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I’m building a new web site that will be active next week but in the mean time you can see them on my old site at http://www.assetcorp.com.au under 101 – 151 – 201
Thanks mate … Phil
Hi Smetham,
We are running two posts on the same topic on this subject (actually i have a post running on too many posts with similar questions…get my point now!!) ANYWAY
MHO The point here is i believe (no i know) that there is a bucket load of people who pay cash for these because their money is in the bank or an old super fund returning stuff all.
You must remember the investors today aged 18 – 35 are smarter than the old day investor, just read this forum. The good old italian green grocer or chicken farmer today is worth a motsa because they invested in crappy areas like Balmain where nobody else would go (fools).
These investments are cheap, easy to manage, low maintainence (no toilets,grass,windows,broken roof tiles etc) and easy to sell under 30m2. Show me the money honey.
Regards Phil … pay cash son and i’ll give you a discount[thumbsup2][thumbsup2]
Hi Domo, CG is the big question, in fact i don’t expect there to be much, i really don’t know.
I am guessing that they will grow in popularity like car spaces in the city, just a hunch.
I sold one to a bloke who parks his two rollers in it with a car hoist, another to a bloke who stores his wine, another to an electrician.
I asked them all why??? – they are cheap and we own them, was the most common reply. The point is wether you are purchasing to use your self or rent out they are manageable.
Why have an investment property that isn’t growing in value when you can find another opportunity. I have met so many people who hate the hassels of investment properties, but still love property, these are my target and there are many of them.
The value of commersial property is proportunate to the rental income and demmand. Many people have $50,000.00 in the bank getting 6% return and in their late 50’s, or their super fund is returning 2%. Some people can’t wait 10 years for a property to double in value etc etc and their risk profile is different to yours and mine.
From a developers/marketers (me) point of view this represents a beautiful opportunity. Many of my investors (seed capitol) choose to keep part of the project at completion, which saves marketing costs.
I think of these investments as being better than money in the bank, with the possibality of capitol gain in the future … hope that suits your query. Cash flow and saftey works for older people, read my book.
Phil
Domo you can sell anything if the returns are good, also these are attractive because they are more affordable (cheap) so there are more buyers.
As for selling, well that relates to anything including houses in a bad market. I would rather be caught with a $40,000.00 storage unit than a $200,000.00 house in the country in a bad market.
Phil
My personal experience is that there are many, and i mean many investors out there with less than $75,000.00 cash who buy these types of investments.
Not every body who purchases investments (property included) does so with debt. This is an area my company is proceeding in very strongly.
Regards Phil
Hi Domo, not every thing in life is a con, we are about to develop strata storage units in Sydney and Gold Coast.
I think they are fantastic for a variety of reasons not including ROI.
Regards Phil [cap]
Hi Princess, Yes I have used one of my companies Residential Wealth Pty Ltd, to purchase land, build houses/duplexes etc and on sell through agents.
My main company ( The Asset Group P/L ) and others are never used for this purpose.
Regards Phil … talk to your accountand and legal people, plus get good tax advise … good luck
There is one point I would like to make here and that is, I did not say GET RICH QUICK!, once again people have interpreted the post incorrectly.[angry2][angry2]
I said QUICKER eg; from 20 years down to 15 years etc, not over night but over time, I hope you read contracts better than reading post questions … sorry, but this seems to happen a lot here !!
Regards Phil
Hi qwerty, i’m just back from Qld so here i go, thanks for the suggestion on spell check, i must learn to slow down (when i get the time).
One answer from my experience is that as i have had the great country properties, i have also had many a problem with them, not only from tennants but also wear and tear which at times is very taxing (dealing with agents and disputes), no pun intended.
There are always opinions on both sides here, however now that my asset base is more substantual than what it used to be, the upper end of the market is proving more profitable. For one there are less properties to worry about and secondly the capitol gain is the winner.
My other experiences are that when the market changes as it is now, you can’t give the cheaper ones away, because the buyers are not there in the country areas when you want them. Orange – Bathurst – Mackay – Proserpine – Midge Point – Nowra – Cambeltown etc.
