Forum Replies Created
Hi All,
Thanks for the great replies offering advice. It was particularly good to hear from those of you who have already done this and I now definitely think the idea bears further serious consideration.
Cheers,
NateHi guys,
Steve, your new newsletter format is a breath of fresh air! I’d say it was the most accessible and enjoyable newsletter for ages, so nice one!
I’m pretty keyed up about the opportunity to be mentored by you, have just submitted an application. I bought your first book earlier last year, and took a couple of months to get started, but then bought a few CP properties. That’s over a year ago now, and I seem to have lost some momentum, been diverted by rennovations to my personal home, and would love the opportunity to get some fresh perspective again.
I think it is still “doable” in RE. CP is fairly safe because rents are unlikely to fall in my opinion.
I am looking at a recently rennovated unit, which if my offer is accepted will be slightly -ve CF to begin with, at a 15% or so premium to the market rent rate. (I’m hoping to attract a quality tenant with the renovations that have just been completed – new quality carpets and paint, kitchen surfaces & appliances etc).
I hope that rental rates will rise over the next year or so, and push this IP into a small CF+ situation. I’d need a raise of around 5% to break even, does anybody think this is likely?
I’m also looking to buy a place from the public trustee at auction (a deceased estate). This place needs a major cosmetic overhaul, but is structurally sound and is on a large block, close to all amenities and plenty of large industrial employers.
Does anyone have experience negotiating a long settlement plus access rights with the public trustee? I’ll be looking to do this so as to avoid paying interest while I complete the rennovation work.
So, I guess even though I bought Steve’s book just a few weeks ago and was raring to go with CF +ve properties immediately, my forays have shown me that you do indeed need to head out into the rural areas to find them. For me, with a young family and demanding career, my spare time might best be spent doing rennovation work in the evenings which my wife and kids can at least participate in, rather than me traipsing around the country chasing CF+.
So, my strategy thus far seems to be a “Buy, Rennovate and Hold” blend, hoping to achieve +ve CF in the next year or so!
The problem for me is going to be building momentum, since I’m using equity in my PPOR to fund the IPs. That equity will only allow me to buy 3 or 4 IPs, which is hardly going to see me repeat Steve’s 0-130 in 3.5 years!
Which leads me to another point, possibly off track in this thread: Do people think Steve’s success can be replicated in today’s market? Steve started near the beginning of this last boom and made extensive use of ethical wraps to kick the volume up on the +VE CF. I live in SA, where wrapping is illegal, so this won’t be an option. Are there any other SA members here who have tried “lease to buy options” to kickstart things?
Cheers, and sorry for the long post!
NathanYou CAN resell properties in Monopoly! At least, that was always the way I played it. Nothing as satisfying as buying the last of the green properties when someone else owns both of the others, then trading it to complete the oranges (statistically THE properties to own and develop with 3 houses each for a middle game victory – if you don’t believe me watch for yourself how much more time people spend in that area of the board, location is everything).
Watching someone struggle to finance development on Mayfair or Park Lane while you blitz them in the middle game is just about as much fun as can be had on a board game.
We have no Ballarat equivalent in SA, and we don’t have the option of wraps to kickstart our investment funds into the range needed to invest in Adelaide. Can anyone tell me if Lease Options are legal in SA? Perhaps this is my best way forward. Or can I wrap interstate properties if I am a resident of SA?
Cheers,
Nate
PS Hi Diane!But you’re not going to give us newbies any hints are you Fibejebe
C’mon, just a little nudge?
Nate
Thanks bear and Westan,
You’ve pretty much nailed Elizabeth! Rosewood estate was the first and so far only suburban renewal project to happen there, and I had also heard it was sparked by Jimmy Barnes’ callous dismissal of his childhood stomping grounds.
Interesting that you were buying semis for $24k in 97, that would have been at least $15k under the market rate back then!
Even though I will be sticking to cf+ investments, I am loathe to discount Elizabeth. Surely with perseverance and some creative negotiating it can still be done?
The problem I envision as a new investor living in SA is the total lack of large regional cities outside greater Adelaide. The only towns of any significant population are all along the southeast coast or Murray River and as such are all sought after holiday destinations (with correspondingly high prices) Even the old “SA secret” of the sleepy agricultural Yorke Peninsula towns has been discovered by cashed up baby boomers looking for lifestyle holiday homes.
We have no Ballarat equivalent in SA, and we don’t have the option of wraps to kickstart our investment funds into the range needed to invest in Adelaide. Can anyone tell me if Lease Options are legal in SA? Perhaps this is my best way forward. Or can I wrap interstate properties if I am a resident of SA?
Cheers,
NateI’m also looking in SA, see my recent new topic post regarding Elizabeth. Maybe we could combine heads on this?
