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Viewing 20 posts - 1,281 through 1,300 (of 1,395 total)
  • Hi Muppet, and all,

    the internet guy looked through the house, but didn’t take it, he is a cat breeder and … (quoting agent) “but found it was not suitable. The reason being that the shed was a bit small and too far from the house as he needs to keep his male breeding cats housed and heated. I also showed it to another possible but he has decided to stay put in his flat. Plus numerous others. So I am still trying for you and it will happen just don’t know when.” unquote agent.!

    I am gonna drop the rent another 10 bucks. I know I will still get a tenant. I think it is too high for the area. I mean….it’s not Sydney…the average wage is like 13K P.a, or something.

    cheers-
    Barb

    http://www.vocalbureau.com

    hi jars,

    I have seen a couple of the videos of the richmastery seminar, and it looks to be a very good seminar, and in three days you get into quite a lot of detail. Longer days than most seminars too. They seem to mix it up quite a bit, their style is quite energetic.

    cheers-
    Mini

    http://www.vocalbureau.com

    hi recovery
    well I feel the same as you!
    Hey if you wanna change canada to australia, just click where it says ‘profile’, log in, and you should be able to change it

    cheers-
    Mini

    http://www.vocalbureau.com

    hi richmond,

    haha, will I be scared?
    well I was there the other week, if something else comes up at nine I’ll make sure to let you know and maybe you can come downstairs and say hi!
    cheers-
    Mini

    http://www.vocalbureau.com

    hi recovery,
    yes I did get your email, sorry, I must have read it and not replied, I will reply later on

    >i try and get my friends into this PI stuff
    >and it is hard going
    >I dont think I am a lemming as ypou poited out .54% of the pop >is not herd following

    I agree – I mean, I’m the only person in my circle of friends who has a bookshelf full of materials to try and improve not just my mind but my investing knowledge, not to mention the three seminars I’ve spent $$$$ on

    >but I am going over to NZ and getting as many
    >of those good PI as the bank will lend
    >if interest rates go up tp 10% I will be
    >still; covered

    good on you! There seem to be less in NZ under 30K these days but there are still many under 40K. In fact what I have learned, from starting at the bottom of the bottom of the market, is that if I had spent a little more I would have (for example) got better houses in better areas that although the yields are not quite as good probably would have been easier to rent to the ‘perfect tenant’. I will eventually work my way up the market into those kind of properties not to mention some cap. gain ones, i’m thinking
    >I just look at county OZ PI’s
    >and surpised and shoked at the low number
    >of PI there and the ones there are under contact
    >NZ is looking good

    yeah – I felt the same – believe me I looked in Aussie first before resorting to NZ, and found that there was nothing really that I could afford that I liked – I think I was about a year too late for areas such as bathurst, ballarat, etc

    >thank you for all your help and the writing
    >such huge reply to this disscussion group

    thanks, my boys have been away for four weeks so I have had lots of time to do lots of self-indulgent things such as spend and unhealthy amount of time on this forum! Plus I am between deals (waiting for one to settle, etc) so not so busy looking for deals for hours as I was.

    >I am a happy PI investor and also profitable one
    I am not profitable, yet, but I am sure i will be in the long term. I have figured out that even with a 50 percent vacancy I can still be CF+ even with finance, so I reckon it will all come good in the next month with my three baby IPs.

    cheers-
    Mini

    http://www.vocalbureau.com

    are you on screen or do you write it for someone else to read???

    cheers-
    Mini

    Are you in the same place where they do Micallef?

    http://www.vocalbureau.com

    Hiya Dave U,

    >I already know you have your system down pat

    it’s really funny because I wouldn’t have thought that i did,
    however the process of writing it down does clarify it, even if only to me! hehe

    cheers-
    Mini

    http://www.vocalbureau.com

    oh bb, you’re incorrigible,
    I can just imagine you sitting in your cab, listening to people ringing up talk-back radio all day complaining about this, that, and the other in the world and how unjust and terrible it is.
    it’s not uplifting stuff, most of it, ditto oprah, ricki lake, nd the like.

