[kay henryMember@kay-henryJoin Date: 2003Post Count: 2,737]

May 8, 2005 - 12:25 am

Re the Redfern discussion… just to clarify my position here. I do NOT want the Block knowcked down… I do NOT want the suburb gentrified and my neighbours unable to afford to live here. I think Frank Sartor’s mob is outrageous, and I believe in Clover Moore’s protection of the area.

I do NOT want Indigenous people forced out of my area for the sake of property “values”. I believe in people before profit.

Just wanted tro make these points in case anyone thought I was taking the bourgeois sartor approach- I’m not. I like the people in the area- it’s diverse and has culture up the wazoo- I chose this suburb to live because of what it represents- inclusion, activism, social justice- real notions of “community” and I have been one of the many thousands of people in the area who actively oppose Sartor’s agenda.

Thanks

kay henry

[kay henryMember@kay-henryJoin Date: 2003Post Count: 2,737]

May 7, 2005 - 8:03 am

hee- it’s funny how you both insult each other and then want to do business together! The mind boggles! [blink]

kay henry

[kay henryMember@kay-henryJoin Date: 2003Post Count: 2,737]

May 7, 2005 - 7:39 am

Thanks for asking the questions, redwing- you’re a very positive guy

What has been your best move?

Buying property! Knoqwing my spending habits (I have never been thifty), I would have nothing by now if I hadn’t bought that first cheap property.

What was your worst mistake?

Not buying more property when the market was flat as a pancake before the boom. Being a snob about where I bought property- it meant that missed out on heaps of opportunities.

Key advice for the novice?

Research, research- read every piece of property-related material you can get your hands on- pretty much everything is free on the net.

Best Property or Investing related book you’ve read?

This forum- seriously. But the book that got me started was Jan Somers’ book. I also enjoyed Anita Bell’s book, as me and my property partner at the time were also paying off our properties in 3 years (it’s dated now though post-boom)

Your Top 5 Tips?

* Don’t bother being told what to do by people who still think from a bygone era- study trends for the future- the future of X-gens and Y-gen high income earners is not on a 1/4 acre block an hour out of sydney (paying 500k for a block in Schofields that is being opened up by thre state govt is not worth it imo).

* Keep your job unless the income you generate from property is equal to your pay now. Otherwise you might end up in poverty and out of the workforce for too long and unable to get back in.

* Keep your integrity in every part of purchasing and selling property- noone loves a scammer.

* Don’t burn your bridges with those who assist in property- RE agents, accountants, banks, PM’s etc. Maintaining good relationships with professionals is king. Your property manager is not your slave, and your tenant is valuable- treat them with respect.

* Property is fun! Become independent- don’t rely on others to teach you- teach yourself by reading and watching what others do- but don’t follow slavishly anything you’re told. Learn to fish yourself, instead of expecting the fish to come and climb onto your plate.

kay henry

[kay henryMember@kay-henryJoin Date: 2003Post Count: 2,737]

May 7, 2005 - 6:47 am

Thanks for the links, dmichie- i always like to keep up on those kinds of figures.

It is good news for first home buyers though- perhaps now they can afford to get their own home! But for investors.. well, I guess many can take a few $$$ off their net worth.

kay henry

[kay henryMember@kay-henryJoin Date: 2003Post Count: 2,737]

May 7, 2005 - 5:45 am

I live right near redfern and it’s a fabulous area- for me. It’s between two Universities- University of Sydney and UTS, has thousands of students living in the area (always a massive source of tenancies), with thousands of new International students coming every year that need accommodation.

The cafe culture around here is excellent, and the community pretty much knows each other on a first name basis. It’s also very multicultural- and that’s important- to me- because I can’t live in bland areas.

It all depends on what you’re looking for.

kay henry

[kay henryMember@kay-henryJoin Date: 2003Post Count: 2,737]

May 5, 2005 - 10:07 am

Mike,

Relying on *anyone* to make you a dollar is a mistake, in my mind. It’s our money, and we have to take responsibility if something works or it doesn’t. Any person can talk themsemves up- and it is a marketing technique for the seminar presenters to do so- but to allowa salesperson to sell you a prpoduct that is not useful to you, or that doesn’t work out on paper or in practice… well, that’s where one has to stand one one’s own feet to decide. same with the books and any other product.

kay henry

[kay henryMember@kay-henryJoin Date: 2003Post Count: 2,737]

May 5, 2005 - 9:13 am

This question gets asked every 6 months or so…

Thing is- who cares how much money people have, what their ages are, or if they live at home? Everyone is at different stages. Not all of us wanted to become builders or mortgage brokers- people choose all different kinds of professions- some of them have nothing to do with property- but they fund property acquisitions.

