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Sure,
i'll tidy it up a bit and post the spreadsheet.
unfortunately fighting floods at the moment (in Wagga Wagga), will post once I rest up from shift work.
I'd be interested to see it. Might be an opportunity to expand the checklist as people provide input.
Perhaps look at share trading?
You can handle your accounts from overseas quite easily, more chance your going to hit the 15% returns your looking for (my mates were more than doubling their money when they started now at 25-40% returns).Might suit your situation much better.
I started with share trading a year or so ago and made enough to travel and buy a few things etc. but honestly it makes no sense to me.
However if your interested try books like:
– Rule Number 1 by Phil Town
– The Intelligent Investor by Benjamin Graham
– Competitive Strategy by Michael Porter
– Inside Secrets to Venture Capitaletc…
Hey,
Just went through the home study dvd course (andd have read through the bootcamp notes too).
It definately made me think outside the square a little more, nothing that blew me away but worth the read/watch most definately.In saying this, I have been spending time with some developers and the feasibility calculator I made myself with their advice was essentially the same as carly's unintentionally (took me 15 mins to make on excel).
I'd recommend the course, but i'd say the primary purpose of paying the 6grand to attend the bootcamp are the networking opportunities which i've been doing on the side. Otherwise its just a lot of paper with some nice ideas on them.
Any other questions feel free to ask.
Am interested in Syndications.
Let me know
Hi,
It is dependent on the area,
However as mentioned above, the rule of thumb would be $1000/m2 for your typical house with no fancy furnishings.
With higher quality furnishings you can use $1200/m2 etc. as a starting point.
Then depending on the area, there are contribution costs, land subdivision costs, etc. to include.The total area is 2 x 250m2 (top and bottom floors included?) then $1M certainly sounds way overpriced.
Hi Bjsaust,
What would you see as the benefit of a joint venture with the builder?
From what i've picked up so far, the builder makes a healthy profit at $12k per builder square (please correct me if i've been misinformed),
So do you need to run it as a JV or can you just buy the land and hire any builder to do the work for you at the most competitive price you can find?
Hi, what city?
Also I assume your using your first home buyers grant?
Hey Miike,
My mates and I have been/are looking at doing something similar,
Check out the thread we started with some good contributions from Terry – not sure how helpful it will be.
https://www.propertyinvesting.com/forums/property-investing/help-needed/4332942?highlight=sydney%2CaccountantsWe are leaning towards starting seperately as some of us are more cashed up or just keener to start. Please let me know what you find, especially in regards to unit trusts, it has been a struggle to find the right accountant (will start a thread on this now).
Keep us posted.
Regards
NHG
I think the suburbs you refer to are:
Ashmont, Tolland and Mount Austin.Personally I haven't found much in Wagga that interests me, but Jacqui will have a much better idea of the area.
However there are bargains if you look hard enough.
I know a real estate agent bought two positive geared properties in a nicer part of town a year ago. I was also shown two adjacent blocks of land with properties in the centre of town for an incredibly cheap price before it was released on the market.
Sold within 6 hrs – I was only beginning to look around at the time so didn't know its real worth.
Are you in Wagga yourself?
does anybody have any experience with property investment groups btw?
i mean the smaller scale groups not the 100 person 'clubs'.
i guess i should add, we are taking a hands on aggresive approach, not a passive approach.
thanks for the link hschmid, it really did provide some insight.
its actually intersting that a lot of conclusions we came up with through discussion we are finding others have done as well.
it seems there is no such thing as a new idea!when attempting to find the right % for buy ins and outs lastmonth, eg. if a member died or wanted to leave, the figures i came up with that would cover costs happened to be the same as shown in 'THE MONEY GROUP' i finished reading today.
Assuming an evaluation is done every three months, im thinking:
100% minus expenses upon death (well they couldnt really help it could they)
95% minus expenses if they simply want to leave/get married/divorced
85% minus expenses minus money owing if they weren't up to date on their contributionsI guess when we get the paperwork sorted we could post it here to show our set-up.
Hi all,
I'm one of those 4 other friends. I thought i'd join up to add some more clarity to the sitaution.
Esentially we are an investment group – with a primary focus on property.
Basic Set-Up.
1. 4-6 members
2. $25k buy in.
3. $400 contribution each per week / $1600 per month (some can put more than others, but this figure is within all our capabilities after paying cost of living expenses – including insurances, going out every other week and contingency).
4. Unit trust seems the way to go under a PTY LTD which we will also set up. (I like the sound of a discretionary unit trust – we'll look into it)
5. It looks like start up costs will be around $20k (inc. registering, website, business cards, logo, contracts, accountant, lawyer etc.) – u can always go all out and pay $35k for just a business name let alone other expenses but we went for good value for money – a large portion of the start up fee is for the accountant.Business.
1. Running our numbers (after interest rates, council, water, insurances, contingency for repairs etc. and allowing for time wtihout rent), we would save approx 96k a year.
2. At the end of 2011, combined we would personally have saved approx $200k and 100k every year after (without investing).
3. We first thought of buying strong capital growth properties in Sydney but quickly came to the realisation equity doesn't help much. The only thing we were growing by buying more and more negative geared properties was debt.
4. Focusing on value adding to properties we found we could get a lot further (roughly estimating about $3.5M in 10 years, still far from our $4M goal in 6 years).
5. Due to our lifestyles we travel a lot for work and have been able to cover a fairly large area. We found a way we can increase our profits through slightly more sauvy property investing.Progress.
1. We have been meeting investors, lawyers, and accountants to organise contracts and formalise the process.
2. We found a good (very good) accountant can cover the general legal aspects and will save money on hiring a lawyer (will still need one for other contract work). We don't want to be tight here as a good accountant will essentially be another member of yoru team.
3. There is no need to cough up the cash immediately, other than set up costs as we can each put $1 to allocate our equal share holding in the business until we want to buy.
4. Our biggest concern was funding, amusingly it seems to come by easier than we thought.
5. In saying this, we have learnt to distinguish between realistic investors (passive) and those who want to double or triple their money (get rich quick at 0 risk). There seems to be a lot of them out there.
6. We have gotten to the point of turning people down who want in as they have no skills to offer other than money.
7. What we are lacking is diversity, we are all in our early 20’s and have the same work background, we have been looking for accountants or experienced business owners to join us (we may have found some but it’s not confirmed).
8. As mentioned by Terryw, we are still finalising the ‘WHAT IF’s and Exit Strategies at 1 year, 3 – 6 etc. which is important and seems as hard to put together as coming up with the business name (haha). Also it doesn’t have to be so drastic as what if someone dies, someone could simply want to leave.
9. It is better to keep your money as insurance and invest other money as it creates more leverage.
10. We found getting out of your comfort zone and networking will help you exponentially as opportunities keep coming.Future
1. We will be finalising our contracts within the next 4-6 weeks. Purchasing our first property hopefully by the beginning of next year.
2. Finding business partners (other investment groups) we eventually want to team up on bigger projects. (we have found some but we aren't ready to team up as yet).
3. To reach our goal we realise we need to invest in other companies as well and build up a relationship of investing in each other. (which is why we are an investment group and not just a property group).We aren't rushing it (although it's only been 6 weeks since we started) but we have set milestones in order to see progress.
I guess our biggest concern is structure and tax issues, any thougths/comments/questions?