    >Sitting in GODs waiting room waiting to be CALLED!!!!!
    retirement means different things to different people – but perhaps Leigh means being financially free and not HAVING to work unless you want to. i for one couldn’t think of anything worse than sitting around twiddling y thumbs and playing the odd round of golf, if that was what ‘retired’ meant.

    >If you have a heap of money, then travelling the world seeing >other peoples cultures etc is interesting for awhile(trying not >to trip over your walking frame).It all becomes boring after >awhile.

    I somewhat agree, as a person that gets bored with too much leisure. I recently went to Bali for a chill out resort thing but 5 days was plenty and i couldn’t wait to get home and get stuck in again.

    >As she attempted to open the door she broke down, telling >me how lonely she is.”Could you please talk to me”? Being >too busy I almost threw her out of the cab.I had other jobs >waiting.

    Yeah well this sounds really mean and i woudn’t be showing off about it if I were you???

    >I think about her all the time.
    I bet you do!!!

    >SO NEVER RETIRE!!!!!!!!
    i get where you’re coming from with that but I have to come out with this and say that you seem so….antagonistic….belligerent….argumentative….negative….
    we have all been trying to honour you with decent replies that take you seriously, but in the end maybe you’re just one of those sad angry psychologically damaged veterans who sees fault everywhere he looks, but never any in himself.

    People that don’t have much joy in their life often find it very confronting being around people who obviously do.
    Throw away the gun, you’ll feel heaps better.

    cheers-
    Mini

    http://www.vocalbureau.com

    Hi David

    >Just a note of caution about using GV as a proxy for the >market (real) value.

    nononononono

    what i said was

    “I absolutely do this, but I do it on GV versus actual sales price, rather than list price, calculating a GV-to-sales price for that area. My areas have been selling for 80-90 percent of GV.
    you use it to work out the GV to- actual-sold-price RATIO for the area –
    from data sheets from the RE agent of all the recently sold properties. “

    So to explain it a bit better, the GV is not a proxy for the market (real value) – the market (real) value is what someone paid. Get a list of all the houses that real estate agent sold in the last year, and next to the sold price will be the GV. What you calculate is the RELATIONSHIP between sold prices and GVs, and you will find there is a trend per area, that doesn’t really change much even in different price-ranges. THAT is what I use rather than the GV itself.

    >GV’s are basically government valuations carried out by local >councils every 3-4 years by use of an almost ‘adhoc >kerbside’ methodology.

    Yes – agreed- however, GV’s are at the very least a standardised assessment that applies the same criteria to every house in an area at the same time, more or less – even if all the GV-ers do is drive past, look at the land dimensions, check some boxes re: house class and size, and call it a number,
    it’s still data you can use. Sure they’re missing the point that there was a diamond studded toilet seat worth three times the GV which is why that house with a GV of 25 sold for 75….when all the other houses of GV 25 sold for 20….OK…it’s ad hoc…but still, it’s info.

    – that benefits the buyer – i.e. me – who wants reasons to buy low, and data to back it up.
    Of course the vendor and the RE agent are going to argue with you and tell you that the GV has nothing to do with it -.

    When you work out the ratio it is quite easy to spot the trend.
    Around Xmas the ratios for Foxton, Manawatu was that houses were selling for around 93 percent of GV. Let’s say Foxton is a hot spot and house prices have gone up in relation to the GV, you might find the ratio has changed to 105 percent, for example. Recent data is what i go on.

    So just to recap, I get a list of recently sold properties in the area with the GV and the corresponding sold price. I find the ratio of those two numbers for each property and average them to get a ratio for the area.
    The other way to do it is to total both columns and ratio the totals – but I do it individually because you can spot deviations/diamond studded loo seats more easily the other way. The deviation is actually very little, you’d be surprised.

    If you don’t use the GV figures what else can you go on?
    List prices? Surely they deviate much more wildly than GVs. Why? because people make ’em up. Some are realistic, and others are not!
    Agents are always telling you certain properties are overpriced.

    As you said, David, in NZ some areas sell for half of GV, and others sell double – and anything in between – and it changes!

