Forum Replies Created
hi spider, do i know you?
*squints*
anyhoo, check your emails!
cheers-
MiniHi muppet, how are ya!!!!
oh, my short post, well, I just edited it so it’s longer
*hehe*moderator?
Probably never…hehei am way too immoderate
currency converter with up to the minute exchange rates
http://www.propertyinvestor.co.nz
Kiwi Property Investor magazine – a magazine about investing in NZ real estate – highly recommended, I get it sent to me every month
just an aside, according to the KPI website “The message is coming through loud and clear Ð from an increasingly wide array of media Ð that residential property is the new, albeit slightly more conservative, rock Ôn roll. “
ahhhh!! that would explain it then….
cheers –
Mini*rock chick from way back*
Hi Maggie,
wow, the first person I’ve met in my whole life who said “positive cash flow won’t be at great benefit for us.”
hehe!!! but I think I get what you mean, which is, that if an investment pays off later it’s OK if it doesn’t pay off now, i.e. negatively geared properties for capital growth?
the problem is that the capital gain part is not guaranteed – prices might go down. like everyone is screaming around here.
And so would you be prepared to buy a property that not only lost money each week but could quite possibly go down in value, at least for the shorter term?
If so then go for it.> not sure what they mean with properties that have 7% >yields.
It’s a bit like interest rates – put cash in the bank, the bank pays you 3 percent or whatever the going rate is, borrow money and the bank *charges* you 6 percent.
So your yield is like your ‘return’ or the percentage of the purchase price you recoup every year.>Is it a persentage of the rent based on the sell price
yep> or this it clear profit per year after deducting the cost >associated with the property?
don’t think so although they are always advertising IPs for sale where the vendor ‘works it all out for you’ and writes it into a glossy brochure. In those cases take the calculations with a huge pinch of salt , if stories on this forum are anything to go by
>I have found a few places where the rent return is very good >of course it does not meet the 11 second rule.
i think the real problem is that people these days seem to think a rental return of less than 10.4 percent is ‘very good’.
mmm. brings us back to the question of whether you can rely upon capital growth to do what you want it to dojim – they say ‘land appreciates, buildings depreciate’. i get the concept of depreciation of course- you can write stuff off and save tax etc but it’s not actual income, it’s actual losses made to look OK on paper.
Re “This effectively increases the total number of properties they can purchase. ” I would have thought the opposite is true for negatively geared properties, cause you can only save so much tax…also losing $1 now to save 48 cents in the future, i don’t really get
hi there,
>found was that the more you ‘buy’ the property, so the >greater your equity either via capital appreciation, or paying >of the mortgage, the lower the return,
no – the return is calculated on what you bought the property for, as that’s what you’re paying off (or paying outright.)
Capital gains and rental income gains added together are your ‘gross yield’ – which should get better over time if you are putting your rents up in line with inflation, and if capital growth is up not down.> including Steve’s cash on cash return.
Cash on cash return means a return on the actual amount of cash (not equity- deposit, buying costs) you put into the deal in relation to how much cash (not equity or cap growth – which is not cash!) you get out.!
>through capital appreciation, that net cash on cash return >was down to 5%.
uh uh it would be going UP not down (if you put a small amount of cash in for closing costs etc) and infinite if you’d put no actual cash in the deal. The cash on cash return is in relation to the CASH you put in way back when you bought.
i think you are just getting confused and doing the numbers as to what return you’d get if you’d bought your investment today. You might find that the deal wouldn’t be as good a return if you bought it today.
>I’d be interested in knowing what you think the opportunities >are as your equity increases in a property
i think the idea in general is to ‘leverage’ – use the equity
and /or cashflow to fund deposits and closing costs of further positive cashflow properties (i.e. income-producing assets indexed for inflation that increase in value) – and never sell the assets themselves.Sure before you wanna retire you can pay off some debt, maximising your income
alf
>I reckon westan may have it together
he so does, he is all over it
>here he is selling some of his properties and moving into >something thats going to give him better returns.
yep – who wouldn’t? But again as richmond says he’s already said where, and why etc
>i get a feeling with steves book and the lessons of negative >gearing that everyone is on the bandwagon for positve >cashflow properties.
