[scottMember@scottJoin Date: 2003Post Count: 110]

June 16, 2003 - 10:43 am

Hi guys,
My journal started out appallingly , I havent had to write anything inolving my thoughts since highschool. It started off as afew lines of jilted thoughts, but now it has also turned into a novel.
I try to read it every day, and its amazing how much I can reflect on what I’ve written and then take appropriate action. I’ve already changed so many of the things I’m doing becuase of it.
I’ve also started a property scrap book on Stuart’s advice and I’m also finding that a great help in tracking my thoughts on properties I look at and news that affects my investing.

Best wishes
Scott S

“Aim for the stars and you’ll shoot the top of the telegraph pole. Aim for the top of the telegraph pole and you’ll shoot yourself in the foot!”
-anon

[scottMember@scottJoin Date: 2003Post Count: 110]

June 16, 2003 - 10:16 am

Hi Guys,
I can highly recommend “Wealth Guardian”. It”s not the be all and end all but its very down to earth, easy to understand and best of all it’s audio so you can listen while reading the notes, handy for someone like me!
It certianly guided me in the right direction and helped me ask the right questions of my solicitor, when I enquired about setting up our structure.I actually knew what I wanted instead of sounding silly![]

Cheers
Scott S

“Aim for the stars and you’ll shoot the top of the telegraph pole. Aim for the top of the telegraph pole and you’ll shoot yourself in the foot!”
-anon

[scottMember@scottJoin Date: 2003Post Count: 110]

June 13, 2003 - 10:26 am

Good on you youngie. I wish I’d had the knowledge to do the same at your age!
I did however invest in my parents house at 22 but it took me 6 years to find an investment strategy that I felt I could make work. Now I’m going hammer and tongs and not looking back.
I’m constantly amazed by how much I’m learning every day, I can tell you that after your first IP it will only get easier for you.

Best of luck,
Scott S

P.S. Let us know how you go.

“Aim for the stars and you’ll shoot the top of the telegraph pole. Aim for the top of the telegraph pole and you’ll shoot yourself in the foot!”
-anon

[scottMember@scottJoin Date: 2003Post Count: 110]

June 11, 2003 - 9:15 am

Boris,
get local agents to give you a written valuation it will cost you nothing and it will give you a good idea of market value.
but if you are selling to a trust why not sell for a reasonable rate below it’s value to save on stamp duty and capital gains tax.
I have no problem buying below market value, so why should I have a problem selling(to my trust) at below market value. Only advice is make the price realistic.

Scott S

“Aim for the stars and you’ll shoot the top of the telegraph pole. Aim for the top of the telegraph pole and you’ll shoot yourself in the foot!”
-anon

[scottMember@scottJoin Date: 2003Post Count: 110]

June 10, 2003 - 9:06 am

Fullout
Ive had the same thing happen to me, so I may be able to help you not sure as yet but will enquire for you.
Dont go getting rejected just yet.[]
Email me at[email protected]and I’ll see what I can arrange.

Regards,
Scott S

“Aim for the stars and you’ll shoot the top of the telegraph pole. Aim for the top of the telegraph pole and you’ll shoot yourself in the foot!”
-anon

[scottMember@scottJoin Date: 2003Post Count: 110]

June 9, 2003 - 12:00 pm

Hi All
They say they’re building a company like NRMA, but for property investors.
Does that mean they’ll fix my IP’s when they break down, sounds like a great idea![]
I’m sorry to say that I couldn’t get on to the simulator, so I’ll never know if I can get rich on my meager income.
It is apparent that Harry has consuted a thesaurus and through the utilisation of such media has extracted numerous multi-syllable words of which he has a substandard comprehension![] LOL
Scary part is someone might beive this stuff.[!]
Still, a seriously good laugh!
Thanks Nick.[8D]

Scott S

“Aim for the stars and you’ll shoot the top of the telegraph pole. Aim for the top of the telegraph pole and you’ll shoot yourself in the foot!”
-anon

[scottMember@scottJoin Date: 2003Post Count: 110]

June 9, 2003 - 10:13 am

Hi Kristoffer,
this is an idea that I’ve been tossing over for some time.
While I’m not in a position to buy many properties at present, I am spending heaps of time out researching different areas, to gain a feel for those areas, and an appreciation of whats good or poor value in that market.
This will mean that come time to buy I’m fully prepared. However in the short term this is a costly process.
It would be of immense help to me if I could pass on some of the properties that I view(I look at 20+ most weekends)for a small commission or a spotters fee of some sort.
My main hesitation has been the legality of doing this as I’m not sure if it’s legal without a real estate license.
So if you or anyone else for that matter is interested, feel free to email at [email protected] to disscuss it further. I’m sure we can work something out.

