Forum Replies Created
Hi guys,
The advice that I got (I’m not willing to disclose where, but he may have spoken at Steves seminar), was to quit work! My current paysilps aned letter should be good for 6 MONTHS, BY THAT TIME i SHOULD HAVE DONE ENOUGH TO SUPPORT ANY FURTHER LOAN APPS!(sorry hit caps lock somewhere there) If you can guess who you will understand where he is coming from. my decision was to stay employed (for the time being
])
If you want to quit your job do it! BUT be prepared for a long hard slog, before youy are actually financially independant(It won’t be easy).
I do believe any of us could do this it’s just a matter of having the knowledge and confidence to do so![]
For more info on what it takes for this approach go to http://www.guerillarealestate.com.au. There are heaps of good ideas for this type of strategy there!Hope this helps,
Scott S“Aim for the stars and you’ll shoot the top of the telegraph pole. Aim for the top of the telegraph pole and you’ll shoot yourself in the foot!”
-anonHi Tas Investor,
We’re out here and we’re waiting too![]
I’d Like to hear about this too, as we’re just forming a trust now and this sort of info would help us too.
We would like to keep profits in the trust and use them to reduce the trustee’s debts.
Cheers,Scott
“Aim for the stars and you’ll shoot the top of the telegraph pole. Aim for the top of the telegraph pole and you’ll shoot yourself in the foot!”
-anonHi Bris scouting,
My team starts as far south as Melbourne and goes as far north as Mt Isa, so don’t let proximity limit your choices![]
The net and phone/fax, express post, make it like your next door anyway![8D]Cheers,
Scott S“Aim for the stars and you’ll shoot the top of the telegraph pole. Aim for the top of the telegraph pole and you’ll shoot yourself in the foot!”
-anonHi J P and hwd,
I agree 110% about the high rise thing. But for slightly different reasons!
While land is not nessesarily an apprecitating asset, when it is in demand (and generally it is) it will appreciate, but if no one wants to live in the area (Boggabilla for example), it will deprecitate. (55% over 5 years infact). Accomodation is also an asset, that when in demand it appreciates, when there is an exess it depreciates.
So hi-rise units would be a good investment if there was a shortage of them! By their nature there will never be a shortage of them so avoid them like the plauge!
Sorry to seem argumentative but just trying to make you think. it is not nessesarily the item for sale that apreciates but the demand for it that causes it to appreciate. So poorly sort after land will depreciate and sort after units will appreciate![]
It’s up to you to do the due dilligence to decide which is which![]Good luck,
Scott S“Aim for the stars and you’ll shoot the top of the telegraph pole. Aim for the top of the telegraph pole and you’ll shoot yourself in the foot!”
-anonHi jacy_m,
Your in the right place, what you want is positive cashflow properties. While these may not see the capital gains that some inner city properties have seen, they will pay for themselves and leave money in your pocket![8D]
Any property with returns higher than about 8% will actually add to your income thus increasing your borrowing capacity (over about 10% you start to get some decent cash in your pocket).
The other advantage to this type of property is that they are cheap (under 100K)! So it is easier for lower income earners to borrow the amounts of money needed.
You have a bit of equity in your home so you can use this to fund the deposit and legals for an IP.
Remember if you are borrowing all costs include them in the purchase price when you calculate your % returns.
Talk to one of the mortgage brokers that frequent this site, to see exactly what you can and can’t do. I’d highly recommend ProSolution, I’m using them at the moment, and Stuart bends over backwards to help anyway he can!
Lastly stick around here, there is some really good advice given out by some of these guys it’s worth a fortune![]Best wishes,
Scott S“Aim for the stars and you’ll shoot the top of the telegraph pole. Aim for the top of the telegraph pole and you’ll shoot yourself in the foot!”
-anonG’day hwd,
Ive noticed you mention a negatively geared property turning positive after a few years a couple of times now, I don’t understand how this could happen, unless maybe you’ve paid a heap more than normal off and maybe refinance to a lower ammount over a greater period of time.
I’m pretty green too, and this is an area that I really haven’t looked into. Could you explain the theory to me? Would’nt you be better off buying for high CGs and selling regularly (say every 1-5 years) to create cashflow, using the depreciation on the fixtures to help reduce the tax payable on the gains?
