Forum Replies Created
cant go forward until you actually start moving!.
Well done.
You are on your way.
What about setting aside a certain amount for your 'investing' hobby.
That way it is your, and not her emotional weight to carry.
If other people can set aside 500/month for that motorbike, new car or nights out, why can't you do the same for your hobby?Slowly build the portfolio, and you will find you can do quite a lot with that 500.
been with my wife for 30+ yrs, and unless it is a joint goal, keep the goals separate!
Just passed the first year of 2 x IP's, and my wife and daughter are now inspired to join my enthusiasm.
And the 2 x Ip's have only cost me 500 for the year!
Currently looking for 2 more.I believe that whatever happens – prudent people will do better than those with a high risk strategy.
My 2C
In times of stability – higher risk is acceptable.
in times of high risk – conservatism rules.My 2 c worth
I believe affordability is too much marketed as a hearts and minds thing. It is always there if you make some sort of sacrifice.
As a 20 yr old, I bought my first home, which was a glorified dump, but with 25% deposit, and over the next 10 yrs 'fixed it up' and sold it for 6 times what I paid for it.
As a 30 yr old, I raised 6 kids on a single income, and yes, my kids shared a room with their siblings, 2 to a room. We drove shite cars, but had lots of fun and entertained regularly. Our house was always full of noise and action, people and joy. Didn't go out a lot, Why would you when you had more fun at home. Sold that one and moved UP, selling for more than we newly purchased, again.
As a person approaching 50, we are living in our 3rd home, and have a few investment properties, bought with the equity in our PPOR. They were cashflow neutral, but appreciating nicely. (after 1 yr). Have raised the rent, happily still with the first crop of tenants, so they are now positive.
We have always lived within our means. As an example, we have NEVER had a new lounge suite. and may never. At one stage, we had two tv's, One had a picture, and one had sound!. So what!. We made do.
I do not see our generations children being ready to make ANY (ongoing) sacrifice to build capital. They do not want to start low.
They want to start at the top. This applies to employment AND housing, AND cars AND other goods.The result – Residential investors will always make a killing if they invest wisely in desirable areas.
Fringe areas are nowhere for them. Return does not match investment.
The basics of investing will not change.
Won't matter which government is in power.
The episode of ACA I saw concentrated on the 'missed payment' eviction of a family, that missed a payment, thereby terminating the contract, and forfeiting the monies paid to date.
The problem is that many people see with less options see it as their only option, and are easy prey for anyone who has deliberately setup the terms and conditions so that they WILL foreclose (if that is the right term) or terminate the contract due to a breach of conditions, ie one missed payment, to retain years of payments, AND the property.
There is also a belt of suburbs around Ferntree Gully, Boronia, Bayswater and Croydon that are re inventing themselves.
Ferntree Gully has 2 railway stations, and an abundance of shopping centres, and land there is being remarketed with dual occupancy sites, and townhouses where people once said no one would build. They are all rather more upmarket than the older stock. The new freeway allows (will?) a 20 minute journey to most of the manufacturing and industrial suburbs.
Bayswater has just spent a lot of money changing the flavour of the suburb, atracting investment into a shopping complex that was run down, and atracting professional offices. Most of the public amenities have been refurbished, and been made ‘family friendly’.
The Bayswater hotel is now gentrified, and has lost the slaughterhouse tag of a decade ago.
Ditto for croydon, with major dollars spent on cleaning up the flannel shirt tag in the hotels, shops and public areas.
Boronia is between all of these, so gets the advantage of all. Major expenditure here has been train station going underground, a new hospital, and again – shopping centre investment.These suburbs used to be seen as the urban fringe, and now are closer to the demographic centre of Melbourne than the centre of Melbourne!
As a disclaimer, I own PPOR in FTG, and 2 IP in Bayswater, so am biased. PPOR in FTG has doubled in value in last 5 yrs.[biggrin]. Hoping for more of the same!
Still newbies at this.
When ? about 2 months ago.
FInancial status
My wife and I have been married 26 years, six kids, and have always had enough, but not quite enough.
Inspiration was desire to have something for us to retire on, and I need some major surgery, that savings can’t pay for.
Owned 50% of our home, so leveraged this, bought 2 units of a 4 unit (existing) refurbishment, and have started from there.
Is almost CF+, but not quite. ($20/week total). I do the maintenance myself (gardening) for the 4 units and this provides more than that.
Had new tenants move in day after settlement, paying 30% above previous rents, which were when the property was in dire need of maintenance.
Sought out a quantity surveyor, and expect to fund the shortfall from tax savings and depreciation for at least the next five years.