Regards,
Scott S

“Aim for the stars and you’ll shoot the top of the telegraph pole. Aim for the top of the telegraph pole and you’ll shoot yourself in the foot!”
-anon

[scottMember@scottJoin Date: 2003Post Count: 110]

June 6, 2003 - 9:09 am

Hi,
Just a quick reply to Gary Sehgal’s question if your looking for these sort of returns (or better) start looking in major regional cities, or regions around capital cities.
I’m not going to just name a few cause there are literally hundreds out there. Get on realestate.com and look at prices compared to rents of similar properties(hint look in the lower end of the market), returns of 10% and higher are common.
I’m buying two at the moment returning 12.6% and 14.4% gross respectively, and they are already showing good capital growth about 5% in 6 weeks!
It’s all about supply and demand, buy in a market where supply is low rather than a glut (eg: CBD units) and I feel you can’t lose.

Regards,
Scott S

“Aim for the stars and you’ll shoot the top of the telegraph pole. Aim for the top of the telegraph pole and you’ll shoot yourself in the foot!”
-anon

[scottMember@scottJoin Date: 2003Post Count: 110]

June 6, 2003 - 8:51 am

Michael,
sorry, but after hearing Stuart O’Neill’s talk at the APIM seminar I have to dissagree(previously I would have agreed 100%).
No one likes a legal battle and therefore if a property has appreciated (chances are a vacant block will) they are unlikely to take any actoin other than to sell it off at a higher price.
The chances of not selling are remote, and worst case high interest over a short period is n’t going to sting that much.
I cant offer much advice on delayed settlement, as I’m pretty green myself but I have found jumping in with both feet and having everything go wrong is a great way to learn VERY fast.
I personally go ahead with the deal, but don’t mistake it for positive cash flow, because it’s not. profit and cashflow are two very different things! It does sound like it should be very profitable.
Remember land is the appreciating asset houses are the part that depreciate. The ot
hers are right it’s a big step as your first deal but what a step if it pays off!

Scott S

“Aim for the stars and you’ll shoot the top of the telegraph pole. Aim for the top of the telegraph pole and you’ll shoot yourself in the foot!”
-anon

[scottMember@scottJoin Date: 2003Post Count: 110]

June 3, 2003 - 9:44 am

AD,
In short no it’s not!
In reallity I would be much better off selling it, BUT my parents live in it and love it. The main reason for me getting into property aside from the fact that I love it, is to set my parents up to live in the manner that I feel they deserve, part of this is living where ever they wish.
So I figured that I’d try to make the most of a less than ideal situation.
So to answer you yes I would be better off selling and using the cap gains, but it doesn’t suit my need at present.
Willi,
If you were to simply refinance and use the difference to fund a new PPOR the interest on the redrawn amount (as far as I understand) would not be tax deductable. If hovever your investment company bought it from you, all interest accrued would be tax deductable.
AD has a good point though Creative. is your current house the kind that you would want to be investing in it may suit you to sell it and purchase better returning IPs, I know I would sell mine if it were only up to me (I keep showing mum cheaper properties that I think she’ll like![]

Regards’
Scott S

“Aim for the stars and you’ll shoot the top of the telegraph pole. Aim for the top of the telegraph pole and you’ll shoot yourself in the foot!”
-anon

[scottMember@scottJoin Date: 2003Post Count: 110]

June 3, 2003 - 9:25 am

Hi Soosh,
It was great to finally meet you on the weekend.
Ive been a bit of a scardy cat all my life, not in the sense of physical things like heights or speed, but of a less tangible thing, I think its failure, but it includes rejection and other issues that I guess are all forms of failure.
In the past six or so month Ive been looking at what Ive done to acheive my long term goals in life. The answer was very little because 9 times out of 10 I wouldn’t give it a go cause I was scared of failing . As a result I’ve slaved away 10 years of my life and not acheived many of the things I know I could have acheived.
So as a result of much thought Ive decided my greatest fear is fear itself, as it is what is stopping me from acheiving my goals.
Its probably very simmilar to AD’s fear and many other peoples as well, but theres no way I’m going to be mediocre (to pinch AD’s word) because I feared the concequences of the road to glory.
As a result of this resolution not to be afraid you’ll be seeing a lot more of me on these forum boards, as previously I’ve been scared to comment, unless i got really brave or mad![]

Best wishes to all’
Scott S[8D]

P.S. Soosh I’ll be in touch about the FHOG when I get the info for you.

