Forum Replies Created
Thanks for the support lifex. Keep the posts coming…….
Another tip – it can be good to think about property decisions at a time when nobody else is!!! People might accept a slightly lower offer on a property this close to Christmas – after all – who wouldn’t want a nice healthy deposit cheque stapled to an offer for their property at this time of year???
Age doesn’t negate effort – you can never be too young or too old.
The place I’m looking at is asking 65,000 – it has been renting for $100pw. I would move into it for the first 6 months of ownership – basically doing what you said redwing. then I might be able to rent it for $130 or so.
Thanks heaps – I hope I can contribute more soon, rather than asking of others. I’ll keep you posted as to how I go.
Off to see the mortgage broker…
Age doesn’t negate effort – you can never be too young or too old.
Is it possible to place a clause in a lease agreement stating that the owner has the right to kick the tenant out if they cause $x damage, or get x no. of complaints from neighbours etc. etc??? That way you would have a leg to stand on if your “ideal” tenant turns out to be a dickhead?
Can it be done? I am assuming it can’t – otherwise it would be a standard clause in all such agreements wouldn’t you say???
Age doesn’t negate effort – you can never be too young or too old.
Hi pekay,
If you have a specific property in mind I would sit down and “do the math” if I were you. The 11 sec. solution is just that – a quick way to determine whether the property MIGHT generate a +ive cashflow. The only way to find out for sure is to write up a detailed budget for the property. (Or buy the thing)I dare say this solution can work, deposit or no deposit, as the equation does not take a deposit into account. If, however, you are using equity rather than cash down, your cash-on-cash return (COCR) will be higher as you are using less, or none of your own money to purchase the property.
Also, remember that Steve’s book was written a few years ago now and there are FAR FEWER properties that fit the 11 sec. solution.
All the best with whatever strategy it is that you choose.
Spank
Age doesn’t negate effort – you can never be too young or too old.
Hi all,
Thanks for your posts on this topic, yes, even you lifex – good to get alternative views from people who know their industry.I am a firm believer in the idea that “you get what you pay for”, however, I know there are true bargains out there to be had and that you have to go looking for them.
I started the topic to provide a base for people looking for “value for money” to meet and share ideas, but thanks for the “inside” info also.
Good or bad, keep the posts coming, I’m not here for an argument, only to learn.
Cheers and thankyou all for your input.
SpankyAge doesn’t negate effort – you can never be too young or too old.
Hi Persistence,
I must be honest with you – I am at the same stage as you – I don’t yet own any property but I’m getting closer every day. May I suggest that you start looking around your own neighbourhood to begin with – stick with what you know best, especially when starting out. There is a neighbourhood in my area that is salt affected – many locals don’t even know about it and many outside investors have been burned buying in this neigbourhood. Don’t get caught in a similar situation.Even if the properties in your area don’t suit your investment needs, it will help you gain a “feel” for the market. Forget numbers for a while – look at properties in the flesh and write up a list of pros (the property has to suit your needs) and cons (you want to be able to negotiate a good price) for each property you view. If you feel you can turn most of the -ives into +ives, you’re on a winner.
This is what I have done for all but one of the properties I have inspected. (The one exemption was completely $#!@house!) The only +ive of this property was that if you bulldozed it, you could nearly get all the rubble to the tip in one load!
Good luck, I hope you are soon cured of your “analysis paralysis”.
Spank
Age doesn’t negate effort – you can never be too young or too old.
Has anyone got any info on ways to obtain similar info on specific properties in NSW?? i.e. who the owner is, what it has sold for previously etc. Is there an agency or government department that would be able to help me??
Cheers,
SpankAge doesn’t negate effort – you can never be too young or too old.
Another thing I have discovered with pavers (and probably a lot of other building materials) – while the more expensive ones look nicer in the display areas, the cheaper ones still look fantastic in their own right once they are laid.
After all – by the time you put the cheap ones down in your backyard, there are no “nicer” (more expensive) ones to compare them with directly.
Age doesn’t negate effort – you can never be too young or too old.
Another big one I almost forgot – CASH IS KING!!!
As I recently found out, even the ‘big, inflexible’ retailers like Harvey Norman etc will cut a portion off the RRP if you offer cash.
You can negotiate the sale price of just about anything (especially if you are spending a relatively large amount), once you feel a fair price has been reached, ask finally, “Could you sweeten it a little more if I were to pay cash?” If they say no – walk out – there’s always another retailer that will bow to your request if you tell them that their largest competitor just refused.
Age doesn’t negate effort – you can never be too young or too old.
Yack, you will be pleased to know that I have taken your advice and purchased Peter Spann’s “How you could build a $10m…”. I am nearly halfway through it and learning quite a lot – good to view property investment from another angle.
Maybe one day, a very wise investor will devise another method altogether, bringing wealth from excellent Spann style capital gains in “quality assets” that also produce Mcknight style cashflow?!?!?!?!?
I hope it’s me. [thumbsupanim]
Cheers,
SpankAge doesn’t negate effort, you can never be too young or too old.
Thankyou Steve for your help, thanks Sis for your support – great to hear from like-minded people.
Cheers,
Spank
Age doesn’t negate effort, you can never be too young or too old.
Stickmen – best thing to come out of NZ.
Oh, that and QF44.Watch for the bit where he goes “Yeah, heard you had your fingers in a few pies” – you’ll know what I mean.
I am 19.
I don’t want to work in a paid job (unless I really enjoy it) for a single day after my 30th Birthday. $100k per annum (in today’s money) would do it.
Before I die, I want to donate $1,000,000 to research into Cystic Fibrosis. Then I can die with a smile on my face, while signing a will that cuts out any bastard that ever doubted me.
Sorry, maybe I should have been slightly more specific. From what I know and have seen, I would reccomend looking at a map and highlighting towns and cities such as Ballarat in VIC (where Steve started investing) or even those like Dubbo, Bathurst, Orange, Wagga etc. in NSW. Then do some research into “sattellite” towns around these, say, within an hours’ drive.
Exactly that – out in the “nangers” as you put it. Something I have taken note of in these forums is the continual reference to small towns in WA. Don’t get me wrong – I’m not trying to put down the capital cities, but be prepared to travel a few hours to find something that is cashflow positive. As Steve said “it’s the application that has changed”.
These houses I’m talking about aren’t exactly the Tahj Mahal, remember, again as Steve said in 0-130… that you are buying properties for OTHER PEOPLE TO LIVE IN.
Open your eyes Yack!!!
I don’t know where you are from or how far you’ve looked. I must be upfront and let you know that I am new to the property investment game, but one thing I do know is that there are properties within and not far from my area that would easily satisfy the 11 second solution.They might not be half-million dollar properties, but a $75,000 property could (and some do!!!) attract weekly rent of $150.
Look a little further than the outer suburbs of Sydney and Melbourne etc. Thanks to Steve’s book, I also dare say Ballarat might be out of the question. These properties do exist – you just have to search harder to find them.
Where are you based and where are you looking to invest?
