Forum Replies Created
susie!!!
I am SOOOO gonna be calling you!!
Yay! good luck!!!!!cheers-
Minithanks! Never mind that i can’t add and 390 plus 200 is 590,
but it’s still good at a 44 percent return!sooshie is the doll of dolls
“sooty pooh”, scuse the personal question, but what *have* you been eating?
thanks maria, muppet, recovery, westan and anyone I forgot,
I am gonna go with Stoneman in Wanganui (near both properties, at least has a good feel for the area, and has been my insurance broker so far too.) and had a good chat to the dude there today who says there should be no problem.
However…only 70 percent lend because of the towns I’m buying in (but i knew that!) and not sure if they will go for revolving line of credit because of them being a) rental properties and b) me being offshore.
Thinks P and I won’t be a problem, though.Any comments????
Hi aaron
having missed TT i don’t know what you mean but it sounds fascinating.
So what was the story?? Was it a tenants from hell or ‘poor tenants’?? Which “======” are we trying to find?
We could get stung – ‘we’ being landlords???— oh, it’s a tenant from hell story…..
???I calculated it on the higher of the two amounts. 85 per week x 6 ( = $510) x 52 weeks = $26, 520 per year.
Questions to ask are 1) here’s the list price, what can I get it for – re-do your figures on the new price. Maybe you can furnish all 6 fairly cheaply. I heard of people getting stuff for free off the side of the road on throw out day, by cruising affluent suburbs with a trailer!
2) can you get it with no money down? Either by using equity or vendor financing for 30 percent of it and then lender for 70 percent. Then it might be a bit neutral in the first year but over time the rents will go up and the repayments down so it should get CFP really fast.
3) furnished – doesn’t that attract a more itinerant kind of person?
4) check rental demand in area – how many are rented right now? if all then that’s a good start.
5) get builder’s report. Pest report. remember Steve’s story about white ants in a block of flats, from the seminar???
chances of all flats being empty at the same time is low so it’s kind of like a spread risk within the one investment.
lucky phil –
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acrobat for windows
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This is all very interesting. I always thought I was too small-fry to bother with a structure yet, and that I was immune from CGT by being a Kiwi. WRONG!! Not that I am planning on paying CGT anyway because of never planning to sell, but anyway..~!! I might have to look into this structure business!!
NZ-ers look out for a new programme called ‘Marae DIY’ featuring the builder i’ve used on two of my houses! A real cutie!!!
Don’t forget you have to pay capital gains tax on the profit you made. Unfair really!!! What is it, 50 percent???
I think you make the most profit from ‘hot’ areas. i.e. the kinds that have auctions a la the tellie. Brissie, Sydney. Those kind of houses are usually a lot more expensive though.
Reno kings say spend a dollar to make 5. I think if you spent a day with them doing one of their seminars for a grand or whatever you would probably definitely make it back in what you saved following their tips if you went straight into a reno afterwards.I’ve done two renos, though not for cap gain so much (although that is the happy by-product!) as to be able to attract good tenants and charge market rates. (they were dumps.)
“These seminars and courses are obviously a large part of the income stream for these people and without that income, id like to see how many properties they would actually have just by investing alone. “
I dunno. I think they have to have had success first to have the authority to teach it. I mean, i wouldn’t read a book about property investing unless the blurb on the cover told me why that person was qualified to write about it. ditto seminars
Surely seminars are a lot of work, and they could get the same amount of profit out of one property deal? Surely there is some kind of desire to lift others up, from the ones that are truly passing knowledge on? (not the henry kayes!) And the demand for seminars is created by people hungry for the information?
If it wasn’t for the Steve and daves, dolfs and roberts of this world teaching, i wouldn’t be here now !
Mini
ps
“MiniMogul etc have contributed heaps.”
some would say ‘too much’ hehe!
No seriously, i’m a hopeless forum addict seeking treatmentPPS
When ‘the crowd’ drops out of properties en-masse and into shares (fears of bubbles bursting and low returns) it won’t be that good for the negative gearing crowd waiting for cap gains, but it will be fantastic for the CF+ve owners. Imagine the shortage of rentals that shift will create?
So bummed I missed it. didn’t get in till just now!
