Hi readers,
My name is Warren and I have been buying positive and negative geared properties since I was 19 (I am now 35). Since reading Steve’s book I have hardened my focus on positive geared properties. There is no doubt that this is a challenge! I can not speak for the Victorian market as I am in NSW but you have to be diligent to be sure. My wife and I have created search zones that eveolve with the changing market. These zones are qualified initially by factoring in different items that we consider are important (a bit like what Steve would call a filter or template). Our search zone appears to get further away from Sydney each time and I would be lucky if I am able to pick up more than one or two proerties before we have to move on. We have missed many opportunities due to being too busy with my own day to day work but we continue to scrape in now and again.
So far it appears that the internet is only good for research as opposed to buying off because by the time it has been displaye d it is often too late. Plus the lazier investors will try this method to avoid having to commit to a whole weekend of driving around. Where the diligence comes in is in staying in contact with the agents that you found on the original trip around to a point where you will be advised of something to suit before it has a chance to go on the open market. Since the Australian system of selling real estate essentially has the agent working for the vendor and not you, it is a hit and miss process until you get an agent that values both parties equally.

On another topic, my questions to put out there are as follows: I do not hear a lot discussed regarding land tax. As most will be aware, eventually the unimproved value of the land in your portfolio will be subject to land tax. I am only approaching this area now and would welcome advise regarding other peoples experiences at this juntion.
The other area of difficulty I still encounter is that despite acquiring properties that make money, the lenders still want to know how you will service a percentage of the debt that they will not except rent for. In othe r words I still seem to need my own business financials to demonstarte debt servicibiltiy. I have found that some flexibility exists with non-bank lenders (especially if you are willing to pay over the odds interest). Any thoughts?

Warren