“Aim for the stars and you’ll shoot the top of the telegraph pole. Aim for the top of the telegraph pole and you’ll shoot yourself in the foot!”
-anon

[scottMember@scottJoin Date: 2003Post Count: 110]

June 3, 2003 - 8:58 am

Dear Maximus,
I’m only very new to this whole proprty thing, but I’ve found that its easier to find positve cash flow properties in the lower end of the market. I’m buying two at the moment, both under 100K and returning about 12%.
with the money you have available you should be able to get quite a portfolio together look in large regional centres around capital cities, and dont nessesarily buy the ones that the agent wants you to see, the agent who sold me my two wasn’t even going to show them to me , it was only when I got him back to the office and said “you havent shown me anything I want to buy” that he pulled both of them out.
One bit of advice only borrow to 80% LVR to avoid mortgauge insurance, if down the track you need more money for deposits,I’d refinance (to use any capital gains in the properties), back up to 80%.
Good luck![]

Best wishes
Scott S

“Aim for the stars and you’ll shoot the top of the telegraph pole. Aim for the top of the telegraph pole and you’ll shoot yourself in the foot!”
-anon

[scottMember@scottJoin Date: 2003Post Count: 110]

June 3, 2003 - 8:32 am

creative,
my understanding of the stiuation is that you can claim interest payments on any IP. Therefore when your current residence becomes an IP, you can claim any interest payable on the amount owing on that property. It might also be an idea to sell the property to a company or trust that you comtroll, thus allowing you to claim interest on up to 100% of the value of the hous ewhile using the money to finance your new home.
Yes you would have to pay stamp duty and capital gains tax, but it’s a matter of weighing up the pros and cons. Like reduced interest payment on your new home and tax savings. This is probably only a good idea if you have very good equity in your current home.
This is only an idea that I’m thinking of using myself, so get some advice first but if the situation is right it might work for you.

Regards ,
Scott S

“Aim for the stars and you’ll shoot the top of the telegraph pole. Aim for the top of the telegraph pole and you’ll shoot yourself in the foot!”
-anon

[scottMember@scottJoin Date: 2003Post Count: 110]

June 3, 2003 - 8:10 am

Hi All,
well 48 hours later my head is still spinning!
firstly thanks so much to Steve, Dave, and all the crew it was an amazing weekend (I’m still recovering![|)]).
I’ve spent every spare moment on the phone running up that bill,and already pin pointed new areas close to home that i,ll be checking out later in the week. Who knows I might even buy a couple more on the weekend!
To those who had trouble with the game at the end your not alone, our group couldn’t even buy a property![] Still it was a good lesson on the importance of having a stratergy. Ithink clearer parameters might be needed in future, still I gained a lot from it.
I’ve been addressing my fear, which after lying awake on saturday night,have realised is watching my life go by and not doing what it takes to achieve my goals because I’m scared of failing. So from now on I fear FEAR.[8D]
It’s time I stopped rambling and let someone else have a go. Thanks to every one that I met on the weekend you ALL made it a pleasure! Hope to catch up soon , if not next time.

Best wishes,
Scott S[]

“Aim for the stars and you’ll shoot the top of the telegraph pole. Aim for the top of the telegraph pole and you’ll shoot yourself in the foot!”
-anon

[scottMember@scottJoin Date: 2003Post Count: 110]

May 25, 2003 - 9:54 am

willi,
I used that exact stratergy on a property that I have recently purchased.
I paid the vendors asking price, which was more than I felt the property was worth in it’s present condition, knowing that once renovated it would rent easily and give exelent returns. So I made a long settlement , low deposit and access prior to settlement, conditions of the contract.
This means that from day one the property will be in a rentable condition, and because of the low deposit I have the cash to renovate it before my finance comes through(a win for me). Furthermore the vendor gets his asking price and doesn’t have to worry about making the property saleable(a win for him). Thus I’ve created a win/win outcome and have myself a high returning freshly renovated I/P that should be low maintainance for quite some time.
I’m still learing, but this technique seems to have worked very well(only time will tell,as we dont settle for another 4 weeks), so a big thanks to Steve and every one here for showing me the way so far!
Warmest regards,
Scott.

“Aim for the stars and you’ll shoot the top of the telegraph pole. Aim for the top of the telegraph pole and you’ll shoot yourself in the foot!”
-anon

[scottMember@scottJoin Date: 2003Post Count: 110]

April 14, 2003 - 8:46 am

Nathan

Its amazing i had the same thing happen a number of times , and the info i gained was invaluable.

