Forum Replies Created
> Will there be too many rental props on the market and not >enough people wanting to rent? Will this force returns down >in a competitive market?
Hi there,
I believe the trend is that houses are getting less affordable and that the percentage of renters is rising. It follows that we need more investors. I’m no economist but it is logical to me that if interest rates are down now that’s part of the reason why more investors than ever are buying. The moment they rise, the borderline investors hanging by a thread will dump.
Then rents will go up because not such a glut….
at the moment we have a bit of a glut of rental properties so i reckon if you can make them work now it can only get better. Long term, the world has an increasing population, so short of major catastrophe, I can’t imagine property ever being a dud.
if you are worried about gluts make sure you buy a good quality property that is always gonna get rented over other ones, whatever that means in your area.cheers-
MiniNot sure how much use this is to anyone but I’ll post it in case one day someone can use the info.
I only know about two NZ, in Wellington actually.
No Names Building Supplies in Adelaide Rd, Newtown.
My Dad has been scoping it out on my behalf and was impressed, even my mum loved it and couldn’t believe the size of the place and how much stuff they have and how well organised it is.I am getting a bunch of stuff from there for my newest place in the central north island such as a new kitchen bench ($145) handbasin with taps ($45) , curtain rods, carpet, lino, taps, shower stalls, you name it!
There’s another smaller one in Lyall Bay too.cheers-
Mini50/50 – you can’t get fairer than that!!
I’ve heard of quite a lot of partnerships where one half is the money partner and one is the time partner.
If I went into something with my folks I’d do the same – 50/50.cheers-
MiniThe thing which is so interesting is why this dude has to spend so much time and energy running RK down.
He’s probably jealous of his success and is living in fear/lack rather than abundance – he feels RK is ‘stealing his customers’.A lot of those criticisms are just silly – RK isn’t saying education is bad, but he criticises the trend of people wanting their kids to ‘go to school to learn a profession or trade so you can get a nice safe and secure job with good benefits’ – as something that worked in the 50’s when his Dad was young but is not working for people now.
If Rich Dad was a real person RK obviously wanted to protect his rich dad’s privacy by not naming him. Even if RD was made perhaps a combination of two or more people, who cares?
The lesson works -which is that the middle class educated highly paid person who spends all they earn and more is tied to their job by masses of consumer debt, your own home is not an asset (except to the bank!) but a liability – and an investment is an income-producing asset that puts money in your pocket. When your income from your assets exceeds your liabilities and expenses, you are financially free! So simple!i wonder how many people who are dissing RK are now wealthy themselves? Probably few – if you have that much energy to find fault with others all the time, then you are probably way too busy to get your own stuff happening!
I wonder how many people in the world are saying ‘i took control of my finances and changed my life and became an investor’ because of RK? Zillions – and that’s just counting people I’ve heard say it!! If you speak the truth, the truth has wings – and RK’s book is selling by the truckload because people who have read it are evangelising it to others – because it works. RK works on the mind-set which has to change first, before the specifics.
It’s only 30 bucks to buy Rich Dad Poor Dad, not that much of a downside if you hate it (sell it!) and I think it’s one of the most definitive ‘first step’ books that there are about moving away from what I call ’employee consciousness’ to ‘entrepreneur or investor’ consciousness – to do as the rich do and make your money work for you. He doesn’t tell you specifically how – apart from saying the three ways are stocks and bonds, building businesses, and real estate, but he does stress the importance of eliminating consumer debt, spending less than you earn, and investing a portion of what you earn every week.
Not unlike the John Burley message.RK’s book led me to approach my self-employed status as a business rather than a JOB – to try to learn stocks and shares for a year before realising it was not for me – and finally to investigate property investing which is where I’ve ended up- happy and loving it.
RK is a happy chap, if you see him live, you’ll notice this – he loves his life-, he smiles, and what i thought was particularly cool as a chick was that he got his wife up to talk about ‘Kim’s first deal’. Kim is a gorgeous blonde well-groomed news-reader type and she said ‘being married to RK, the last thing I needed to do is start investing – I had Robert for that. But he encouraged me to do it in my own right, even though it was totally foreign to me, outside my comfort zone, and none of my family had ever taught me anything about it.’
So Kim’s first deal was a 45K apartment (now she has blocks of ’em!) and she said it was the scariest thing she ever did.
