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100% agree Jamie.
but I like the statement
“Do what you can, with what you have”
Jaxon | Jaxon Avery – Financial Adviser
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Study the Nathan Birch model,
one of the best examples I have ever seen.
the model is simple (in theory)
1. buy under market value
2. make sure the ROI and rental return are over 8%
3. for the first property make sure there is the ability to value add to build equity to purchase more properties (e.g. add rooms, reno, etc)
4. go to bank to refinance/access equity
5. rinse and repeatJaxon | Jaxon Avery – Financial Adviser
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Another question I would want to know, can I get insurance that will cover me in a worst case scenario of this going worst case.
also can I use this to alter the price in my favour. even if a contract is in place you can use this to your advantage and maybe lower the price to reflect the cost this will/could cause.
Jaxon | Jaxon Avery – Financial Adviser
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there will be more boats.
the moral of the story is buy a problem sell a solution
Jaxon | Jaxon Avery – Financial Adviser
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This is not how you compare properties value. to compare has less to do with the air con and more to do with land size and the build style, the perceived value etc
Jaxon | Jaxon Avery – Financial Adviser
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Around Australia, do researchs with bank / repossesion etc
call agencies and leave your info etc. chase up owners selling before the bank doesJaxon | Jaxon Avery – Financial Adviser
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Jason hit so many nails on the head, I hope you see the value in his comments,
I would also like to address why your asking this question and how I would act in any market condition etc.
what is going to get me the most return (ROI)?
what is going to get me hopefully the largest captial growth possible?so if I have a block and I am deciding do I build a house or duplex, lets say under town planning both are acceptable under the zoning for a 600m block.
4b house lets say are 700k
3b duplexs are 450k (each)now the build and legislative are the costs
house – 200k + 35k council fees
duplex – 270k + 70k council fees= 700k – 235 = 465k for land and every other fee
= 900k – 340k = 560k for land and every other feenow this example would mean I make $95,000 or 95k more on the duplex build.
also the rental yeild for the duplex is very likely more
as say a house rents $650
each duplex rents $380 (2) = $740, so you can see if done right a duplex will normally outperform the rental return (most times, not always)but Jason also raised a good point, the land is the value, but also the cost to build and buyer demand is another factor to weigh up.
I hope this sheds a deeper light for you?
Jaxon | Jaxon Avery – Financial Adviser
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Sorry to be confusing, I went and relooked at the legislation and thought there may be a legal loop hole but turns out in your case it would be illegal. Sorry and hope I didnt cause any confusion, In certain cases each person can get it, for e.g. if you were not living in the same dwelling/legally married in this country.
Thank you Corey for the clarity for Myself and Valluvan
Valluvan in regards to what to do with your money and moving forward, I think an end goal and dream is the best starting point, look at where you want to be and then work out the right path to it.
there are a lot of different options and many have different benefits, but finding the right path that suits your lifestlye and desires is something that will take a bit of time, effort and calculation.
All the best on your journey and any questions I am happy to answer or look up if I dont know
Jaxon | Jaxon Avery – Financial Adviser
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feel free to txt or call 0431376130.
free tomrrow afternoon-friday so just txt first and we can chat and cover in 10 mins what would take a long long time typingIt is so much easier over phone hahahaha
Jaxon | Jaxon Avery – Financial Adviser
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900sqm, researched literally all of australia, studied suburbs when I found properties that stood out, I looked at the SQM area reports, I spoke with the agents and got info, I research every aspect of the property prior to purchase, recent sales etc, I found it for sale by owner on gumtree.
mate the property I bought is in vic, the address is 42 william street, cohuna (vic)
So I study realestate.com, Gumtree and apart from what I am planning to do next once I get to the point ready for it, contact real estate firms in each state and have my criteria and tell them to notfiy me.
the main thing I did is put 30 offers out in a week, I had numerous agents and had no commitment to any.
I also almost bought a house on gold coast but wasnt at the right ROI.
Mate you do raise a good point in your post, this is a really long conversation (typing wise) feel free to txt or call 0431376130.
free tomrrow afternoon-friday so just txt first and we can chat and cover in 10 mins what would take a long long time typingJaxon | Jaxon Avery – Financial Adviser
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Ok so Its fine, but do you want fine or a great deal?
for instance I have a deal that settles tomrrow that makes me around the same return ($2500-35000PA) after exepnses per year, the difference is I bought it for $121,000, that means less risk, less loan repayments etc. so once again do you want fine or a great deal?
mate you can get really great deals if you do your research anywhere, I live gold coast and there are deals here and all over Australia, you just need to know exactly what your criteria is.
for instance mine is 8% ROI minimum plus oppurtunity for equity building (I bought a house that if I spend around 20k should bump it 40-80k on the current market)
for e.g.
