Forum Replies Created
Freddi,
have just been looking at the unit market, 2bdr brick units (older style) selling for $110-120 renting for $150 per week.
Vacancy rate is very low (under 2%) across Cairns, sales and growth appear to be levelling.Speak to Chris Gay from Oconnor and Gay real estate.
Tim
That’s all fine as long as the assumption that a higher commission actually provides a better service than other managers who are prepared to do the same thing for less cost.
Tim
Thanks Geoff,
have now negotiated 8.5% (3 properties), which is ok. A little peeved at also paying 10% for maintenance items too though! Does anyone else pay this??
Cheers,
Tim
Ozi,
thanks – and good suggestion re the contract.
It is a bit complicated, but I don’t have a contract, as I was piggy backing off a business that was buying, and received their discount.
Yes I have bought it – however I will be requesting a refund for quite a few reasons. Firstly I think it is too basic for a serious investor. There is no capacity to rollup multipel properties or analyse the impact of investments from your own PAYE income.
Tim
here’s another small twist 4 you …
How much are you worth today $1.2M___________
How much do you want $6M___________
What is the difference $3.8M___________
How are you going to get there …….
1) Currently need to refinance to free up equity
2) Look for trades and private investor deals
3) Expand existing property portfolio
4) Continue to save 10% of net income towards investing
5) Always look for next oppurtunity, as well as visualising future wealth
6) Leverage of ridiculously generous super scheme I am
7) Invest, invest investI would be very interested in answers to this question as well. Where I am coming from is the opposite end though – what should I expect if I am putting in money (up to $100k) for private investment arragnements.
Personal guarantees? Contracts?
How do you go about securing your investment??
Thanks Resiwealth,
that’d be great.
Tim
Hi All,
very interesting post – some great reading here. Resiwealth I would be very interested in reading your works on goal setting, if you felt like sending me a copy I would really appreciate it, I am sure it is a worthwhile excercise to go through it.
Anyway, in response to the orginal question:
Target Critical Mass: $6M by August 2008
Properties to own: 24
Weekly Passive Income: $75k by August 2008, $220k (in current dollars) by 2025What level is happiness: Sustainable happiness is the purpose in life. Wealth assists in freedom of choice and life options. The level of happiness for me is not so much determined by wealth, but rather feeling in control and in balance with what I am doing, and experiencing the things that I value in life.
Regards,
Tim
Nat,
I would like to hear you support your dramatic claim with some sound reasoning otherwise – too boring.
Tim
Yes,
been there done it.
Two rules:
1) find someone you implicity trust who knows the market backwards and give them your money to invest or;
2) go there after doing due diligence and buy yourself.
There is not an easy answer to this – either way you have to put in the time or money.
Timbo
Can someone tell me why investing in UK is so good when UK are heavily investing in NZ?????
Tim
Keep it( refinance as much as possible), rent it out, move on and buy another.
Timbo
Hi Gatsby,
no familiar with income protection sorry (except for one policy with AMP) as my super is very good for that sort of cover.
Again differentiate between term and life insurance (I wouldn’t personally go for term insurance).
Agree with previous comment about the need for public liability though.
Tim
Gatsby,
your body corporate are repsonsible for taking out building insurance, but you could consider contents insurance as well.
It is worth getting a hold of a few policies and reading exactly what you are and are not covered for with both building, contents and landlord.
I have recently done this with insurance on units under body corporate, you can pay a lot for very little cover in my opinion.
I have found Terri Scheer insurance coverage reasonable.
Mind you most insurance for property investing seems to be across CGU, Allianz or QBE, with a multitude of brokers.
Tim
Perhaps the moderators should consider a caveat empor as per other forums for this type of thing?
Timbo
Booboo,
the book:
“Investing in Residential Property -Understanding the Australian Property Market” by Peter Waxman, 5th Edition is an encylopedia of facts, graphs and tables on interest rates, inflation, price movements, building approvals, migration, supply and demand factors, government determinants, business, cycle, taxation and the economy and its effects.
It’s pretty heavy going but worth getting into if you want detailed information.
It’s pretty hard to correlate all the factors to see what’s happening however I do agree with what you said about the booms and mini booms overall, based on observation and from this book as well.
Timbo
Balliez,
fantastic that you are aaking that question now. I would suggest that the best reason for wanting to know this however is so that you can be realistic and plan and implement that plan rather than wanting to ‘get rich quick’ (which rarely seems to work).
Anyway, moving away from the lecture – I would suggest that:
– roughly the annual income you want equates to 20 times that in capital value (whether that is shares, property etc)
– don’t forget that as part of your ‘exit strategy’ you can use up some of your capital so you might find that you need less than you think in capital and more in cash flow itself
– I think it would be reasonable to assume that you could accumulate $1m of assets in a 10-20 year period depending on how you did it. Remember that in the last 2-3 years many property prices have doubled however this followed a long period of stagnation in many areas of property. Similarly in the stock market the late 90’s were exceptional years however this all came crashing down in the early millenium.
I think if you were to read heaps, be prepared to live within your means and invest 10% or more of your net or gross income on a permanent basis then you could achieve your goal in 15 years.
However your question is very similar to how long is a piece of string – I am suggesting that average due dilligence applied over a 10-20 year period shoul definitely get you there.
Of course people have done it much quicker, but there is a risk/return relationship that should be understood.
I suggest reading the following books:
– RIch Dad Poor Dad
– The Richest Man in BAbylon
– Jan Somers building wealth through property investment
– 7 Steps to Wealth
– the Intelligent investor
as a start and see how you go from there.Good luck with it all, I am certain you will reach your goal if you write it down and apply yourself to achieving it in every way.
Timbo
Paula,
it might help to separate the purchase from whether you are wanting a cash flow from rent or a longer term capital gain (or a mixture of both).
If you just want a rental and there is a small vacancy list for rentals (which you should be able to determine from real estate agents) then that is different to buying a house hoping for capital gain when a potenital oversupply exists.
I went to NZ once to look at 2 units for $115 for the pair because I wasnt sure about the whole thing and it answered all my questions. If you are serious perhaps invest another $1k and go and have a look?
Timbo
First IP in 1991 Logan for $73k rent $130
now worth $180-200k rents for $185Timbo
