[MITParticipant@millionaire-in-trainingJoin Date: 2004Post Count: 154]

April 9, 2008 - 2:09 pm

Tammy
You Crack me up
Warm Regards
Sue

MIT | Owen Real Estate
Email Me

[MITParticipant@millionaire-in-trainingJoin Date: 2004Post Count: 154]

April 9, 2008 - 1:28 pm

Hi D.
Just had a VERY quick look at the site and from what I saw some of them MAY be +ve cashflow.

Be aware of some of these sorts of sites and their quoted returns, sometime they are gross sometimes they are net and sometimes they are just plain overstated.

Run the numbers on them and if they stack up AND they meet your goals of INCOME AND / OR GROWTH then just do it.

I would personally be checking with your accountant if you are unsure yourself how to calculate all this, making sure their numbers stack up, it is quite easy to overstate returns to unsuspecting buyers.

Also to be +ve cashflow they need to return at least 10.4 % or residential.  the commercial nes I looked at meet this on the surface but then I have no idea what the expected yield is for that area for commercial, so you would need to check that also.

Some of these sorts of sites also use the negative gearing depreciation figures to make them look good.  Be aware that if you claim depreciation and then subsequently sell you may be asked by the ATO to pay some or all of that back depending on the timeframe involved and the individual circumstances. This is a little known fact of neg gearing that most do not factor in.

Another issue is that I notice the site does not put down the area their properties are in except for say "country NSW", this could mean a large rural town which has a great population level or it could mean a town with only 500 people in it, thereby making it more difficult to find tenants etc.

In general terms, finding +ve cashflow is more difficult for most in this current market and you may find that "making" something +ve is easier than buying something +ve, ie I'm suggesting developing or renovating here.

It also looks to me like they are offering clients a "One Stop Shop" in terms of financing, conveyancing and tax advice, this may be great alternatively it could tie you up in their knots with overpriced property that is not as highly valued.  Please seek your own independent advice on all these issues.  Personally it smacks of the rorts that were abounding in Qld property years ago where they would fly people up there , give them a weekend in a plush hotel and sign them up with their own accountants, financiers and agents.  The poor unsuspectings then found out a few months later that the property was difficult to rent out and that it was overpriced by some $10k or more.  Please take the issue of Buyer Beware seriously and I'm sure you will find  valuable property that really meets your needs.

Great to see you on the forum, keep on posting
Warm Regards
Sue
Ps if the returns are less than bank rates for Term Depositis / Cahs management accounts why not use them instead, there is a whole lot less risk and headaches in doing that

MIT | Owen Real Estate
Email Me

[MITParticipant@millionaire-in-trainingJoin Date: 2004Post Count: 154]

April 8, 2008 - 7:54 am

Hi Sanibel
I'd be inteested to know how you define a GOOD investment property.
personally I'm not interested in investing overseas, there are stacks of opportunities here with a whole lot less hassles in terms of finding and funding o/seas deals and all the headaches associated with structure establishment etc, this could definitely be the case for potential newbie investors.  So newbies, make sure you do your due diligence.
Also I had a quick look at your site and it seems you are touting for sales as opposed to buying property ??? if so is this post potentially misleading?,or have I misunderstood the angle you are approaching this from???
Regards
Sue

MIT | Owen Real Estate
Email Me

[MITParticipant@millionaire-in-trainingJoin Date: 2004Post Count: 154]

April 7, 2008 - 12:30 pm

Hi all
I'm 100% in Cash at the moment with plans to trade shares as I finsh my Diploma in Share Trading.
Last year It was a development deal
I think the thing here is to maintain fleibility, ave a number of strategies under ones belt and hit the market in the areas you are confident in at a time that suits, be it shares, options, property or cash.
Either way educate yourselves enough to take advatnage of the situations.
Warm Regards
Sue

MIT | Owen Real Estate
Email Me

[MITParticipant@millionaire-in-trainingJoin Date: 2004Post Count: 154]

April 7, 2008 - 12:18 pm

Hi all
I find trhis all fascinating.  How limiting some people's belief systems are.
Particularly lliked your comments about the cheesecake Xenia
WE GET what we believe in.
If we beleive we can do options, share trading and prperty investment or eat pink cheeskcake and taste chocolate then we can do that too. The difference is WHAT you beleive in, ie whether it is possible or not, we are right either way.
Catch you at the next AREIG meeting Xenia

Warm Regards
Sue
Ps.  Jenman….Bah Humbug

MIT | Owen Real Estate
Email Me

[MITParticipant@millionaire-in-trainingJoin Date: 2004Post Count: 154]

