Forum Replies Created
Hi Stewart
I have been looking in SA over some months and am going to the PPPW in Melbourne in June. Be happy to catch up with you.
Cheers
pr
Hi Khalida,
There are numerous ways to aquire properties which can become cashlow positive. With the market the way it is at present it is very difficult, with rare exceptions, to find properties that are CF+ to start with. As Steve McKnight states in his books that these properties are “created” by adding value in some way or by developing/subdividing, or wraps, for example. Each requires its own understanding and expertise.
I would have to disagree that the only purpose in buying a property is for capital gains. If that was the case then Steve and others would not be in the position they are now. Certainly capital gains is great, and some people do invest for that alone, but others invest quite successfully without reagrd to capital gains, which is unpredictable and not guaranteed over the short term, whereas cashflow is predictable in the short term.
Keep learning javascript:insertsmilie(‘[thumbsup2]’)
Thumbs Up [thumbsup2]Best wishes
pr
Hi ArkyC
I know the feeling well, about having to upsize. After the fourth of two children that I was going to have we had to renovate and enlarge our house.
You may need to consult a trusted advisor to go through the numbers with you but if I am correct in assuming that if you owe $105K with a $50K redraw (initial loan $200K), at 80% loan the purchase price was close to 194K? and about $36K CG. If so, then rental at $270pw represents about 7.2% return and about 30% COCR which is quite good these days. How is your investment property performing?
As Paul has indicated, a wrap is more expensive, however, at your level of income, if it is sustained, you would be able to refinance down the track and end up with 2 investment properties as well as your own home.
Good luck with your new house and your new addition javascript:insertsmilie(‘[biggrin]’);
Big Grinpr
Hi,
Your comments have been interesting reading because I received an offer to invest in Tok 2 days ago but was a bit concerned based on the demographics. The following is a section from the Council of Tok Census.
Population
At the 2001 Census of Population and Dwellings:
* The census usually resident population count for Tokoroa Central1 was 927, a change of -10.7 percent since 1996.
* In comparison, the South Waikato District’s population has changed by -6.2 percent and the population for New Zealand as a whole has changed by 3.3 percent since 1996.Numbers of people counted
Tokoroa Central South Waikato District New Z
Males 474 11,790 1,823,007
Females 453 11,682 1,914,273
Total 927 23,472 3,737,277
Change since 1996 Census
-111 -1,539 118,974This reflects the situation from 1996 to 2001. Does anyone have any more recent figures that are proven and documented to suggest that this trend has changed. If so I would be grateful as I would like to explore Tok as an investment further.
Thank you and best wishes
pr
Hi Maria,
When a trust is set up it is a separate entity and as such when a property in your name is transferred to a trust this constitutes a transaction which attracts stamp duty, so if at all possible purchase through the trust initially.
Best wishes
pr
Hi Bonnie,
May I ask why you are selling a CF+ property?
I’m always interested in looking at properties either for myslef or for my network of friends looking for investments.
Cheers
pr
Hi Shawn
I’m a joint venture partner in a commercial property in Vic that was leased to a very large international pharmaceutical company. The plan was to develop the site once their lease expired. When they left we discovered that the site was contaminated and we are now in the process of legal action. This has delayed our development by almost 12 months and could be more.
The site has to be cleared and cleaned and this is expensive as well as time consuming. Depending on the nature and severity of the contamination will determine the cost. It might be wise to seek details from the council but more importantly it would be necessary to get obtain advice from soil engineers amongst others.
Hope this is of some help.
Good luck
pr
Hi demayn
I can refer you to a company that has competetive rates and no fees.
Contact me at [email protected] for further details.
Regards
pr
Thanks crj for your clear explanation of torrens and strata titles. I now understand.
Also, thanks moolah and surreyhughes for the benefit of your experiences as well as practical advice. Moolah I get the impression that you’re not too impressed with strata titles [biggrin].
But your points about control are most helpful thank you.
pr
Hi Nathan,
I don’t think that there is a lot that is truly passive although I do have commercial properties, shares and business. All of them take are active income to start with and each has its own advantages and disadvantages. Our business provides us with passive and ongoing residual income which we can then put into shares and property.
Best of luck
pr
Hi Angel,
What a great attitude and outlook you have. Compassion and empathy are great qualities, and Steve is a good role model exhibiting these qualities most successfully in property investing.
I am new here too but have some experience in commercial property, business and the stock market. It is often times like these that make or break you. If you are able to persist and learn from these experiences you come out a winner. As Steve says, have a strategy and see it through. Changing mid-stream to the stock market when you are not well versed in it could be jumping out of the frying pan into the fire.
Rather than give you specific suggestions without knowing your unique circumstances I would simply encourage you to keep your great attitude and listen to people who are experienced and have a vested interest in you. Develop a sound strategy and stick to it.
Best of luck.
pr
Hi Damian,
If your friends are paying $450 pw rent it is no wonder they are having difficulty saving the deposit [grad]
By the way what sort of property are they looking to purchase in Sydneys west? I didn’t think that there was anything available for 250-300K anywhere in Sydney.
Cheers
pr
Sorry for the delay in getting back – just had to recover from a beating [evo], but it’s important to jump straight back on the horse.
Thanks very much PT, emc, kay and Bob for your kind support and words of encouragement as well as for your ideas and advice. I really appreciate that and look forward to more participation on here. I am in the process now of evaluating a few potential IP’s and am going through due diligence. I will post my progress on these soon hopefully.
Thanks again
Thank you Dazzling for your input, it’s always enlightening to hear contrary views.
Your assumptions about my emotions are not correct, however, I am new and willing to learn, so I accept your comments.Being new I don’t have experience to share yet, but as soon as I have anything worthwhile to share I will do so. Shall I write to you first? [biggrin]
Thanks Tiger
For reminding me that now is the time for action. No matter how good the feeling, there is no result without action and I appreciate your thoughts.