    <You want recently sold data.
    Yeah but this data is no use on it’s own, – only in relation to something. i.e. the GV, or, you saw the properties for yourself.

    >They are also known as CVs (Capital Values).

    I thought CV meant ‘Current Valuation’. I will find out for sure.
    CV is the new term – whereas GV was the old term as far back as I remember. Both are still used interchangeably.

    >Please note CV/GVs represent the ‘property value’ at a point >in time; ie at the valuation date
    Yep. but they value areas at the same time, so at least it is fair compared to other houses in the area.

    >What you will find is that the banks pay NO regard to GV/CV >and will lend based on a RV (Registered Valuation) which >will reflect the current market value.
    Yep – partly because GVs are only current every 4 years, partly because the market can change (so then does the ratio!) and partly because of the capital improvements right down to new door handles and….there’s that toilet seat again….

    I have never yet used a valuer for my properties, nor paid for data – and as far as $25 for ten recent sales, that sounds like a ripoff- I would need more data than ten sales – anyway I just ask the RE agents to print me the list out for free.

    >Currently in the hot Auckland market, properties are selling at >DOUBLE their CV/GV.
    >In other less popular areas (ie rural) you will find properties >selling at 50% of their GV/CV. These are by general >consensus ‘depressed’ areas; ie ‘values’ have effectively >halved.

    exactamundo – i think you get it even though you sound like you were kinda disagreeing – my point is exactly that the “GV to sold” ratio is different for Taranaki than it would be for Auckland….and if you gave me the data i could tell you what it is to several decimal places.

    >The danger for a newbie (especially a non-Kiwi)buying in NZ >is that they can take CV/GV as a proxy for real market value >and purchase on that basis.
    >This approach is fraught with >danger and can get the >newbie investor burnt in a major way!!!

    nononononononono!!!!!!
    This approach was not what I was talking about and I have tried to explain it better this time – GV means nothing on it’s own, it’s the RELATIONSHIP to the sold price, per property, with recent sales data for the area, that is the key.

    >This is particularly dangerous when paying cash for >properties with the intent of obtaining finance down the >track… one may be in for an unpleasant surprise when the >REAL valuation (RV)comes in…

    The real valuation (RV) should always come in at higher than what you paid, whether that is still under GV (as in areas like Taranaki) or well over (cities.) I am fully expecting mine will.

    >For example, you pay approx $25 ish to get a report on a >particular property which comes with approx 10 recent >COMPARABLE sales.

    comparable is a good word to bring up. -let’s say I am looking at the bottom of the market, I might do the figures/find the ratio for the whole of the market in a town, but also then just pick out only the properties under or within a certain price and see if the ratio varied, and take that into account. Basically if you have the data, you can look at it in lots of different ways.

    >This is invaluable and I use this before even thinking about >buying. This assists me becoming an expert in a market in >which I am a relative newbie in.

    Well $25 is reasonably cheap price to pay if it assists you to become an expert… I say go for it.

    I hope I have explained what i meant a bit better now, anyway, if it was unclear before.

    BB!!!!!!!!!!! hi!!

    >G’day David U.,
    >The thing that worries me about your LEMMINGS
    >post is that I might be one of them!!!

    you know what…that is so hilarious because I thought exactly the same!!
    but……

    Anyone with one IP (not their PPOR) is one of only 6 percent of Australians.
    i.e. quite special – High Distinction!!

    And anyone with 3 or more IPs is in only 9 percent of that 6 percent.
    Being in the top 0.54 percent of a population is hardly lemming-like.
    Genius, more like it! (or madness….some would say it’s one and the same!)
    Anyway – anyone with 3 or more properties – you are SOOO not the average investor. Feel proud!

    For that reason, I’m spreading the word hard on the count that if i can do it anyone can. Also, when I am a millionaire I don’t want all my friends to be broke – I want them to be there right along with me.!!

    >I’m ready for another interest rate drop, them I’ll be locking in >on fixed interest rates.

    yeah I heard about that.
    Richmastery the other night said that anything under 6.5 is below the 20 year average, so fix it as long as you can!!!

