[steveodMember@steveodJoin Date: 2003Post Count: 28]

October 26, 2003 - 2:46 pm

Hi everyone,
This is a very interesting discussion. My two cents worth is this. Yes, the rental market is declining (although not everywhere) BUT!! When interest rates rise and people who are on the borderline with their finances have to sell, there will be an increase in demands for rentals. The key to everybody’s strategy, no matter what your philosophy is, is to have a buffer and not be one of those who are sailing so close to the edge that you go down with everyone else. If you invest wisely, you will be able to buy when others are bailing out.

Steve

[steveodMember@steveodJoin Date: 2003Post Count: 28]

October 26, 2003 - 2:33 pm

Hi Fudge111,

I’d ;ile to have a look as well.

[email protected]

Thanks.

[steveodMember@steveodJoin Date: 2003Post Count: 28]

October 23, 2003 - 2:40 pm

Hi still_in_school (Sorry, don’t know your name[8D])

Would you mind e-mailing me a copy of your spreadsheet? steveodatwestnet.com.au

Thanks

P.S. I put at instead of @ to avoid spammers who run software programs over web sites to get e-mail addresses.

[steveodMember@steveodJoin Date: 2003Post Count: 28]

October 23, 2003 - 1:52 pm

I can’t believe that ‘Animal House’ with John Belushi didn’t get a mention yrt. Then again, I was 17 at the time. Maybe I’d better take another look if it’s still around[]

[steveodMember@steveodJoin Date: 2003Post Count: 28]

October 23, 2003 - 8:17 am

Hi Andrew,
There are definitely 11 sec rule properties out there. It just takes alot of work, and as others have said, don’t limit yourself to your local area.

Also, don’t ignore something if it is outside the rule. I just looked at 2 units for $140,000 ($70,000 each) and rented for $110 per week each. I found out tenants in both units had been there for 18 months and wanted to stay on. They also said that the rent hadn’t gone up in the 18 months and they expect it to go up with new owner. I can increase rent to $125 now with rent review every six months. I also got the units for $130,000 ($65000 each). Just outside the rule but only for the first six months by $5 per week. Also the market has risen by over 30% in the last twelve months and still climbing.

Regards,
Steve

[steveodMember@steveodJoin Date: 2003Post Count: 28]

October 22, 2003 - 2:39 pm

Yes, you can set up your own super fund. It is relatively easy and can be done with the help of your accountant. I don’t think that money you personally put in is fully tax deductible, but rather, it is taxed at a lower rate. Does anybody else out there know exactly?? Your accountant can set you straight with that though.

Regards,
Steve

[steveodMember@steveodJoin Date: 2003Post Count: 28]

October 20, 2003 - 3:24 pm

Craig,

I had my accountant halp set up mine. I suggest that you talk to your accountant who should be able to get things under way, or at least point you in the right direction.

Steve.

[steveodMember@steveodJoin Date: 2003Post Count: 28]

October 20, 2003 - 3:05 pm

Thanks everyone. This has helped alot. Getting back to the original reason for this post, one of the PM’s I contacted charges 9% letting fee of rent every time they renew the lease. EVEN IF IT’S THE SAME TENANT!!

I.E. Lease renewal for 6 months works out to the following. 26 weeks times $200 rent times 9% equals $468.00!!

Needless to say, I have since found better deals than that around.

Regards,
Steve.

[steveodMember@steveodJoin Date: 2003Post Count: 28]

October 17, 2003 - 1:59 pm

Hi Jason,

Yes, it can be done and is a simple process. I have just done the same thing. Just decide which one you want to keep, then ring the other two to send out the paperwork to roll funds into your preferred super policy.

If you are seriously looking at running your own investment portfolio, it is also worth talkin to your accountant about setting up your own super fund.

Regards,
Steve.

[steveodMember@steveodJoin Date: 2003Post Count: 28]

October 14, 2003 - 1:17 pm

As I have found out since joining this forum, they are out there. It’s just a matter of a lot of time and effort and you will find them (I think that maybe this applies to anything worth having[8D]).
My family formed a syndicate two weeks ago and we have offers in on six properties that meet the 11 sec rule []

Cheers

[steveodMember@steveodJoin Date: 2003Post Count: 28]

October 14, 2003 - 12:45 pm

This is probably a stupid question, but what do you use a quantity surveyor for??

[steveodMember@steveodJoin Date: 2003Post Count: 28]

October 13, 2003 - 2:16 pm

Basically it is a guideline for buying positive geared property and works like this.

Divide the weekly rent by 2 and then multiply by 1000. The figure that you come up wuth is the maximum that you should pay for a property and gives you a 10.4% return P.A. on purchase price.

Example:
Rent = $100/2 = $50
$50×1000 = $50000 max pusrchase price
Return: 52 x $100 = $5200 (10.4% Return)

At the end of the day YOU have to decide what return you are comfortable with, but this is what Steve recommends in his book and he’s done OK []

Cheers.

[steveodMember@steveodJoin Date: 2003Post Count: 28]

October 11, 2003 - 3:19 pm

Thanks for asking the question Jay, the replies have given me something to think about and has changed my mind on a potential deal. It is a unit for $60000 with weekly rent of $120. It is ten hours away by car and I was thinking of buying site unseen, (although I had a friend in the town, and I did see a digital photo) I think maybe I might just take a drive JUST IN CASE[8D]

A few members of my family have formed a syndicate and this will be our first IP. It’s all pretty exciting

Steve O’D

[steveodMember@steveodJoin Date: 2003Post Count: 28]

October 11, 2003 - 7:09 am

How many other West Aussies out there?? Let’s see if we can generate enough interest to get Steve over here[8D]

[steveodMember@steveodJoin Date: 2003Post Count: 28]

October 11, 2003 - 3:29 am

https://www.propertyinvesting.com/forum/topic.asp?TOPIC_ID=4501

Regards,
Steve O’D

[steveodMember@steveodJoin Date: 2003Post Count: 28]

October 10, 2003 - 7:02 am

Thanks for the reply Steve. You mentioned that it alldepends on allocated resources as to how well we will go. As a group we have made a commitment, to have three people (myself, my son who works for me and my dad who is retired) actively working on sourcing new properties. An equivalent of one person full time is the goal. The financial commitment has already been made. I know it’s crystal ball gazing to an extent. But as agroup with them resources, can we expect to do similat to yourself and Dave??

Also, we would like to know if you are going to be doing any seminars in WA. All lined up and ready to attend if you do [8D]

Regards,
Steve O

[steveodMember@steveodJoin Date: 2003Post Count: 28]

October 10, 2003 - 6:56 am

Thanks for the encouragement Leigh

[steveodMember@steveodJoin Date: 2003Post Count: 28]

October 9, 2003 - 1:48 pm

Steve, your book is titled 0-130 in 3.5 but here you are saying to get just two in the first year. I am not having a go, I’m new to forum, looking to start investing and your advice seems at odds with your book. Looking forward to your response.
Steve.

[steveodMember@steveodJoin Date: 2003Post Count: 28]

October 9, 2003 - 11:53 am

Where do we find this extra chapter? I would like to read it myself

[steveodMember@steveodJoin Date: 2003Post Count: 28]

October 9, 2003 - 9:02 am

The seminars sound great. Except for those of us in WA [] Steve, are you planning on coming to WA in the near future. Would love to go to one of your seminars if you do,
Thanks,
Steve (also) []