifying, i really like the town.
45 minutes from Lord of the Rings Mordor locations.
cheers-
minii think *selling* off the plan, as a developer, is okay, I mean I’m sure you’d make money. I guess i just don’t really think it’s a good idea to buy OTP so I would find it hard to be ‘selling’ it to someone.
The reason I reckon buying OTP is bad is that resale values seem to be a real problem, according to this article –
…..”A comprehensive study of resales of new apartments in Melbourne over the past 10 years provides the most damning hard evidence of the capital growth myth. The new study by property analyst Charter Keck Cramer of the 3000-plus new central Melbourne apartments sold since 1992 shows the average price gain was 1.3% a year after inflation. “
…http://bulletin.ninemsn.com.au/bulletin/EdDesk.nsf/0/716ca9a406a48fdaca256c170010bf31?OpenDocument
basically, because more and more otp properties are built, and nobody wants last year’s model. Also, the land content in an apartment isn’t there like it is with a house + land, so you get the ‘buildings depreciate’ thing, but you don’t get the ‘land appreciates’ thing so much.
Also i generally think that OPT deals show lame returns, made to look better than they are by tax write-offs. i mean, if you were high income club it might work to do it once. But I wouldn’t imagine it would be replicable.
Aus prop, totally, and that’s exactly how I see my IPs, like little mini commercial properties. But because they are residential, they have the best of both worlds…returns which after costs including full management break even around 10 percent (same as a decent comm. prop) but also have capital gain, because it’s residential, (despite the fact they are in towns where people told me i wouldn’t get capital gain, and one of my properties has probably gone up 50-60 percent in one year. then again I did get a good deal at the time too, but then again I always get a good deal hehe)
Also, no matter what the economy is doing, recession or boom, my properties will always attract tenant, as it’s a below medium price and rent property, and so no matter if people are moving up in the world or downgrading, I should be all good – unlike commercial properties, which tend to suffer in a recession as people move to working from a ‘PO box’
try NZ!
I only somewhat agree having done two renos.
Part of the reason i got them so CHEAP is that they needed maintenance and redecoration (but I must stress, were structurally sound.)Solving people’s problems is the way to make money in real estate. i learned that from a certain millionaire property GURU
hey GURU, yeah you, the cute one with the glasses and the cute smile,
*yells and waves*
you ever read this forum any more?????yah, so, ongoing annoying maintenance issues are obviously no good, but sometimes you add up the costs and it’s worth doing, like i reckon mine were.
yeah and they didn’t have any what i would consider good deals.
wayne, it’s likely to be the area with the lowest median house price.
Yeah Kay, thanks for saying that, I get a kick out of it too, even though 2 out of 3 properties I own I’ve never been inside. (that, bizarre but true, includes one of the houses I renovated!!)
I must get around to having a picket fence put up to replace that shitty concrete blob of an excuse for a fence.
My first house cost 27,300. bought it last April.
Yes, still have it! probably worth 44-50K now.it’s been rented out constantly for 110 per week.
it was a well maintained formerly owner-occupied villa, in good condition, in a town of 1500 which is about 1/2 an hour from a town of 45000 and on the ‘surf coast’.20 percent return and it was the only one of my three properties which needed no renovation, all though it’s a bit grandmotherish in style, but in good condition.
I think it would be worth 45-50K now, compared to the only one property for sale in the area right now that I can find on the net, which is “45k ‘motivated vendor” and mine is of comparable age and style, though it has a better section being on a corner, with extensive garden and big palm tree, i think it even has a flagpole (never been there you see!)
SOOOO
i think it’s probably gone up around 50-60 percent in less than a year.
Sunday for me
