[CatalystParticipant@catalystJoin Date: 2008Post Count: 1,404]

June 5, 2016 - 4:13 pm

Good point Buyers agent.
Yes Jeta, no-one gets it right all the time. As mentioned, I was extremely happy with my purchases Nathan sourced for me 2009).
I can’t comment on his purchases once he went out on his own. Mu opinion is that he grew to big too fast. It’s hard to keep up with demand and keep finding good quality properties. I know people who experienced the same issues with other BA’s. I looked at one in Queensland but they only offered me crap and wanted too much for reno’s.

Jeta also makes a good pojnt about using these forums. There is a wealth of knowledge on them. And lots of generous people who are successful property investors willing to share their knowledge.

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June 2, 2016 - 10:55 pm

I met Nathan when he was a buyers agent for Right Property Group.I purchased a few properties through him. He is one of the nicest guys I have met but i won’t go on about that.

I haven’t been to Right Group meetings for a few years. They used to run fortnightly meetingws for $10. They shared information and talked strategies etc. There was no hard sell. They used to sit down and chat and write you up a blueprint (of your goals, how to get there etc) for free. i don’t know if that is still the case. Mostly I found they gave similar advice to everyone. Buy under market, reno if possible, reval and withdraw equity.
My strategy was initially to buy good yielding under market properties but I was 50 in 2008 and I wantyed to be retired before I was 60 so knew I had to do more than that. Then I bought a place that BADLY needed as reno. it was ugly and i got it cheap (thanks Nathan). My hubby and I did a complete reno in 5 weeks and made a $35K increase in value. We thought this was a good way to increase equity fast so we did that again and again. We made good equity, THEN the boom hit.
Then we sold a couple and retired. Travelling a LOT now.
I haven’t been on here for a long time. Check out Propertychat too. It gets more traffic than this site. Also go to Somersoft. It’s closed now but it’s great for research. You can learn a LOT there. I used to spend hours there searching.

[CatalystParticipant@catalystJoin Date: 2008Post Count: 1,404]

June 2, 2016 - 10:31 am

I see what you are saying and I agree in a way. When getting advice you need to ask “what’s in it for them”.

You are wrong about Nathan though. I know him personally and yes he could just do nothing if he wanted. He does not NEED to work. Property is his passion. He lives and breathes it. He works on his terms, ie when he wants to.
You need to focus on what YOU want and how YOU can get there.

It helps to listen to a lot of people (those that have what you want) and decide what’s best for you. Everyone has different ways to invest and while it may be good for them it may not suit your situation or risk profile and exit strategy.
Go to a Right Group meeting and listen to get ideas. You don’t need to sign up for anything and they will talk to you about your options.

Some people rubbish buyers agents and paying for courses, others swear by them.I used Nathan for my first few (before he set up his own business). That gave me the confidence to buy on my own. Without Nathan i wouldn’t have had the confidence to think big. My original goal was, like you, to have a few paid off properties. Now, 8 years later I’m a self funded retiree.

as I said- Think big.

[CatalystParticipant@catalystJoin Date: 2008Post Count: 1,404]

June 1, 2016 - 2:57 pm

Why don’t you do one of their MAP sessions to help you with strategy.

Or give Right Property Group a call for a strategy session.
I’m saying this in regards to your other post as you seem to need guidance as to what is the best strategy for you.

[CatalystParticipant@catalystJoin Date: 2008Post Count: 1,404]

June 1, 2016 - 2:53 pm

Hi, why are you choosing to follow this strategy?
As mentioned 3 X $300k properties paid off will not allow you to retire.
Let’s assume 5% yield, that’s $900 a week rent MINUS agent fees, rates, insurance etc. Even if 20% that leaves $720 a week which you have to pay tax on. And that’s not accounting for maintenance, breakdowns etc.

There are MANY ways to invest in property. Read some books and decide which is the best strategy for you.
BTW I have many friends who have made a LOT of money from real estate (myself included) and none of them bought a few properties and paid them off quickly.In my opinion it i a short sighted view. Think big.
Cheers.

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October 14, 2015 - 6:07 pm

Wct01 wrote:

Thanks Corey Batt. If one was to renovate and retain to release the equity, how does this strategy translate to wealth creation? At some point, the banks will say enough is enough because I woud have reached my serviceablity and LVR limit.

If you buy well it shouldn’t be a problem.
We have mainly bought, reno’d and rented. We buy cheaper properties and do a complete reno. We have typically increased equity $3 for every $1 spent. And rents have risen, making them CF neutral to CF+ so you are in a better position than before you started so why would the bank say no more?

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July 20, 2015 - 4:42 pm

What do you mean by low? If It’s cashflow positive, that is NOT low. Are you basing this on 100% lend? or on 80% lend? Are you countin g all outgoings? or only interest?

The property not rising in 3 years can mean nothing. It may be ready to take off.

Take Sydney for example- There has been 100% growth in some areas in the last 4 years. Now based on your analysis this is a good place to buy.
The Sydney market didn’t move much between 2007 and 2010 either then KAPPOW!!!!

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July 18, 2015 - 2:43 pm

I had 4 separate IP loans with Comm. When I refinanced all the loans came back with every property listed on it. I told the broker (from the bank) that I did not want them crossed. She assured me they weren’t. HELLO!! It says so on the paperwork.
I refused to sign them. She had to go back and change them so each loan onl had one property listed as security.

They do try it on. Read EVERYTHING carefully.