For those of us who didn’t get in to the MAP, hey we should do our own ‘shadow’ millionaire programme! Whaddya reckon!!! And all mentor eachother!!!ummmmhmmm come to think of it that’s pretty much what we’re already doing! so let’s keep doing it!
*overuse of exclamation marks! Sorry!*
quite good
meets 11 sec solution….with a bit to spare!!
You might need 30 percent deposit though (????)
good for you!!Someone should take this deal!!
it was actually Terry Ryder.
Make sure you also read Steve’s response, here
http://www.jenman.com/NewsArticles1.php?id=40
PS we’ve already done this whole article in a thread – just don’t remember what the thread was called.
hi Keymaker!!
Which books from Dolf De Roos as there are so many others by him?
‘real estate riches’ is fantastic. Quite simple, quite a good ‘first book’.
>About Henry Kaye I’ll keep monitoring him and see what >happens (not gonna pay for any investment services and try >to do everything for free e.g library)
cool! Did you find the thead about him, here??
>I’ll be going to the library soon as I’m completly new to this >investing thing and be probably getting these following books:
>-Thomas J. Stanely – “The Richest Man in Babylon”that one is awesome!!!
>and the rest of the series of books from the authors if there >available at the library..
>-Steve Mcnight of course..yep – that would be a good on to read after Dolf ‘real estate riches’ . If you are totally new to the subject, DOlf would be good to start with as it gets you used to the numbers which Steve’s book shows you in more detail – i.e. How to work out exactly how good the deal is!!
>-John R Burley
totally. I came quite late to finding Burley (Thanks Leigh!) and he’s soooo readable and sooo good!!
>-Robert Kiyosaki
Rich Dad Poor Dad started so many people’s financial ‘getting their sh*&^%t together’ process, so the guy really is saying the things in a way that appeals to people and they can really ‘get’
without feeling preached at.>-Margeret Thomas
Haven’t heard of her.>-Anita Bell
personally I don’t really LOVE anita bell style. It reminds me of those two page articles in CLEO or other women’s magazines, ‘take control of your finances!’ written in a trying to be funny and cute but really not quite making it kinda way. (quoting)‘how to house-train your credit card and get a credit rating better than some countries’.
“there’s always been arguments for and against having a credit card – the decision comes down to personal choice.”ZZZZZZZZZ
sorry can’t do Anita>-Jack Collis
>I feel as I am starting this investing thing all too late as I am 22 >yrs old now…
!!!!!!!!!!!!! I can’t believe you think that 22 is old! By what criteria!!!
You are only three years past a teenager!!Even if you were 48 and starting out you could stoll be a millionaire by investing 10 percent of your income by the time you retired.
see steve’s other site
wealthtipsonline.com.au
and click ‘personal’ and then ‘secrets’ to get the calculations on how that works!>ohh well better late than never…lol
stop it about the ‘old’, ‘late’, and anything else
>Is there anyone or anything else you would recommend like >courses that put all this info to practical use?
yeah the books have it all going on. Start with Jon burley’money secrets of the rich’ or ‘rich dad poor dad’ or ‘richest man in babylon’ then go into the property books a la steve, dolf
>And there should be a section in the forum for all the new >investors or millionaire wannabies…hehe.
we’re all millionaire wannabies!!!!
(or *enlightened* millionaire wannabies, as per the definition in ‘the one minute millionaire’ robert allen/mark hansen which is SUCH a must read, i am almost ready to put it up there with rich dad poor dad!!!)sleepy in sydney
*mwa mwa*
ok one more go round the block
” Followers of fundamental analysis seek to buy the right shares at the right price.”……
“a few people have said that shares are boring!?”
yeah it was me – it’s the fundamental analysis part that i think is boring. Reading annual reports, and such.Having to have an encyclopaedic knowledge of the economy and always reading the financial section of the newspaper.
> they can be very exciting
yeah, like when you are waiting for that little roulette ball to jump into the hole with your number on it….>Try liquidating just 745 bricks in your house.
I think liquidating defeats the purpose of RE – it’s buy and never sell, as far as I am concerned! Anyone I know who ever sold has regretted it – ‘imagine what it would be worth if we hadn’t sold it!”
>What is a better way of owning part of a progressive >company without having to buy it outright?
now that bit I do get. But finding out which is the progressive company is the trick. (and to me the boring part.) Also, some might be very very progressive, but if they make a bad business move they’re over. hmmm.
