[rusty05Member@rusty05Join Date: 2011Post Count: 94]

February 10, 2013 - 7:07 am

Hi Rachel,

Sorry, nothing really to add. However I've read some of her very wordy ads and emails and as good as she may be, I just can't see past her horrendous spelling and lack of punctuation. It lacks professionalism to me but hey, it's just my pet hate!

Also some of her catch cries sound a little like preaching to the converted and are stating the obvious but the free seminars may be worth a look.

I'd love to hear what others think.

[rusty05Member@rusty05Join Date: 2011Post Count: 94]

February 6, 2013 - 6:35 am

And all accurate!

[rusty05Member@rusty05Join Date: 2011Post Count: 94]

February 6, 2013 - 2:47 am

So where do I sign for your seminars Freckle??

[rusty05Member@rusty05Join Date: 2011Post Count: 94]

February 6, 2013 - 12:08 am

Well said Dwolfe,

I was only going to add that to me the Offers Over always screams "I really want more but this is the lowest I will happily accept." Doesn't mean it's worth that, and not sure if i'd be making offers above that figure but I know people do. It all depends on the true value of the property and what the numbers look like for you, not what the vendor wants!

[rusty05Member@rusty05Join Date: 2011Post Count: 94]

February 4, 2013 - 1:47 am

Thanks everyone for your interesting comments,

I might go just to check it out. PM me if you wanna go half in 2 tickets! – Tight hey

Rusty

[rusty05Member@rusty05Join Date: 2011Post Count: 94]

January 31, 2013 - 8:13 pm

I like your thinking Freckle. It's more the 2.5 hr drive each way that I'm contemplating. Maybe I should just get drunk instead??

[rusty05Member@rusty05Join Date: 2011Post Count: 94]

January 31, 2013 - 7:29 am

… currently $89.00 for 2 tickets.

[rusty05Member@rusty05Join Date: 2011Post Count: 94]

January 11, 2013 - 1:17 pm

Hi Devo,

Just stumbled across this thread and wondering how your IPs in Nowra are travelling. What are your feelings about the area currently? (I know it's an old thread). 

Rusty

[rusty05Member@rusty05Join Date: 2011Post Count: 94]

January 2, 2013 - 10:37 pm

Wow, a full night's sleep… In our house of little ones that's more of a dream than a goal – Good luck with that  

My goals are to purchase next IP, possibly sell existing IP to raise capital to renovate PPOR (I know, I know bad debt!) and reduce business debt. Also determine best structure to move full steam ahead.

Oh yeah, also keep working on that elusive work/life balance!

Rusty

[rusty05Member@rusty05Join Date: 2011Post Count: 94]

December 12, 2012 - 3:47 am

Oh, one other thing… when brokers list under the categories of Freehold, Leasehold or Investment Motels does it typically mean Freehold is with no lease in place and Investment is Freehold with a lease in place (as in a passive investment)?

Ta!

[rusty05Member@rusty05Join Date: 2011Post Count: 94]

December 12, 2012 - 3:39 am

Hi Crest,

I've just finished reading this thread start to finish and have to say I have learnt a lot from your posts. Thank you. I've been considering buying a freehold motel as a passive investment hoping for a 9-10% return for around $1000000 not too ancient, probably no restaurant.  I'd be looking in regional areas, Riverina or Central West NSW, Cowra, Orange, Bathurst, Wagga…. Or South Coast but as you've said the returns would be lower on the coast.  Something with a long lease attached.

Am I right in saying that when buying freehold you can buy one with a lease in place, or one without a lease. If you buy one without a lease you can create one and then on-sell the lease?

I believe the second option if you are buying freehold is to put a manager in and have someone work it for you. What does it cost to have someone manage? I'm assuming if done correctly it would be more profitable than leasing would it, but more hands on = more effort!

The thing I guess I have to consider is that a freehold motel would eat up a lot of my equity. Are you still working on around 35% deposit? If so I'd have to work out if the return on the $350000 equity would be higher in a motel than it would be by purchasing $1750000 of residential (unit blocks etc) at 80%. I'd love to do a combo of motels and residential and build a substantial portfolio.

I look forward to hearing your thoughts.

Rusty

[rusty05Member@rusty05Join Date: 2011Post Count: 94]

December 2, 2012 - 11:53 am

Oh, it's THAT easy! How silly of me!

[rusty05Member@rusty05Join Date: 2011Post Count: 94]

November 11, 2012 - 11:41 am

I laughed when you asked if you were too old but only got worried when I started to read the posts where others tended to agree!

[rusty05Member@rusty05Join Date: 2011Post Count: 94]

November 11, 2012 - 11:21 am

It always intrigues me what makes people tick. We've just bought the small farm I grew up on. I'm absolutely passionate about it and it's where I can be myself, take the tie off after work and start to de-stress by jumping on the tractor or motorbike, talking to the cows, or just admiring the sunset with a nice cool beer in hand! 

It's run as a business and while the tax deductions are fantastic its more of a lifestyle choice really.  My mates think I'm mad working like a crazy person for little or no return but it keeps me sane… sort of! Mind you sometimes I reckon those people who spend all Sunday reading the paper and drinking coffee are onto something

[rusty05Member@rusty05Join Date: 2011Post Count: 94]

November 11, 2012 - 10:44 am

Wow, isn't age a funny thing. At 33 I've been in and out of property for 13 years but have wanted to go hammer and tongs for the last 12 months. After we get our PPOR and business sorted, after our little girl gets better, after the wife goes back to work after after after… We have around $850,000 of equity and a reasonably healthy wage but think I've still got plenty of time. But 39's not far away… thanks for the wake up call everyone. 

[rusty05Member@rusty05Join Date: 2011Post Count: 94]

October 18, 2012 - 2:06 am

Sorry – double post… how to I delete a thread??

[rusty05Member@rusty05Join Date: 2011Post Count: 94]

October 18, 2012 - 1:24 am

That should be law nationwide, it makes the purchase so much easier.

So a question for the forumites… every time people register at auction do you get a pest and building done or take your chances?

Rusty

[rusty05Member@rusty05Join Date: 2011Post Count: 94]

October 16, 2012 - 8:20 am

Great, thanks for clarifying, Terry.

[rusty05Member@rusty05Join Date: 2011Post Count: 94]

October 16, 2012 - 2:50 am

Terry, when you say it might be more difficult to borrow to buy units in a trust, I'm assuming you mean units of a unit trust, as opposed to blocks of units or flats to rent out yeah?

[rusty05Member@rusty05Join Date: 2011Post Count: 94]

October 16, 2012 - 12:17 am

Okay, so some ridiculously rough figures…

$140000 cash can fund deposits for $700k at 20% EXCLUDING stamp duty etc. OR around $1400000 using 10% deposit EXCLUDING stamps and Mortgage insurance. Lets work on 700k.

$700k x 6% interest = $42000pa

On a high risk strategy you could chase a 9% return = income of $63000pa giving a gross return of $21000. Factoring in 1% for costs (very rough) that would be $14000 net (realistically it would be less – possibly $10000pa) or $200 per week.

 – this is not factoring in stamp duty.

Or with 10% deposit it would be more – but not double because of the mortgage insurance etc.

The other issue would be that if you need to buy in higher risk areas to get a better return you might not be able to work on a 20% deposit – let alone 10%.

Add value to the properties over time, rinse and repeat. It's a long way from $1500 per week but it's a start.

Thoughts?