I personally find the questions to be very patronising. New people are just as welcome here as people who are on here to drum up business in other ways.

Why not start up an advanced forum somewhere, resiwealth, where people with a certain minimum wealth, age minimum, and ego-minimum can go and one-up each other? This forum is for all.

kay henry

[kay henryMember@kay-henryJoin Date: 2003Post Count: 2,737]

May 4, 2005 - 7:50 am

hehe Anubis- as funny as ever

kay henry

[kay henryMember@kay-henryJoin Date: 2003Post Count: 2,737]

May 4, 2005 - 4:01 am

If it was not your debt, then why did you pay it?

kay henry

[kay henryMember@kay-henryJoin Date: 2003Post Count: 2,737]

May 1, 2005 - 12:28 pm

Here’s an interesting article I just saw on Aussies et al buying up NZ property in small towns:

http://www.propertytalk.co.nz/content-146.html

kay henry

[kay henryMember@kay-henryJoin Date: 2003Post Count: 2,737]

May 1, 2005 - 11:28 am

Well, buying an elderly person’s home, cashing them up, and giving them tenancy for life can’t be so bad… Unless it’s some major rip-off- and at first sight, it seems ok… then the only people who would be upset would be the whingeing children of the elderly person- worried about their inheritance.

kay henry

[kay henryMember@kay-henryJoin Date: 2003Post Count: 2,737]

May 1, 2005 - 4:28 am

Hey Hux,

Website address is: http://www.moneyforliving.com.au/

It says on the website that the term of stay is as long as the people shall live- so I guess it’s a life-long tenancy- guaranteed. It also says that the company can pay up to 130% of the property value… which is interesting.

It would be better if the web page had more detailed information- rather than asking people to have a consultant speak to them- sounds like it could be a hard sell to elderly people- which is never a good thing.

Can’t find anything else about it on google.

Oh… this is a bit lame- from their website:
_______________

News

> Many Satisfied Customers

Many Satisfied Customers
2004-10-13

The many satisfied customers of Money for Living are now enjoying the little luxuries that come with increased disposable income. Whether it’s a holiday, theatre tickets or even a new car.
_____________

That’s just marketing- not news… one would think ‘news” would be some media they have received.

kay henry

[kay henryMember@kay-henryJoin Date: 2003Post Count: 2,737]

May 1, 2005 - 4:05 am

Jim,

Wow- an exit strategy before oyu’ve even entered- talk about real estate coitus interruptus! [blink]

Whilst there are literally thousands of still unbuilt OTP’s coming onto the market in Sydney, Melourne and Brisbane this year (read the figures somewhere this morning- can’t remember where), I imagine in the next couple of years- and by 2006, I imagine the slowdown will take pretty much full effect. Then, who knows, your properties may be in demand? Already rental vacancy figures are pretty low in the Sydney market, and probably in Brissy.

I think the exit costs will be too high to come out financially ok if you sell ’em up now… although it’s unlikely you’ll pay much CGT (although that’s a sad consolation).

I think it is a mistake to panic. There will bea bunch of people to prey on your situation and see your sales with a firesale eye. Give it some time, and talk to as many people as possible about what to do.

kay henry

[kay henryMember@kay-henryJoin Date: 2003Post Count: 2,737]

May 1, 2005 - 12:33 am

neo,

I just wanted to make comment on your LVR calculation, because I think sometimes equity is seen as more simple than it is. Can someone *please correct me if I’m wrong about this, but I wanted to mention it because it does make a difference on how much useable equity one can have to make new purchases.

Caitlyn has about 1.4 million in property, and owes about 700k. However, assuming she has to have an LVR of 80% to call off the debt dogs… then she would have to have at least 20% of each property *purchase* price (not current valuation) in reserve. If she purchased her three properties for, say, $1 million, then she would have to have 200k remaining in the loan. She would have to minus this amount before she can determine equity.

