Forum Replies Created
Hi Macnatt
This may sound harsh is is not meant to be.So a few questions for you
If there is an emotional attachment is this costing you money?
Either this is an IP or PPOR?, you decide and then treat it appropriately.
Is it really worth transferring this one to a trust?
How long are you going to continue to pay all that cash out for a property you ONCE had an emotional attachment too?
This is bricks ad mortar, whatever HOME you had when you lived in it you TAKE with you when you go.
Wht are your goals in terms of investing?
Does this property fit that criteria? If not get rid of it. There is no such thing as a "Cardinal sin" in terms of selling. EVERYTHING is availabel for sale at a price, you just have to determine what price you will let it go for (make it reasonable).
If you are in the BUSINESS of investing in property, then treat it as a BUSINESS otherwise it is just an expensive hobby.
And lastly I strongly suggest you see your accountant and ask the question about whether he/she thinks this property will build you wealth in the longer term – assuming that is what you are ultimately trying to do.
Warm Regards
sueMIT | Owen Real Estate
Email MeHi Linda
I guess it depends on what your idea of "Good Cashflow" properties is. This one looks on the surface to be negatively geared, not my preferred strategy.
Have you run the numbers on this one? do they stack up? What is the current rental yield/growth in the area etc ? If not don't bother.
Personally I see this one as "buying a solution" rather than following Steve's idea of "finding a problem adding a solution and making a profit"
Maybe posting the numbers might make it easier for others to comment
Warm Regards
SueMIT | Owen Real Estate
Email MeHi Kobe
I agree with Jeff there are always people like me who are looking for money partners / JV partners to do deals with.
I guess it depends on how much experience you ahve with doing deals, ie whether you might be looking to partner with someone who has the experience you may not have or whether you are looking to do deals on your own. The first step would be to define what you are trying to achieve with that cash, then work out the best strategies to go forward with.
Warm Regards
Sue.
Adelaide SAMIT | Owen Real Estate
Email MeOk try this for an exercise
Get off the computer, get in the car and go for a drive and do what Martin Ayles recommends ins his “turn left theory”.
Keep turning left, obeserving as you go and if you come across an agent’s sign then stop the car and ring them, if the property is sold then ask them how much for if it isn’t then devise some questions to ask them more about the property, should it be renovated, what is the likely selling cost once complete, what needs to be done to the place etc, etc, etc most of the people I know who are buying stuff are not necessarily getting it from the internet or the papers, but are rather developing the relationships with agents and getting to know their chosen area as a “area expert” if you like, once you have done this enough, you will understand an area and then you will be much more capable of spotting bargains that crop up.
I have moved from being a newbie to playing the “property game”
Most of this has required sheer determination and NEVER GIVING UP on the search for the elusive positive cash flows. If you are sitting there expecting to just “happen upon them” via the internet or the newspapers you are missing a major part of all this. Many people I know are getting far in excess of the elusive 10.4% if you are looking at their returns from a Cash on Cash Return perspective.
Learn also to network with like minded people, join relevant groups that are already doing this stuff. At the moment there are several that have sprung up all over the country. Find out where they are and go to the meetings. PM me if you want to hear more about some of these.
If this all seems to confusing then join Steve’s next RESULTS program and all will be revealled on the course of the journey down that path. I can highly recommend it having been part of the Premium RESULTS 1 Program
I encourage you all to think “outside the box” and “expand your context “as Robert Kiyosaki would say. If you are not sure what I am talking about, ask yourself is your glass so full of negatives that there is no room for the positives? If so, tip it up and try again.
It is all out there for the taking, you just gotta know how to ask the right questions
That’s all from me.
Warm Regards
SueMIT | Owen Real Estate
Email MeHey Marc
I found this post to be paricularly negative, are you thinking about Reasons for doing it or Reasons for not doing it?
I believe Lea was attempting to provide examples and in all cases people need to take responsibility for their own actions and do their own due diligence and this includes reviewing the risks involved with any investment against their own personal risk profile as well as their goals for investing.
I also beleive that in providing examples, it facilitates an opportunity for those struggling to find these sorts of deals to see what sort of thing is out there if they have the right glasses on.