>Now you have to go to extremes to find one.it depends what you call extremes. i live in inner city sydney and put it this way i had to go more than five K away from the CBD to find positive cashflow properties (*understatement of the year* heheheh!!!) Is that extreme? *shrug*
>Steve however can buy 25 in one hit?.
Yep but don’t forget he has 130 properties to leverage from – their increasing value and/or cashflow.
>I know some of you are going to say there out there i just >dont think its as straight forward as looking in the regular >places.
ummmmmm……not wanting to sound facetious but I have found all my properties in the ‘regular place’ which is a real estate agent’s ‘for sale’ listings.
>Maybe you may get the odd one
well how many do you need? i’ve been buying the ‘odd one’ at a rate of one every three months which I intend to continue doing. There are more deals that i’ve seen than i can buy myself. All the successful investors will tell you that- because it’s true.
>but boy if you dont wear glasses when you start youll need >them buy the time you finished. Then you have to be so quick >other wised half the country is storming to the same >property..lol
I would agree that if you are looking to buy and you find a deal, don’t dick around, move, take action, do your numbers, have your lawyer lined up, your finances sorted, put offers in, be decisive. As a beginner (if you are one) you could do worse than following dolf de roos’ advice – look at 100, put offers in on ten, three will be accepted, you end up buying one. Get his book ‘real estate riches’ if that doesn’t make sense to you at all. Basically, by looking at 100 you’ll learn the market – and spot a good deal when you see one – by offering, you’ll learn when you’re too low (all ten rejected) and too high (more than three were accepted.)
You are right – someone else will find the same deal and buy it, if you don’t.
The first deal I ever found was for a 3 bedroom house for 29,000 (a dump though) – freehold and on a whopping 1600 sqM of land, complete with sitting tenant at 90 per week who’d been there ten years and wanted to live there till he died. Section already half-way subdivided, 5K from beach in booming/hot capital growth area 2 hours from capital city. I dithered. i missed out!
The house was sold for 27K.i was bummed! That is until i found deals even better than that.
really and truly.>I think to start to find them in the very near furture one will >have to think outside the box and do something different.
true. can’t hurt.
>Steve was doing it when others were selling negatively >gearing.
yep – but don’t forget 90 percent of properties will be negatively geared, so there are always going to be more people doing that.
>Steve is looking and doing commercial properties now i >believe.
I know steve has bought blocks of flats before. when I first started looking at property I found a block of 8 flats that I was interested in, in a city fringe light industrial suburb adjacent to a shopping mall and the major employers. Although the returns were OK at somewhere around the 12 percent mark and more if i’d negotiated it down, I wasn’t comfortable with the ‘all eggs in one basket’ factor at that point in my investing life, plus the land content isn’t as much part of the value as with single houses. I feel as though land content is the real long term valueable thing in RE investing and so I went for houses and I don’t regret it. However I do see that at that end of the market there are less buyers, bigger numbers with less work (maintenance of a block is less than on 8 houses, for a start)
and that I may one day work my way up to commercial residential property. Commercial non-residential property doesn’t really interest me, at this stage.>property prices have skyrocketed
yes and unlike the sharemarket I don’t think they will ever ‘skyrocket’ down again although you can get plateaus and slight downward trends. So basically get in the market and stay there, i believe houses will never be this cheap again….
>make your money first westan then share the info >cheers…..Then write a book
yeah i want westan’s book too
cheers-
MiniI got here too late!
yep i would have done the same, except maybe bought it- and negotiated harder at the front end in expectation that the builder’s report was going to be bad (they always are at that end of the market, aren’t they??? especially if they have been rental properties???).
As a buy and hold kind of person myself I’ve always sorted the finance ahead of time so I have always been able to make a ‘cash offer’ – and i strongly believe cash buyers can get better deals to the tune of thousands.
