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westan
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@westan
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October 5, 2003 - 12:20 pm
bribie
its funny i notice that the forum gets quiet around 4 till 6.30pm as everyone knocks off work and heads home.
Don’t know about people watching the rugby though. Are people still interested in it? i think “australian idol” will rate higher.
regards westan
westan
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October 5, 2003 - 12:17 pm
hi brobie
another dolf book is the one on 100 ways to add value to you property, not a bad book either, it helps stimulate ideas.
westan
westan
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October 5, 2003 - 12:12 pm
melbear
very good i’ll give you that one[]
westan
westan
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October 5, 2003 - 12:00 pm
Panthers in a chookhouse ????
you have a big problem, perhaps you could get stronger chicken wire. my gran had problems years ago with Foxes, so i can understand your dilema.
regards westan
(i live in Victoria)
westan
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October 5, 2003 - 11:49 am
hi guys
i agree with the advice to educate yourself. i’ve found that locally i couldn’t find accountants who really understood what i am doing. 6 yrs ago one accountant told me not to invest in properties (glad i never listened). This year as a result of this forum i met Dale Gatherum Goss who was excellent (he is in Kilsyth Melb). i know someone who travels to see him from Queensland. try http://www.gatherumgoss.com
regards westan
westan
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October 5, 2003 - 10:52 am
hi all
the 10,000 population rule will restrict you from a lot of really good deals. Normally i only buy in towns of 5,000 or more. Earlier this year i found a house for my brother that was $27k and let at 100pw. it was in Murtoa Vic and 30km from Horsham (pop 12,000). it was in my opinion a great return for his money (i should have bought it) about 38% return on his money when putting in 20% and financing the rest. by the way the house is now worth 40k (six monmths later).
i recently broke my own 5,000 pop rule and bought in a town of about 3,000. i did this because the town has no vacant properties and a new development is about to take place nearby that will create 500 jobs, so i thought it was worth buying in.
so in summing up i don’t exclude deals because they may not fit a criteria i have but consider each on its own merit.
regards westan
westan
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@westan
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October 5, 2003 - 6:30 am
Hi brownbear
not sure i can give you a 1 to 10 but here are a few important extras
1 the potential for capital growth, this is where the big money is made. with Capital growth you can refinance the property and then buy more properties. i like to look for areas with new developments (often new industries are moving to. For example the Mineral Sands project in Hamilton Vic.).
2 That i am buying under market value. As Robert Kiyosaki says “the profit is made when you buy not when you sell”. if you can buy at 10k below market you have done well.
3 the potential to add value to the property. this is only an advantage if work can be done that will greatly increase the value of the home. Somethimes just a new coat of paint can add thousands more than the job done.
4 the potential to increase the rental income. Is it under valued now. Or can improvements be made to increase rent. eg an aiconditioner may add 10pw. therefore you have paid of the cost in 1-2 yrs. Giving you a 50-100% return on your money.
5 The rental demand for an area. the last thing you want to do is buy a property that will not be rented.
6. the ability to easily offload the property if i have too. It is a personal rule to buy in towns of over 5000 people, occasionally for special situations i break my own rule. it worries me people buying investments in very small towns.
7 The rest would have to do with the condition of the property, things like low on going mainenance costs, overall soundness of the structure.
That’s about all i can think of got up to 7. anyone what to finish off the next 3?
regards westan
westan
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October 5, 2003 - 3:37 am
Hi lister
yes i’m about that mark. I started buying 6 yrs ago when i was only working 4 days a week so my income was even less, My net worth at that time was only 25K. in 12 months i was able to buy 10 houses. thats the great thing about Cash positive properties you can buy heaps. Admittedly they were a lot cheaper then (about 30K and rent for 100pw) but if i was to buy negative geared properties i would have been lucky to afford One.
If you are on what you consider a low income don’t think for a minute that this will stop you.
regards westan
westan
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October 4, 2003 - 1:35 pm
hi all
i really think that Ballarat, Geelong and other regional cities could go higher. unfortunately i don’t own any in these 2 cities. they are still cheap compared to the city. the State government’s new $1,000,000 campaign to encourage people to live in rural cities will only help push up prices in these and other rural places.
regards westan
westan
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October 4, 2003 - 1:28 pm
hi guys
enduser yes those site are behind, part of the problem is they are left on until they have settled which can take 4-8 weeks. the agents leave them on just in case the sale falls over.
I think you are right about the personal approach. Guys so many properties are sold now days before they even get to be advertised. agents need to know you are a serious buyer and not one of the thousands of “looker” they get every month.
