Hi all,
Apologies if this comes off a little pessimistic..
First things first: My goal is to become financially independant so cashflow is the name of the game for me.
I’ve been thinking that wraps might be the right strategy for me to employ. Unluckily for me, I live in Sydney.
Having searched for quite some time and also looked at other posts on this board, it seems that for people in Sydney, finding a nearby area in which the 11-second solution applies is not realistic these days.
I suspect I’m going to have to go for areas well in excess of 5 hours travel from where I live unfortunately, and even then properties seem to fall far short of the 11 second solution.
How far from the 11-sec should I be willing to deviate? Would I really be creating a win-win outcome for someone if their monthly repayments were far in excess of what their rent would be? (I want to be able to look at myself in the mirror after all… and I dont want to have a massive percentage of my wrappees defaulting because they can’t afford to pay.)
Am I going to need to cut my interest rate spread significantly in order to make the wrapee’s payments actually achievable? If so won’t the return on investment be too low for it to be worthwhile?
Should I be looking at travelling interstate? Is doing that realistic? Is the situation any better in other states right now?
Is now perhaps the wrong time to be investing in property? Should I wait a few years in the hope that the much fabled slump in the property market might actually eventuate and make property investment worthwhile again?
Steve McKnight: Do you feel that your timing in that you got started back in 1999, in Victoria, when & where the 11-second soln was more achievable.. and also being in around the time the FHOG was being introduced, was a major factor in your success? If you were starting now, do you think you would be able to achieve anywhere near that fantastic results that you did? If you were starting now, would you wait for a property slump?
Thanks in advance for any comments everyone.
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SjsHi Sjs
The deals are there. Dolf de Roos has a formula where (from memory) you look at 100 houses, put in 20 offers, and get to buy one. The problem is, he says, that although people acknowledge this might be necessary, few actually look at the required number.
Keep looking and I am confident you will find them.
Lance
.
Fair Go Homes
http://fairgohomes.com.auRapt with Wrapping!
(07) 5465 4999
[email protected]Thanks LanceH for that info. I think I must not be understanding the wrap process correctly.
I was under the impression that I needed to find an *area* where properties which fit the 11-sec soln were generally available, rather than finding just one property which works.
If I’m going to be ’empowering’ a wrapee to go out and find a property, isn’t the idea that they should find one which fits the 11-sec soln?
Should I be looking for potential wrapees that are paying high rent in their current property and sell them a much cheaper property? Wouldn’t that mean the wrap property would have to be either
a) Significantly smaller
b) Significantly lower quality
or
c) In a completely different localitythan the property they are currently renting? Do people really want to move to that sort of property in order to be owners?
Thanks.
Hi,
I don’t expect that you’ll be easily able to find a conventional property within 1 hr of Sydney that’ll meet thet 11 sec solution.
So what does this mean?
Well, you either change the way you are looking or the questions that you are asking… or alternatively look to invest in a different area.
I feel that the equation remains as valid today as it was when I started investing. Indeed it is getting harder by the day to find the same sorts of property that I bought (for a similar dollar) in the areas where I invest.
But I am also mindful that a lot of deals exist that do meet the criteria. However unlike earlier days, finding these deals is not as simple as looking up realestate.com.au
That is why we talk about many stratgeies at the Masters seminar so that you can identify the right solution for the problem that you encounter.
Was I just lucky to invest at a time when the market began to boom? Maybe – as timing has a lot to do with it.
However, in the same period when investors struggle to own 5 properties… I’ve gone on to buy (with David) over 130.
I think you make your own luck and success comes from doing things differently. It’s not easy… if it was then everyone would do it.
Lance is right though… if you are prepared to look then the deals are (and always willbe) out there.
Bye
Steve McKnight
**********
Remember that success comes from doing things differently.
**********Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
Don’t worry about feeling like u are ripping people off – you won’t be – u will actually be giving them a chance to achieve their dream of getting into ownership – those who have tried wraps will tell u the feeling of having helped someone makes it all worthwhile, and u will know that u have made a win win.[
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Don’t forget that most people go back a bit to own rather than rent………but they profit from the capital gain.
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