well done guys []

we have some terrific stories here

keep up the postings

westan

hey, hang on a bit.

Mel i’m sure you’ve got it wrong it’s muppet who looks like Santa Not me[]

i look more like one of his elves[]
regards westan

hi guys

i agree lets talk cricket, i barrack for Richmond so it was depressing even thinking about Footy, unless i was stiring up some New Zealanders or New South Welshmen.[]
sorry guys
now cricket, Muppet whose the best cricket nation in the world ?
westan

hi guys

SIS you have been a busy buyer, well done, i bought 10 in my first year of investing in 1997. what on earth are you talking about “off set gearing principle”. By the way, just be careful, its not the number you buy but the deal that matters, especially in this market.
my best buy recently was in Dunedin (NZ pop 100,000) the asking price was 70k (which was cheap for Dunedin) and currently let for $170pw. i bought the property for 58k. i expect to add about 20k more when i paint the outside of it. it is about 70pw cash positive with a 20% deposit. the return on cash into the deal is about 35%.
regards westan

sorry rubberchook

i didn’t realize you’ve been flogged on this debate before.[]

hey, you are a bit rough on us Victorians, give us some credit we hear of plenty of stuff that happens outside Melbourne, we get the important stories out of NSW and QLD (the AFL scores from games at the Gabba and Stadium Australia). But apart from the footy scores i hate to admitt i agree with you when you say the action is in Melbourne.[]
regards westan

Stawell Vic, till Dec 31st then Balclutha New Zealand for a year or more holiday/investing
regards westan

hi guys

david check out post by rodgerramjet “Murray Bridge catologue prices” he mentions some recent trust auctions in aedelaide.

westan

hi mike what price did the ones in Elizabeth go for, was there much interest and what area where they in?
thanks westan

Hi Rugby fan
your figures were not correct have a look at this.
you said
“I bought a place for $17,500 which rented for $75 per week this only returns $5 per week to me.

Income
Rent $75 x 52 = $3900
Outgoings
Repayments $30.90 x 52 = $1606.80
Stamp Duty (1st yr only) $425
Council rates $200
Legal Fees $400
Prop mngmt fee(8%) $312
General Expenses $500
Insurance $200
Total outgoings $3644
Difference $256 or $5 per week
Am I doing my sums correctly?”

No you have included some capital costs in your cash flow assesment
Legal fees are capital costs as is stamp duty
so try income 3900
less expenses
interest on loan (note only interest not payments off the principal) $17,500 + S/D $425 + legal $400 = $18,325 @ 7% interest = $1280
interest $1280
Council rates $200
Prop mngmt fee(8%) $312
General Expenses $500
Insurance $200
Total expenses 2492
Balance $1408 27pw

a very good deal[]
westan

hi redwing actually
got a bit more of the story about the guy who bought the 10 in Moe. he ended up with about 50 properties. When i said friend, more like a business aquaintence. Anyway this guy did real well he bought in Adelaide when i did, paying only 21k for properties now worth 90k, but he went Bust a few years back.
Now here’s a realy important leason. he was a person without any integrity. he wasn’t very smart either. for example the ones we bought in adelaide in 1997. they had no floor coverings. we put new carpet in and rented them out at 100pw paying everyone promptly and developing good relationships with the property manager and mainenance guy. the other guy did nothing to the properties then all he got was 80pw. the tenants were the bottom of the heap and didn’t pay rent. this is typical of what he did, he didn’t care about his tenants or take time to present the properties well, therefore he attracted bad tenants. Eventually his property empire started to crumble like Domino’s and properties were sold from under him. i don’t know where he is today but i know his marriage broke up. i reckon he would be worth over $4 million today if he had done property the right way.
regards westan