Forum Replies Created
<<<any thoughts from you all>>>>
My comments
1. Go read the new Peter Spann book “$10 million property portfolio in 10 years”
Re-read Pages 136-139 several times.
2. Interest rates are at almost historical lows. Will they still be ve+ if interest rates rise 2-3%?
Then decide whats best for you in the long term (5-10 yrs).
For me – Mt Who????????? and save your airfare.
Hi Peter
As mentioned I have adopted your strategy of buy (in surburbs not rural), renovate, refinace. I have done this will holding my full time job.
I have now read both books and feel I am on the right track. I would love to do this full time one day, but I have a family with two youung kids, so I have adopted the slower approach.
Now I am looking at commercial/industrial property trusts to supplement our income.
A quick question – As i have equity in my properties and my wife does not work – i plan to borrow $20k (claim interest deduction) and buy a spread of property trusts.
Should i buy in my name (income earner) or my wifes name – no income (full time mum)?
<<<However this has left a bad taste in my mouth I am more than likely going to put the house on the market rather than go through this again.>>>
Dont kill the goose that lays the golden egg. This happens from time to time. Look at the bigger picture. Property grows in value and rents and sure there are property management problems from time to time.
I dont know anything about off the plan – but for inspections I have used Archicentre.
Give them a try. They may steer you in the correct direction.
Good luck.
If you feel you really need help. Go to the investors club and buy a property through them.
They do it all and learn what they do.
NO-ONE is going to show me the money.
You got to show it yourself.
You got to start somewhere. Buy a small 2 bed unit to learn the process. Thats how i got started. I never had a mentor. Most people here probably did not have a mentor.
I too keep getting the newsletters. I like to read them.
However I am dubious about the prices and quality of these properties and reckon its better to buy your own than through a marketing/marketer ‘club’ like them.
I know they focus on Qld. But if your really keen on Qld go there and buy your own.
Me – I agree with all the stuff in the newsletter, but I buy my own properties in Melbourne.
Jenman suggests 6 weeks – I agree. Some time ago my brother signed a sales agreement and by default it said 90 days. Thats a bloody long time and I recall with my brother that he had a disgreement and he could do nothing till the time expired.
Six weeks should be enough time to market a property.
Does he still do his own seminars? If I had a free ticket I would make the effort. I think he is one of those very well known international motivators. Eventhough he was associated with Rivkin on some of those late night infomercials.
As for kids travelling – we are currently in Canada (East Coast) and it took us nearly two days to get there. Fog in Melb meant we missed connections in LA and had to spend night there. Our kids are 3 and 4.
Why not do both – live in it long enough to satisfy the FHOG and then rent it out.
Peter
I am currently in Canada. I have just finished the Book. I have now read about 20 books on real estate. This is the best I have read. There is a section about positive cashflow properties and the current state of the property market. Unfortunately I am at my father in laws and the book is at my wifes grandmothers. But when I get the chance I will note the page reference.
ITS A MUST READ.
it bubbles along
And I am the tooth fairy. When i grow up I want a university education, 150 rental properties and a chick in every city of Australia.
I want to be able to kick a footie with both feet and play golf of 5.
I want to learn to drive, I am sick of riding my bike and checking out real estate. My pocket money of $5 does not allow me to borrow much. But my nanna will give me a $50 note if I rub her feet. I learnt how to calculate % the other day so now I can work out how much it will cost me to borrow $1,000,000.
Peter Spann is my favourite author. I am too old for that crazy HP Rowley Wizard stuff. I spend my weekends learning how to change light bulbs and using Dads electric drill.
I love painting. Not the finger type. I am too old for that – I want to do property development.
Please offer me some advice.
Enjoy your childhood kid – Pass your grades. Dont worry about this stuff for another 5 yrs when the market improves.
I reckon you should view the property. I am an investor not a gambler.
OR – You can do what i have done in the past.
Bought a 2 bed unit near my PPOR on interest only 100% geared using PPOR as cross colletral. Cost me about $600 a month. Got a tax refund of $4000 per annum. Put that on PPOR.
As property grows you can decide whether to sell investment or keep it.
I dont know – but thats what the tax commisssioner reckons it should be. Hence the building allowance thats deductible.
I dont worry about it in my calcs. I just borrow more if any new maintenance needs to be done. I dont let it effect my bottom line.
<<<<<Apparently (according to GM) the only connection he ever had with him is when GM took HK to court (not for any relation to being an associate) and the matter was resolved with an out of court settlement.>>>>
And you believed him. My understanding of the case was that Henry Kaye owed him for commissions. Mihos was a salesperson for Henry Kaye.
How long is a piece of string – only you know the condition of the place.
This is a great question and a tough one to answer in the current climate / property cycle.
When prices are on the rise, its a good idea not to worry too much about the PPOR. You can borrow on an investment property and pay interest only. As the investment property increases the loan on the PPOR does not seem so high.
But in this climate you need to worry about the negative payment (if you invest in the surburbs of the city – thats what i do – not regional or rural) and the prospect of growth is a little limited for the next 3-5 yrs.
Get off the fence. Ok, If I could afford the interest only payments a new investment property and was on the highest tax bracket I would buy now and dream of the tax refund you get at the end of each year.
As the years pass, the amount on the PPOR will seem so low and you will wonder why I even worried about it.
I usually get a building inspection done before I do an offer. That way I can negiotiate a price. But first I get my dad or brother to look – they are in the trade and can spot things I cannot. As Kay says I am more interested in structural/major problems.
I remember when I first bought my place about 10 yrs ago now. I was shit scared. I felt intimidated by agents.
Now after buying a few places and having read Jenmans books – i know what to expect from agents.
Now I take the piss out of them – even jenman agents.
“why do i need to pay for advertising your business when I want to sell, why are they selling?, thats too much you’ve overstated the selling price to the vendors, gee theres alot of people here looking at the place – any offers? No. Well you better go condition the vendor – they want too much. I love to use the word ‘condition’ – you can see there eyes light up – hey – I learnt that in my latest REIV course.
I have even got a few to laugh with the word condition.
I would ensure its insured. Whats a hundred bucks for a few months insurance. Whats a hundred bucks when an asset is worth over $100k.
Freak things happen. Not worth the risk in my view. Especially if its unoccupied. Some kids could show up and decide to light a fire.