Any body can buy a property but try to sell one when the market has gone the other way, (country and outer suburbs) even Cambeltown in Sydney is suffering from over supply. In another 6 months i believe there will be some great bargins to be had.
So my humble reply is that it depends where you are financially. When you start to invest you need to go out, but when you have made a few bucks you want quality closer in, rather than quanity. Not unlike the dating game is it?
qwerty i’ve just found spell check!! – will use it next time. As i have said before i got caught with a $5mill tax bill then the interest rates went to 19.33% when i was 27, and i have met a lot of experts since then. There is a lot to be said for surival!!.
On the other side i know how much (crytical mass)money i am chasing to live the life style i want. I used to be like a ship with out a captain, now i’m at the wheel. I believe you need to know how much money you need to acquire, and at what age you want to enjoy it. I realised i wasn’t born into the Packer house hold, so i maped out in writing what i wanted to achieve from my investments.
Just saying you want 20 houses is not being specific enough, you neeeeeeeed to get clear on what you want in life other wise you will get dissapointed, shit i’m going on, better stop!!!
Money can’t by happieness but it (i lied there) does remove two words from ones vocab. “if only”
Regards Phil[xmas]
Hi qwerky, he he … an old mate of mine told me the secret of GREAT wealth is not to divorse your first wife … sorry [biggrin][biggrin]
My net worth … i don’t have to go to work
You are about to become very confused and attract many experts into your life with many theories and opinions of what and how to do it … poor thing!!
When taking advise ask to look at the bank account and assets of the person giving the advise, this will eliminate about 95% of them, you may find that the little Italian green grocer in the corner store will give the best direction of all.
Welcome to my world … Phil
Yes Marc you have a good point you can read the market with the type of questions that are comming in.
I sort of think that there are two sides to this storey or post, one is that there may be a standard question and answer and secondly another level of practiced realities.
I know there are millions of questions but are there millions of topics to match them (i doubt it if u get my drift). If 100 people read the same book there would be more than a 100 interperations …
On the other end of the scale in Sydney the upper end is flourishing, prestigue homes around the water front are getting record prices.
In some of my seminars i referred this to the (PP) princes and the porpers effect. In bad times the people who are most effected are the middle to lower class, also the highest taxed, while in general the richer sec went the other way and spent up … just an observation but it is interesting to observe.
When there is a sale in a super market people buy but when property prices drop people panic and sell ??? [blink]
Thanks Steve its nice to see that you got the point, the other replys went off in another tangent once again which happens often here(except Simon)
Anybody who knows me will tell you the ammount of time i spend teaching young people how to succeed, the point i was trying to make is that a commonly asked question could be redirected to a common answer area and then we could focus on some possitive get ahead stratagies.
As Simon said people don’t seem to use the search functions to their intention which is a shame – i love teaching and have been doing so for many years i would appreciate if people read the post correctly as Steve did before shooting the messenger …
Phil [tired]
I’m with u Yack … but what about Sydney, a friend of mine (valuer) has had 30 morgagee vals in the last 2 weeks, his prediction is its going to get a lot worse (from a valuer???)
With rates as low as they have been in 35+ years why r people getting into soooo much debt, something has to give !!!
Asset Group Pty Ltd 02 98162888
asset accounting Pty Ltd 02 98162888
How about Denile cresent …
If your CRA is stuffed how did u get a loan in the first place … ??? …
Michael spells it out very well here, u can write a book on this subject.
Arctic; be careful taking money from people, r u experienced, what if it goes wrong, u can only borrow money from people u know personally and less than 20 in total.
What other security do u have to offer the investor, it must be a win win, have u done the numbers correctly, have u run them past an accountant, dont go on possabalities go on realities, can u afford to pay 20% return, what if the interest rates go up etc etc.
Yes i am trying to scare you, remember at the end of the day u are taking money from unsophisticated investors … regards Phil
