Forum Replies Created
Hi Gatsby
As Mini has pointed out, it depends on who you deal with.
I am a licensed buyer’s agent and provide due diligence reports (written and verbal) of the areas in which I am finding properties. Others may do this verbally, or just pass on a deal and let the buyer do their own due diligence.
There are a number of people out there (not all) bird-dogging illegally and passing on some lousy deals, so be careful.Cheers,
scotty3
Cheers,
scotty3I have been to and bought a number of seminars and Steve out-strips them all by miles in value for money. The info is great and as Robert has mentioned, the networking is great too – the value of which should never be underestimated. Steve has also said that next year’s seminars will contain different content to this year’s,. There’s ALWAYS something new to learn.
I went to two of Steve’s masterclasses in a row, and got something valuable out of both of them even though the general content was the same.
Go!
[biggrin]
scotty3Hi Pressic
Good advice from Robert. Set your goals and decide what you are comfortable doing (reno’s or otherwise, locations, etc), then go ahead and look for a deal that suits.
Theory is great, but it won’t make you money. It sounds like you’ve been gathering theory by the bucketful, but need to apply it now. Set general limits on where and what you are happy to invest in, and then go look. You can tweek the details as you go – the forum can help there.
Good luck!!
scotty3Hi guys
I also was at both the October and December seminars and the Ah-Ha moment for me was when Steve first looked at the idea of increasing purchase price by increasing rent.
I am now applying this to one of our IP, so maybe a practical example willhelp some of you understand…
We recently signed new tenants into our house on a 12 month lease at $230 pw (5%, current market yeild). We have now decided to sell, but before doing so I have offered the tenants ducted A/C for an increase in rent to $245 pw. I had an agent give me a rent appraisal before the A/C and then after the A/c was added. The market value had increased by a commensuarate $15,000 (for a $2,500 outlay).
Here’s the trick:
Yes, I value-added, but the new buyer will be an investor, not a home-owner because the lease is in place for 12 months. Investors want return, so I had to find a way to make the return stay around 5% with the increased purchase price. If I hadn’t raised rent, the return would be below market value and even though the house might now be worth that, the investment isn’t.Hope this helps.
And thanks to Steve for showing us how to make more money!!
Cheers,
scotty3I went to uni in Armidale and still have friends I visit there. It’s a great place to live (because it isn’t industrial), but I’d wait a few years for it to be a great place to invest. My opinion is that you have missed the boat on this one. I was up there a couple of weeks ago visiting friends and looked at property, but the returns are pretty low now, and I think the growth is over for quite some time to come. While you might find an OK deal, there may be better ones elsewhere.
Cheers,
scotty3If you find a fantastic deal where the numbers stack up, then why wait? If the deals you find are so-so, then wait for a goodie. There is no need to rush. Opportunities are always out there.
Having said that, the mastercalss is excellent in that you not only get great info but you also get the opportunity to network with others doing the same thing as you.I have attended two of Steve’s masterclasses in the space of two months and even though the general outline was the same, the info was still different enough for it to be very worthwhile. And the networking is great!
Go for it.
scotty3I would strongly recommend Steve’s masterclass as well. Very little cost in comparison to so many others and a great opportunity not just to pick up info, but to meet other like-minded people and network together.
If you need to wait a while before buying again, use the time to get educated…
Good luck.
scotty3Local councils and chambers of commerce can help. Many councils have demographic, economic and future delelopment data which can give you a picture of what is happening in the town.
Cheers,
Scotty3It’s just like people have said before – do your research and have an exit strategy in place BEFORE you buy. I will buy in small towns but won’t hold for too long (one to five years before serious review). I have considered how long I will hold before I sign anything.That way you are minimising your risk.
Likewise, rather than just buy-and-pray, look at Steve’s latest strategies of making the profit – value-adding, etc. If it fits what the population wants, then you should do OK within your pre-set timeframe.
Cheers,
Scotty3There are always good deals if you know what you are looking for, but I can only strongly suggest again that you come to Steve’s seminar on Sunday before doing anything else, if you possibly can – too much in it to tell you specifically why you should.
With CG less than what it used to be in many areas, including some parts of Newcastle and central coast, you need to be extra careful in the selection of property so that what you have can help expand your portfolio rather than limit it.
Try to find ones to which you can add value to increase returns. Failing that, look for ones that are under market value (sometimes hard to find). ‘Bad’ areas that are experiencing a ‘revamp’ to trendry can be good hunting grounds.
You can also try this link:
http://www.reports.rpdata.com.au/Cheers,
scotty3Hi Landt
You can advertise the property for sale once you have signed a contract on it. You can also show people through it before settlement by writing a condition in the contract that allows you to do this (usually after the contract becomes unconditional to the purchaser).If your solicitor knows it is being on-sold, he/she will usually just transfer the title straight on to the new buyer the same day you settled – much more straightforward than waiting for title to go into your name and then into the next buyer’s name.