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July 4, 2015 - 9:11 am

Good advice HiMungus.
Personally i dont like being the center of atention so never bid until bids stall snd it looks like smeone else is going to win. Let them beat it out and thrn jump in. Assuming it is still in my budget of course.
People gt hyped up very easil snd ehen bids come wuick and fast people tend to get wep up snd bid eithout thinking. I was st one auction where it got crazy. One guy had hat you cant beat me atitude and hev went wsy over his budget. He won and was nearly sick when it finally hit him.
Crazy stuff. Dont get into it. Some people play silly games, bidding stupid odd smounts etc but why bother.
Y

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June 20, 2015 - 12:22 pm

As mentioned it varies from state to state.

In NSW you can pass on the usage bit if the property has it’s own meter.

Lots of people avoid units/villas/townhouses because of the extra cost of strata.

but if you factor in that you can save $10000 on insurance sometimes the extra cost isn’t that much. Yields are sometimes higher for units etc also to compensate for that. You need to do your research on BC fees. Some are VERY high. I’d avoid those (pools and lifts add extra costs). I wouldn’t not buy because of the water charges though. The actual water charge bit is not usually the major part of the bill (for units anyway).

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June 17, 2015 - 8:42 pm

I would not sell the Erskineville unit. It’s in a great spot. By the time you pay CGT, stamp duty to buy again you will lose half the profit.
Keep it.
Pity you have paid down the loan. You should be paying Interest Only with the funds going into an offset account
Do that NOW!!!! If you had done that, the money you take out for the PPOR would have been tax deductible.

Revalue Erskineville so you have extra available equity. I would get the rent to go into my PPOR and use the equity to pay the interest (or buy more property if you have the cashflow to support it).

• This reply was modified 8 years, 10 months ago by  Catalyst.

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June 14, 2015 - 12:04 pm

If you need both capital growth and yield Sydney is not the place to be buying into.

We are at the end of a boom which typically means very little (or even negative) growth for the next 5 years. Rents haven’t moved for a while, which is typical of cycles. Rents should begin to move in the next 12 months.

I have properties in Blacktown and they have doubled in price in the last 4 years.

If I was starting out I would look elsewhere or if you have to buy in Sydney wait a few years.

• This reply was modified 8 years, 10 months ago by  Catalyst.

[CatalystParticipant@catalystJoin Date: 2008Post Count: 1,404]

June 11, 2015 - 4:06 pm

Have done and still do.Have not regretted any purchase I’ve made in My Druitt or Blacktown. All have doubled in price in less than 7 years (love you Sydney!!!).

As long as you do your research and are not buying in the dodgy streets in the dodgy area.
Also a dodgy area in a smaller town might not be any good. It’s about more than type of area.

What dodgy area are you looking at?

[CatalystParticipant@catalystJoin Date: 2008Post Count: 1,404]

June 10, 2015 - 4:39 pm

Great advice by Kinnon. A also think surrounding yourself with like minded people is important.
Networking is the key.

Where are you located? Look up to see if you can find some local meetups (try Meetup.com) or on the forums. Some are formal type meets, others just meet and chat.

I’d start with your local library. Borrow a few general property books and also Property magazines. You can often get free downloads of books and articles and books. But be careful as you get inundated with Emails.

Mentoring schemes do work for some people but a small % of those that join I think. Start by reading HEAPS. You’ll get an idea of YOUR way of proceeding. There are many paths to success in property. You need to find what suits your situation.
Keep asking questions as you go.

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June 9, 2015 - 11:17 am

Too difficult to say without knowing how if the apartment is and where etc.

We reno a whole house for $15K but we do nearly everything ourselves. Can you do anything yourself? Even the ripout saves thousands. If you can project manage it yourself (ie organise separate tradies) that will save many thousands too. The builder will have a % (usually 10%) on top of what all the others charge. Of course this takes time and time = money.

$50K is a lot. I’d be getting 2 more quotes.

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June 6, 2015 - 12:00 pm

The copper pipes were ripped out by thieves so we had to replace some because of that, not because of the fire.

We didn’t have to replace much wiring as the fire was only in the hall and a little bit into 2 bedrooms. The rest was only smoke damage.

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June 4, 2015 - 4:57 pm

I don’t have a URL, only photos on my computer so that didn’t help. sorry.

I’ve done at least half a dozen. Here is a video we did of a burnt out property we renoed in 2011.

Kitchen cost $2997 supply only.

https://www.youtube.com/user/LovetoReno

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May 22, 2015 - 5:26 pm

My personal opinion (based on research but happy if experts disagree and can enlighten me further) is that it can be expensive if you are just purchasing one property.

There are set up costs plus extra tax (accountant)fees at tax time. I raised the question with several investors and with my accountant. My accountant’s advice was if I was- unless I was purchasing more than a couple of properties in Super- not to bother.

I have many properties outside of Super but decided I had enough exposure to propertu so invested my Super elsewhere.

Just my opinion. I do know many people that do have property in Super. You need to ensure what you want from the property fits with the Super rules.

I have to agree with Redwood. Be very careful. Even the price to set it up varied by thousands of dollars with people I spoke to. Cheap is not always best. My accountant said some people have the setup all wrong.

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May 22, 2015 - 5:18 pm

You don’t really need to restrict yourself to an accountant that lives around the corner.

How many times a year do you need to visit him/her?

Never really. Send in your paperwork. Get it back. I do visit with my accountant for chats on my investing but i could do it over the phone.

• This reply was modified 8 years, 11 months ago by  Catalyst.

[CatalystParticipant@catalystJoin Date: 2008Post Count: 1,404]

May 22, 2015 - 5:15 pm

Good on you for analysing it. Lots of people just read this stuff and believe everything they read.

But-

YOUR rental yield hasn’t dropped because you paid $500K. So your rental yield has increased.

If someone 10 years later was buying that property THEIR rental yield would be lower. But who cares about them! Haha!

Capital and rent won’t increase the same. The both go in cycles but not at the same time.