    My risk-avoidance strategy is to not get finance until the properties are not only going concerns with balance sheets that look good, but also that at least 6 months have passed, so the bank do an independent valuation rather than going on what I paid. Also, it should be summer by then, and according to my research, house prices are higher in summer in most areas….plus, have improved capital value… and then I intend to only borrow to purchase more CF+ve properties for a bit longer, which further spreads the risk.

    cheers-
    Mini

    PS I’m exhausted

    http://www.vocalbureau.com

    hi little bee,
    the RE agent either advertises the GV openly or will tell you if you ask. The only reason they won’t put it on the ad is if they think it will make people (like me!!!) ask – ‘look, the listing is for 35 but the value is only 29. How can they justify the asking price if most of the other houses in this price range have asking prices on or under the GV and will probably sell for 80 percent of GV, according to my research on the ares?’
    see what they say – it might be (in my experience) – ‘yeah I agree – this one is overpriced. That’s because he paid too much for it. Let me go back to the vendor and explain that if he wants to sell this house he might have to revise things”

    It’s just a way I use to semi -sound like i know what I am talking about and I’m not just some Aussie investor that doesn’t know anything about prices in the area.

    cheers-
    Mini

    http://www.vocalbureau.com

    i’m going for buy and holds, and fixing them up accordingly
    so they should last a long time. I’m starting with super-cheap rentals in NZ regional as i’ve said elsewhere, and even though they are still so new that one doesn’t have it’s first tenant yet, I am expecting that i will still get quite high returns for my relatively small capital outlay, and i’ll be able to use them as a base to borrow against to buy at first some more CF+ve properties slightly higher up the food chain i.e. some capital gain properties. By the time I am ready with my base there should be some bargains around if the predicted market adjustment happens. I think the market will adjust in Australia before NZ. I also think houses at the bottom of the market will never be this cheap again. even since i started shopping/looking, in six months, I have found this to be true.

    cheers-
    Mini

    http://www.vocalbureau.com

    hi there everyone,

    rod –
    >Did you inspect your properties prior to purchase or buy sight >unseen?
    I SOOO had a builder’s report. the building inspector became my new best friend, especially as he also acted as project manager to carry a lot of the stuff out.

    >I’m gessing it was easy for you to open a NZ bank account, >being a kiwi.

    Yes, I reopened the one I used to have when I was living there. However I also opened an account in the US with an opening deposit of $300, and one in the UK when I lived there. So don’t think it would be a problem???

    >Has anyone who’s not from NZ done it – what are the >logistics?
    >Also has anyone set up a NZ company or trust structure?

    check the KPI (kiwi property investor) magazine. As richmastery’s Phil Jones and David Hows have been teaching all this stuff and have some interest in the magazine (run it, own it???) there were lots of ads in the magazine for accountants specialising in structures.
    I’ve subscribed.

    cheers-
    Mini

    http://www.vocalbureau.com

    – maybe, people pulling money out of other sorts of investments not performing at the moment, and into property?

    and what about rumours that the FHOG might be being phased out making FH buyers rush to take advatage of it? Could be one of the reasons for the fewer entry-level (meaning, cheap!) properties out there these days?

    having heard that others made vast fortunes on capital gain, people want some of that?

    the superannuation thing isn’t happening, and the trend is to start planning to support yourself later, cause the gov’t ain’t gonna be able to afford to?

    cheers-
    Mini

    MUPPET~! guess what, they got back to me already, like, within 5 minutes of me sending the email and pics of house, and are gonna call the agent tomorrow!

    will keep you posted – talk about direct marketing -thanks so much, this is incredible!

    http://www.vocalbureau.com

    wow, this has really been fantastic reading everyone’s response, thank you to all who replied.

    thanks maximus –
    *sips at half-full glass delicately and savours the vintage wine, in order to get maximum enjoyment from the heady bouquet and the nice weighty feel of the crystal*
    cheers!

    enjo – i will know when it’s not ‘greedy’ when i get a tenant!!
    and re: famous, when I was 23 I had five minutes of it but i am sooo not famous these days though I do get to meet/work with ‘famous’ people (who never seem quite so famous when you know them!!!) I think I will leave the pressure of being in the public eye to those that thrive on it. i just help ’em write and record their songs, suits me. re: creativity, isn’t that one of the things we like about property, because you can apply creativity to it in so many ways to get results that you couldn’t with many other investments.

    chandara, thanks so much for sharing, I salute you! don’t work too hard and happy b-day!

    aussierogue, yeah there are risks, and it’s good to point them out, not to be negative but to point out that you do have to be able to live with your worst case scenario if it happens.

