Originally posted by dmichie:

Did anyone see Alan Kohler on ABC TV news tonight quoting the Demograpia Housing Affordability Rankings?
http://www.demographia.com/dhi-rank200502.htm

I would be cautious about the independence of the Demographia site.

Its sponsors are Wendell Cox. Wendell Cox is not an independent research organisation.

Rather…[Read more]

Originally posted by landt64:

my thought was that a property worth $150K would not get a rental income of $250 per week, and I wondered if maybe the RE had inflated the rent to make it more attractive to buyers.

This can happen (read up on GEHA leases), but the figures Mant gives are reasonable for the regional city that I’m pretty sure it’s…[Read more]

Let’s try the following:

positive cashflow
positive gearing
negative gearing
+ve gearing
-ve gearing
wraps
wrapping
vendor finance
11 second solution
bird-dog
success comes from doing things differently
due diligence
buyer beware
wrap pack
asset protection
wealth guardian
lease option
spotting
property investing
financial independence

Rgds, Peter

Originally posted by richmond:

I still don’t know why people equate “cheaper” or “country” properties with “backwater”… there are many bustling cities in Australia with populations of 30, 40, 50 thousand that have a solid diversity of industry and are good places to invest.

If you were on a modest salary had reasonable deposits and could get…[Read more]

Around Carnegie most people’s limit for houses is approx $500k. Yet 12 mths ago renovated Edwardian weatherboards went for $570-580k.

A just built 3br semi-detached on half a block (but very little backyard) attracted no bidders at opening of $470k, with only vendor bids up to $500k before being passed in.

Surely if you’re going to pay $500k,…[Read more]

Originally posted by redwing:
Hi All,

From the Real Estate section of the paper in WA
Secret Harbour 558% CG
Iluka 551% CG
Landsdale, Success and Leda 400%+

I have two points:

1. Many property authors (eg Monique Wakelin) consistently say ‘always buy within 10km of the CBD for max capital growth’.

However NOT ONE of those suburbs fits this…[Read more]

Those two examples are extremes, and I’d agree with Derek that they are unlikely to be champion investments.

As for Norseman, I’ve seen houses there for $15k, so $45k is a bit much – you’d probably get something in a slightly better town (eg Merredin) for that. Not that I advocate Merredin, but it would have to be better than Norseman, and less…[Read more]

Originally posted by Bonnie:

Just as a quick response, and so you can help me do some number crunching……

Property Value – $109,000 Neg
Rent – Currently $210 per week until 12/10/05
Council Rates – $922.14 per year
Water Rates – $149.50 per year
Stata Levy – $97.14 per quarter
Unit is 8 years old and in a secure complex of 21 units. It has 1…[Read more]

peOriginally posted by SteveMcKnight

Can you pls give me a page ref re: Robbo?

Page 265. As it’s gross, I’d interpret it as being before interest, holding costs, etc.

Though if I’m wrong (and it’s after costs) then it turns a good achievement into a great achievement.

Peter

Quote:
Originally posted by redwing:

>I remember buying a block in WAIKIKI in 94..

My mum’s only foray into property investment was buying a block a few streets back from Warnbro beach in 1979 for $9000. Was forced to sell in 1984 for $7000 Imagine its value now!

But the proceeds were used to buy a PPOR down south so with two booms in…[Read more]

All those street names bring back childhood memories – my grandparents lived in this area so I knew it well! Safety Bay is the official name of the suburb, but part is known as Waikiki (and possibly Malibu also for the area near Malibu shops).

Most houses were built in the 70s and 80s, and I remember walking through many half-built houses in the…[Read more]

Originally posted by kay henry:

A friend of mine bought a property on 5% deposit and paid $8000 LMI. A complete waste of money, I think. Her property has not gained substantially, and now she has to pay back that 8k. OPM is fine… if people gain equity, but if not, it’s like having a maxed out 8k credit card.

I used LMI when I bought my…[Read more]

Originally posted by Derek:
For mine I would also suggest that reading a variety of property investment books, irrespective of whether or not they are CF+ orientated, will make you are better, more rounded investor.

Agreed 110% Derek!

A lot of stuff in books that advocate -ve gearing (eg due diligence, choosing a property manager, selecting an…[Read more]

Originally posted by Domo:
Peter

By following your approach you can work out an estimate of what the rent should be , there is quite a bit of work involved to keep the data up to date.
Wouldn’t it be easier to take the advice of the PM , which is an estimate & if there is no takers drop the rent ???

Yes it can be a bit of work, but it’s all…[Read more]

Originally posted by KarenB:
Hello Kay & Westans,
Given that this whole website is devoted to cash flow positive property acquisition, how many people (such as yourselves) actually have cash flow positive property??

My IPs were all bought since March 03.

Of these:

No 1 is cf+ before tax with a gross yield of 10.2%.

My spreadsheet shows it…[Read more]

Originally posted by Domo:
Can anyone advise me on how to approach this issue as loosing $10 per week makes a big difference over a year .

Possibly losing $10pw (and having a stable tenant) is heaps better than losing $100-200pw by having a vacant IP.

I have followed Domo’s approach in looking at rents.

I looked at online to let ads and rental…[Read more]

I’d be very reluctant to ask any REA about ‘positive cashflow IPs’.

This is investor-speak, not REA speak. If the agent was smart, he/she’d know investor-speak.

But if you can find a dumb agent (who even tells you why the vendor is selling and that they think they’d take $x less than the asking price) then you wouldn’t want to alienate him/her…[Read more]

The best book?

Depends on what you want.

The big flaw in Lomas’ book is that she relies too heavily on tax deductions. Many people on average wages would run out of tax deductions after they buy 3 or 4 properties.

This is not quite enough even for a modest income (you really need to own at least 4-6 outright, and maybe 2 or 3 extra to provide…[Read more]

So all these 12%+ yields that I could have got in Leonora (which I skipped past because I thought it was too high risk) will now have shot up to maybe 15-20% or down to 0% depending on if you have a tenant???

For this reason, I drew the line at Kalgoorlie, and this for only part of my porfolio. I’d be wary about Kambalda, even though it offers…[Read more]

I have a “stir the pot” option for you, forget there and look tassie.

I would be wondering why?

Are you going for growth or yield?

Hobart prices are no lower than Perth’s. Yields in Hobart might be slightly higher, but Perth has far better growth prospects.

As for Launceston and other country parts of Tassie, these have experienced enormous…[Read more]