I really like how even though she was Mrs RK and happened to be married to a brilliant mentor it was just as scary for her as it was for me.I’m so thankful for this forum where I can indulge my current obsessive/compulsive urge to chat about property investing, wealth creation and the like – my BF is happy it exists too because now I don’t have to bug him and try to talk about something he is probably only interested in because he loves me and sees it makes me happy- but doesn’t necessarily want to think about and talk about as much as I do!!!
cheers-
Miniwho will always champion RK because , hey, it worked for me….ditto Dolf de Roos…’Real Estate Riches’ is a great book – particularly for the rank beginner who knew absolutely nothing, as I was. I also bought his 10 CD set as the cheaper alternative to attending his seminar and I have got a LOT out of it, as I have from Steve’s ‘Property Secrets Revealed’ CD set.
HIGHLY recommended.>But you are very correct in assuming that crunching >numbers is not our forte.
Hi there,
don’t worry about that, it’s really not that bad, it’s only addition and subtraction and the odd percentage calculation which i found out how to do by finding some school -level maths pages on the net!! (just quickly – if you want to find out what percentage 8,600 is of 43,000 like if you wanted to calculate the gross yield, then you would go 8600 divided by 42000 and the answer is .2 which means 20 percent. Just divide the small number by the big number.
Also don’t forget they have these fancy new-fangled machines called calculators these dayssome of which even have a percent button, which means you don’t even need to be able to add!!!
Also i would say hold fire until you get Steve’s book, he goes through the calculations of a few examples to show you how he works out how much it’s going to cost/make, and what his return is on the actual cash he put in the deal (which is pretty much deposit and closing costs only.)
In the book he really does explain it as well as he does at the seminars, maybe even more simply.
cheers-
MiniHi there,
good on you,
in my experience RE agents don’t always get back to their emails and letters quickly enough especially if they have bona-fide cashed up buyers ringing. The phone gets faster results, though scarier the first time. Don’t forget that they can’t see you, though! Which can be a plus!If you are not feeling that confident, why don’t you practice by ringing some different real estate agents about different properties you’re not even interested in just to practice asking stuff and getting them talking. That’s what I got my friend to do the afternoon she put in her first offer – we did three ‘practice runs’ before we rang the real one!!
re: this part
>A few questions to ask, I noticed that the vendor has yet to >put his offer on the market. I was wondering if they would be >willing to forward me their market price so we may proceed >with the jousting.
try not to sound too accommodating, too low status, too unsure – and ‘may proceed with the jousting’ says to me you already KNOW your offer is gonna be too low and be refused.
OK – that usually happens (but sometimes it doesn’t!!!) but i think it’s better not to show them that you’ve already given in mentally to your offer being rejected…So what you could do is ring them up – get the price – get the CV – even if they don’t know the price yet you could still make an offer based on the CV and your knowledge of similar properties in the area. Talk to a lawyer before you sign it though. Make sure you put conditions in so you can get out of it if it’s a lemon.
cheers-
MiniHi Young Gun
>I hope to be actively involved in your community!!
I salute you!>Is that up to 80% of the Purchase Price of the IP with 30-40% >deposit?
no that means you only have to have 20 percent deposit.
Although it can be good to have a higher amount of equity in a house for lots of reasons, also consider that 40 percent deposit on a house is equivalent to 20 percent deposit on two houses….hehe….cheers-
Minicheers-
MiniIndeed, however as supply (small country of 3 -4 – million people) is outstripped by demand (savvy Aussie investors now, as well as all the Kiwi ones) things will change there too.
There are still opportunities, though…cheers-
MiniHi Benson, thanks for asking, one just got a new tenant (the one where the sharemilkers moved out) – and only a week vacancy, phew,
one isn’t yet, still (*hmmmmmmmm*)
and the third one only just settled last week and my BF is going over to NZ next week to fix it up, paint, etc, hang curtains, (your neck of the woods Muppet – from Thursday he’ll be there) – handymen will do a couple of days work, a bit of plumbing too, carpet, lino, new bench, etc, then it will go up for rent. it’s in a ‘good area’ apparently so I hope it will be easier than house # 2 (which is probably still too high priced for market/area. reminds me – must have a word to agent!)I have some other ideas too if it doesn’t happen soon. BTW I just read today that the area has gone up 25 percent in the last year according to the latest KPI magazine figures….
cheers-
MiniHello lovelies
>Yes Mini i knew you ARE working for tourism NZ
huhuh!!!!