I heard that most deals fall over due to finance not coming through. I know Steve wouldn’t have that problem of course.
I would have offered the vendor a short ‘instant’ settlement thus further (hopefully) making the vendor start drooling like mad not to mention the RE agent!. This would hopefully add to the pressure the agent would put on the vendor to accept my offer….hehe
Which might have ended up somewhere around the 44 k mark after a bit of back and forthing.
Also B+H’s, we want the rent coming in as soon as possible.cheers-
MiniOn the East Coast of the US all the boys study law and finance and nobody’s into studying science, so they import a lot of medical practitioners. In Germany in the 80’s no Germans wanted to do the menial jobs such as dustmen, Macdonalds night workers, so there were a lot of Turkish ‘gastarbeiter’ (‘guestworkers’) brought in to do those jobs.
So i think that in the future immigration will be the answer to the ‘gaps’ in the work-force. Probably, otherwise the place will go broke, kinda cutting a long story short…
On the East Coast of the US all the boys study law and finance (in the article it didn’t talk about what the girls study) and nobody’s into studying science, so they import a lot of medical practitioners. In Germany in the 80’s no Germans wanted to do the menial jobs such as dustmen, Macdonalds night workers, so there were a lot of Turkish ‘gastarbeiter’ (‘guestworkers’) brought in to do those jobs.
So i think that in the future immigration will be the answer to the ‘gaps’ in the work-force. Probably, otherwise the place will go broke, kinda cutting a long story short…
hi johnb, canberra huh, I’m gonna be there on Monday,,,
re suburbs, subscribe to API magazine which is good to keep finger on pulse
there are websites you can purchase info about suburbs, residex or something?PS
thanks AD*impressed*
wow, not just one but two Ron Sexsmith fans here!!! I’m sooo used to ‘Ron who???’—- hey you have to check out Shane Nicholson too. Local S/s who I hold in very high regard.
And how do we feel about Elliott Smith? My faaaa—-ve. But I also really love pop. As in the charts. Yes really. I know with Elliott and ROn it’s usually one or the other (pop *or* ‘good music’) but I really do like pop. from pink to teenage dirtbag to delta to lifehouse to beyonce. If I didn’t, what I do would drive me nuts, so lucky really.
I live and breathe music even when I don’t think that I do. My hobbies….aside from that…let’s see….property investing….hehe…
That’s been my newest most all consuming ‘hobby’ as it’s involved a year of research, seminars, and weekends away renovating, not to mention the buying process
Does Reiki count as a hobby? cause i’m a reiki practitioner, though not for $$$ just for love.
I also grow wheatgrass. (gahd what an urban hippy i am sounding like.) It looks so pretty and makes really disgusting tasting juice that makes you feel a million bucks. I got onto it in the US before you could get it here.
I also love travel. if I don’t go overseas at least twice a year it’s unusual.
spending time with my boys – swedish love of life and his son. I’ve been getting quite into digital photography, especially messing with photos after the fact in photoshop. fun.i am a girl so I looooooove shopping and fashion and stuff, i have this thing for the belgian designers…
I have of course seen the error of my spendthrift ways since getting into Prop Inv so my wardrobe is not what it once was. But I still *look*
heheI am not using structures yet because it would lose me money, for various reasons – what westan said, plus the cost of setting up and maintaining structures would be more than i would ‘save’ in tax.
Also, doing something solely for the purpose of ‘saving’ tax is illegal, i heard. (asset protection is another thing however)
I like muppet’s idea and when I do something it will probably be something like that.
cheers-
MiniHi John,
“Hi MiniMogul
After reading this topic I can understand how you got your name. “u mmmm yeah… you make it up when you join the forums – hehe!! It was a bit of a fake-it till-you-make-it name in my case because at the time of joining I don’t think I owned a single property yet!!! “from zero to 3 properties in 6 months”
>I’m new at this forum stuff and property investment game and >you sound so successful, it’s great.
