Forum Replies Created
[
]Market seems pretty hot here at the moment, although industry is still recovering from the drought.
And, at the risk of alienating my good fried AD [
], banana benders seem to do things a little odd up here where 17 degrees is considered cool.Furthermore, the latest fast train is called a ’tilt’ train. I don’t know about you, but in my mis-spent youth, when I tilted the local fish and chip pinball machine, I was chased out of the shop by the owner.
I don’t think that I’d want to be on a train going 160kms an hour where it’s normal for it to be ’tilting’.
Still, having said that, perhaps some of the smaller regions will benefit by having the increased infrastructure passing through… if you get my drift.
Well, I’m about to go and sit on an island for a few days (tough life this property investing [
]). I’ll see ya when I get back to civilisation.Cheers,
Steve McKnight
**********
Remember that success comes from doing things differently.
**********Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
Hi Soosh-myster,
Yep – last night Julie’s dad pulled out a map of the GBR area and highlighted which areas are planned to be included in a new marine park.
He was commenting that his fishing chances should improve when the commercial fishing boats are kept away.
In the papers there was the usual talk aof masive redundancies, together with comments that fresh prawns for dinner will be a thing of the past. [
] (I’ve just come back from a lunch of yummy fresh seafood on the marina [^])
My question is, how many people actually look at the environmental issues/concerns when doing research into buying IP’s in certain areas (Left Field – I know!)Well, up here, the cane and the mines drive industry more than the fishing, and tourism I don’t think will be greatly effected.
My thoughts are that provided there are other industries, life will go on more the majority.
Still, you raise an interesting point for uni-industry towns, such as perhaps Moe and Morwell. If the issue with the sale of Loy Yang are not finalised (ie. sale with the ACCC) , then there may be some issues there.
I would however like to know the extent people go to when doing their research and due diligence when purchasing IP’s interstateAs you know, Dave and I have been in a secret [?]area lately, which has one main industry where half the workforce was on strike.
We were put off by this, until we found out more about the industry and realised that it was an area in transition going forwards rather than backwards.
As far as IP is concerned, I think that looking at rental vacancies is a good judge for the potential risk if industry in the area fails.
If there is a lot of supply of rental properties to begin with, adverse changes may have a more dramatic (ie. compunding) effect as people move away.
As another comment, I’m always concerned when investors as opposed to homebuyers are the ones forcing prices up. That’s the reason why Dave and I have moved away from the La Trobe valley.
Put bluntly, when our favourite IP fishing spot (to use your theme) begins to attract all manor of fishers, then we move on.
Not long until Fiji!!!! Enjoy yourself and don’t get sunburnt on the beach!
Regards,
Steve McKnight
**********
Remember that success comes from doing things differently.
**********Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
Hi,
Since I’m online and since I’m not doing anything better… let’s have more of a look at your reply.
I’m 32, earning a reasonable wage, married with 3 kids. I have had my first IP for just over 12 months now and built up about $30k in equity.That sounds like an excellent start [
]
I would like to build up a reasonably sized property portfolio to use as a retirement nest egg and maybe retire early. (Don’t we all!)Well – the difference b/w a dream and reality is a quantifiable plan. Eg. how much in passive incopme per week do you need to cut down from 5 days to 4 days and have more time with the family? By waht date do you plan to have this accomplished?
My plan? To do this I’m not sure how many properties I will need, just thought that each year I would look at the finances and if I found the right property, invest again.Hmmm – sounds a bit wishy-washy to me! This is not the talk of a determined mind, but someone waiting for opportunity to find them. You need to work out how bad you want that early retirement.
Not much of a plan I know. I don’t know whether to build up a number of lower priced properties at around $100k range, (the first IP cost $110k) say 3 or 4, before moving into the higher priced properties. I’m hoping some of you good people might be able to give me some direction.As a rule of thumb, it’s better to own 4 * $100k properties than 1 * $400k property.
That way you can spread your risk of vacancy wiping out your cashflow.
My advice would be to work harder at deciding what you want, for when you have a goal it’s just a matter of method (and effort) to get you there.
Bye,
Steve McKnight
**********
Remember that success comes from doing things differently.
**********Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
Hi,
Excellent post and a great opportunity for members to flesh out the nos on a deal.
I’d probably not gone too much further on a block of units (that will essentially be a buy and hold, flip or ify reno) after calculating the gross yield.
That is, $42,900 / $650,000 = 6.6%
That’s too low for the risk:reward return in my book.
…but it might make a good negatively geared property [
]Keep going… Dave and I have agreed to purchase multiple +ve cashflow houses since the seminar.
Cheers,
Steve McKnight
**********
Remember that success comes from doing things differently.
**********Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
]
], banana benders seem to do things a little odd up here where 17 degrees is considered cool.
]). I’ll see ya when I get back to civilisation.
] (I’ve just come back from a lunch of yummy fresh seafood on the marina [^])
]
