To all concerned about changes in economic factors impacting on the residential property market, fear not.

We’ll all know when the property markets in trouble by the following TV shows being cancelled.

1. Burke’s Backyard – been around a long time.
2. DIY Rescue – like a new job, 1st in – 1st out.
3. Auction Squad – learning the value of over-capitalising.
4. The Block – no one will care if Ken & Barbie are beaten by ‘the boys’ (read: homophobia).
5. Backyard Blitz – Jamie gets his old “Manpower” buddies to help out in their dance clothes.
6. Ground Force – Graham & the gang try to match the ‘Blitz’, but due to a limited budget, have to do the strip themselves (D’Oh!)
7. Hot Property – will become an oxymoron
8. Room for Improvement – start to use 3 ply or cheaper MDF (if that’s possible) for their construction work

And finally….

“Money” returns to our screens from the abyss ’cause someone mentioned that property wasn’t popular anymore.

Michael[]

Thanks Savanna.

The joys of a mental block.

Michael []

Thanks Lance,

Clearly with such an aggressive business plan it was a viable propostion.

Good to see that someone had the desire to ask.

Michael []

Shaun,

I curious to know the big question – WHY?

1) Why do you want to get involved in wraps?
2) If it’s just a vehicle for making money, are wraps the most viable mechanism for doing this?
3) What other options have you considered?
3) Do you have a plan?
5) Do you have a strategy?

Most of the educational material is not cheap & you need to have evaluated the WHY first.

Alternatively, start with Steve’s “Fast track”. It has a good entry price point. Why there’s a lot of good information out there that you can pay $000’s for, consider the options first.

Michael []

Tails,

Your uncle was well ahead of his time. In most families of that era (mine included), money was not openly discussed. Good for him & I trust that you’ve learned his lesson well…

Good to hear also of a quick reality check: I took your uncle 28 years to build his portfolio to where it is today & enable him to retire. There was nothing glamourous about it, just time & discapline.

Michael []

Susiemac,

In the Dec/Jan edition of Property Investment mag, there was an interview with the a group called the “Renovation Kings” (also a ACA). One of the examples (& I assume that it’s also one of their specialities) was to subdivide a property. Interestingly, in their experience, when a property is subdivided, rarely does the value of the original property decrease.

Given that in many country towns there are properties with the potential of subdividing, & Hilary’s suggestion of a relocating a home, I would futher suggest that when evaluating a potential positively geared IP, that you also consider whether you can drop a 1 or 2 bedder on the back for little cost.

Food for thought & adding a new dimension.

Michael []

Adofunk,

Enquire with the lender if they will reduce the application fees if you have already had the property independently valued.

That way you get the entire report, all the information & no hassles (+ it’s deductable) even if you don’t go ahead with the investment.

Michael []

Hi Keith,

Just thought to relate an interesting scenario to this – especially regarding rental return. Not sure where you’re located, but I’ll use Melbourne as a good example of what guaranteed rentals means.

Early one evening take a drive past the recently completed app’t developments on the Yarra / Docklands district. Remembering that most constructions will not commence unless there’s 60% sold off the plan, take a look at the number of units with lights on to guage the occupancy rate.

Many of these developments were marketed with the same ‘guarantee’. At the end of the day, you’re financing your own rental for the first few years & if the app’t does get rented, it’s a bonus for the developer, not the investor….

Michael []

Steve,

Having read thru this & most of the forum related info, I’ve notice that belladonna has exposed a real hole, to which you’ve replied & that is that we need to have clearly defined goals.

In the wrap pack, you state that Dave Bradley & yourself have your goal framed on the office wall & use this as an evaluation tool (“Is doing this deal going to get me closer to my dream?”).

Can I suggest that the first place that everyone start is to set goals, then work the plan around this. How else do you know if what you’re doing’s the right thing….[?]

Start with a goal, shape the plan to suit(doesn’t have to be in too much detail), then look for deals which move you closer to the goal[].

The most important part of doing this exercise is to write down YOUR goals, post them where you have to look at them EVERYDAY and where others will see them. It’s great for motivation (ie, internal/external locus of control stuff).

Might be a good one for the masters session?

Michael[:0)]

Wes,

Are there +ve’s also? You seem to be in the -ve?

It’s difficult to guage whether this a GREAT deal, or just a good deal when comparing it to other properties around the area. It’s the old adage of ‘worst house in the best street’…

While there some minor structure problems requiring a bit of work, most are fairly cosmetic – eg, removal of material from side of house. Other costs are fairly insignificant & can be done easily by “handyman”.

If you don’t want to go down this path, do some of the ‘really cheap stuff’ (fence & garden), then advertise the property “AS IS”…

Mixrex []