I was just passing though and thought I might give you a couple of things to think about.
3) The point of having 4 houses instead of one big one as you used as an example is that it minimizes your chances of losing. Say for example you had a vacancy rate of 5% for your sort of houses. With one house your chance of having NO income is 5%. But with…[Read more]
Yeah that’s what he suggested in the book – you would probably not be able to get as many houses if u were after a share of the comission. But you’d get more money for each house, so it’s a sort of a trade-off.
It’s all just food for thought though.
“I’ve made every mistake in business, but i’ve only made them once”
– Dick Smith
I’d highly recommend the book Building Wealth by Russ Whitney – i’m currently reading it atm and it’s got some really cool ideas in it. I just hope they work here in Aus as they did for him in the US.
I wouldn’t get disheartened by the downpayments on properties or how you need morgage insurance if your loan is too big – there’s no harm in making…[Read more]
Sorry Pisces – don’t like what you said about needing a deposit (look at the nothing down posts in this forum), and when you used the word “job” – you just need some sorta income.
Anyway PenguinJr, you’re going to have a hard time just scouring the internet like all the other hopefuls looking for positive cashflow properties. That doesn’t sound…[Read more]
Sorry, a bit off the topic but
“Being highly geared can be uncomfortable. It’s probably better to be <70 LVR to save the worry.”
– Wouldn’t it be better to be more leveraged because then you could use the extra money to buy more properties and reduce your risk that way? You’d also get the benefit of having another appreciating asset
Hey I’m also a uni student and facing the same dillema of no cash nor decent income to start
If you know who Dolf De Roos is, well he aparently got the money to start investing via a student loan, since he’s never had a job. But from what i’ve read of student loans from the major institutions, they don’t loan for investment purposes. So beats…[Read more]
I don’t see anything wrong with auctions either. If you’re a shrewd investor and not swayed by the hysteria of auctions, they can’t be bad for you. If anything, auctions would show how much people would be willing to pay for the house – bad if it does get sold, but if it doesn’t – wouldn’t that mean that your offer a short while after the auction…[Read more]