You can ask your solicitor about this.
Cheers,
scotty3Hi Clarebear
Welcome to the forum!
A couple of places to look for data are Residex, RP Data, REINSW (all of whom have websites). You have to pay for reports, except for a limited free service with RP Data. If you can find a couple of decent real estate agents they can help too (though pick who you believe!).If you are new to the investment scene may I strongly suggest that you spend some of your first dollars on education? There are a lot of properties in Sydney that are likely to have relatively poor CG over the next few years and if you are looking at building a portfolio of properties, you need to carefully consider the consequences of negative gearing.
Steve is running a GREAT seminar next Sunday (12th Dec) that will give you so very many insights into property investment. If you can afford the time, book into it quick!
Otherwise, keep asking questions until you have a fair idea of what you will be buying into and what the true outcome is likely to be.
Best of luck (and skill!),
scotty3Did you know there are around 4000 different lenders in Australia? Don’t let one or two ‘No’s’ put you off.
All lenders will want to see that you can manage your finance, so it helps enormously to go to them prepared. Have your tax returns ready to present, but also have a list of current income and expenses per week/month (Cash Flow Sheet) and a list of current assets and liabilities (Balance Sheet). The more prepared you are, the better your chance of success.
You could also try other avenues if need be – eg joint ventures with family/friends.
Good luck!
scotty3Hi PropertyPlus
Welcome to the forum!
I’m not quite sure what you mean by ‘Qld’ – it sounds like you are not one to venture out of the capitals, so does ‘Qld’ include gold coast? townsville/Cairns? etc?
It would pay to do some thorough homework in light of the softening market in most (but note, not all) places. New apartments you are looking at may be fine for now, but how many more have started to be built in your area, and what will the supply/demand ratio be like in say 1-2 years when the ones under way are finished?Also be careful about rent guarantees – they are often inflated and you pay for them with a higher purchase price.
Good management is hard to find – check it well before proceeding. Good tenants – we all want those! But can we guarantee them? Best to make a little room for both vacancy and extra maintenance just in case, so your final bottom line is more conservative than optomistic. If all still checks out OK, then why not?We are in agreement, APerry.
Your architects are doing something similar, but different to straight bird-dogging. In fact, I wouldn’t call what you do ‘bird-dogging’. More power to you – there’s nothing wrong with networking!
[biggrin]
scotty3Originally posted by APerry:The fair trading act states that you can’t act as an agent. You can act as a bird dog, as long as what you are doing does not fit the criteria given for this definition.
You just need to be careful with how you act. An example is architects, some of whom generate work by taking potential projects to their clients, in return for the design work.
Can you explain to me how someone can find a property, present it to another buyer and accept a monetary reward for doing so with out it falling under the definition of an ‘agent’ and/or a ‘business for reward’?
In your case of the architect, he/she receives no monetary reward for the introduction of the property, only for the design service. This reward would fall under the regulations of the architectural industry.
Bird-dogging is relating to flicking properties for money. People do this deliberately and soley for the monetary reward. It is therefore
a) a business
b) the act of an ‘agent’ as defined in the Act.If you want to pretend it is something other than this, let it be on your conscience and all I can say is ‘Good luck’ if you get caught, because I don’t think the authorities will view it as you do.
My intention with this post is to get people who might be innocently considering bird-dogging without a license to think twice before doing so.
I also, as a legitimate and reputable buyers agent, don’t want the industry tarnished with ‘mavericks’ (and believe me, I’ve seen some!) who are accountable to no-one.
Cheers,
scotty3The tax break on the 6.5% you are paying. [suave2]
12% isn’t bad for starters. Your money is not leveraged though. You could buy a property yourself using the $40000 as deposit and possibly make a higher return…. depends on how ‘active’ you want to be with your investing. I can recommend Rick as a sound businessman if you’d rather have someone else do the hard work.Cheers,
Scotty3Yep.
New huge multi-national has come and bought the mine and there is a new life to the place. Hundreds of new employees are being brought into the town and they have to live there (no fly-ins) with their families. Big housing shortage at present.Govt buildings were refurbished in the last year (govt won’t spend money like that for no reason) and new commercial investment happening. Talk of upgrading the rail link and a $6 million upgrade of showground to a national rodeo facility, to name a few of the things happening.
How does that sound?
scotty3I watch what they banks offer with fixed interest rates – they don’t get it wrong too often. Right now, that would suggest there is still some breathing space before any great interest rate hikes- though they have to come some time, so there’s no room for compacency!
Cheers,
scotty3
