Forum Replies Created
Of course it's going to be value for money. I have gone through a lot of steve's material and it is all really good.
Just one piece of advice. It helps to be in a position to take action.
Spending $3,400 on a course but not being in a position to buy a property (eg. No deposit, no stable income etc) often leads to a waste of time. When it comes time to actually invest you would have forgotten most of what would have been helpful.
So basically, I don't think you can go wrong investing in Steve's education. But if you are not in a position to act you may want to hold off…or maybe it could be the kick in the pants you need to get started. Only you will know.
If you haven't read his books read them first
Ryan McLean
Top 10 Positive Cash Flow Property Books Reviewed
http://CashFlowInvestor.com.au/booksRyan McLean | On Property
http://onproperty.com.au
Email MeMy favourite is
"The kitchen and bathroom are in original condition"aka. They look like crap and haven't had any work done since the house was built.
Other good ones
"Handyman's delight"
"Homely"
"Outhouse"…thats when you know you have a bargain…lolRyan McLean
Free Ebook "How To Find Positive Cash Flow Property"
http://CashFlowInvestor.com.auRyan McLean | On Property
http://onproperty.com.au
Email MeDon't stop here with your research. Use Google to find population growth or decline (compare this census to the 2006 census). Population growth usually leads to an increase in prices.
Also look at the industries supporting the town. If it is heavily one industry is it stable?
Someone on this forum might say "yes this is a good place to invest" but would you really believe them?
You need to do your own research. Speak to real estate agents and ask for trends over the last 12 months. Get a property magazine and analyse the stats in the back.
Hope these ideas help
Ryan McLean
Free Ebook "How To Find Positive Cash Flow Property"
http://CashFlowInvestor.com.auRyan McLean | On Property
http://onproperty.com.au
Email Me@grantos – Gumtree is pretty crap. Compared to realestate.com.au anyway. You get way more attention through realestate.com.au and I believe a higher quality of renters.
Ryan McLean | On Property
http://onproperty.com.au
Email MeI think the question is did they ever go away? They were always available, though I know many lenders preferred not to do them. You could always find a lender somewhere that would do them. Especially if you have proven savings.
Were they talking about particular lenders on the radio (eg. The four big banks?)
If a mortgage broker could chime in here and tell us which lenders are happy to give the 95% that would be great.
Ryan McLean
Free Ebook "How To Find Positive Cash Flow Property"
http://CashFlowInvestor.com.auRyan McLean | On Property
http://onproperty.com.au
Email MeWhy not use Google Docs? It is free online and you can access your documents anywhere.
I think its docs.google.com
I use it all the time for spreadsheets, word documents etc.
It might be worth paying an accountant or finding someone online to build a spreadsheet for you. Tell them all your different types or income, expenses etc and get them to build it. Then do as the others have suggested and spend 10 minutes a week or month tracking everything.
Ryan McLean
FREE eBook on How To Buy Positive Cash Flow Properties In Oz
http://CashFlowInvestor.com.auRyan McLean | On Property
http://onproperty.com.au
Email MeIncreasing your cash flow is obviously the major priority here. Be careful about selling and renting because it my increase your cash flow short term but rents go up over time so it might have a negative effect long term.
It might be an idea to get the property officially valued by your lender. You may think it is worth $750k but the lender may be more conservative. I know that many investors set up lines of credit up to 80% of the value of their property so they can access it as soon as they find a positive cash flow property.
If you do sell do you know that you can find a property that will be positively cash flowed? If you don't know then is selling the best strategy?
A line of credit will give you time to look and if you find a cheap property you might only need to take $40k out of your house for the deposit…who knows???
In the mean time look for ways to increase your cash flow. Getting in students is one idea.
You could also start a side business
Or you could look at an interest only loan to lower mortgage costs (then when your situation improves move back to P&I)Good luck
Ryan McLean
Free eBook "How To Find Positive Cash Flow Properties in Australia"
http://CashFlowInvestor.com.auRyan McLean | On Property
http://onproperty.com.au
Email MeI have heard of this also. Sometimes people group together and classify themselves as 'agents' or regular agents charge a fee for listing it yourself.
Why not try domain.com.au? I believe you can list you rental on there even if you aren't an agent. It may not get as much traffic as realestate.com.au but it is still a huge site and you should find a good pool of tenants.
Ryan McLean
A FREE eBook for all forum readers on How To Find Positive Cash Flow Property In Australia
http://CashFlowInvestor.com.auRyan McLean | On Property
http://onproperty.com.au
Email MeIf it were me I would buy my first property in my own name. It can get complicated learning about trusts and investing in trusts and you are probably having enough trouble just getting into the market in the first place.
You want to protect yourself…yes. But buying with a trust might complicate things so much that there is nothing to protect.
I would get my first property purchase down first. Then look at using trusts for future investments once I am more confident at buying property.
ps. If the trust has no income lenders will take into account the income of the trustee. If the trustee is a company then the directors of that company.
Ryan McLean
Free eBook For All Forum Readers
http://CashFlowInvestor.com.auRyan McLean | On Property
http://onproperty.com.au
Email MeMay I ask who have you used before in the past? I have had excellent experiences with LJ Hooker in multiple areas, but I can't vouch for Perth. Their application process is stringent (to weed out the dodgy applicants) and they follow up rent that isn't paid on time and some even take photos of the property each time before they rent it out to access damage.
Let us know who wasn't the best.
Ryan McLean
CashFlow Investor
Read my blog post: How to buy more investment property quicklyRyan McLean | On Property
http://onproperty.com.au
Email MeThe cheapest commodity in the world is advice. It is freely available from everyone. But the most expensive advice is the advice you get for free from your friends and family.