OK to explain, I’ve done loads of tours in NZ with bands (accom ranging from Quality Inns kinda medium to luxury)
and been pretty much everywhere from the Catlins to Cape Reings.
then I moved here, but my BF is Swedish and when we got together I took him skiing in Queenstown (he totally fell in love, goes there at least once a year if not twice, and wants to live there!!) Also the first summer we were together I took him around NZ for 6 weeks. (staying at mainly backpackers – and there are soooo many good ones of those. i,e, in Nelson there’s one called Paradiso, which is one of those grand converted mansions complete with swimming pool, shared or if you’re not into that they also have single/doubles, barbecue laid on every night for measly bucks, equipment hire, internet, close to town, and around 20 bucks per person.Honestly. I’d choose them over a 3 star motel any day at quarter of the price – especially when I’m paying for it.Oh and THEN BF was so impressed that he got his entire family from Sweden to come over the following year and I ‘tour-managed’ 7 people around NZ for an entire summer!! Even though BF’s parents are retired-age they loved the backpackers and farm-stays and B+B’s far more than the motels – so much more vibe.
>Diamond NZ is 2 hrs ahead of us, but about 10 yrs behind
So true –well, that’s the down-side of NZ and that’s why I live here – not to mention more opportunities in my industry because of more population….
>we have mentioned before how it would be good to catch >up, You said maybe NZ (on another post)
>great ideayeah, but you’re not there yet, right????
When you and Diamond are in NZ I am on tour here in Aus (byron bay,,,,yum)
besides I was just in NZ last week for a few days. Daze, that should be, hehe.
My BF is gonna be there in muppet’s neck of the woods fixing up my latest low-budget cosmetically challenged bargain.!!!> i’m trying to make up for those comments about you working >for tourism and the 10 yrs behind.
you are???!!!
Hey are you in NZ already? I am gonna be in the SI (Chch) for a wedding in January, if not before!!
cheers-
Minimy debt is zero
yippeeee
i lose!I intend to get into some nice debt soon though and buy some more of those nice income-producing assets
cheers-
MiniHey Steve,
the book is brilliant, I am only a little way through but it is so much different to what I expected – so personal and so readable!! So much so that I decided to start from the beginning and read it out loud to our resident 12 year old after dinner tonight (!!!!!) then I asked him ‘so whaddya think, me reading you out loud an adult book about property investing?’ He said ‘It’s pretty good’.!!!!!
And it looks a million bucks too! (funny that)
Mini
oooh I’m good at accom in NZ . Just tell me the rough itinerary and the budget, I’ve stayed at zillions of places all through NZ.
cheers-
Minithe harder i work, the luckier I get
>i think at the moment the ‘ideal’ of cashflow is a great hedge >against where the real money is. ie capital gains!!
Hi rogue, yes i agree with you that you can make megabucks in capital gain. I intend to’go there’ just as soon as i have got enough cashflow coming in from properties 1,2, and 3 to support a possibly negatively geared one for property 4. So that the bank doesn’t have to look at my income, i.e., so i don’t have to add money from job to top it up
cheers-
MiniPS Yeah great to hear your story Westan, I sure would like to meet up with you in person some time (maybe NZ???) and hear lots more stories.
wilandel, I love what you said, i too feel majorly more empowered (to use a sickening word, sorry!! hehe) now that I have started investing. i really can’t even begin to tell you the benefits it’s had for me in how i feel about life generally. the future seems somehow rosier, more secure, happier.
hehe,
yeah, the internet, a blindfold, a calculator, the telephone (lots) a building inspector (!!!!!!!!!!!!!!!!!!!!!!!!!!!!) research, (prices? area? vacancy rates? demand? rental assessment from competing REagent? prices for management? etc etc etc ) a fax machine, local knowledge (see ‘telephone’), statistics, a lawyer, a chequebook, fellow investors, examination of worst and best case scenarios
cheers-
MiniIt feels weird to say ‘Oh listen to me, I’m such a success story’ especially when a lot of us feel we’re on the journey still rather than ‘arrived’ – but here goes, *beats chest*
“From 0-3 properties in 1 year!!”
Wa-hey!!
cheers-
MiniHi guys,
>I guess my question though is what is defined as a property >investor ?