Make sure you have finance already approved and know the area so you can move quick and make a decision.
regards westan
westan
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October 4, 2003 - 1:19 pm
hi guys
am i missing something, are these guys paying 8.75% for the money for five years and lending it out at 6.34%.
this doesn’t sound like a very good business plan. Do you think we should tell them ?
Better still how about we borrow off them and reinvest it with them and make the 2.41% profit ourselves. It doesn’t make sense to me. they must be sourcing their money for their cheaper rates from somewhere else and using the 8.75% money for the higher risk clients?
those fixed rates are great value.
regards westan
westan
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October 4, 2003 - 1:10 pm
Hi investorgirl
welcome to the forum, i haven’t heard of that book. i’m a real fan of Dolf De Roos’ “real estate riches.
A must read for all interested in property.
regards westan
westan
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October 4, 2003 - 12:40 pm
Hi pinit2000 and all
Pin i think that Richmond’s comments were in regard to my post which i have since changed to be far less confrontational.
Thankyou Richmond for your response.
Pin in regard to your comment about covered calls, friends of mine who were initially very excited about it after doing some stuff with Peter Spann a few years ago after some success don’t do it any more, and its not bcause they made so much money that they are now relaxing in the Bahamas.
regards westan
westan
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October 4, 2003 - 10:11 am
Just found it in Dale’s book “if the trustee does not distribute those profits to the beneficiaries of the trust, then, the trustee will pay tax at 48.5% of the profit” p101 Trust Magic
westan
westan
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October 4, 2003 - 7:41 am
hi terry and crashy
the other main advantage of a trust is assett protection.
In regard to undistibuted money according to Renton’s book “family Trusts” page 134 some money not distibuted for what ever reason will be paid out of the trust fund. but he doesn’t say the tax rate.
Crashy i also recomment Dale Gatherum Goss’ book trust magic.
westan
westan
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October 4, 2003 - 5:55 am
Hi all
i think we just have to get tougher and vote with our feet and move to a new agent as you have done Richmond. i know there will always be hickups along the way and agents cannot stop a lot of the problems but sometimes thay are just incompetent.
regards westan
westan
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October 4, 2003 - 5:48 am
hi reon
not sure what you mean?
from my experience the level of coverage would be spelt out in the policy. i used to own a property in Tas. and the area was that bad that if it was vacant the excess on the policy when up from $100 to $1000. i don’t think this is very common though. the situation in NZ may be different. By the way you guys in NZ pay a lot more for insurance than us in OZ, i’m not sure why that would be, maybe higher earthquake risks?
regards westan
westan
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October 4, 2003 - 5:38 am
Hi Rod and everyone
this is certainly an area i will be spending more time on in future. I was very disappointed to inspect a house that the tenant had vacated. i was told by the agent the house was ok and he had returned the Bond. today when i looked at the property there was a crack in a front window, carpet has small burn market and not clean (it was new 18 months ago) there was a green paint spot on the outside back wall. the lino was lifted in the bathroom, paint scratched off kitchen doors (more tahn wear and tear). the outside had rubbish in a shed and an old desk was falling apart in the back garden. i will be talking with the agent on Monday and i am not happy. has was managing 3 properties for me not anymore. i’m really getting sick of substandard agents, i’ve had a few over the years.
i can see why so many compaints are made against them
westan
westan
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October 4, 2003 - 4:39 am
I’ve changed my post
Well Done Matt
your detective work is excellent.
I’ve some Questions for crashy
Did you come to the forum with the intention of promoting your own business to those on the forum? is this is why you continually claim the market in Melbourne will crash by 30% like it has in the early 90’s, even after it is proved Melbournes market never crashed like that.
Why do you
Push your special knowledge on the stock market. In the past you have put up ficticous figures showing the sort of returns that can made. Unfortuanately many Guilible people are being drawn by the promise of high returns (you often quote 40% plus a year.)
Crashy i know you have a lot to offer and enjoy a lot of your input in the forum but the way you go about things here sometimes only lessens the value you can offer
regards westan
westan
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October 3, 2003 - 8:42 am
hi all
boy, crashy i think we’ve done this one before []
i’m going to let this one go but pick up on Reggies comment
“Ed Burton talks about investing in overseas funds via Vanuatu, but I am not so sure, you are not as much in control.”
i really struggle with this off shore approach. the only reason people would do it is to avoid tax. we live in a great country and we shouldn’t rip each other off by this form of tax avoidance. i dislike it when big companies do it. if we do it we are just the same.
No, it is just WRONG.
if you want to save money take up shop lifting or other forms of stealing. no? you wouldn’t do this, but are happy to avoid tax. sure as Packer said “don’t pay more than you legally can” but to do it illegally ?
if Ed Burton encourages this approach shame on him.
regards westan