    APIM, thanks and i totally agree.

    muppet – THANK YOU so much!! I emailed Tohunga, even sent them a coupla pics!!! so who knows! Man, how cool is the internet, that you can be physically reading the Ruapehu times, and telling me about it in Sydney?

    recovery – check your emails!

    ms Elvis – yeah ‘only’ 22.8 percent is still pretty good which is why i put it in inverted commas. which is why i’m not worried yet, even if i had to go down further. However….you still only *get* that 22.8 percent if there’s a tenant paying it….hehe

    thanks again everyone for being so nice

    cheers-
    Mini

    http://www.vocalbureau.com

    Hi Diamond!

    >Do you know of a website or mag or real estate agent where >i can get the vacancy rates for rentals in any particular town >that i am interested in?

    not really, just ask the RE agents where you are buying.
    or pretend to be a renter!

    however this site is useful as it shows market rent info for NZ

    http://www.minhousing.govt.nz/tenancy/Market-Rent/market%20rent%20region.asp

    >Also, what do you all feel is an acceptable figure for >vacancy .
    someone said allow 4 weeks per year in rural areas. i reckon that’s about right…if it doesn’t rent in that time drop the rent!

    >the reason I ask this is because it seems that most of the >cheapies ie. below 40k appear to be in towns that don`t have >a great deal of employment or are just plain freezing all year >round.Your opinions would be appreciated.

    you can find out the actual employment rate here

    http://www.stats.govt.nz

    use the search function. A lot of the towns have about twice the national unemployment rate, you are right.
    If you are buying at the bottom of the market in these places you certainly might get a tenant on a benefit.

    >Boy, am i enjoying this forum.Shame i didn`t find it years ago.
    i don’t think it was here years ago!
    cheers-
    mini

    http://www.vocalbureau.com

    hiya bb, i wondered where you’d got to.

    >MiniMogul,
    >Your post is amazing, how do you answer that post?

    you’re doing great!

    >Being a city investor, the thought of buying in Broken Hill >really does make you brave( I think). My logic is never buy in >mining towns.When the mine runs dry and closes, the town >dies. Just like B.H. The people of B.H. claimed that the mines >would never close, unlimited resourses.
    >Not so. The joint is half dead! Only dopey investors are >buying there.

    i think you are right and I wouldn’t be attracted to BH despite the lo prices for reasons you’ve said plus others. Where I have bought is in NZ and the towns are residential and either close-ish to a city and on the surf coast, or in a self-contained and seemingly stable small town servicing a farming area.

    >As for investing ten thousand dollars to re-coup a net of >twenty dollars a week, Mini you could earn that in one hour >driving a taxi and keeping your ten thou. for a decent >investment. Bless you my child!!!!! Never mind you’ll learn
    >one day.

    People seem to think that 10 percent return is reasonable, and that example above was that if you bought something for 10K and rented it for say 50 bucks a week (you were the one that said you could buy in BH for 10K and rent for 80) – anyway at 50 per week, it’d be a 26 percent return. 20 bucks a week was just how low it could go theoretically and still be cashflow positive at 10.4 percent. it was an academic example. OK 20 bucks a week is not much, but have you ever played monopoly? Often you get started with whitechapel and old kent st, because you can’t necessarily do park lane and mayfair first up. I will get there, because I hope to get reasonable returns that show up as profit, help me get a few more, and eventually use the income to support a capital gain property in a city.

