Forum Replies Created
Sounds like they are overvalued if you cannot find tenants at $300.
Who set the intial rate? Was it a developer?
I just read Ordinary Millionaires this weekend. Its about 14 orinary people who have all become property millionaires by using different strategies. All I need to do is finish the last chapter.
It was a great read. I will do a small book review this week and post to forum.
Steve ????
Why not post your questions, so we all can share.
I never started investing till I was in my early thirties anyway.
I did my degree qualified as an accountant then went to the UK and spent 2-3 yrs working and travelling. Met my wife on the way home. Dont talk to strangers on the Train.
I am not sure if you can quantify life experiences in the number of rental properties.
If I had my time again, I would still go overseas and travel.
No. I buy to Hold.
I personally would never buy from a group like these. I prefer to buy direct from real estate agents after I have done my research in knowing what properties are worth in the area I am interested in.
If they offer a rental guarntee – I would run for the hills. You pay for a rental guarntee in the price, which means you are paying more than you should.
<<<<how you have addressed any issues that came up while you were learning.>>>>
From my contacts.
Accountant –
Solicitor –
Property Managers –
Estate Agents in area –
Insurance Broker –
Bank – which Bank – they seem to like me.I discussed things with my parents. I always listened but always made my own mind up. If I had taken their advice I would still only have my own home. But I did always ask for their perspective.
After spending 12 mnths in San Francisco I knew property investing would work. I suppose it was the inner belief that go me to act.
My experience.
1. Accountant background. Dont do tax.
2. From a building family.
3. Family/parents invested in real estate. Made mistakes.
4. First PPOR in 1996 and purchased investment property in 1997.
5. Went to US 1999 and saw property frenzy in san francisco – Silicon Valley.
6. Came home puchased several other properties.
7. Purchased last property 2 yrs ago.
8. All properties have doubled and more except last property but grown.
9. Invest close to home in market i know is good and undervalued.
10. Sure i have made mistakes. Probably should have bought houses not units all the time. But its a tradeoff between rent and cost of property.
11. Full time job and 2 kids – one income.
12. I believe in property investing. Dont have alot of time for chasing property in country areas.
13. Dont believe in rural properties. Income/Benefits do not exceed hassles.eg. travelling, tenants, repairs
14. Postive gearing would be good when ready to semi-retire.
15. Growth oriented now.
16. Turned $10k net worth in 1996 into $700k in 2004. Probably not as good as others, but I feel I have done ok. Hey maybe I should start my own seminars. Not sure who was an expert back in 1996. There are a few now.
17. Certainly not there yet (still plenty to learn) but feel I am on my way.
18. Never paid for a seminar. Only attended an investors club free seminar.
19. Now/Future – sit tight enjoy the kids. Of to Canada/UK in sept for 6 weeks. Got family there.
20. No hurry. They only expect prices in Melb to up up by 9% in 3 yrs.At the end of the day – you got to take some action.
I dont see why you got to pay $000’s for seminars.
If your worried about making mistakes because they can be costly.
Gee, I may as well stay in bed. I could fall over go out the front door. But You pick yourself up and get on with it even if you have to spend some money on fixing your teeth.
Next time you will do your laces up. Maybe I should have gone to seminar on how to get dressed.
In summary. Its all a learning process. And sure you will make mistakes along the way. As Jan Somers says in Ordinary Millionaires (i am reading it currently) its time in the market.
It does not matter what type of property you buy (house/unit) or whether its neg+/pos+ – its time in market. How long you can hold onto your properties.
The best bet is to find a mentor. If you cant what do you do – have a go yourself, learn and make a few mistakes along the way or pay for a Seminar $1200.
If you go to all these seminars you will only confuse yourself. (Steve – positive gearing, Investors club – deprn deductions, new stuff, Jan Somers – time in market, pos or neg gearing, Peter Spann renovate to add equity)
As Nike says – ‘Just Do it’ Learn as you go
I dont like Cranbourne. Too much land around there, too far from city. Too much still needs to be developed. I prefer Frankston than Cranbourne.