April 7, 2008 - 11:22 am

Hi all
If considering investing in property , think first about what you are wanting to achieve by doing this ie are you after Growth or income, or somewhere to live.  the choice you make will then help you determine an appropriate strategy, ie buy and hold, development, reno or a PPOR.
If you are going for a PPOR, try to minimise your expecations, by this I mean  lots of young people these days think their first home should be at least 3/4 bedrooms, double garage and complete with the Plasma TV and home theatre centre.to, If you keep your expectations much less than this you will then find something more affordable and not have the huge mortgage that some find themselves subject to, which has th dobule whammy of increasing the pressure of interest rate rises if they continue to occur.
If you are looking for a reno, look for something easy to do as your first one, ie, jsut a quick tidy up then sell it or rent it for more.
Developments are probably for the more experienced as thee are lots more things to consider.
In all these options, bear in mind the structure you plan on using for purchase as this can affect your cashflow/ tax situation if it is not correct, and it is expensive to sell a property from one entity to another from a stamp duty perspective.
In addition to all this have you considered just buying a block of land and building on it, if use for a PPOR there are significant stamp duty savings to be had by using this approach, particularly if used for your PPOR.

Just a few thoughts as others have answered the financing issue

Warm Regards
Sue

MIT | Owen Real Estate
Email Me

[MITParticipant@millionaire-in-trainingJoin Date: 2004Post Count: 154]

March 23, 2008 - 12:27 am

Hi Ali

When you get to the contract stage include a clause in your contract that says something like

"subject to finance of x$  at X% and satisfactory building and pest inspections"

Talk to a solicitor if you need more clarification on the exact wording.

That way if any of these things do not line up you can cancel the contract.

Also in terms of deposit, you should not be expected to come up with the 10% deposit until contacts are exchanged and even this can sometimes be changed if you include the appropriate clauses in the initial documentation you sign along with settlement periods as Matt has suggested.

I really recommend you spend say $100 bucks and half an hour with a solicitor in the area you propose to invest in getting all this sorted so you are really clear on your obligations and options

Warm Regards
Sue

MIT | Owen Real Estate
Email Me

[MITParticipant@millionaire-in-trainingJoin Date: 2004Post Count: 154]

March 23, 2008 - 12:26 am

Hi Ali

When you get to the contract stage include a clause in your contract that says something like

"subject to finance of x$  at X% and satisfactory building and pest inspections"

Talk to a solicitor if you need more clarification on the exact wording.

That way if any of these things do not line up you can cancel the contract.

Also in terms of deposit, you should not be expected to come up with the 10% deposit until contacts are exchanged and even this can sometimes be changed if you include the appropriate clauses in the initial documentation you sign along with settlement periods as Matt has suggested.

I really recommend you spend say $100 buks and half an hour with a solicitor in the area you poroposed to invest in getting all this sorted so you are really clear on your obligations and options

Warm Regards
Sue

MIT | Owen Real Estate
Email Me

[MITParticipant@millionaire-in-trainingJoin Date: 2004Post Count: 154]

March 23, 2008 - 12:18 am

Hi Louise M77

Have you read any of Steve's books?

These might be a great start especially books 1 and 3,  0-130 Properties in 3.5 years and also 260 properties in 7.5 years.

Both these booth offer practical steps to becoming a successful property investor from the ground up.

Book three is propably more current for today's market and helps one understand the bigger pricture in terms of property investing, given it is more recently released.

• Have you thought about what yor goals are in terms of $ and time to achieve them?
• Whether your have a Growth or Income focus to your future property investing.  It is really important to get these things under control so you have a better idea of where you are heading then,
• Work out how much equity / cash you have  available to invest
• What you can borrow and this will all help you define
• What strategies you need to employ to achieve your goals etc, is developing, renovationg, buy and hold (positive cashlow of course – not negative gearing)
• Bear in mind too the current market in the area you propose to invest in

A number of these issues can be worked on concurrently and once you have all these sorted, then start to look for areas that meet your needs.

From the Stuff I have learnt since joining Steve's RESULTS program, clarity of goals is probably the most important, as it flows onto other issues that you mentioned.

Also a flexible capacity to "see" opportunities will also set you well on the path, this comes from really getting to know what you want, the area you are looking in and "how" to find solutions to problems you encounter.

In terms of looking at specific areas, they all offer so many oppotunities it is difficult to pin point specific strategies that would work in any given area, once you get to be an area specialist then that job becomes easier. 

How do you become an area specialist? well you need to look at lots of properties and I mean LOTS, know  market preferences, sales prices, potential sales prices after say reno or development and only once you have all this experience under your belt will you then KNOW a good deal when you see one.

Does this takes lots of time to develop? well it depends on your current ability to know what is included say in costs associated with renos, developments and your capacity to do due diligence on opportunities as well as previous experience in all or any of these issues.