thats the yearly rent divded by the property purchase priceso my recent purchase earns 240pw x52(weeks) divided by 121,000 = 10.3% or .103
also I am very against buying off the plan because its rare to get a deal, unless you know developer or etc.
they generally dont discount and wont beat the market, you hustle and put multiple offers, you can beat the market.Jaxon | Jaxon Avery – Financial Adviser
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Valluvan, If its only in your name you get the FHOG/NO STAMP
your wifes name for second PPOR then same applies if she has never owned the first PPOR.Kind regards
Jaxon Avery
Jaxon | Jaxon Avery – Financial Adviser
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1. mate do you mean a duplex? either way, it comes down to price for the tenant and what you offer against whats out there and their options, do a SQM report on the suburb first
2. clearly work out what your talking about, do you mean granny flat? subdivision, duplex etc????
also if you can build more it adds value and usually makes you money. (as a very general rule)
Jaxon | Jaxon Avery – Financial Adviser
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population growth will be liekly large in that area over the next 10 years, sunshine coast has a stack of money, the gold coast has more getting pumped into it.
more importantly, buy undervalued with a 7-15% ROI, and positibe cash flow.
brisbane prices are likely to rise after this apartment overload that just happened. (providing not to many large investors keep oversuppling
Jaxon | Jaxon Avery – Financial Adviser
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Ok I am lost with how your proving him wrong haha. or lying.
The video post are bothh in 2014, also he could have been reputting earns back into his portfolio (most likely) to build equity. this dosnt seem fishy at all to me, as its part of a good stratergy (sometimes) 50 cent the rappers, earnt nothing on paper when he was going through a divorce but hes worth 100m+
I didnt hear or see anything Contradicting? and seeming fishy and being fishy is different.
I think his model of operation is really simple and works well
1. buy under value, with incredible rent return
2. add value and increase rent
3. use equity for another quick purchase
4. repeat, repeat repeat!many people have done well with this, many have lost lots because of varous factors.
this does in no way seem fishy to me. unless you can share actual evidence I find it hard to see where your coming from.
Jaxon | Jaxon Avery – Financial Adviser
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how did he contradict himself? can I see links? I am curious now.
Well, I would say unless you are already well ahead of the ballpark in various aspects 5 years is a strech in most circumstances, but maybe your rolling in cash, good job, low yearly expenses.
would never say it cant happen. but I would just say be open that it may not ban out that way.
and to be fair, Nathan caught a wind that was outright his control that went his way and gave him a massive boost. not to discredit him in any way.
Jaxon | Jaxon Avery – Financial Adviser
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WestnBlue, Great work mate, really awesome
I feel myself and many others would be helped by you really breaking down
-what properties you started with and the criteria
-How you searched and found them, how many agents/etc you spoke with etc
-What due Dilligence you personally did, etc
-anything else that may help and shape and inform and create a more full picture.
Cheers brother
Jaxon | Jaxon Avery – Financial Adviser
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Benny and Cameron I got a property going through settlement atm that is a 10.3% return. (Regular IP)
also I only had to put $25k into it including expenses. also this isnt a seminar trying to sell you anything this is me who is doing this in their own life.
you want to have 40% put downs for commerical, dont start out in commercial unless your well educated or running a business, tenants are hard to come by in certain cases, the returns are far better than 9% but also there can be years without rent.
Cam. I am going to guess you havnt built a couple mil as an asset base, Dont focus on commerical unless you have someone whos well versed, or you become incredibly knowledgable. or understnad the area and a million other aspects.
Read books, study these forums, study nathan birch, read steves 0-135 book, then do it all again over and over till you know everything in and out. get to a point where you understand the who what when where and why and the risks.
Jaxon | Jaxon Avery – Financial Adviser
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haha, where can you find the best burger joint?
Just contact companies for quotes, speak to them on the phone, go with who treats and explains how you want.
Jaxon | Jaxon Avery – Financial Adviser
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Investor if you do half of what you stated above you will be highly informed in 6 months mate.
a book a day, I would love to hear if you do this.So I think ontop of all this, study Nathan Birch, he is one of the best models of how to get ahead through real estate I have ever seen. his Model outshines anyone who will comment on hear, now in saying this we are all human and do make mistakes.
In regards to what you didnt understand, Warren buffet does not invest in something he cant see value in, I think this is the smartest rule to have. understand the who what when where why and how, then worst and best case etc. this will arm you for your future. also I personally believe the stuff the books say is half good half turd, so dont trust anyone or anything 100%
Also I dont overly believe in even visting properties, I mean if numbers add up, you understand the market and have appraisals done from good real estate firms and insurances and banks that valuate above purhcase price, who cares if you like the look of it (yes do your due dilligence, pest building etc)
Simple answer; if you do that research well, your going to have a moutain of knowledge
Jaxon | Jaxon Avery – Financial Adviser
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