I’m a bit confused about this side of things.[]Thanks,
Scott S
“Aim for the stars and you’ll shoot the top of the telegraph pole. Aim for the top of the telegraph pole and you’ll shoot yourself in the foot!”
-anonThanks Spider,
That’s a very good piece of advice, definately worth remembering []Scott
“Aim for the stars and you’ll shoot the top of the telegraph pole. Aim for the top of the telegraph pole and you’ll shoot yourself in the foot!”
-anonHi Brad,
You can buy the property and rent it out straight away as along as you intend to use it as your PPOR within a specified period of time (1 year I think). The lenght of time that you must live in it is a grey area, it isn’t specified. I’ve heard of people staying in a place while the fix it up, over a couple of weeks, claiming this as their period of residency.
I don’t exactly know what is required as proof of residency, but it’s probably something like bills in your name going to that address or something like that.Hope this sorts out some of your confusion![^]
Good luck[8D]
Scott S
P.S. If you would like some info, like local real estate section or those local real estate books etc let me know and I’ll post them down to you. It will at least give you an idea of the market up here![
]“Aim for the stars and you’ll shoot the top of the telegraph pole. Aim for the top of the telegraph pole and you’ll shoot yourself in the foot!”
-anonG’day APIM,
My turn now!
I couldn’t agree more! People want to be told how to get rich, and they will pay extortionate amounts to find this info out, yet they are unwilling to do the little things (mostly free) to make them rich!
The reason that I’m a little quiet about where I source my deals, is that I feel I’m doing a person no favours by telling them go to X place and you can buy a cashflow property. Sure they would probably buy a cashflow property, but they would not know how to find more with out being told again(similar to rich parents letting thier kids live the good life without teaching them the financial skills that got them thier wealth in the first place), you just have to go out and do it for yourself!The path to wealth will be vastly different from person to person and sorry APIM there is a magic formula![8D]
Here it is;
Hard work Dedication Focus and finally, Actually doing it(you’ll never build wealth unless go out and DO IT)Get out there and have a go, its the best seminar you’ll ever do![
]Cheers,
Scott SP.S. APIM I think the % rate of good financial advisors was a little high[
]“Aim for the stars and you’ll shoot the top of the telegraph pole. Aim for the top of the telegraph pole and you’ll shoot yourself in the foot!”
-anonHi Gav,
It’s good to see you’ve started on the journey. I was in a similar situation to you until I found this site in January this year,broke and in my comfort zone(although not too comfortable!).
Then after 3 months of research and procrastination I bought my first IP (actually I bought 2).
There are plenty of people here to hold your hand, and your right once you buy the first and are comfortable with it, no one will be able to stop you(I live and breath it now[]!)
Don’t fear making the wrong decision, just do your homework to make sure it’s the right one.[8D]Take care,
Scott S“Aim for the stars and you’ll shoot the top of the telegraph pole. Aim for the top of the telegraph pole and you’ll shoot yourself in the foot!”
-anonIf it was properly contained it shouldn’t pose too much of a problem(Sounds like a negotiation tool to me!). But if not properly contained, it could be a serious litigation risk.
Regardless I wouldn’t go building a 3br house with nice yard on it![] Units should be ok.Cheers,
Scott S“Aim for the stars and you’ll shoot the top of the telegraph pole. Aim for the top of the telegraph pole and you’ll shoot yourself in the foot!”
-anonHi all
Those who have bought in docklands and similar CBD appartment developments in Brisbane and Sydney to a lesser extent, will be in for a rough ride in the near future, in my opinion.
While this may lower median house prices, I don’t feel that it will affect other sectors of the market too much especially on the cheaper end of the house market.
A lage number of people having banks foreclose on their PPORs (due to cross colateralisation with IPs) will only strengthen the rental market, and as rental prices are based on demand, not on purchase price this can only serve to increase returns. Not that I can really see this happening in the near future.
I look upon a market crash as an opportunity to be used to my advantage, not a looming disaster!
Purchase wisely, with all possibilities in mind and there is little to fear![]Cheers,
Scott S“Aim for the stars and you’ll shoot the top of the telegraph pole. Aim for the top of the telegraph pole and you’ll shoot yourself in the foot!”
-anon
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