Couldn’t sleep after having to settle my 12 month son at 4am ’cause I couldn’t stop thinking about property! I have been reading Steve’s 2nd book (just stayed up and finished it) and am now back searching the net for ‘problems’.
My history – I have always wanted to buy an investment property and manged to do so in June 04 (interstate). Unfortunately I was a bit rushed at the time as I was pregnent and under the belief I may not qualify for a loan if we had a child due to increased living expenses. The property is negatively geared but I will now get it re-valued to consider my options with it.
I am now really motivated to find some ‘problems’ in my local area that I may be able to solve although I am not sure what sort of problems to look for.I also have a few questions:
1. Can anyone tell me where I can find information such as vacancy rates, auction clearance rates and other sites useful for ‘due dilegence’ work?
2. Are low socioeconomic/housing commission type areas to be avoided or does anyone have ideas for solving problems such as property damage, rental arrears, potential neighbour issues, etc that may occur in these types of areas?
3. I would normally also avoid areas that may flood. Are all problems opportunities or should some be avioded?Anyway, I loved both of Steve’s books (and this website is great) and I am hoping to get to one of the seminars next year if I can talk my husband into it. Congratulations!
Jen
Hi Jen,
Sorry I don’t have an answer for you but I am in the same position as you. I would also dearly love som help such as you are asking for.Liam
1. Can anyone tell me where I can find information such as vacancy rates, auction clearance rates and other sites useful for ‘due dilegence’ work?
>Usually RE agents can give you good information, as well as data providers (RP data and others) and finally A.B.S (http://www.abs.gov.au). As a side note when you focus on a particular area you usually look out for (and find) any stats.
2. Are low socioeconomic/housing commission type areas to be avoided or does anyone have ideas for solving problems such as property damage, rental arrears, potential neighbour issues, etc that may occur in these types of areas?
>This is about risk control. In my honest opinon low income housing is pretty good (it can even be better than high end housing – rich tennants have lawyers!). In the end it’s abouthow your going to achieve your goals, if you can’t afford ‘normal’ houses then you will have to go to lower priced houses or units (becareful of units!), each of these have their own risk factors. The good thing about property is when you learn more and more about it you quickly realise how similar the different classes of property are.
3. I would normally also avoid areas that may flood. Are all problems opportunities or should some be avioded?
>Not all problems are opportunities! In terms of flood zones, I would have a look at the area and then find out how flood prone my house is. By that I mean, as an example, say I was buying in the Western Subrubs of Syd. The whole area is flood plain, but in reality the area will probably never ‘flood’ like New Orleans (which was very obviously going to flood if any of the levys/walls broke).
Hellman
Thanks Hellman. Some good tips there. Any other opions on ‘riskier’ properties?
JenHi Jen,
Great to hear about your enthusiasm and desire to learn more. Well done! In terms of ‘riskier’ and ‘problems’, you’ll find so many varied approaches to problems and risks that are opportunities. For myself, taking on something like a subdivision/reno/onsell would be a walk in the park to so many others. I’m mainly buy and hold. Sorry I don’t have anything more profound except to say that you’re asking great questions and don’t forget to look up anything under a search as it may be here already waiting.
Kind regards,
Gatsby!“Sometimes the hardest thing to do in life is often the best thing to do.”
Hi Jen
I’m encouraged by your enthusiasm and commitment. Having been recently divorced and lumbered to some extent with a neg geared proerty I empathise.
Keep up the good work, PERSIST, PERSIST, PERSIST and you will succeed in the end.
You go Girl!!!
Regards
SueMIT | Owen Real Estate
Email MeOriginally posted by Jen1:Couldn’t sleep after having to settle my 12 month son at 4am ’cause I couldn’t stop thinking about property! I have been reading Steve’s 2nd book (just stayed up and finished it) and am now back searching the net for ‘problems’.
Been there done that..drove to an area “full of beans’ after working a nightshift of 12hrs with a friend to check outsome properties we where interested in, we spent the day there then came back home, then got ready for work..My history – I have always wanted to buy an investment property and manged to do so in June 04 (interstate). Unfortunately I was a bit rushed at the time as I was pregnent and under the belief I may not qualify for a loan if we had a child due to increased living expenses. The property is negatively geared but I will now get it re-valued to consider my options with it.
Have you got it revalued yet? Even if you only use 3 REA’s valuations it will give you an idea of the CG
I am now really motivated to find some ‘problems’ in my local area that I may be able to solve although I am not sure what sort of problems to look for.
make it a hobby to scan the REA windows and listings, sometimes looking beyond what you normally would..even ifit only assists by keeping your mind active on potential dealsI also have a few questions:
1. Can anyone tell me where I can find information such as vacancy rates, auction clearance rates and other sites useful for ‘due dilegence’ work?
GOOGLE..and your local Real Estate Institute web page should help
2. Are low socioeconomic/housing commission type areas to be avoided or does anyone have ideas for solving problems such as property damage, rental arrears, potential neighbour issues, etc that may occur in these types of areas?
you can have Landlord Insurance to protect you..however,look at what you can afford by speaking to the Mortgage Brokers here before you progress, this may save disappointment..
3. I would normally also avoid areas that may flood. Are all problems opportunities or should some be avioded?
?? I’d run from an area prone to flooding..what the??Anyway, I loved both of Steve’s books (and this website is great) and I am hoping to get to one of the seminars next year if I can talk my husband into it. Congratulations!
Just my thoughts on your post Jen..enjoy and let us know how you go..Jen
“Money is a currency, like electricity and it requires momentum to make it Effective”
Count The Currency With This Online Positive Cashflow CalculatorThanks for all your kind words, advice and support.
I took your advise and had the IP valued – would list at $40K above purchase price [biggrin]. So at least it is getting better. Unfortunately, I just found out my tenant is over his head and is going to leave. He promises to repay what he owes (fingers crossed as it is a bit more than the bond). I suppose on the brighter side it allows me to try for higher rent. Wish the timing was better though as I will be on holidays (my sisters wedding) when he vacates and I have been self managing. Hence have decided to go with a PM this time.
I have also taken the plunge and joined the RESULTS program – can’t wait to learn more and improve my situation.
Cheers,
JenI also have a few questions:
1. Can anyone tell me where I can find information such as vacancy rates, auction clearance rates and other sites useful for ‘due dilegence’ work?00Rate this
For auction clearance rates in Australia, you can find them here.
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