I’ve been a long time reader of the boards but a first time poster. I read Steve’s book on a flight between Sydney and London (where I now live) in early March.
I am saving a deposit over here to purchase my first IP.
I have to say that after carefully studying Steve’s book and almost 4 months of researching several areas around Australia (admittedly though the internet only), I have come to the conclusion that the 11 second rule is a load of crap and there are few if any opportunities like this out there in Oz. I don’t doubt that Steve made some money out of this strategy and that others have too, and it may well be that such opportunities exist, but they are like needles in a haystack.
That’s not to say that I find Steve’s book total garbage. Oh contraire! I found it a very very useful means of setting clear goals in my head as to why I want to invest, how I’m going to do it and to gain a better understanding of negative gearing and take on board the critique of it. So whilst I give the book the thumbs up – I think the “positive gearing/11 second brigade” are talking a lot of bollocks about the prevalence of these opprtunities.
By the way – I think the free sharing of ideas is marvellous on this forum!
Originally posted by The Mortgage Adviser:You joined the forum today. How interesting.
If you don’t want to discard the 11 second rule altogether, ask for some of the spotters out and about who can help you find the properties you want for a fee.
Concentrating on what I do best… Investment & Finance!!!
© 2004 Mortgage Packaging Pty Ltd
They are probably out there, but it seems to me a whole lot of effort. I just don’t know that the “positive gearing” ethos is for me. Steve had to work hard to find 100 odd properties that give him only $200,000 per annum in income. When I say “only” I realise that’s not anything to sneeze at – but you need a lot fo time on your side to do that – clearly it was wast Steve wanted because he wanted to have that replace the income he earned as an accountant.
I’m making good money and I like what I do. The income I make per annum is almost the same as what Steve makes form his property empire – and I like what I do. So I want to buy an IP for the purpose of having good capital growth over say 5-10 years. I’m under 30 and figure this is a better strategy for my personal circumstances.
I’m not rubbishing the theory – I just think the effort that is required to do it and the stratgey – do not fit in with my personal aims and circumstances.
Da Man,
I think there are heaps of positive greared properties around. Well, cheap properties with rental potential of 10.4% So you buy a property in a rural location, for 50k, and rent it for $105 a week. It’s not hard to find them. It’s whether you WANT that kind of property or not, that is the question- and it seems you don’t, so there’s the answer
Develop your own strategy, and then stick to it if it’s working for you. I haven’t gone down the rural property road, but I bet could still fine 40 properties on the net within a half hour that could have rental potential of 10.4%. As I said, it’s whether you want to go there or not.
But just because I don’t go there either, doesn’t mean that they don’t exist. How many towns are there on realestate.com.au? thousands and thousands. You can find those kinds of properties in an instant. A spotter will check out the properties for you, if you want to pay someone, but any person can find them themselves, independently.
kay henry
Originally posted by kay henry:Da Man,
I think there are heaps of positive greared properties around. Well, cheap properties with rental potential of 10.4% So you buy a property in a rural location, for 50k, and rent it for $105 a week. It’s not hard to find them. It’s whether you WANT that kind of property or not, that is the question- and it seems you don’t, so there’s the answer
Develop your own strategy, and then stick to it if it’s working for you. I haven’t gone down the rural property road, but I bet could still fine 40 properties on the net within a half hour that could have rental potential of 10.4%. As I said, it’s whether you want to go there or not.
But just because I don’t go there either, doesn’t mean that they don’t exist. How many towns are there on realestate.com.au? thousands and thousands. You can find those kinds of properties in an instant. A spotter will check out the properties for you, if you want to pay someone, but any person can find them themselves, independently.
kay henry
Probably a fair comment there.
I am developing my own strategy and hope to get it into action within the next 6-12 months, depending on movements in the market.
I guess my point is – I do like Steve’s book, but it has not convinced me that buying cf+ properties (if I can find them) is the right thing for me.
Da Man
If you are staying in England for any length of time, why not invest there?
Otherwise, with your income, you could probably ‘quite easily’ afford to buy several growth properties that will be -vely geared, and require some cash from you. I don’t know what the tax situation is for you, and whether you can claim any losses now, but if you get good growth, maybe it’s not such an issue….
Cheers
Mel
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