Forum Replies Created
Bottom line is now is not the time. Maybe 5 years ago was.
I am sick of hearing people and gurus say – you just need to look harder – its your fault if you dont find them.
Remember we are at the height of a property boom. Be patient there will be good opportunities in the future.
Oh- dont forget interest rates may rise in the future which soon makes a ve+ become ve-. So I dont believe now is a good time.
Good Luck. Thats why I only invest near home.
I dont need the hassles. I hope the extra $2-3k per year is worth the effort.
I notice your example does not allow for any rent – so that should certainly reduce the Interest paid less capital gain and effects of inflation.
But the Biggy to me is – What your income was 5 yrs ago to now and compare it to what is owed.
As I work full time in a professional position, I like to compare my current salary to what is owed. And value of property.
eg. Income 5 yrs ago $60,000 Amount Owed $80,000 Value $100,000
Income Now $80,000 Amount Owed $80,000 Value $130,000Now look at it in another 5 yrs.
Income $105,000 Amount Owed $80,000 Value $169,000So as you buy and hold the amounts owed seem lower in comparison to your income and value of property.
As Jan Somers says – the key is time in the market.
If I can buy another property every 2 years, I am happy.
Sure I could do more, subdivide lots, extensions, renovations etc. But I dont have time at the moment. Once a decent portfolio is amassed I can do more of those things.
Some will start to feel the pressure if interest rates rise between 1.5 to 2%.
I know I would not be too happy if that happened. And I am fairly conservative, but my loans are fixed for 5 years.
I know I am paying a little more but at least I can sleep at night.
Sydney is like the good looking skinny blonde. Looks good but is an air head.
Melbourne is more like a good looking brunette who is slightly plumpish. You know a Megan Gale. But she’s got personality, charm and life.
Who would you rather spend all day with. Not just a couple of hours in bed.
Are you comparing Steve to property spruikers now?
I thought Steve has more integrity than that, thats why I am a big wrap for what he does.
Just not at $1000 for a day session with 120 other people.
But if people are prepared to pay that, so be it – I believe in market forces.
Leigh
As a moderator, are you really parting with $1,000 to attend on Saturday?
Maybe its price and value for money. Its only my perception.
I would be prepared to pay the following –
$1,000 – A classroom with 10-15 people ok.
$350 – A seminar with 120 people.Maybe 120 people in a room is your definition of value for money. I am a shy and retiring type. I have a passion for property investing.
There are many strategies for property investing. I dont need to spend $1000 on each.
I did a course with work called “The seven Elements of Negoitation”
I cant recall if it said “the first person to mention a price always loses”. One of the elements is to look at standards – in your case market rents.
So obviously they had a higher value placed on the property than you or you did not do enough research to find the market rent for the area.
I think I used him once as well. The paperwork is at home so I cant check but it rings a bell.
I got him to do one of my properties and he told me not to worry about the others. He seems an honest type guy.
He was fairly busy and I had to wait a few weeks, so he must be good/popular.
There have been multiple posts on this topic. Maybe people are a little bored answering multiple times.
I used to use Property Mananger Pro but have now upgraded my PC and lost the CD or disks.
Now I just use excel for my 4 properties. It gives me the same info I got from the other one.
Let me do some sums that you may learn at the conference or by reading the Book
Rent 120 people at $1000 = $120,000
Less Costs
Rates – room Rental for Day = $5,000 (probably not even that)
Handout Costs – stationery, photcopying $5,000
Staff on day – security $5,000
Other incidentals $5,000
Marketing Costs $5,000Net Gain $95,000
Not bad for a days work. Why drive around rural and regional towns looking for a Ve+ cash flow property in this market.
Why not sell to the herd. The followers.
My hat off to you Steve. There are people obviously keen to pay to hear you. I look forward to meeting you one day but not at a cost of $1,000 to me.
At $1000 I am not going. I’ve other good things to spend the money on
Its the Developers that are going to suffer the most!!!!Therefore it will be better buying opportunities for those who can back out and buy at market value now.
If the ivestor is able to get out of the contract then Mirvac will have to sell the properties at a market value and may not make as good a profit in the future.
I dont think it will have any adverse effects on other Melb residential markets.
I recently went on a cruise through the docklands. Long term when all development is completed I reckon it will be good. Walk to city and work, walk along Southbank to Casino, Telstra Dome, weekend markets, restaurants etc.
Could be some good buying opportunities in the mid term if your prepared to weather the storm.
My aim is not to pay out loans but have a LVR ratio that I am happy with as long as I can sleep at night and afford repayments. To this end I fix alot of my interest rates on my loans.
The key is to have as many assets working for me as possible.
And this requires debt.
I agree with the following example by Big Ben he used on a different post…That growth is better than cash flow.
1, Capital gains of 7% on $200,000= $14,000
Capital gains on $30,000 rural = $0
Income losses from neutral geared property per annum
$0
Income gains from +CF rural area per annum say $2,500 Ie it takes 6 years to make same gain as 1 year.Take into consideration that i am getting compound growth on the $14,000PA and i must say that you will find it very hard to catch up.
I totally agree with Big Ben. In the long term you are heaps better off. Sure it depends on your income. For people with a reasonable income, the purchase of growth properties is the best strategy.
If you have no income or a very low one then you need to build a ve+ cash flow properties and treat it as a business and this means doing your own repairs and property management.
Bring it on!!!!!
Good to hear from someone who is older and been around longer than I.
Thats why I am sitting on my bum and doing nothin.
My strategy is one of growth. Good quality properties that I know will always grow in value and have reasonable tenants.
My plans – consolidate and wait!!!!! I dont want to be like the HERD. I will bide my time.
I have already bought and am not buying now. I dont want to be disappointed in 3-5 yrs time by buying a cash flow property that is fundamentally flawed. (regional property, bought when interest rates are historically low, low socio-economic tenants, maintenance involved in cheap far away properties).
My strategy is one of good quality growth properties.
