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What's with human nature these days. I thank Steve very much for his books. I first became a property investor when we were moved for my husbands work. Thankfully our PPOR rented very quickly and for a good price. This got me thinking, so i went to the bookstore and found Steve's book 0-130 properties. This was the start of what I call my Stay at home career.
I was stunned when reading the manner in which some of these posts have been written. For our family, who rents and owns IP's, Steve's guidance, ideas and encouragement through his books have been fantastic particularly when faced with tenants who trash a house (all covered by insurance), or one that doesn't pay. I find it good at these time to go back and remember why I am doing this. For me it so I can be with my children, take them to their various activities, go on holidays and have a safe vehicle to drive. So thanks Steve and all those who post positive thoughts.
As for trusts. I am a little against having assets that are untouchable. I have had some experience in the court system, and seen too many times people doing things, or not doing things that have caused injury to others. Because of these untouchable assests the victim can be left high and dry. When I purchase an IP I pay an electrician to put in a safety switch, check it out and certify it. I also put in new and more smoke detectors. If a handyman does any work at the home, I pay for them to change the batteries. These things add to the costs which is why I look at buying property that are around 10-12% return. These are just a couple of things we do I think that reducing the risk by looking after the safety aspects of the home which should minimise risk enough that I have done everything "reasonable" to make the property safe.
Thanks Steve and I hope the family is coping during a stressful time.
JLJames,
I'd report him because the next person he changes a contract on might be someone not so saavy as you and might get financially hurt out of it.
JLJohn,
Your local council values your land for rates. Ask them?
JLJon,
Why are you selling?
JLI'm with you Tracey, unless you are intending to buy at Auction, just sign a contract that is conditional.
JodieDoes anyone know if I do a reno in Vic that required a qual builder can I then do one in NSW and then in QLD. That is, is the legislation only state based and doesn't cross borders? Or if I do one in Vic, I can't then do one in Vic or NSW for 3 years and QLD for 6?
Thanks,
JLPosEnterprises wrote:well affordability would be nearer if these people stopped wasting money on brand new cars, plasmas, and all the like. I still have my TV which is close to 18yrs old a card which is 9 years old. i go without because my investments are more like my health insurance when i get old! alot of people forget we only need food, shelter and clothes everything else is a luxury!
Love your thinking. Our TV is a big one we bought about 8 years ago second hand. It is so heavy that it takes three people to lift it. It is distorted around the edges, so we cannot see the cricket scores orthe weather etc.Thanks foundation. You are right, I am a capitalist. I guess I feel like I want positive people around myself and my children. Negative people have lead me to whinging in the first place.
JLScott no mates,
Yep, Thats why I am willing to spend $44k on a property. This town also has a good size hospital and school, that has transiant staff that want to rent. Looking forward to settlement on this one.I agree, but didn't he have about $40,000 already. And once he had bought the first IP, he was then making not only income from the business, but also from the first property and so on and so on. I think most of his first few homes were around the $40,000 mark weren't they.
JLFoundation,
You make some good points in your discussion about percieved value. I tell you, that I do not see the houses we have purchased as cheap. The only reason I have chosen these particular houses in these areas, is they can offer myself and my family a return immediately. The last place I bought, last week, is actually very rural – 1650 people in the town. I am betting on the fact that a mining company has just announced a new mine there. I got the house for $44k and I could sell it on for $60k. This is maybe cheap, but I was in the right place at the right time and had done some homework and lots of driving with 2 young kids. I reasoned that if we lost out on this one – as I see it as high risk, then our loss would be minimal. This is expected to return $120 p/w once I have put A/C's in. The other houses, well ones in Werribee and I note that since purchasing in Werribee the house prices have gone down 4%. Another is just off the Hume a hour from Melbourne. This is where we rent. We have another in country NSW next to a Uni. When we buy for us to reside, we will have to first decide on what city to adopt .
So back to my original point. I am sick of being called a capitalist by those who complain that housing is unaffordable. I say, Stop complaining and start doing (and really I was just having a winge, so thanks for listening).Thanks for all your support.
JLTo partially answer your questions, Steve saved deposits by having his (although limited from what I have read) and his partners income – as accountants – to purely be used on investment. He and his partner – David Bradley – lived from the wages their wives brought in. So if you think about it, unless you go into business with someone, you would not expect this type of return, although I'm sure it is possible.
And remembering that all his properties were +ve, therefore the more he purchased, the easier the deposits became, because there was more money coming in the door.
On the trusts issue, I can't help??Milly,
Thanks for your support. You know when I first became a full time mum, I was criticized. I went back to work PT to help pay a few debts that the hubby and I still had from single days (mainly him with cars and me motorbikes), and was criticized again from another group of supposed friends. I am now being judged as a capitalist because I want to financially contribute and this is the way I can do it, and remain a full time mum. So to this point I am over being judged. It just really gets to me when I hear news headlines saying that housing in unaffordable. It may be in some areas, but not everywhere. My parents lived in a one bedroom rented flat for 3 years and one child after they were married to be able to build a house they remain in today. I say good on them for doing the hard yards and this generation needs to learn the same. I guess I am really preaching to the converted though.Nice Dave,
I'm yet to have the courage to do this. Maybe a year or two.
Well done, they look good.
JodieSnowflake,
I think foundation is right, but having said that hear is my 2cents worth.
I get from your post that you are reluctant to sell anything. If I am right, is there any way you could restructure your IP loan to interest only and put the extra money into your PPOR. This should help, especially if interest rates rise, as your minimum commitment should reduce. If not and you do decide to sell your PPOR and rent, on your income you should be entitled to rent assistance and FTB once you have a child (don't quote me on this, please check with centrelink). Maybe worth doing the numbers on that to help you through this growth. The other option is to move from PPOR and rent it out while you rent something that costs you less. You can then claim interest and other costs. This might get you ahead enogh to move back in when you have a littly. Just some thoughts.
JLChris,
If you are that desparate for money, why not get a part timer on the weekend? Better still, why not join the Army reserve. The income is tax free, you will be helping the country and it would not take long to save the $7000 you say you need to buy.
This is legal and you can have fun doing it.
JodieThe other option is to ask the tenant to agree to break lease. We did this so we could sell a property with vacant possession. The Tenant and us, as the vendor, agreed to break the lease on the condition that we paid the tenant an agreed figure as compensation for the cost of moving (phone reconnection etc). Our Agent looked after all the fine detail to make it legal. It actually did not cost us much. Maybe you could approach the agent and ask the current vendor to go down this road if you want to live in it straight away. Of course the tenant does not have to agree, but it can't hurt to ask.
JodieMilly,
I had the opposite. We have been lucky that we rented a house to a third party. The guy they put in it trashed it after only 6 weeks. We got paid rent for the next 6 months while the $49700 worth of repairs was done. We didn't even need to ask. The guy was evicted but got arrested and put in jail for another incident prior to all the paperwork being actioned. This was a really fortunate thing as he was causing the neighbours grief and I am sure he would not have left of his own accord. So 6 months rent with no tenant. Our insurance company did not like this, but still insured us (thankfully, otherwise I could not sleep at night).
JodieJason,
I have had a quick look on the net only. There seem to be a lot on offer to rent at the moment. Is this a trend for the area? Maybe vacancy rates might be a problem?Jodie
