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Thats why guys like steve mcknight and others are now making a living out of seminars etc. Not as much money in RE now. More cash to be made from people who have seen others do it and want to learn how and would rather spend $000’s than doing a bit of reading etc themselves.
How about the Big Ben/Yack Property investment course. A 5 study study in ve+ and ve- and renos and dual occupancy and money habits and tax and acctg and finance Course.
Derek said
<<<<<<I can assure people we (teaching fraternity collectively) can often pinpoint the ‘problem child’ at 4 year old kindy with a high probability of success. >>>>>>
I have a 3 and a 4 year old at kinder. What should I be looking for?????
All I am really saying is that its expensive to advertise overseas.
If the locals buy your product, then you dont need to go to the expense of marketing overseas.
Its like my trip to the Gold Coast last year. All the marketing companies are trying to sell to interstaters or overseas people.
When I told them I would rather buy a similar property second hand from a real estate agent, they backed away knowing they could not compete on price.
I saw a renovated weatherboard house on the weekend on the beachside in Parkdale a surburb of Melbourne for around $520k. Parkdale is about 22kms from the city on the beach. The place was 2 mins walk to station and shops. About 5 mins walk to beach and walking distance to great schools.
For an extra $70k, I tell you what I would choose. And it aint an apartment that needs to be marketed overseas to make sales.
Let me recount my experience. It was back in 1999, well before I had heard of Jenman, Spann, McKnight etc. I had only heard of Somers and read a few property investor mags at that stage.
Our PPOR was a little 2 bed unit on Beach Rd in Parkdale accross the road from the beach. We had just come back from a year working in the US and needed to upgrade to start a family.
Our agent who looked after this property and our first investment property suggested we sell by auction. Since your near the beach, you may get a better price. So we discussed a marketing campaign which cost a few $000 and a reasonable commission as I was an investor customer.
My analysis suggested a price between $165k to $185k. I set a reserve price of around $165k.
The week prior to auction the agent calls and says I have had an offer for $130k from a woman from around the corner. This is one time I lost my kool after hanging up on the phone. It really pissed me off.
So for the next week or so I am wondering if I have been unrealistic in my price and should reduce my reserve price. I cannot remember if I told the agent what my reserve price was.
Driving to the auction I felt like shit. Butterflies, will there be any bidders, it was drizzling. The auction was in May/June, not the best time to sell a beachside property but we needed to sell to get into a house.
My brother in law was planted to get the bidding started but fortunately he was not needed. There were two bidders. Bidding stopped at $162k.
I need to refer to my vendors, he told the crowd of around 20. Not many by todays standards. So inside the unit we are told we should put it on the market – you will extract more bids. I felt i was in the twilight zone all day.
So on the market it is – We got a few more bids to $167k. The successful bidder was estactic. I came away thinking she probably would have paid more had I done a proper sale with an advertised price like $180k and no advertising costs.
Since then I have read the Jenman book and felt he was talking about my experience. And I too felt the same thing as the couple on Location Location.
Looks good. Why you got two agents selling? How far from Perth is Dongara? It looks like one of the cheapest in the area. What rent can you expect?
Is this a result of people loosing interest in the property market?
I invest in the bayside surburbs of Melbourne.
I am pro South Frankston. Frankston is on the Bay and has not taken full advantage of its position. Its the gateway to the Peninsula and only about a 1 hr train trip to the city.
There are many developments in the pipeline. There is a cad (central activities district) which will allow high rise development in the centre of the town. There is a new multi-picture theatre and shops being built now. There are plans for other developments. Grollo and the owner of Chadstone have many projects and developments planned.
The marina is at the tender stage for a builder. The foreshore is being renovated.
My properties have more than doubled in 4 years and I expect more growth once these projects are underway.
My aim one day is to go to Qld every year to coincide with a property investment expo/show and claim some of it on my tax.
Its important to keep abreast of the latest in property investing.
I have also used Norman to do a deprn schedule for me for a property in Frankston.
He was busy at the time and must be busy. I was happy with the work he did for me.
I always use archi-centre. They are usually retired architects. Phone number in the Phone Book. They do all surburbs. They find an arch-cente rep in each area.
She has already been added to the rental database by the property manager.
I want to get a judgement so it can be recorded against her credit record so if down the track she decides she wants to get a home loan or personal loan her credit reference will not be good.
Anyway she is now in Qld – so she is probably renting someones ve+ property. But we will still get a judgement against her. The boyfriend is not on the lease.
Me – I dont worry about deposits.
I borrow as much as the bank will lend me and only the amt I am comfortable in making repayments on.
eg. if bank says you can borrow $550k but I only feel comfortable borrowing $450k – then I only borrow $450k.
I always borrow $110% of the invest property as I take my deposit from the equity in prop A (ie.refinance) and borrow 80% of property B. That way the property is 110% borrowed.
There is no doubt in my mind. Payout credit card debt. Put the rest into PPOR loan that is not tax deductible or onto investment loans if your PPOR is paid off.
Then see what money I can borrow from the bank and invest accordingly.
What part of Melbourne???????
<<<<<< got a free copy of Your mortgage mag yesterday at the Expo too (glad you enjoyed the Expo too, Marty!) Seems like it is becoming VERY similar to API mag. I mean, how many times can you just discuss different types of mortgages over and over each month?>>>>>>
Good point. Then I would class you as a reasonably experienced property investor. therefore you are not the type of person who does requires the services of a seminar company.
I too find the articles somewhat repetitive, but I feel I have a good grasp of the issues of property investing – types of property, finance, legal, tax, depreciation issues, rental issues etc etc
Even if I did all my research, I would still like to see what the place looked like.
I would like to see
1. surrounding properties – bad neighbours can effect your ability to rent for a good price
2. condition of property. I would want more than photos. When does it need repaining? Are there any major holes or water damage or stains in carpet. etc etc
3. There could be smells coming from local factories or abbattiors (i cant even spell it)
4. local infrastructure eg. bowls club. if in bad condition – it could show signs of the place falling in population.
5. Graffiti – this can sometimes tell about problems in general area.
6. I would even like to experience the feel of the street. Maybe you may even need to go through a few bad streets to get to your investment property.If you know an area really well and I mean really well, maybe you know the answers to these. But even in my area I would not be satisfied with the purchase of a property unless I knew the answers to these.
I totally agree. This is my main worry and thats the main reason I would not touch anything in remote or country areas.
In the future these people will be disillusioned and realise the effort/hassle is not worth the return.
And all these people expowsing ‘Sight unseen’ is ok if the figures add up. Not in my view.
Good to hear from a property professional in the field.
I think people are only looking at the cash flow figures and not the assets fundamental value. If you look at the fundamental value of an asset, you can see why people are prepared to contribute to the ownership of a property eg. ve-.
For the builder to aell at a price below valuation – he must have been a motivated seller. ie. really needed the cash flow to proceed with the project. If he had proper finance and capital behind him, then why sell for $50k below valuation.
I find the case studies are the best. I get inspiration from them and can see that I am on a similar track to them. They have actually done it and you can see that the average person can also succeed like them.
You can tell they are not Rhode Scholars on huge incomes. They all have had a few glitches along the way and many have raised families along with investing.
I would rather read about these average people than some guru in a suit selling expensive courses and properties.