Please don't let me put you off with all this knowledge and experience that is to be gained.  The first step in all this is to TAKE the FIRST STEP, be open to new ideas and be prepared to put in the Hard Yards so to speak, having said all that make it as enjoyable as possible and you will be in for some amazing insights on the journey.

Are you starting too LATE in life, remember that Colonel Sanders started KFC at the age of 61.  Then wonder again if you are too late, I think not

Just do the Nike thing !!

Warm Regards
Sue

MIT | Owen Real Estate
Email Me

[MITParticipant@millionaire-in-trainingJoin Date: 2004Post Count: 154]

March 22, 2008 - 11:45 pm

Hi Allmine

Ok so from what you ahve said you could be sitting on a nice pice of land in a nice area but that is presently underdeveloped given the rest of the area.

Firstly have you clearly defined your goals? In terms of money you need to achieve them etc and the timeframes in which you want to see them happen?

Are you looking for growth or income from your properties.  This will help uncover the appropriate strategies you can use – refer to Steve's third book and The property Wheel etc.

Do all your other properties currently meet your goals?

If the answer is yes AND you have done your due diligence on the build costs and likely sale prices ( don't just take one agent's view of the world)  for developing this piece of land then go ahead develop it.  Would this be a PPOR for you, you mentioned something about moving into it?  Why not just develop it an sell it – if there is enough profit in it for you.

Sounds to me like you are in a catch 22 position with emotions running all over the place .  Yes it might be nice to live in once complete and have those amazing views but how long are you going to be satisfied with that if your heart really lies somewhere else.

remeber that whilst properties may have achieved rapid growth this may not continue depending on where your areas are in terms of the growth cycle.  Also Equity in areas that are slowing or potentially falling  ie like some parts of WA is actually UNREALISED PROFIT.  That is you do not have the cash in the bank so therefore the equity is still at the mercy of the market.

Jumping into debt in some areas is also not wise, given the current climate.  Although having said that High end properties are generally less likely to fluctuate as much as people owning them tend to be more flush with cash and therefore less likely to be concerned with interest rate rises etc.  Be aware that if the market tunrs against you then the more debt you have the more likely you are at the market mercy if your income fails o keep pace with the changes.

Think clearly about what it is you are trying to achieve and then the strategies that you need to employ to reach that.

Warm Regards
Sue

MIT | Owen Real Estate
Email Me

[MITParticipant@millionaire-in-trainingJoin Date: 2004Post Count: 154]

March 19, 2008 - 12:40 pm

Hi all
I came across Peter Coomben a few years back and honestly what he offered I was not interested in. I liken his processes to that of financial planners and advisors, personally I want more control over my own cash as to this date no one has done better with my cash than I have, I take resposnibility for my own acotions including investing.
If you want to learn about property , I recommend Steve and the crew highly and NO I'M not paid to say that, rather I have spent thousands on learning about his methods via the RESULST program and seminars, I'm now also doing a Diploma in Share Market Trading and the two people I have chosen as mentors/coaches etc are Steve Mcknight and Dale Gilham, based n their obivious high ethics and fantastic learning materials.
Would I even consider throwing good money at others, NOT on your nelly after finding these two.
Take it from me the best money you spend on educating yourself is with ethical organisations, not saying Peter Coomben is not ethical, just not my cup of tea so to speak
Warm Regards
Sue

MIT | Owen Real Estate
Email Me

[MITParticipant@millionaire-in-trainingJoin Date: 2004Post Count: 154]

March 19, 2008 - 12:30 pm

Hi Alex
Congratulations from taking the first step to FINANCIAL FREEDOM
Can I recomend the RESULTS program run by Property investing .com.
I have been on the program for 2 years and it is FANTASTIC!!!, life changing and thought provoking.
I am self supporting having left my job over 18months ago,whilst this is not directly attributale to property investing it is a process I set myself on and have so far managed to make it all work for me.
Steve and the crew are absolutely awesome mentors and coaches, if you can get on this program just do the Nike thing and JUST DO IT.
If for some reason you think this may not be for you, email me and I can put you in touch with another fantastic coach
Email me if you would like more info on my experiences in the RESULTS Program
Warm Regards
Sue
[email protected]
PS have a look at the promo on the resources tab, I'm the third person on the video

MIT | Owen Real Estate
Email Me

[MITParticipant@millionaire-in-trainingJoin Date: 2004Post Count: 154]