I dont believe agents are under any obligation to present offers.
From a sellers perspective I would be pissed if the agents kept coming to me with low ball offers. Do your job better I would say.
From an agents perspective (and Jenman alludes to this) agents like to tell the sellers what all offers are. Even low ball ones. This is one way agents can condition sellers into selling for a lower price.
At the end of the day – the market price as evidenced by recent sales in the area and the economic conditions of the seller (eg. I need to sell now as I bought another property) determine the sale price.
go check out jenman.com.au or even read his book – Dont sign Anything.
Your better off with one agent, as you will have some control over them. Read the book – you will then know which agent is best for you and what issues to be wary of.
Only sign for 6 weeks, dont pay for advertising. (if they have buyers – why advertise).
Make sure you have a realistic price. Dont be enticed by the highest price the agent says. You should have an idea what you believe is the best agent in the area.
Too risky for me. 3 years is a long time to liquidate an asset. If the housing department is not keen on that area how loud do the alarm bells need to be.
In the US you can buy these properties for no money down.
Why dont you ask for vendor finance. Say you will pay them $15k now and say $55 in 5 years at 5% interest paid yearly. That even means you will pay more than asking price.
What ya got to loose. You got all the cards – negiotiate accordingly if your prepared for the risks.
I agree with everthing you have said. I am in my late 30’s with 2 kids in kinder. They are 13 mnths apart. We are on one income but were on two incomes when we started.
Each case is different and I firmly believe you are on the right track. Keep it up.
<<<<<<He was saying that you can’t make instant money in real estate>>>>>
I believe he is mostly talking about the seminar gurus re:Henry Kaye and others who say ‘if you buy from us you get the property below valuation etc.’
He is a big advocate against these types of 3 tier marketing companies. He just wants consumers to be wary of these people.
I have read his latest book and have experienced first hand some of the practices of some real estate agents. But fortunately for me I have never been enticed by seminar gurus.
Ok. Lets compare this to my first investment property also bought in 1997.
1. Two bed Unit in Mentone (Melbourne, Bayside surburb about 18kms from city) – near shops, station, beach, great Schools. Bought Jan 1997 for $90k.
2. No deposit. Used equity in PPOR to finance. No money down. SO thats what they mean.
3.Rent was around $135 a week. Rent now is $205.
4. Spent $10k. Painted, new carpets, new kitchen and landscaped backyard.
5. No rental hassles. No lost rent. Average tenancy has been 18 months.
6. One sold in the block a few weeks ago for $255k. But it was unrenovated. Old Kitchen. Probably now worth $265k.
So if you had bought three properties in Sale at the same time. Its almost like line Ball.
So it sounds like as part of a portfolio of properties there is room for some rural properties.
Its just that you may have to work 3 times harder as you have 3 properties to manage.
Yes, I agree at the end of the day, the market determines what you can charge for courses.
If people are willing to pay $1000-$1200 fair enough. But I think $300 is more reasonable. I think that is what Jan Somers charges.If I was about to start property investing, this is what I would do. (well its sort of what I did).
1. Spend $300 on 10 property investing books – both local and overseas. And Yes I would include Steves toward the top of the list.
2. Go speak to an accountant. Get him to charge you for his time. Get $600 bucks worth of time. That should be at least 6-8 hrs and you get personal attention. You only need a local accountant to start.
3. Go see the bank or a mortgage broker
4. Go speak to Estate Agents in the area you want to invest.
5. Find a solicitor you are comfortable with
6. Use forums like this or somersoft.com.au for any questions you may have
7. Once you made your first purchase – go spend the remaining $100-$300 on a good dinner or weekend away.By doing the above – you will learn more than a one day course regardless of who gives the course.
I share your frustration. My advice is to buy good quality properties if you feel you can afford it. You can never loose on good quality properties over the long term. Thats why I only purchase close to home in Melbournes Bayside surburbs.