>Try buying and selling the same property 4 times in one day >with a profit at the end.
no thanks! that’s way too much work! That’s a full time job!!
> Ever seen a Daytrader not transfixed by a computer screen?
no! I know one! And basically if they don’t trade, they don’t earn!!! And the ones I know suffer from all manner of stress-related medical conditions, be it high blood pressure, heart, skin rashes, you name it!!! They are unde pressure to perform – either with their own money or someone else’s.
> It’s a great computer game
yeah and an expensive one if you happen to not win.
I have some great games on my computer I hardly ever win, I get the adrenaline, but it doesn’t cost me. Meanwhile my properties earn me rent no matter what prices are doing.
And if prices start ‘doing’ stuff, it’s not a daily, hourly, or weekly thing – it happens in months – and even that is ‘fast’ for property…>and there’s always the opportunity of realising far better than >the promised return of 87% on poker machines.
yeah, a bit like a 36-1 win on roulette. OK I know it’s not gambling really. But yet….
>Warrants, put options, margin lending, derivitaves .. allow for >a profit even when the share price drops. Make money on >the way up and also on the way down.
see this is where it loses my interest. Sounds like a full-time job to watch it…..and the people I know that do shares while they have another gig, they check their shares three times a day, or more – they either roll their hands with glee at how much money they made or wring their hands if things went the wrong way.
>Steve’s risk lies within a reasonable jump in interest rates
yeah, true, that’s what his new chapter is about. Have you read it yet?
Anyway. Dolf de Roos bought his first house when interest rates were 27 percent. in NZ. Can you imagine that!! Inflation was pretty high then too i think. Anyway. Rents were skyhigh at the time. Shortage of properties for rent…he still did really well. I think that if interest rates ever go that high again (unlikely, since inflation is capped now, right??) then it won’t be suddenly – it will be over time. A percent every few months or something. So people will have time to adjust their rents. If some people dump properties it will force rents up. blah blah blah blah
g’night
Mini
Hi Nelson,
>Hey you fellows sure know how to pick the rotten places to >invest. what is the point of buying in a town that is almost >dead.
what rotten/dead town are you talking about???
>there is absolutely no point in buying in a place that has no >capital gain.
Yes there is – cashflow! (even if that were true – and even towns like T**** have capital gains.) Buy at 5k in 1991, worth 50K now.
(actual figures from KtKiwi a while back if I quoted correctly.)
At 5K back in 1991 it was rented at 20 per week. Sounds ludicrously low eh!!. But the rent (for the 5K house) is $130 these days. That’s a pretty good return if you add together all the rent you got back over the years, indexed for inflation and slowly going up from $20 to $130 per week. After the 5th year that would be like ‘free money’.I’m sure that people buying the $50K houses rented for $120 per week *now* will be doing similar calculations in ten or 12 years time. Capital gain will happen. And I reckon the growth won’t even be that different from the national average.!!
Anyway so you have your cashflow properties which support the shortfall from your capital growth negatively geared properties. So you don’t have to work more hours of earned income just to keep buying houses, and so you don’t max out and can keep buying indefinitely. i.e. Steve McKnight 101!!!
>buy in a city that has high population growth and high capital >gains.
I am not arguing with the fact that a balanced portfolio would have some of those properties in it.
>If you have trouble finding a good tenant in a bad area then >often you have to compromise by taking a dodgy tenant then >you can quickly eat up your imagined profits.
That is true and from now on i am going to make sure there are no gang members in the streets where I buy!!!
>Buy in Nelson and get me to manage your property.
If I can ever afford to get in to Nelson…yeah fer sure! Hey – if you ever find a dump in structurally sound condition for a bargain, let me know! for a cut of course!!cheers-
MiniI know someone who has (with some kind of syndicate) just purchased 10 brand new beachfront apartments for equivalent of about 96K NZD each. Negatively geared of course because there are no tourists or renters there at the moment! But hoping for huge cap gain in ten years (intended time of holding, at least.)
Then I heard from a friend whose Dad lives 1/2 the year in Bali that you can’t buy property there – only Balinese can. So would have to do joint venture with a Balinese.
let me know what you find out. would be interested. bali is a faaaabulous place.