March 19, 2008 - 12:13 pm

Hi all
Well it matters not what interest rates are doing rather it matters whether your strategies fit the current market.
If you take a look at Steve's thrid book he talks about the Property Wheel which helps one assess where in the cycle we are at and what sorts of strategies to apply in varying markets.
Are you booked into the 3 day semnar in April, Steve is likely to give a great run down on where he thinks the market is at.
If you missed tickets, I have a couple of spare tickets avaialble at $445 each.  Pm me if you re interested it is sure to be a great event and one I would not miss
Warm Regards
Sue

MIT | Owen Real Estate
Email Me

[MITParticipant@millionaire-in-trainingJoin Date: 2004Post Count: 154]

March 19, 2008 - 12:07 pm

Hello there
In looking at the aspect for potential purchases, think about what the planning regulations state abut where living areas are to be sited ie if north facing to achieve energy ratings and you want them at the front of the block it makes littel sense to buy a south facing property.
This all depends on the area you are looking at buying in and what the local requirements might be, for example in Adel, people seem to want one bed plus a living area at the front of a property, this poses design problems in the block is very narrow, for example I recently did a sub-divide build there where i only managed a bedroom and garage at the front.
Look at your target market, potential block frontages and council requirements, then check with a few builders, once you have done all that then you will be much better informed in block selection,
Hope this helps
Sue

MIT | Owen Real Estate
Email Me

[MITParticipant@millionaire-in-trainingJoin Date: 2004Post Count: 154]

March 19, 2008 - 11:47 am

Just a quick question
What's wrong with the OZ Market? there are deals everywhere
Also have a look at Steve McKnights post on a similar subject, he makes some salient points
Warm Regards
Sue

MIT | Owen Real Estate
Email Me

[MITParticipant@millionaire-in-trainingJoin Date: 2004Post Count: 154]

March 19, 2008 - 11:45 am

I'm not sure why one would set up an I.O loan if you were planning on paying it back early?
From my undertanding I.O loans are best for investing , depending on individual circumstances of course.
I would avoid them for a PPOR
Warm Regards
Sue

MIT | Owen Real Estate
Email Me

[MITParticipant@millionaire-in-trainingJoin Date: 2004Post Count: 154]

March 19, 2008 - 11:39 am

I'm not pulling out but I have 2 spare tickets available at $445 each
I tried to Send you a private message but your profitle says you aren;t accepting any.
PM me if you would like one or both tickets
Sue

MIT | Owen Real Estate
Email Me

[MITParticipant@millionaire-in-trainingJoin Date: 2004Post Count: 154]

March 19, 2008 - 11:36 am

Hi pagey
What about doing renos or sub-divisions/builds to turn your cash over and mwhat seems to most to be an eternal fear of CGT make a profit.  ie only look for places that need a tidy up and spend around 10% of your purchase price and look for a profit of 10% +
Once you get over the what seems to most to be an eternal fear of CGT, these can be profitable strategies.
If you don't know how to do these effectively, find someone who does and do a Joint venture, sharing profits and potential losses, there are lots of savvy investors out there who are looking for JV or money partners
Warm Regards
Sue

MIT | Owen Real Estate
Email Me

[MITParticipant@millionaire-in-trainingJoin Date: 2004Post Count: 154]

March 19, 2008 - 11:31 am

Hi Kenton
It all depends on what you target market is and what purchasers are looking for in the area.
Check on realestate.com.au to see what else is selling for in your area and ring a few of the agents to see what they sold for.
If the target market is not thre or looking for a 4 bedroom place there seems little sense in spending the money on the reno.
Ask as many agents as you can find, and prefereably those that are really active in your area.
All this is assuming you don't have access to RPData, then again you could ask agents for a list of comparable sales in the area and they could download this stuff for you.
Make sure you are comparing like with like, ie same size land and houses etc, not jsut the number of bedrooms.
Hope this helps
Sue

MIT | Owen Real Estate
Email Me

[MITParticipant@millionaire-in-trainingJoin Date: 2004Post Count: 154]

March 19, 2008 - 10:47 am

Hi GD17
I think you miss the point about land content, land is the only bit of property that goes up, that's why the ATO gives people a tax deduction on the building cause they depreciate over time and eventually end up worth nothing, little do they tell you that many depreciationshave to actually be paid back if you sell.
Ok so why buy a unit ? with virtually no land content?
Is this positive cashflow?
If not why negative gear in a situation where everyone is bleating about interest rate rises and with little end in sight of a change from this?
Personally I beleive now is a better time to be in cash rather than debt.  At least then one can take advantage of the "Bargains" when they appear.
Have you read Steve's latest book? he talks about the property cycle in that and how to maximise the strategies to your own benefit.
Personally I would not touch units again – having been burnt once before unless I could buy the whole block add some value in some way and sell them off, assuming they were negatively geared as this is something I definitely D NOT subscribe to.
Hope this helps
Sue

MIT | Owen Real Estate
Email Me