Ahhh….hehe…..”sounding” successful is a lot different than “being” successful….I sooo don’t think that I am ‘there’ yet – (though I also think I will be, one day—!) though I enjoy shooting the sh”””t about property investing and at least now i have three which is better than having zero a year ago, I’m very much learning as I go -making every mistake in the book – and writing about it here- and having fun.
>I would like your opinion or your boyfriend’s opinion. Can I >work for no wages with him when he is renovating so I can >learn.
Definitely. However we are buying in NZ. If you’d be keen to go there with him next time I’m sure he’d love to have you. We’d pay you too at a labourer’s rate if you want to actually work not just watch…? bring an air mattress and sleeping bag…!!!! or maybe we could pay the airfare…anyway I don
‘t know when the next one will be, or where, all I know is that there *will* be a next one!!>Obliviously I would take out protection for your boyfriend so >he couldn’t be held responsible for me if there was an >accident, we should be able to work something out.
Hmm, I’m not sure, is that necessary??
>I’ll be moving to Melbourne round Xmas. Please consider
from where???email mats (my BF) with your details and maybe you two can chat some time. his email address
matsfrankl at yahoo dot com
cheers-
Minidoogs-
i got samples of the whole darn orchestra…whaddya need?
miniyep all of the above!!!
update about the house with the fire, house is still in post-fire pending-repairs condition (has been insurance-assessed) – but tenants don’t care about the fireplace, they just wanna move back in (so they have!) – but now the element on the hot water cylinder has gone. Probably nothing to do with the fire (agent thinks.) However tenants would prefer to live there paying full rent rather than not live there while it is getting fixed. they love the place, yay!
So they are in and I guess i will eventually get $$$ to do the repairs.
cheers-
minito ask the agent –
“I know what the list price is, but what’s the *real* price???”
often the answer, “well I know the vendor wants at least XYZ for it” will be (a lot!) less than the list price, so consider that the new ‘list price’ when formulating your offer
“if I buy this as an investment property, will you property manage it?”
I swerved away from one great-looking property in a city in NZ when the agent answered ‘wouldn’t touch it. We used to manage that property and had nothing but trouble.”
Questions to ask a different agent -“what would this house rent for?” and ” what’s this area like?” and “what’s rental demand like in the area?”
because the selling agent might tell you a figure which is too high, and talk up the area and rental demand
cheers-
MiniHi Sach,
re: IT professionals, -a PC IT person wouldn’t necessarily have a clue about Macs. My mac boffins say it’s impossible.
No matter what may or may not have been announced officially i know through friends that a suspected computer did have the worm.
Yeh meeting forumites in real life is fabulous!!
whether at Steve’s seminars, or at privately arranged get-togethers!!cheers-
MiniHey Sach,
It’s the sobig-F worm, which I apparently can’t get –
http://www.symantec.com/avcenter/venc/data/w32.
[email protected]http://www.bayarea.com/mld/mercurynews/business/technology/personal_technology/6583164.htm
If you are correct then that’s pretty weird, because all my research (and copious use of Norton Anitovirus, Agax, and others) indicates I not only don’t have a virus but can’t catch one. Macs don’t run .exe’s.
So my email address must have been ‘hacked’ as in the above explanation (the first link) because it was on a another computer (PC) which got the virus and had my email address on it’s database. I guess that’s why changing my password seemed to fix it. Sooshie had it too, so I assumed it was propertyinvesting.com…..
I think it is sorted out now, I changed the admin server log-in to my web-site, as well as all my email log-ins
cheers-
Minidiamond, that’s brilliant, was it the one you wanted?????
that you thought you’d missed out on???cool about the ‘still buzzing’ part as well!!
it was gorgeous to see you too and you should have recieved the photos by now!PS info about the two north island ski resorts on Ruapehu is here – one is Turoa accessed from the Ohakune side and the other is Whakapapa accessed from the National Park side.
http://www.ciau.com.au/snow/turoa/
love Mini
