I have been searching for properties anywhere in NSW & VIC that pass the 11 sec rule.
So far I have found nothing, what I am finding is that most houses that are worth under $200k do not achieve the necessary rent to make them a viable investment.
Is anybody out there finding properties that meet the 11 sec solution and cost under $200k? And, if you are, where are you finding them?You normally have to pay a spotters fee for such info – a better question would be, “How do I find suitable properties?”
well chris?
dont hold out – last time I looked out the window there were houses everywhere!
(also interested) I assume you have some agents in your pocket… Offer them a cash bonus if they actively look on your behalf or something?
What the mind of man can conceive and believe, it can achieve.
Ducky,
STEP 1: Approach vendors, criticise their properties until they sell it to you for almost nothing.
STEP 2: Approach tenants, praise your new property and tell them what a wonderful place it would be to rent.
Voila! On the one hand, the property is so tragic that the vendor was lucky you took it off his hands… the tenant, on the other hand, would pay the moon to be in such a fine place! [
]kay henry
How mutch is a good amount for a spotter to be payed?
Or is that equivalent to asking how long is a peace of string.
Whats a reasonable price..
One solution is look inter state.
But don’t tell everyone as we have enough of ya coming North to the Sunshine State. As an example 50% of properties in Stanthorpe are now owned by owners living away from Stanthorpe. In 2001 it was 11%.
Cheers Richard
[email protected]
http://www.fhog.com.auThere is no such thing as a problem.
Just a solution waiting to be foundRichard Taylor | Australia's leading private lender
Hi. Exactly my point in my previous post (somewhere). Has the rental population increased by 50%? Who is going to rent all these properties? I would be quite hesitant to enter the market on these regional towns for that fact alone…
and no, I dont consider this a negative approach but part of that due diligence. Just hope some of us wont get burnt. I think I plan to take Bill’s advice and stay out of the market for 18 months, not only due to market prices but to see how everyone copes with the changes in demographics of towns by investors.
Sunshine[
]I too, am taking bill’s advice. I am still “wet behind the ears” so dont know which way the market will go. Went to a seminar last night for 2 and 3 bedroom units 10 – 15kms around brisbane CBD. He assured everyone in the room that prices wont go down (he was talking neg gearing of course).
made a pretty good argument in saying that not all towns will go down (or up) the same way. My boss is looking to invest with this mob. The IP are neg geared but pos cashflow. Is the Brissy CBD belt still a good place to buy?Shaunwalker – how do you have neg gearing AND positive cashflow at the same time?
Shaunwalker – how do you have neg gearing AND positive cashflow at the same time?Hi RubbacHook, i use that technique, negative gearing and postive gearing… its called offset gearing, well i wouldnt be too hyped about it, this is the type of way i invest and i have managed to purcahse quite a lot of property in a short amount of time, though many of the people on here doubt me cause of my age and how i talk about negative gearing or other things i have mentioned. Simple rule “Where you make a profit you make a loss, maximise your lost and turn it into a profit” – thats what offset gearing is.
Sorry not to touch more on this, as i get flamed for most comments i say.
still_in_school
shaun,
May I ask how much the 2 and 3 bed units 10-15 km’s around brisbane were selling for at the seminar? I’m just wondering where the market’s up to for new apartments.
kay henry
They were asking anything from 220k to 300k for properties, most were 2 and 3 bedroom townhouses.
heres their web page
http://www.wiseinvesting.com.au
enjoy
shaunThanks, “Schoolie”. Actually, my question was not about positive gearing but positive cashflow.
I may be getting caught up in definitions and terms here, but if you are genuinely negatively geared, this cannot turn into positive cashflow unless the govt rebates more than 100% of your loss – which doesn’t seem to happen too much.
Otherwise, any loss you make to be negatively geared is still a loss (just a smaller one) after tax.
shaun, either there’s something wrong with my server or that url is not working. Is it me??
kay henry
Hi Kay,
I am guessing, but I assume that the website he meant was http://www.wiseinvestment.com.au.
Hope this helps,
LuckyoneThanks Lucky- i checked it out ;O)
I tend to find that the apartments in the cheapest range of the OTP apartments usually have some problems with them. I checked out an apartment in glebe for 270k. The range was 270k-800k or something. The 270k one was a studio of about 38sq, no parking etc.
Shaun, I found a lot of the apartments on that site to be a bit exxy actually. I think it’s an idea these days when buying an apartment to not get into buying a “generic” one with no distinguishing features- I think they need views, or something special about them. The other thing is the “no body corporate fees set yet”. That’s one of the biggest ongoing costs in apartments these days. I hope your friend goes into it with caution.
kay henry
Hi Rubbachook,
A property can be negatively geared but give positive cashflow if after all tax deductions are claimed there is after tax cash in your pocket. One way of doing this is through depreciation.The best way to find out more about how this works is by reading. I’m a recent convert to Margaret Lomas’s books. Up until then I was stuck on one IP trying to figure out how I could possibly invest in any more and meet the shortfall each month. There are many other books on the subject and many other ways of gaining positive cashflow as I am still learning. Here is a link to a website that specialises in books on investing. I am also now subscribing to Australian Property Investor Magazine
I did mention to my mate about no body corp fees set up yet. i also told him to get an independant evaluation done, and get several different property managers in there to get a rental apraisal done.
And i agree with you that they are exy. personally i wouldnt buy one.
as for neg geared pos cashflow. i search for the properties myself. i have software that lets me cull down the amount of properties to have a look at.
sorry about the wrong web page address!
Shaunwalker – how do you have neg gearing AND positive cashflow at the same time?Hi RubbacHook, i use that technique, negative gearing and postive gearing… its called offset gearing, well i wouldnt be too hyped about it, this is the type of way i invest and i have managed to purcahse quite a lot of property in a short amount of time, though many of the people on here doubt me cause of my age and how i talk about negative gearing or other things i have mentioned. Simple rule “Where you make a profit you make a loss, maximise your lost and turn it into a profit” – thats what offset gearing is.
Sorry not to touch more on this, as i get flamed for most comments i say.
still_in_school
Still_in_school, feel free to conversre on this topic, if you back your ideas I’d like to hear them. Cheers[^]Still in school, I don’t believe that you get ‘flamed’ for what you say. I know that I myself have questioned some things you have said that certainly didn’t match other things you had said, and some others have gently corrected the way you calculate some returns, but it’s all about helping everybody to learn, and most of all to help you so that you are not ‘fooling yourself’ with some of the ‘returns’ you have been achieving by using those flawed calculations.
I accept and welcome comments you can make. I am impressed that you have been able to do so much at 21 – in fact, I am jealous. Especially if you are ‘still in school’. I think people of all ages could benefit from some of your strategies.
While we’re on the subject though, can you please please put your g’s in when you are typing. I can understand if you talk and drop them, but I cringe every time I read what you type (and I often wonder if your ‘g’ key on the keyboard is missing[
])Cheers
Mel
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