I’m quite sure most people would not be crazy enough to just ring up and buy on a wing and a prayer based on a link to a website and that newcomers to the forum have enough interest in property investing processes to investigate the viability of the links for themselves.
Regards
SueMIT | Owen Real Estate
Email MeWoo Hoo
Someone finally put up the post that I should have put up ages ago, well done Lea, I wish you all the best.
Abundant thinking in Action
Go Girl!!
Warm Regards
SueMIT | Owen Real Estate
Email MeHi all
I agree with all the recent posts on this on how to make it all work.
One thing struck me in reading some of the posts from the people who are struggling with all this.
It is all about mindset, if you think it can be done or if you think it can’t be done you are right on both counts.
To suggest that people like Steve and others just pluck this stuff off the shelf is crazy, there is no such thing as a free lunch and these guys have all built a plan and worked the plan to succeed where others find it too hard, too time consuming, feel they need to concentrate more on their J.O.B. s etc.
As someone here said. Have a vision and a goal and a purpose, work out the strategies needed to get there and then jsut work the strategies. If you follow what Steve and others are doing and use some inititive to think outside the box then it will happen for you too.
But one thing I can promise you it that if you don’t do any of the above and start to take baby steps towards it, guess where you guys will be in 10 years time.
You need to do the legwok.
Hopefully one day we will see you all on this path we tread.
Warm Regards
SueMIT | Owen Real Estate
Email MeI agree Celeste.
SueMIT | Owen Real Estate
Email MeHi Vic
I replied to your email rather than here. It is a long story.
SueMIT | Owen Real Estate
Email MeHi Wayne
In answer to your questions:Steve’s third book 0-260 + properties in 7 years should now be available in most bookshops it was released on the 17th November 2006. If you are looking for his first two books it is available here under “Online Shop” as I understand it he is not marketing his latest book here but I guess that will happen over time. I think it retails for around $33.
No I am not working fulltime, having resigned from my job in Sept last year to do property inveesting amongst other things. I had a “snap point” in Dec 2005 that took me from my “safe” Public Service job (of 26yrs) in Canb to Adelaide. I arrived here on 5th Feb 2006 and have been doing all sorts of stuff since arriving here.
warm regards
SueMIT | Owen Real Estate
Email Me“All things are possible until they are proved impossible – and even the impossible may only be so, as of now.”
Pearl S. Buck
1892-1973 NovelistMIT | Owen Real Estate
Email MeHi Mattlach
I see you may not have seen his latest book titled 0-260+ properties in 7 years. Now that’s raising the bar….lol
On a more serious note I understand as Steve says in his latest book that he now owns very little property, having split the partnership with Dave Bradley he is now starting all over.
Having siad that he did buy loads of property before the boom which went up in value. That is not the only strategy he uses as I understand it from chatting with him and also being involved in the Premium RESULTS Mentor program over the last year or so.
So where does one start, good question.
Steve’s latest mantra is “Buy a problem + a solution = a Profit”
So the buy and holds are largely off the list unless of course they can be postive cashflow and I know he is currently holding at least one of these.So looks like the renos, developments etc are the choice for the current market. And as you can guess the market changes so our strategies need to move with the market.
Have a look at his latest book because he talks a bout all sorts of things like money management etc.
There is also the RESULTS program which I understand is starting again early this year. It is a very reasonably priced program and the mentors/coaches have a wealth of knowledge to impart and are also great people to boot.
So in answer to your question, no negative gearing ( if that’s what you meant) is NOT the answer for most people.
If you have more questions then keep posting I’m sure you will find the answers if you continue to communicate, I know I have. And as Martin Alyes so eloquently puts it. If you don’t get the answer, aska better question.
Hope this helps
SueMIT | Owen Real Estate
Email MeHi Nathan
I sent you an email
SueMIT | Owen Real Estate
Email MeOk how much work are you expecting a “bird dogger” to do? and how much are you expecting to pay for the service.
This is something I have considered doing in the past. I am not a licenced buyers agent so cannot provide that level of assurance but I’m open to suggestions.
SueMIT | Owen Real Estate
Email MeHi Again
sorry forgot to answer your question, I am only looking in the Adelaide Market at the moment.
