Forum Replies Created
Yes Mini i knew you ARE working for tourism NZ[
]Diamond NZ is 2 hrs ahead of us, but about 10 yrs behind[
]westan
stocki
i’m selling because i am moving to NZ and want to be cashed up. I’m selling in Stawell because i own 5 properties here. I want to reduce my Australian holding down to about 10 houses. It’s not because i have lost confidence in these areas in fact i have bought 2 houses in Horsham in April and 3 properties in Stawell since last October. whereas im selling all my SA properties and Morwell ones, and 2 in Hamilton because they have risen so much and i want cash right now.
Ararat has picked up as a town, 5 years ago it had over 50 vacant properties. but people have moved back to the area and the town is buzzing. The railways will be returning to ararat soon.
Stawell is plodding along growing slowly. we have 2 potential events that may kick the town along. Aundi our knitting mill wonthe contract to make car seat covers for onne of the majors (GMH?) and can’t get the workers to meet there contracts, the gov’t has stepped in and iss trying to sorce workers from out of the region if this happens renatl demand will increase in an already tight market. Stawell also has Vic biggest Goild mine employs 200+ workers, if gold goes up in price it will help the mine even more. Stawell is the closest city to The grampians National park and benifit from the 1 million tourists who visit every year. A negative is the Abetoir (place that kills sheep it to late to spell) the numbers are well down because of the drought, used to be 2 shifts now only one.
Horsham the rents are really high and demand is strong as it is in Ararat and Stawell. Horsham is the bigger of the two cities 12000 population and growing. It is interesting how stropng these towns are considering we have just goner trhrough a bad drought.
regards westanhey terry
i don’t think you are right, i believe the trustee can hand over assett to the trust in his capacitee as trusttee. It doesn’t constitute a sale as the property is still in his name. Hence no CGT/stamp duty etc.
A discretionary trust is not a legal entity as is a comnpany, all my properties are in my name but i sign a declaration (just one i wrote up)saying they have been purchased for the family trust.
what do other think am i wrong?
westanHi Gianni
i live Between them at Stawell and own properties in all 3 cities.
Ararat cheapest price is about 65k at the moment rent aroun 110 for this property. ( actually i have a property to sell in Ararat for 60k)
Stawell
cheapest properties about 60k rent for 115pw. (i actually want to sell one here also and another in Oct (after i’ve owned it for a year)
Horsham
Cheapest about 89K rent around 155pw (don’t want to sell the 2 in Horsham but just sold a flat there.[]
Sorry sounds like i’m just trying to sell to you/ certainly not the case. I feel you have hit perhaps the only region in Vic worth investing in for cash positive properties, but they are dissappearing real fast. and they have moved up even in the last few months.
anymore questions about the areas let me know
regards westanhi guy’s
for data on capital growth try Australain Property investor Magazine. available at most newsagents or try http://www.apimagazine.com.au.
Hwd007
i’ve never seen any data on what you are after. But my experience in Victoria and SA is there is no link between capital growth. i can think of some areas that have appreciated by 50-100% in the last 12 months and the rent hasn’t altered. And other areas that have gone up only 20% and the rent has gone up 15%. Thats just what i have observed.
regards westanHi diamond and everyone
Diamond my guests have gone to bed they have to get up at 7.30am to go Property hunting.
jj0007
that’s fantastic 300% in one year and given that it wasn’t an easy year to make a buck on stocks.
Gold – half my share portfolio is in Gold/nickel companies (not really a portfolio more like a manilla folder, not much in it), i like Bolnisi Gold and even more so Independance Gold (more of a nickel stock) have options in both.
Just wanted to tell you that Newmont Mining’s President Pierre Lassonde is on Business Sunday talking about his outlook for gold.(Newmont is the world’s biggest gold mining company). i believe he is very bullish on Gold heard somewhere he expects the price to be $450 next year.
regards westanHi Guy’s
good comments about success. Financial success is way down the list of important things. but it is nice to be able to share some of it and not have to worry as much about how we can pay for things, done that in the past.