>Anyone who owns a house …… you need to own five >houses……what and who defines property investor.According to Australian data from 1994 I found on the web, out of all people that own properties in australia, 94 percent of them only own one principal place of residence. 6 percent of people who own property own one or more IPS (that they don’t live in.) Of that 6 percent, 9 percent own 3 or more properties.
Even though some of that nine percent might own squillions of properties a la Steve and Dave and distort the percentage, you could still count on the fact that owner-occupiers drive the market not ‘investors’.
I am becoming more and more convinced that the media drives the market by way of talking up or down ‘confidence’. Journalists write about investing and property without even understanding it, as the article about Wanaka property discussed on one of the NZ threads clearly shows!
Every day I seem to find another fault with the media, i think it must be some kind of bug-bear of mine at the moment.
It’s sad to me that people just believe what they read on television or read in a paper so blindly – I guess, it takes so much energy to research something to prove otherwise – and who can be bothered or has time? Most of us are lazy and use the media as ‘entertainment’.But I think it’s good to question the media cause they’re often wrong. Or at the very least just writing opinions, not facts.
cheers-
Barboh and re vitamins,
My mum started on some 2 months ago (in liquid form, and along with a *colloidal* mineral supplement, very important difference ) – ) – she is in her 60s and was grey – her hair is growing back dark again. As well as lots of other things. you can actually see the 2 cm stripe where it started, coinciding with taking the minerals. (apparently grey hair is a copper-deficiency)A friend’s dad was admitted to hospital. ‘what daughter? i don’t have a daughter’. Diagnosed as senile dementia. Guess what. it was a vitamin b deficiency. Completely cured when the vitamin was given. And that’s no quackery – that was Wellington Hospital.
Drug companies – aargh!!! OK, let’s just talk about even one drug – Prozac-
it is so expensive, hundreds per month. And it’s completely addictive. So drug companies don’t want anyone to ‘prove’ that vitamins can ‘cure’ illnesses that their drugs never cure (they just treat the symptoms.To me it is totally possible that there are non-drug medical cures that will never become mainstream because commerce won’t allow it.
Medical Science is just waaaay too slow for the times.
cheers-
MiniHi everybody
>And I listened to one of his audio tapes and he talks down to >people like they are 2 year olds.
I guess his target market is not someone like yourself who has a degree and knows lots of detailed stuff. The target market is middle America, and people like me – ordinary people not in finance who want to take control of their lives and become financially free. I didn’t get specific property investing from Kiyosaki, but what I did get was that my thinking completely changed. And I needed to read that first. I moved on from that book to eliminating consumer debt, learning about shares and property for a year before eventually choosing cashflow-positive property as my investment ‘thing’. While building businesses as a ‘day gig’.
Ok back to you – now you seem to have an awful lot going for you but to be a little brutal (and I’m safe because i don’t think you can thwack me from here, hehe) you do have to eliminate all the reasons ‘why not’ and find solutions for all of them.
but I think the first thing that you have to figure out is WHAT you want to do. Really. I mean – do you WANT to get a job or would you bypass that step and go straight to ‘investor’ if you could? Work out what you really want to do first. THEN figure out all the things you ‘think’ are stopping you. Solve them one by one. Only after you have removed all the excuses can you take action!!An example – a friend a while back who had cancer at 25. Was in treatment. was also whingeing that where he worked, he couldn’t get any further because marketing graduates that had absolutely no clue about fashion retail were getting promoted over him. I said ‘sounds like you need to get a marketing degree’. ‘What’s the point, I might die’, he said (in a round about way.) I replied ‘well at least you’ll die with part of a marketing degree’. sounds a bit harsh but it worked. A few years later he has a marketing degree, no cancer, got promoted – then left retail to do what he really wanted to do which was sing -got signed to Universal and is in the US making his record with some big names.
Another example – ‘I really want to leave my job and get my diving qualifications and go teach diving in Fiji but i can’t afford it’ – not right now you can’t but buy time – maybe you can do it in 6 months if you get a second job three nights a week and save up for 6 months.
In kiyosaki’s game ‘cashflow 101’ you can pull the janitor card and still win the game, on the lowest income. it’s not what you make but what you do with it. Even if you get any old job just for now, who cares, it’s not a life sentence.
cheers-
Mini
