Forum Replies Created
Hi Markerman
What page are you referring to specifically? That might help me understand the point you are trying to clarify.
In the RESULTS program, Steve talks about using the figure 5% for calculating the purchase costs, ie stamp duty etc. He also seems to base some of his calculations on 8% interest, depending on the strategy you are trying to employ, for example if you are doing a buy and hold then maybe you could average out the interest cost over a year. In the case of Buy reno, Sell, Steve has a formula that uses an interest rate of 8% pro-rated for the length of time the property is held for.
Hope this helps
SueMIT | Owen Real Estate
Email MeHi All
Well I have done a number of real estate courses, and read numerous books as well as listened to countless Cd’s.
I have been to Steves’ Masterclasses and a number of other seminars he has on offer as part of the R.E.S.U.L.T.S. program, which has also been a life changing experience. All Steve’s, information is truly awe inspiring stuff and also reasonably priced.
I understand R.E.S.U.L.T.S. 3 is on offer in the near future, I can highly recommend this experience for both beginners and seasoned property investors.
SueMIT | Owen Real Estate
Email MeHi All
I believe you will find from what Steve is saying is that 10.4% is the figure that will give you the returns without taking cash out of your pocket.There is more to building wealth through property than relying on either the 11.sec solution that gives us the 10.4% return or for that matter relying on “the unknown” Capital Growth.
I also believe that to concentrate on the $ per week vs the % from a general wealth creation perspective is also flawed. Everything I have been learning about this stuff over the last few years has me believe it is much more important to concentrate on the %.
Sure there are those out there that promote, negative gearing, buy new, buy in the best areas and get the depreciation. What most of them doon;t tell you is that if you claim depreciation then sell, there is a countback effect on the capital gain. So I hear you say, don’t sell, well then by following such strategies, there is the risk of “lazy equity” “lost opportunity cost” “lack of porfolio management” etc, etc. To my mind EVERY property I buy is for sale at the right price and I won’t buy properties to buy and hold UNLESS they are positive cash flow.
The questions we all need to ask are:
. What are we trying to achieve with our property investing? Growth ( not talking capital growth here) or Income.. What strategies can I employ to achieve my goals?
. How do I put these strategies into place?
. Is my property portfolio realising my goals (ie ongoing regular review of the portfolio)?
. Of the properties I have on my books today, how many would I buy again?
. Have I got lazy equity in my property portfolio?
Just a few thoughts
SueMIT | Owen Real Estate
Email MeBut we are hardly talking here about “minor structural issues” where sewerage is concerned, I supect council would be
“most interested” to see the job done properly. I for one am not about to compromise my integrity for such an issue.Sue
MIT | Owen Real Estate
Email MeHi Bridgebuffdoes Minor development include sewerage works etc, this is where I was coming from in terms of my comment re structural?
SueMIT | Owen Real Estate
Email MeI agree Dom the property you suggested sounds like a much better deal
SueMIT | Owen Real Estate
Email MeI agree Dom, good point
SueMIT | Owen Real Estate
Email MeI’m not sure I would class adding and ensuite as not requiring council approval. Particularly if it is to be connected to Council services such as stormwater and sewerage.
Sue
MIT | Owen Real Estate
Email MeHi Smiley 71
I wish you luck with your IP. I am concerned that you have said “hopefully” a few times and wonder if you have any more substantial evidence to support your “hopes” for growth and rental income.
Good luck
SueMIT | Owen Real Estate
Email MeGood point. Bootlace
SueMIT | Owen Real Estate
Email MeHi Again
As for the issue of Asbestos, it depends on how acceptable this material is in the area you are proposing to invest in. It could definitely make it more expensive to repair things like windows etc as it needs to be treated with the proper care, suits etc, and you may find it difficult to get tradesmen to work with it.
Can I ask what area you are investing in?
SueMIT | Owen Real Estate
Email MeHello again Smiley71
After reading the post I suggested above. can i ask you one other question. Why would you rent this place out rather than sell it for a profit.
I’m just off to run the numbers you suggested and see if there is a workable solution for this
Warm Regards
SueMIT | Owen Real Estate
Email MeHi Smilie 71
I’m am seriously worried about your approach.
Are you looking to build wealth or save tax?
Are you looking for “growth or income”?
The comments I made on the post below ( cut and past the following link into your browser address bar) https://www.propertyinvesting.com/forum/topic.asp?TOPIC_ID=26173
apply to your circumstances too.
Feel free to pm me if you need to via my profile page
Warm regards
SueMIT | Owen Real Estate
Email MeHi Pete
Seems these guys are right on the money from what I read and actually understand of this.Hey you could also chat to Jan D on the RESULTS forum if she has dropped off the RP 1 program and you want to contact her let me know I have her contact details.
Warm Regards
SueMIT | Owen Real Estate
Email MeHi Jay Dee
Seems to me that you both need to agree on what it is you are trying to achieve by your property investing strategies.
ie are you looking for “growth” or “income”?.By growth I don’t mean capital growth I mean by adding value to properties and moving onto the next deal by selling.