I also asked what i would have to do to make them happy to pay a small rent increase and most listed small things such as repainting or an air conditioner. Niether cost much and both increase the value of the property.

cheers
Scott S

“Aim for the stars and you’ll shoot the top of the telegraph pole. Aim for the top of the telegraph pole and you’ll shoot yourself in the foot!”
-anon

[scottMember@scottJoin Date: 2003Post Count: 110]

April 14, 2003 - 7:58 am

Quentin
Please dont mistake the reasons for my questions.
their purpose was for me (and others) to understand where your at in your investing career. your obviously doing well from your investments, so your methods have worked for you.
I did not in any way intend to offend or belittle you, only to establish your credibility, which I have done (maybe not in the most diplomatic way[]).
As for myself i first want to replace my income then generate wealth. I feel (my opinion only) that positively geared properties are the way to do this, mind you they (as others have stated ) must be well selected not just cheap dumps in hick towns.
I have not ever wasted my time looking in small towns only regional centres with good infrastructures. Yet I consistantly find properties that are within the criteria of the 11 sec rule.
My income will not allow me to purchase many negative cashflow properties and i dont want to wait to cash in on the capital gains, yet a couple of banks have said that as long as the properties return higher than about 7.5% they would fund infinite properties as long as there was diversity in them (ie not all in one area).
If anyone can tell me of a better way im happy to listen, then check out the theory as i did with Steve’s ideas. Untill then i’ll continue to do what im doing.
regards
Scott S

PS: thanks for the advice on IO loans i wll check it out with my accountant. My goal is to own the properties so i will have to make payments off the principal as well. If what you say is right that would be a better way.

“Aim for the stars and you’ll shoot the top of the telegraph pole. Aim for the top of the telegraph pole and you’ll shoot yourself in the foot!”
-anon

[scottMember@scottJoin Date: 2003Post Count: 110]

April 13, 2003 - 10:10 am

Peter,
The research that ive done indicates that rental prices are linked closely to the demand for accomodation in an area. Rental prices increase sharply when there is a high demand for short to mediumterm housing , such as in mining towns where yields can be as high as 30 -40%. These high yields come at higher risks because factors such as new subdivsions or mine closures reduce the demand.
look for regional centres with good infra structures and good population growth (people wiil almost always rent in a place before they buy)
Also follow the lead of the big chians such as coles-myer and woolworths if they are investing in shopping centres in the area there is a good reason.
So to answer your question i guess yes the long term returns are more important than the immediate income , as long as it is positive . I still wouldnt go out and buy a negative (cash flow) property just because its predicted to do well in the future , id find one around the corner thats positive with the same prospects.
noone said theyre easy to find your asking for a lot when buying for cashflow, but you can find good properties with stable high incomes, that even have a good chance of capital gains!
hope these ramblings help!
regards,
Scott S

“Aim for the stars and you’ll shoot the top of the telegraph pole. Aim for the top of the telegraph pole and you’ll shoot yourself in the foot!”
-anon

[scottMember@scottJoin Date: 2003Post Count: 110]

April 13, 2003 - 9:47 am

Hi Dave
Ive just put in my first two offers ever!
I taked to the agents about the vendor and their needs, eg how motivated they were. then from the info gathered submitted offers in writting.
one was close to asking price with a low deposit and long terms, because the owner is in no hurry to sell. the other was a fair way below asking price with standard terms, because it needs a fair bit of work.
the first offer has been tentitively accepted(i will know on monday). the other is likely to be rejeceted according to the agent but well see on monday, i have a little bit of room in that one but my gut feeling is that the vendor wants out so will move on price.
hope that this gives you some insight , its a better way than insulting people by lowballing their properties.
best of luck
Scott S

“Aim for the stars and you’ll shoot the top of the telegraph pole. Aim for the top of the telegraph pole and you’ll shoot yourself in the foot!”
-anon

[scottMember@scottJoin Date: 2003Post Count: 110]

April 13, 2003 - 8:00 am

quote:

---

How many of you are retired??
My guess is none! Prove me wrong

---

Are you Tails?
Im working towards it!If you do the sums on these properties yes ill need to buy about 70 to give up work! but these are not the best returning properties ive found just the best located , with the most stable incomes.
PLEASE fell free to DOCUMENT (i want proof, as do you) a
better way![]

Scott

“Aim for the stars and you’ll shoot the top of the telegraph pole. Aim for the top of the telegraph pole and you’ll shoot yourself in the foot!”
-anon