Worked out the numbers ten ways to Sunday, and they actually turned out similar.Our strategy is definitely buy and hold. Will add to this on review every 12 months.
Not rich by any means, but who knows.
Don’t need rich, just need confortableIf you have done your homework…
The hardest part is making the decision.
Don’t be afraid that the sums add up. Just do it!
If you did all your work and the future doesn’t turn out the way you planned. You still did more than the gunna.
Gunna do this Gunna do that. Didn’t do anything!
Shoulda done that, learns something from mistakes. Education is a means to an end.
Did do it, the only one that gets to profit!Good management is about what you do when it happens, not what happened to you.
A famous golfer said recently, “I never make 100% of the shots I don’t try”
My wife and have raised a number of children, and whilst only in our middle forties, are now ’empty nesters’
We had our first holiday in 25 years of marriage last year, and decided that we wanted more.
So On the investment bandwagon, and lets leverage, leverage, and then leverage some more to increase the pool of money working for us.Our motivation is twofold.
1. we want to be able to afford to travel in a manner that suits our level of need. Can’t do that from savings!
2. I need some major orthopedic surgery that will enable me to WALK when we do travel. Apparently, even though we are in full private health cover, I can get breast implants for free, but knee replacements will cost me over $30,000 (for both legs). Can’t do that from savings either!. The breast implants are seen as necessary (by the Health organisations, not me!) but the knee replacements are COSMETIC SURGERY. Go figure.The only way to achieve this in our lifetime is to deprive ourselves somewhat for a while, and use the additional money freed up from no school fees, lesser food bill etc, and INVEST.
Finally, a way that other Australians can work for me!
That is my motivation. Not that I am a cynic!Before BOGAN, I was a YUPPIE.
Then I had the Jaguar (7 in 5 yrs) a Bentley (1956 Continental GT), Lotus (the affair continues) 3 Esprits, an Elan, and an Eclat.
And yes I did have a ferrari , a 308GT4. It was a disgraceful car.Before joining the car business full time, I manufactured my own cars for 8 years. That was where I lost all my money!
I was moderately successful, manufacturing over 60 cars in 8 yrs, each handmade for the customer.
All are on the road, and met all the rules in Australia, New Zealand and Japan. Try 260kw in 1 400kg car, road reg!And I managed to exist on a reasonable financial level during that time.
ALL cars have been put on hold while I build up a portfolio that will enable me to ‘play motor cars’ in retirement.
But reading the whole thread, a common theme was small reliable cars that did not cost an arm or leg. The brand is Hyundai.
Guess which brand I sell as a new car?
Shameless plug follows – contact me if you are considering a new Hyundai, as I can assist!. And I won’t look down on you!Hmmm.
I run a new car yard – so really have about 70+ cars daily?But at home, my driving pleasure is either my 1952 FJ sedan, my 1957 Lotus XI, or my 1998 supercharged statesman.
All up, probably 5k for Fj, 40k for Lotus, and 15k for statesman.
Interestingly enough, the FJ is the best fun!. Black, flames, big chromies, lowered 7 inches, nodding dog, the works!
Everyone wants to race the lotus, and it is a race car so……
The statesman is for my wife, lowered, big blower etc – drinks fuel like nothing else can.So my choices are all BOGAN!!!
have always used a family solicitor – been with the family for over 100 yrs. But given that 3 yrs ago one of them ran off with my inheritance, (yeah – they stole it) I used a conveyancer for the last 2.
In general, feedback seems to be that if it is all straightforward – use a conveyancer.
If there are any complications – use a solicitor.The problem is – you don’t know if there are going to be any problems!
And now I have taken possession!
Settled on Friday, tenants moved in on Saturday – at a rent above rent estimate
Quantity surveyor also had good news for me re depreciation schedules and what I can claim this year, so It is all Systems GO.Now where was the real estate section of yesterdays paper?
lets find the next one!Adam – good things happen to those who DO.
Settled this week on the first 2 properties – although scared witless, think I have followed all advice, and covered all the bases.
Settled on the friday, and tenants moved in on Saturday! on 12 month leases at a good rent.
Now if I could fast forward to 10 yrs from now and see how it pans out!My advice – don’t be a gunna 0 gunna do this – gunna do that
Pick your mark. research is the vital step. you can bite off more than you can chew, but… beware!!!!
Open eyes are your best protection. Then you get to the good bits!
5% Not really a half truth- has been discussed to death on this forum, with many members adding their experiences.
But Point taken.Asking is ok, demanding is not.
The other party always has a chance to say no! I have been educated by the other party often.I have found that negotiating from a fixed point is not negotiating.
And I don’t always get what I want.