I have one devel on the go and am looking for renos
SueMIT | Owen Real Estate
Email MeHi Bridgebuff
Yes I’m from Adelaide. If you are too, PM me if you like to do coffee sometime?
SueMIT | Owen Real Estate
Email MeHi waynel2
Do you want to actively manage this portfolio yourself or have a more passive role? . If you want to actively manage this yourself ( always my preferred option) then have a look at Steve’s latest book “0-260+ Properties in 7 years” as he sets out how to achieve this.
You seem to have a lot of “lazy equity” lying around in the one you already have, sometimes the best way to utilitse this is to draw out equity but other times it is better to sell the lot, cash up and buy more. Steve’s book also talks about this and combined with the “property Clock” he outlines how best to strategize all this in various markets. More debt is not always the answer to buying more property.
Warm Regards
SueMIT | Owen Real Estate
Email MeHi quicksilv
You didn’t mention how old you both are. Not that it really matters but I have seen many young couples go all out to build the home of their dreams, land themselves in enormous debt and leave themselves open to the potential interest rate rises. Get this one ” PPOR are Lifestyle decisions” not investment decisions.
There really is NO HURRY for buildig your dream home. A slower more realistic approach would be to buy smaller, build your IP cash or portfolio THEN buy the home of your dreams CASH!!!!!.
Have a look at my other two posts from today and you may get a bit more of where I’m coming at from an investment perspective or PM me if you want to discuss further.
Also have you read Steve’s latest book 0-260+ Properties in 7 Years? it is a great read and talks about some of this stuff.
Warm Regards
SueMIT | Owen Real Estate
Email MeHi Meatgroup
Have you made the wrong decision? Not sure, I guess that depends on how you look at it.Have a look at my other post on the subject of where to find positive cashflow deals, and in particular the bit at the bottom about the questions we should ask ourselves when looking to property for investment purposes.
Here’s my take:
I choose to rent rather than buy a PPOR as a PPOR is a “Lifestyle” choice not an investment decision.I agree with Bridgebuff on the subject of holding “non income” producing assets.
I also do not buy property in the “hope” that the Capital growth will emerge “someday”. Who knows when that might be.
If you are looking for growth then take up Steve’s mantra of “buy a problem + a solution = profit”. ie do quick renos ( less than 6 months) get the profit and do the next one, thereby building cash reserves.
Alternatively, follow Martin Ayles example, buy an old house, build two or three on the back reno the front one, sell the old one and one or two of the others and pay down the mortgage on the remaining one at the back, rent it out free of mortgage, thereby creating an income as well.
If you are looking primarily for income producing properties, then buy stuff that is positive cashflow or has the potential to be so once a cosmetic ( no not a full on restoration) reno is done then rent it at a higher rent, thereby the value increases and keep it as income.
You really seem to me to need to work out what your PI goals are then then the choices will narrow as to how to get that done.
You are right in that the vacant land also “eats up servicability”. and I’m not sure the ATO will look kindly on you trying to minimise your Cap Gains tax by splitting the profits the way you suggest. I believe that needs to be done prior to settlement if you want to avoid a double slug of Stamp Duty.
With your income and some cash in the bank, it seems to me that more IP’s are very much a possibility and you could be in a very nice position reasonably quickly if you play your cards right with the IPs in the beginning including setting up the appropriate structures to maximse your opportunities – see you accountant for advice on this one.
I also would not be buying vacant land as I see more benefit (read cash) in building on them and selling.
Hope this helps and keep asking those questions, there are loads of people here to answer them. Alternatively, PM me as I’m always happy to chat about this stuff.
Warm regards
SueMIT | Owen Real Estate
Email MeHi Bridgebuff
Thanks for the support, I really have come to these conclusions from my past experiences with the “property floggers” ie the Qld developers that have received such bad press in the past and having had a negatively geared property that did not realise the initial potential touted. Along with the learnings I have gained whilst spending time on the Premium RESULTS program over the last 14 months or so.So much of what Steve imparts makes sense when you look at it in depth.
I also have a strong belief in his ethics and capacity to teach this stuff to others.
Warm Regards
SueMIT | Owen Real Estate
Email Me