Aussierogue in response to your questions
“what happened in 1997 that gave you the courage to buy 10 properties?? was it a sign from above?I was keen to move ahead financially and my wife wanted to stay home and look after the kids. I have always been interested in investing at that time shares were more of my interest. When i moved to Stawell in the county i couldn’t believe how cheap properties were and knew if i bought them they would be putting cash in my pocket. i was a bit nervous many advised against it. I even went to an accountant in town who told me not to do it, but to invest in education Bonds, so my kids could be put through Uni, (still have the receipt for $50 for this advise). I didn’t have a mentor and just beleived it would work but knew it was a risk. Capital gains was not my goal only cashflow, and it was the properties that people said would never go up that have gone up the most. Especially elizabeth in SA, People in Adelaide were horrified that i would buy there, i sold two and have two on the market at 95K they only cost 25K.
I said my networth is 600K
I’m in the middle of settling on properties but as it stands right now. I have 1.55 million in properties, debt of about 950K and cash of 60K
As more properties settle i will decrease the value of the properties and debt and increase cash.
regards westanHi i’m a show off heres my story
Finnished studying Theology 7 years ago. My net worth was 25,000 we had sold our home bacause we needed the cash to study. Anyway got a full time job and started buying property. Bought 10 houses in 1997, 4 in Adelaide paid an average $23K for them, 2 in Mowell for $28K each, 1 in Tas, 2 in stawell, 1 ararat. Since then bought 15 more but have started to sell some. To keep it short every house has appreciated in value. Today my net worth is about $600,000. By the end of the year i will own 10 properties in Australia (after i sell some) all are cash positive, currently own 3 in New Zealand (bought 4 weeks ago).
I have quit my job (actually asked for a year off without Pay), and am moving to NZ for a holiday for 1-3 yrs, where i will buy houses, fix some up and enjoy my wife and 4 kids, i’m aged 39. Never dreamt that i would get to the stage where i never have to work again by 39. my plan 2 yrs ago was to retire at 45.hope this encourages you. But be careful the opportunities today are not the same as even 1 year ago. i have 4 houses purchased 12 months ago (for about 40K) that have doubled in value, i cannot see that happening in the market today.
WestanDiamond
great idea let do it (catch up in NZ) we just need to work the logistics.
regards westanMe again
forgot one thing
just to clarify shares V property
the recent report by “Atchison Consultants” compares property to other asset classes
this study 15 years from 1987 to 2002
showed the following
Aust shares returned 8.4%
Overseas Shares 8.1%
Residential property 13,6%
Listed property 10.1%
Even ANZ Bank Cheif economist Saul Eslake states the results are “a reasonable representation of asset class performance”
a very good article is written in the april/may issue of Australian Property investor, well worth a look. Crashy i’ll fax it to you if you want to read it.
regards westanHi all
Crashy
I stand corrected.
you are correct you can get 95% finance for shares. Checked it out tonight on the site thanks michael for the directions. would never have found it by myself. I’m getting more info from them. There could be a place for them in my investment strategies, but you have to be cashed up to cover those margin calls. I used to hate them when i used my leveraged equities account.
westanDavo
Re Wairoa
It would be worth finding out because the prices are fantastic and there are heaps of them, which in itself is a worry (but then again Morwell and Moe had heaps of properties at 20-30K six years ago today they are 80-90K). see what you guys can find out i’ll ring some agents on Saturday Morning.
regards westanHi all
if you buy right you should always have a buffer if the worst happens, high vacancy rates, rising interest rates etc. i feel save, i take insurance i lock in some fixed rates.
But we need to correct a few point
“Today the RBA changed from an easing to a neutral bias. This means the interest rate trend has changed. Rates are going to go up.” Neutral does not mean up it means neutral. I feel the next cut will be down. Our economy is not stong enough to lift interest rates it would kill business and investment the things that drive the ecomony. If it wasn’t for the property boom we would be enjoying lower rates. Interesting todays unemployment figures were worse than expected sudenly a rate cut is back on the table perhaps by the end of the year.
Crashy are you trying to scare people – rates may rise in the comming years but do you realy believe they will get to 18% i don’t think you do. It is possible that we are in a period of prelonged low interest rates. further to that people such as myself who have a high exposure to real estate can lock in fixed rates which i do.