Firstly, ask yourself if they are extremely successful investors. If their not then you can quickly disregard what they are saying. They are advising you out of fear of the unknown not out of a true investment education.
YES! I do believe it is better to have $100/week paid to me instead of $100/week that I have to pay. Even if the area is more rural. Just make sure you get good insurance and a good rental manager.
In regards to the FHOG, you have to live in the property for 6 months within the first 12 months. You can't use the FHOG for an investment. If you do then it is technically fraud….so be careful.
If you can get in the game and get a positive cash flow property then you are going to learn so much and your 2nd and 3rd investment will hopefully be even better than your first investment. Then your family will be coming to you for advice
Ryan McLean
CashFlow Investor
Read my blog post: 20 ways to save the deposit for your house fastRyan McLean | On Property
http://onproperty.com.au
Email MeMost people build this team as they begin investing. Obviously when you are starting out and aren't earning much money this team is expensive and it isn't commercially viable. As you begin owning more properties and getting more money from them it actually becomes expensive NOT to have a team because you pay more in tax and other expenses.
Mentors/Investment buddies who share your goal are important to have. Just be careful choosing your accountant/financial planners now as they may have different ideologies to you and believe in investing using different methods.
Have you saved your deposit? That is the best way to get prepared to start investing. Without a deposit you can read all you want but it is extremely difficult to get into the game.
Ryan McLean
CashFlow Investor
Read my blog post: 20 ways to save your home deposit fastRyan McLean | On Property
http://onproperty.com.au
Email MeYes Michael is right. The terms of the First Home Owners Grant clearly states that you must live in the property as your primary place of residence for at least 6 months during the first 12 months of owning the property.
Why would you want to do this anyway?
Ryan McLean
CashFlow Investor
Read my blog post: finding positive geared property for saleRyan McLean | On Property
http://onproperty.com.au
Email MeMost people only draw the equity out to 80%. If you go higher than 80% (say 90%) then you often have to pay lenders mortgage insurance. Most investors try to avoid this.
Currently your LVR (loan to value ratio) is only 80.7%.
Basically how it works is you increase the loan with the bank. Because the value of the property is higher the bank lets you borrow more money. You take out an equity loan on your current property and you receive this in cash.
You can then take that cash and use it as a deposit for anther property.
Does that make sense?
Ryan McLean
CashFlow Investor
Read my blog post – 10 Killer Ways To Buy More PropertyRyan McLean | On Property
http://onproperty.com.au
Email MeIn a perfect world the bank would only sell the property for the amount left owing on the loan. Then you could buy it under market value. But this perfect world doesn't exist.
I believe you will find it very difficult to haggle. It is easier to haggle with actual owners in a slow moving market. With owners who have a vacant property early access shouldn't be a huge issue.
Ryan McLean
CashFlow Investor
Read my blog post: Top Ways To Save Your House Deposit FastRyan McLean | On Property
http://onproperty.com.au
Email MeOwning 10 properties that are neutrally geared in almost all circumstances can only be a good thing.
Over time rents go up, so they move to positively geared. Over time prices go up, which gives you even more profit in your pocket. Eventually you could use the increased rental income to pay off the mortgages without effecting your cash flow a great deal. Then you own 10 properties free and clear all producing an income.
If you are getting $260/week for 10 properties then that is $2,600/week or over $100,000/year in income. Not too shabby.
Ryan McLean
CashFlow Investor
Read my blog post: How To Buy Multiple PropertiesRyan McLean | On Property
http://onproperty.com.au
Email MeYou need to consider this as a standalone investment. Yes selling 2 houses together can attract developers and you can get more money. But is the property going to go up in value anyway?
Is it going to support itself while you own it?
What happens if your mum doesn't decide to move on?I would always look at this as an investment by itself because you DON'T own the property next door. So you don't have the ultimate decision on that property.
I would instead look to invest for strong cash flow and capital gains. Then if your mum sells then its just a bit of a bonus.
Alternatively get together with your mum and see if you can develop the two sites. Maybe together you can turn the 2 house into a block of units and make a killing?
Ryan McLean
CashFlow Investor
Read my blog post: How To Buy More Property – 10 Ways To Boost Your PortfolioRyan McLean | On Property
http://onproperty.com.au
Email MeWhich area of Mebourne are you in? Obviously I wouldn't want to recommend someone on the other side of the city. It needs to be in your local area.
I have always found LJ Hooker to be good. They have a strong team and the application process is difficult (weeds out dodgy tenants). They take before and after photos of the property for reference about damage etc. Obviously it varies from office to office. But they might be worth having a talk to
Ryan McLean
CashFlow Investor
Read my blog post: How To Save A Deposit QuicklyRyan McLean | On Property
http://onproperty.com.au
Email MeBoth books in my opinion are worth their weight in gold. I wouldn't be stressing over $32 or $8. They could potentially make you thousands. You could always start by purchasing the book for $8 and then when you realise how awesome it is you can go ahead and commit to the $32.
Once you have read the first edition you won't be stressing about the $32 anyway.
Read my review 0-130 Properties in 3.5 Years Book Review
Ryan McLean
CashFlow InvestorRyan McLean | On Property
http://onproperty.com.au
Email MeWhich creative financing strategies are you talking about? Different mentors and coaches exists for different investment strategies. But they aren't cheap. If you don't have a lot of money then books and seminars may be better for you than a one on one coach.
Ryan McLean
CashFlow Investor
Top 10 Positive Cash Flow Books ReviewedRyan McLean | On Property
http://onproperty.com.au
Email Me