But if I ask a question and don’t get any pushback, then it was obviously in the ballpark in the first place.Unmentioned in the post was that we also supplied some tenants for vetting, 1 of which will be signing a lease.
So, we did leave something for the other person.I am a strong believer in ethics, but you can ask for the moon, just don’t expect it!
Had formal approval of our loan to buy 2 units today – so am celebrating.
Ended up with a negotiating case study.Rang the agent to enquire about rental management, and ended up negotiating their management fees.
dialogue went like this.me: Have you done a rental appraisal on these properties?
Agent: yes, we decided between 205 and 210 per week will attract the right tenants and be fair market rent.
me: One unit has a larger backyard – Is it fair to have that one at 210, and the other one at 205?
Agent: yes.
Me: what about management fees?
Agent: we charge 7% for each unit.
Me: I have discussed this with other agents, and 5% seems to be the norm. (Blatantly untrue, only discussed on this forum)
Agent: OK, we can work with 5%. Letting fee would be one months rent.
me: gee, that sounds high, what services do you provide for that?
Agent: vetting, history checks, collection of bond, inspection reports etc.
me: Since they have been recently refurbished, and everything is new, should be easy.
Agent: yes, quite simple.
Me: so, 1 weeks rent would be suitable then as a letting fee?
Agent: 2 weeks would be better.
me: So 1 week is ok, since there are 2 units together?
Agent: OK.Spot the flaw in the agents negotiating.
I had done my homework, and they could only acknowledge the conversation, and try to keep themselves in the management picture.
The person in control is the one who wins.
If I had no idea of the ‘norm’ of charges, I would have just probably paid the first response. I would have ‘negotiated myself out of 2% management fee, and 3 weeks letting fee. per annum this is $1680 per annum if letting cycle is one year. We intend to buy and hold for 5 yrs, so this is a substantial amount!.Do your homework, and treat it like a conversation, but with your STRONG points written down in front of you, your OBJECTIVE close at hand, and be gently spoken and slow in your speech.
I hope that this provides a lesson that you can use.Any critiquesof my style? regards
Any information is useful.
One of my work colleagues bought a 1 br unit in Frankston 5 yrs ago, and can’t even realise the same price as it was purchased for. It has been on the market for 1 yr, with now, 4 agents.
he either bought too high, or is not ‘meeting the market’.
he told me the price, and it doesn’t sound unreasonable, but if he cant sell it……..Short list – remember – my opinion, so may not suit you.
Most are available from a library! for free!
You can negotiate anything – Herb Cohen ISBN 0 207 14738 8
Older book, but the wheel is still round, and it has been around for thousands of years.Getting past No – William Ury ISBN 0 7126 5327 9
Found on a bargain table at a shopping centre for $1. Actually deals with more real life scenarios than other books. Worth more than the price.What they don’t teach you at harvard Business School – Mark McCormack (head of IMG) ISBN 0 00 217335 2
More a management book, but makes you realise negotiating is just managing objectives and behaviour.Strategic Selling Robert Miller/Stephen Heiman/Tad Tuleja. – ISBN 0 9619073 0 4
My favourite, but really a Professional selling book. The staple text of Hewlett Packard sales force for many years. Again, about managing the objectives. If you want to get professional results – you must know what a professional would do in that situation.I have been in professional sales for 20+ years, and you need to mine books and libraries for ‘NUGGETS’ ie things that will assist you without spending weeks trying to remember them.
Selling done well, and buying, is fantastic fun, and negotiating is one of the things that separates the men from the boys. It is the DOING part of thegunna, doing, done trilogy for results.
Take you time reading these texts, buy them if possible, and fill the margins with notes, add post its etc so you can come back to them.
Have fun
Answering my own posts? is that bad form?
When an observer (ie property reports) say that the area has a 15% PA growth, it is a simple calculation of what has been sold in that suburb. It may have no relevance to what I actually bought, as it only aplies to what was sold.
if only prime condition units or flats are sold tis year, then the amounts will always be high if previously only the poor condition ones were sold, , people fixed them up (us) and the resold them.Can only be used as a guide, not an investment plan!
One strategy (as against a tactic) is to remain in constant discussion with the agent.
A major item for action at all times is to be known by the agents where you want to invest. Maybe they will call you when something is about to be listed, rather than after it is listed.Being a nuisance, but a NICE nuisance is a major negotiating tool. It builds credibility, trust, and even desparation for the agent if the week has not been very good.
Staying in constant communication is VITAL.
I run a new car dealership, and if a customer comes back more than 3 times, he will buy something – my goal is to have him buy from me. Same applies to any negotiated del, real estate included.Make the agent Want To Help You.
