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Sorry to hear that you feel that way. I am certainly aiming to do something different with Active Investing – you can read more about how we're different here: http://activeinvesting.com.au/welcome-to-active-investing/
As they say, Open Strong – Close Stronger!
As mentioned by moxi10, giving them some money to spend on the garden and letting them choose how it is done is a great way to help the new tenant feel like the place is their home.
This could be done by meeting up with them at the local Bunnings (The one at Munno Para is probably the closest) or a specialist garden centre like Virginia Nursery or Cost Less Plants and letting them choose the plants, or by giving them a gift voucher or similar to one of those places.
You could even offer to spend a day helping them to establish the garden – again, a great way to build rapport with your new tenant, so they see you as a real person and not just someone who is hidden behind the property manager.
I'm sure Jamie can back this up, but my personal experience has been that the banks require personal guarantees from the directors of the trustee company, which will usually result in a "hit" to your credit file and all the usual questions being asked by the banks regarding your serviceability.
It was on the 12th of November – one of Steve's biannual market update seminars, but apparently the last one that he will be running in the "face to face" method, instead opting for webinars during 2013.
A few of the people over on the Somersoft forums meet up in Adelaide semi-regularly. I haven't met with them yet, however I'm hoping to do so next time they get together. I'm always keen to meet up with other investors as well to discuss strategies.
I've just finished the launch of my new site, activeinvesting.com.au
I'm going to be adding one new article per week across the various topics on the site, so be sure to sign up for my email list (form is at the bottom of every post) to get a link to the new article emailed to you each week.
Have you had a chance to actually go through all of that information that has been supplied?
ie watch the DVD's, read the books, etc?
At the moment we're investing in Port Pirie in SA. What separates our properties from others is that they are nice, brand new builds with open plan living areas, split system air conditioning and no asbestos rather than 30+ year old "dumps" that are common in the rental market there.
Most rental listings that I've seen have had their photos taken whilst vacant to create the impression of more space in the rooms.
Protip: Don't waste your time having an instantaneous gas hot water service installed. We lost ours on our rental property in regional SA – apparently 5 new builds were hit on the one night.
We have replaced it with a 170L storage tank unit, and will be having all of our new builds completed with tank units as well, to avoid the cost and hassle of having them stolen in the future.
In his most recent market update session in Adelaide, Steve talked about his income accelerator, which was the internet business he still runs to this day (PropertyInvesting.com).
As mentioned, income accelerators are any business/activity that you can take on that will increase your income further, and could even include a second job after hours or freelancing in a skill that you have, however the best ones are less dependent on your time. Things like writing an eBook that you sell – spend the time once to write it, and then sell it many times over.
Kevin.PLC wrote:What's more beneficial? Losing money through negative gearing and getting only a potion of it back at tax time, or making a profit through positive gearing and paying some tax?
As Tom pointed out, you will only get a portion of your loses from negatively gearing back as tax credits/refund, based on your current marginal tax rate. For your husband's income bracket ($80k-$180k), this is 38.5c per $1.
In other words, for every $1 that you lose on the property's rental income compared to its costs, you will only get 38.5c back, leaving you to find the remaining 61.5c from your household budget.
I've explained it in more detail in an article on my blog, which you can read here: http://kevingrunert.com/my-thoughts-on-negatively-geared-investment-properties
One really important thing that I always mention to people who are getting started in property investing is to try and leave all emotion out of the purchasing process, instead relying on the numbers to decide whether to invest in a property or not.
As Catalyst pointed out, he/she owns a 1 bedroom place that is a good investment and a valuable asset to their portfolio.
My partner and I own properties in rural SA, including a township that most people who we speak to in Adelaide say "Why would you invest in (town)?" However, they are cashflow positive investments and suit our desired portfolio nicely.
Hope this tip helps you in beginning to establish your portfolio.
Might be worth taking a look at the Development Plan for Whyalla, so that you can see what zoning your block of land is in, as well as all of the requirements around what can and can't be built, how small an allotment they will let you create in that zone, etc.
I know from experience that various parts of the Mannum township are zoned differently, which can restrict your ability to subdivide, etc.
You can find the Whyalla development plan here.
Hope that helps.
I wasn't aware of this possibility – but that certainly changes my view on SMSF.
Based on what I'd read on ESuperFund around not being able to develop property, and having almost 40 years ahead of me before I can access my super, I'd discounted it as a useful strategy. However, I'm keen to revisit that now.
Can you send me a copy of your SMSF ebook?
Kevin.APerry wrote:I suggest you keep your mind open with regard to lenders.
A really good piece of advice when it comes to investing. Definitely best to speak with a mortgage broker and let them find the best deal for your situation.
Some great tips there. One other great one that you didn't touch on is to review the RPData Buy vs Rent report. You can get a free copy of this via email from the following page: http://www.myrp.com.au/cbabuyorrent
Armed with that "short list", you should be able to begin searching for cashflow positive properties a lot quicker and easier.
I've enjoyed reading everyone else's goals… Now, for my 2013 goals:
1. Complete builds on IP's 2 and 3 one month sooner than IP 1 was completed in 2012. I will achieve this through being more active in the process and following up the builder and contractors more regularly to get the work completed in a timely manner.
2. Rebrand and relaunch my blog. The new blog will only contain information about property investing and property development, rather than the mish-mash of content that I have on my blog at the moment.
3. Establish a monthly meet-up group in Adelaide for property investors to get together and discuss their projects, properties and problems with other like-minded investors.