    >My brain says if you own twenty properties, I own four. >That’s sixteen more headaches than me,
    >sixteen times your overheads than me.Sixteen more
    >of everything than me!!!!! BUT, our returns could be the >same(I’m being nice) probably mine are way in front of you >there.

    yeah – i hear ya – and like I said I’m not gonna be at the bottom of the bottom of the market for ever. I agree with more overheads like rates, insurance, maintenance. but still, they will hopefully become ‘free houses’ (averaging 20 percent) in 5 years or sooner, and that sounds pretty good to me even as a rank beginner.

    >REMEMBER, IT’S NOT THE AMOUNT OF TOYS YOU HAVE.
    >IT’S THE AMOUNT OF INCOME, THAT WINS.

    I sort of agree (i mean, we all want to be growing our wealth in our property deals rather than shrinking it!) however a person who starts with 20k at 20 percent and keeps reinvesting the returns with compounding interest will get there quicker than a person who’s income from job is 80K per year but spends it all.

    If I invest my measly 25 bucks a week (say it was 50 in rent but half went on overheads and maintenance) at 14 percent and i’m 35, by the time I’m 65 i will have $692,328. All from a measly 10k investment to start getting that income.

    I know the numbers aren’t huge but give me a few years and I’ll be adding zeroes on to what I;m doing now, i hope!

    >I hope, the win, win thing goes for all of “us”.
    yeh! And isn’t it cool that we have different profiles of investors, so (thank Gahd) we aren’t ALL looking for the same kind of properties?

    bye for now!

    Mini

    http://www.vocalbureau.com

    hiya davo!!!!

    >Ok I will make you deal
    cool!
    > I am now pondering what you said and I have looked at what >others are saying and I have decided I run the same risks >whether I buy here in Brissy or in Tasmania or Victoria or NZ.
    I’d say different only because you might get cap gain in both brissie and tasmania more quickly than NZ rural.

    >So if I make the leap can I get you to give me a brief how to >guide.
    seeing as I seem to spend my entire life posting on this forum (i’ll chill sometime soon, honest!) I don’t think there’s anything I could say that i haven’t already said in as much detail as my little fingers can muster. have a looks through previous posts/threads.

    >Just I am use to running my own properties and letting >someone else do it for me makes me very nervous. So thats >where I am coming from I suppose.

    although I don’t have a nervous kinda disposition I have certainly gone through all the what ifs i could possibly think of
    and I’m Ok with it, but I can relate. I guess the more you spend on a property the more scary it is. (is it?)

    >My partner is yelling out control freak!
    hehe!!!
    >Maybe I am but at least I am the only one to blame if things go >wrong.
    I am probably never going to manage my own properties, even if they are next door or underneath! I’m just not interested.
    I figure, I’m good at what I do all day and property managers must get pretty good at doing what they do all day?

    Good luck with everything Davo!!
    And check the new thread I am about to start, in a few minutes………………..

    cheers-
    Mini

    http://www.vocalbureau.com

    westan –

    >let us know if you are in Vic before Jan and i would be more >than happy to travel to meet you.
    i will be at least three times if not more. Playing with two of the artists I play with etc etc.
    >i’ll even buy you sux dollars of fush and chups.
    Your accent needs a bit of tweaking, i can help you with that….’with thet’….
    here’s a good one to say in a NZ accent –
    Tum, Tum, Kwuk! Someone’s dinted the Sutroen ez they were driving over the brudge.

    (tim, tim, quick! Someone’s dented the Citroen as they were driving over the bridge.)

    Here’s a joke an Australian made up about me on my first gig over here….

    whaddya call a keyboard player from new zealand?

    Baaaaaa- bara.

    >see i’ve been taking language lessons.
    yes we’ll work on that further!

    cheers-
    Mini

    http://www.vocalbureau.com

    Hi Enjo,

    I dithered too long, and now it’s sold out.
    Dithering – because my reasons for wanting to go were pretty much purely social -as I don’t think I want to do wraps. (however it would be great to know how, anyway…!)

    I just wanted to go to hang out with everyone!!!

    AD….yeah I’ve been waiting…..your turn to tell us something….
    seeing as y’all know my property investing life-history….
    tell, tell….

    cheers-
    Mini

    http://www.vocalbureau.com

Viewing 20 posts - 1,281 through 1,300 (of 1,395 total)