Adrian you are right we need to have an exist strategy. I own about 20 properties. but i have stopped buying i can’t find properties that met my strict criteria of about 25% return on investment. I’ve done well in property over the past 6 years i’ve made $600,000 capital gains plus cashflow. i’m happy to sell half of my properties, which i’m doing now sold 5, 5 to go. But i’m not leaving the market i’m looking for a better one which i believe i have in New Zealand. So i’ll keep buying cash positive properties ones that are returning 25% per year in cash flow not taking into consideration capital growth.
regards westanHi dennis
try this one
http://www.realenz.co.nz
gives more coverage than even r/e.com.au
regards westancrashy
i’m off to bed, i’ve got a mate whose a trader got him into property 18 months ago, he bought 4, being a trade by nature not an investor he has sold 3 already has covered his share losses for the past year and some cash left over. I’ll check out that web site again tomorrow, it sounded/looked real Dodgy, perhaps i’ve misjudged it? If it does what you say and doesn’t cost 10K plus to get into like a lot of trading packages going around it could be another useful tool.
Regards westanCrashy
Hih was $8 billion dollar stock. Only become trash after it was revealed how bad it was going, no company is immune AMP trade at over $18 for years and is now worth about $5- , Telstra over 9 (BRW said it would get to $20) now under 5.
Hey dont knock DVT i made 600% on that little gem.
bought IGOO last week i like the look of iGO.
put your reputation on the line. You are a trader, what is your favoured stock to buy for a quick profit, say 1 week.
regards westanHi all
looks like everyone is up late tonight, i’ve got to work tommorrow better get to bed soon.
Mini i try to have a good time looks for houses, reward myself. When i went to NZ 4 weeks ago looked for 4 days then holiday for 6. Relazing in the pools at Hanmer springs was one highlight, sitting in 40 degree water with the snow around was fantastic, even when my son hit me on the head with a snow ball. i still love the thrill of the hunt. sometimes i start negotions over the phone. In Jan i saw a property in Shepparton on the net for 79k i offered 60k they came back with 65k. so i jumped in the car and drove 3 hrs to see it, itwas a mess got it for 63K spent 20k is now rent for 160pw and worth 130k, i love this game.
westancrashy we shouldn’t be up so late
i quickly checked out the site earlier after your first post. couldn’t see anything about 95% finance.
i’m a stockmarket investor also.
as a financial advisor you as well as anyone should know that inexperienced investors should never be gaining 95% finance for the market. I got out of the market (sold all my margin shares 2-3 yrs ago) made the right decision. sold NCP at $18 etc.
lets do some figures
someone borrows
95k puts in 5k
Market drop 10%. He has lost the lot and still owes 5000.
What if they invested in HIH, Onetel, harris Scarfe. They have lost 5000 and owe 95K.
Most new investors in the market lose, your claims are too wishful, there is no “Certainty” as you claim. I’ve never had a property that went to $0 value, but i have had shares do that.
The sort of properties i would buy are returning 30% return on cash and very little risk. Its getting hard to find these properties today and you are maybe right, soon could be the time to enter the market, i am again but carefully.
Regards westanHi giddyup
i’ve played it a few times. a lot of fun and very eductional in the typical Kiyosaki way.
What i wanted to add to the forum was beware, it will reveal a lot about yourself. i’ve got a mate whose never got out of the rat race (played the game 4 times – it’s his game). In real life he is exactly the same loves those dodads.
It’s also affected my can’t enjoy those consumer products like i used to, realise i should be investing not buying. You will know what i’m talking about once you play the game.
have fun
westanhi guy’s
i’ve got no in principal disagrement with you about sight unseen. But my one and only time of buying sight unseen was a big learning experience. It was a property in Clarendon Vale Tas bought in 1997 for 33k was a good building only 15yrs old, brick, nice views.
But i had nothing but problem tennants one after the other. was pleased to get rid of it for 55k this year it was one big hastle.
Now i would never buy unseen, looking is fun, a tax deduction and gives a chance to see the whole area. this is what i should have done in Clarendon Vale may still have purchased, but to be in the area and talk to the neighbours etc is very valuable.
regards westan
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