Have a look at Steve’s comments on Negative Gearing on this site. Also buy yourselves the first and third books he has published as a Christmas present 0-130 properties in 3.5 years and 0-260+ properties in 7 years, sit down and read both and I’m sure the fog will clear. If you are looking to find out how others do it wilth limited cash then also buy his second book “$1m in property in a year”.
I personally would never touch a -ve geared property again unless it was in a particularly high growth area (difficult in this market) and only then if it was supported by one or more +ve cashlflow properties.
My strategies are to buy houses with problems, find a solution and unlock the profit, ie cosmetic renos and developments /sub-divisions.
The problem with negative gearing is that you can quickly run out of cash trying to service the ongoing debt and once you have say 3-4 if you can afford to service that many, you then end up maxed out in terms of serviceability, then havve to wait for Cap growth till you can go again. So ask yourself this are you trying to create wealth or save tax?. The answers are mutually exclusive
Whereas if you are buying, renovating and selling there is more opportunity to not only make a quicker gain and move onto the next one but you are then building equity (cash) that is more readily available for other deals.
Another strategy is to buy a run down house cut of a block at the back, reno the front one and sell it and keep the newer one nearly debt free. Martin Ayles has done this VERY successfully, he buys one and builds two or three on the back then sells all but one which he rents out debt free.
If all this is too confusing then sign up for next year’s Propertyinvesting.com R.E.S.U.L.T.S mentoring program, I think sign up to this will be available soon and commences in March. I have spent the last year on the Program as a Premium Member and it has changed my life and my mindset around all this and given me numerous other strategies to employ aside from negative gearing.
As for selling your PPOR, then my belief now is that the PPOR is NOT and investing decision rather a “LIFESTYLE” choice.
Personally i choose to rent as it is cheaper and frees up my cash for investing.
Hope this helps
Warm Regards
SueMIT | Owen Real Estate
Email MeHi
What is the main issue here? the fact that you want out or the fact that they are indecisive? Answering these questions should make the way forward for you a bit clearer.
Either you let them get on with it or you terminate the contract. If it is your wrap and my understanding of wraps is limited then surely you control the situation?
Warm Regards
SueMIT | Owen Real Estate
Email MeHi Again
I forgot to add there are a vast number of investors out there that would never need to buy via the net. These are the ones that do the legwork and build relationships with agents so that properties are passed to them BEFORE hitting the mainstream market.
A point on Cap Growth, with Steve’s strategies the Cap growth is a bonus that we do not count on.
I for one am not into “buying and holding” or “Buying and hoping” as Steve puts it. And I am into creating wealth not saving tax as an investment strategy.
Hope this helps
Regards
Sue
SueMIT | Owen Real Estate
Email MeHi all
I’m not sure I agree with Marc’s definition. The positive cashflow properties I end up with are +ve without depreciation if that’s what you are talking about.
With Steve’s 11 sec solution the return is 10.4% or better if the property meets the formula.
If you are trying to buy +ve cashflow then I believe you are going to struggle in this market in most places, that is not to say they can;t be found, just more difficult.
Steve is these days advocating Problem + Solution = Profit. That is to say using strategies such as cosmetic renos and developments and / or sub-divisions.
He is suggesting that we find problem properties, add a solution and unlock the profit.Bear in mind all the costs associated with such strategies and be REALLY clear on sale prices and as long as it is managed and sold well there should be a wealth of opportunities out there for everyone.
Warm Regards
SueMIT | Owen Real Estate
Email MeHi Dee Dee
Mine is going fine, I demolished a house in Adelaide a couple of months back and am awaiting the Building and council approvals for my two dwellings along with the final stage of the Land division. No building is likely to start much before the end of Jan, given the Christmas shut down.I’m currently in the market for a “cosmetic” reno to do in conjunction with my money partner and am looking at a prospect on Thur once I return to Adel (I’m in Melb at the moment).
I am also investigating the possibility of getting another deal up an running using the cash in my SMSF.
Other than all that I have heaps of Strategic Planning to do and tidying up of my “systems” both soft and hardcopy over the Christmas break prior to launching into Internet Business and Share Trading along with Property over the next 12 months. Oh and all the Personal Development, such as the Brendan Nichols inner Circle, Kurek Ashley’s Life Success Club and the RESULTS Bridging program I have set myself up for. So 2007 looks like being a busy and productive year.
Warm Regards
SueMIT | Owen Real Estate
Email MeHi Dee Dee
Mine is going fine, I demolished a house in Adelaide a couple of months back and am awaiting the Building and council approvals for my two dwellings along with the final stage of the Land division. No building is likely to start much before the end of Jan, given the Christmas shut down.I’m currently in the market for a “cosmetic” reno to do in conjunction with my money partner and am looking at a prospect on Thur once I return to Adel (I’m in Melb at the moment).
I am also investigating the possibility of getting another deal up an running using the cash in my SMSF.
Other than all that I have heaps of Strategic Planning to do and tidying up of my “systems” both soft and hardcopy over the Christmas break prior to launching into Internet Business and Share Trading along with Property over the next 12 months. Oh and all the Personal Development, such as the Brendan Nichols inner Circle, Kurek Ashley’s Life Success Club and the RESULTS Bridging program I have set myself up for. So 2007 looks like being a busy and productive year.
Warm Regards
SueMIT | Owen Real Estate
Email Me