On paper, her situation looks good, but when you add that 20%, it looks very different.

kay henry

[kay henryMember@kay-henryJoin Date: 2003Post Count: 2,737]

April 30, 2005 - 3:31 am

uforia,

I hope you don’t mind if I ask a question… the 9k you are paying extra for your property… areyou counting on making this 9k up as profit in some other way? Because otherwise you might be moving into negative equity if property values remain flat. I am assuming you would be thinking of some creative deal to get the LMI back?

I know people have used LMI successfully before and during the boom… but I think now it would bwe used with far greater caution given the flatter market.

Hope you don’t find my query intrusive

kay henry

[kay henryMember@kay-henryJoin Date: 2003Post Count: 2,737]

April 30, 2005 - 1:23 am

Nehal,

No rush I really don’t htink anyone without a job should get a mortgage- but that’s just old conservative me IP’s are expensive, and you need something behind you to pay it down.

I am also not really into parents going guarantor for their children whodon’t have a job, but if your parents want to take that road, it’s up to them- as long as they know their liabilities in the case of your default.

Why not do it hte old-fashioned way- get a job, and THEN get a loan? Save for a deposit and put your money into ING or one of those places- your returns would be a lot safer right now.

kay henry

[kay henryMember@kay-henryJoin Date: 2003Post Count: 2,737]

April 29, 2005 - 4:32 am

LKGK,

The 11-second rule can also be seful as a way of *focussing* on rental yield and return. Prior to Steve’s book and ideas, most of the focus was on negative gearing and growth properties… and for many, the pride was in *owning* properties- but yield wasn’t paramount.

If you have checked out 100 properties, then you are obviously getting a real sense of the market in the area you are looking at to buy in- which will help you to analyse the market and allow you to work out what’s achievable.

You can’t assume you will be able to achieve 10% yield in each and every market. My approach is different to Steve’s- I am happy to buy later built properties and claim depreciation- which ups the yield and doesn’t demand a cash injection for a reno. Whilst depreciation strategies can be a problem for some (Steve has sections on this on this board), for me it is working and reducing my tax liability. Yeah,m i know- I am making a loss- hehe… however, we’re all different- some of us love losees? [biggrin]

The 11 second rule will give you a new focus on achieving cashflow- but I doubt properties will reduce to what they were some 6 years ago, so you may have to look at more regional or low population markets to find higher percentages.

kay henry

[kay henryMember@kay-henryJoin Date: 2003Post Count: 2,737]

April 27, 2005 - 1:51 pm

Scotty3 said:

“Unlike G7 I believe you need to be licensed as a buyer’s agent to bird dog in australia.”

G7 said:

” Unlike Scotty3 I dont beleive you need to be liscensed as a buyers agent to bird dog in Australia.”

Can anyone clarify? (perhaps by providing specific requirements/legislation/citing source?

kay henry

[kay henryMember@kay-henryJoin Date: 2003Post Count: 2,737]

April 27, 2005 - 1:22 pm

trisha,

It depends on many things…

* how much equity do you have?
* how much serviceability do you have? (you may have 100k equity but you’ll still be borrowing that 100k anyway)
* are you on a P&I loan? or an IO loan? How long will it take to pay your current loan off?
* how negatively geared are you?

If it is going to take you 20-odd years to pay this loan off, unless you want to work for wages, you’re better off buying more property… but noone can advise you unless they walk in your shoes.

Perhaps get a financial consultant/your accountant/a mortgage broker/someone with finajncial savvy who you can trust… to discuss your personal situation.

kay henry

[kay henryMember@kay-henryJoin Date: 2003Post Count: 2,737]

April 27, 2005 - 1:02 pm

darryn,

You could probably hang out with some experienced bird-doggers and see what they do- be like an “apprentice” or something. Basically, bird-dogging is being an expert researcher and having negotiating savvy.

Derek said he wouldn’t use a bird-dogger unless the person was an experienced property investor- and I agree with that partially… experience in RE in some capacity would be an advantage, but a knowledge of the RE *market* would be an essential for me to utilise the services of a BD. I am not sure all buyers’ agents, for example, are massive property investors- howver, they would be skilled negotiators.

Having said the above, I am being merely theoretical- I do my own research and would be too neurotic to allow someone else to look for what I look for in a property or an area. For example, I check out the voting patterns in areas I am buying in etc- kind of obscure stuff

Maybe ask a buyers’ agent if you can hang out with them for a bit. See what they say

kay henry