[skippygirlMember@skippygirlJoin Date: 2003Post Count: 127]

March 11, 2004 - 2:26 am

Hi blondie_bec (no relation to Bec??)

It might be useful to focus on setting up sound money habits first, before you begin to invest. Some people can have 10 IP’s but have poor money habits which means they will never be accumulating, reinvesting and being good stewards of their money.

I recommend John Burley’s “Money Secrets of the Rich” book, (cheesy title but great book). It shows you how to lay the foundations of good money handling and then outlines how you put all those principles into practice with investing AFTER you’ve adopted those new habits. I can tell you it works because I follow it.

Brief examples. Never again use consumer debt, automatically invest 10% of your GROSS income before you even see it, (beginning with a savings account or managed fund until it’s big enough to put into something else), donate 10% of your gross income to charity (reap what you sow), use 10% of your gross income to add to the min pmts on any debt, live off the rest, never do negative gearing (make up your own mind here).

Cheers
skippygirl[]

[skippygirlMember@skippygirlJoin Date: 2003Post Count: 127]

February 27, 2004 - 5:50 am

I saw the TT piece, congrats to all MAPPERS who have persevered and are building the skills to acquire RE and grow their income until they eventually will be financially free.

I was surprised, though at the snapshot/grab regarding wraps. It created a perception in my mind that Steve thought they were unwise, and he wouldn’t ever do them/doesn’t do them, as well as the explicit opinion he expressed that he believes they should be regulated more.
Unfortunately wraps have become a generic title for everything, and I don’t regard my lease-options as wraps. Maybe it was a TT editing stunt, and maybe Steve had elaborated and clarified but it didn’t make it to air, for it would be rather incongruous to dis “wraps” when one has written a book about them, marketing a wrap pack and has made significant income from them.

Comments and thoughts? Did I perceive this incorrectly?
skippygirl
[]

[skippygirlMember@skippygirlJoin Date: 2003Post Count: 127]

February 4, 2004 - 4:16 am

Hi,

One of my best friends invested in several homes in Deception Bay 4-5 years ago and they have had spectacular growth as in 150%. Land particularly in the last 12 mths.

Has now run most of its course, however although there is some growth left, and she should know she’s a property valuer.

skippygirl

[skippygirlMember@skippygirlJoin Date: 2003Post Count: 127]

January 29, 2004 - 6:43 am

Thanks SIS, much appreciated.

skippygirl[]

[skippygirlMember@skippygirlJoin Date: 2003Post Count: 127]

January 28, 2004 - 5:47 am

Thanks, Simon and Terry for your responses. Learning on my first one.

skippygirl[]

[skippygirlMember@skippygirlJoin Date: 2003Post Count: 127]

January 28, 2004 - 3:48 am

Hello Simon and Pisces,

Can I jump on the first post here and ask you, I have bought my first IP which settles on 1 March. I have a LOC on the PPOR with which I can entirely pay for hte new house. I am going to lease option it.
Can you tell me pls if I go get a mortgage for it after settlment ie 80% and pay back the LOC, if it’s within 6 mths the bank simply uses the contract price? My friend is a valuer and she said they would just use the contract price if < 6 mths.

Also, do I need to “disclose” if it’s a lease option I’m planning to do or have done? Is it just a “normal” loan?

Thanks!!!
skippygirl[]

[skippygirlMember@skippygirlJoin Date: 2003Post Count: 127]

December 23, 2003 - 6:06 am

toystory,

I think there is something like a median price graph at the REIV website – you select the suburb name and it will graph the median for you.

Haven’t checked it for a few weeks – go to http://www.reiv.com.au

skip[8D]

[skippygirlMember@skippygirlJoin Date: 2003Post Count: 127]

December 3, 2003 - 1:27 pm

OK me too. Could I have a copy of the email – thanks for taking the view of “abundance” and good karma to you.[]

skippygirl40 at yahoo.co.uk

[skippygirlMember@skippygirlJoin Date: 2003Post Count: 127]

December 3, 2003 - 1:22 pm

Hi Damian,

One tip from someone who has leased alot of commercial property over the years but never bought one, make sure you have a savvy solicitor and check that the directors’ or personal guarantees the current tenants have given the current owners under their leases are assignable or transferable when you buy that property and hence those leases. Sometimes you need to get fresh guarantees specifically for YOU from the tenants.
skippygirl[8D]

[skippygirlMember@skippygirlJoin Date: 2003Post Count: 127]

November 29, 2003 - 1:33 pm

Hi all,

I’m an older newbie and some might say not even a newbie. I have recently returned to vendor finance after getting 2 babies off to school and reading John Burley’s material. I started my career off at 18 and ended up doing 100’s of vendor finance sales for the state government, who had decided they didn’t want to own railway homes anymore and sold them on terms to the railway emplyees who rented them. Funny how life goes full cricle sometimes as all that conveyancing, title searching, surveying, valuation and selling to tenants experience is now useful again.

I’ve always remembered how we would go to a country town to knock on tenants’ doors to explain how they could buy the homes they rented, (which they could never have done any other way.)

Then a few months later we would be back in those towns and the homes we had sold on VF would be painted, have flowers growing in the garden and have new picket fences and pretty curtains up. I learnt about pride of ownership and how important the family home is to people.

Now, it’s lease options for me. See you at the top – as Earl Nightingale says “the air is cleaner, the view is better and it’s less crowded”.[]

SK

[skippygirlMember@skippygirlJoin Date: 2003Post Count: 127]

October 29, 2003 - 12:42 pm

Hi,

Here’s my $0.02 even though I only have 1 positively geared property so don’t have much qualifications in this area.
Alf, if you could make the property cash flow positive before depreciation by managing it yourself then I would hold on to it because it would be putting cash into your pocket each week.
If you can’t or don’t want to, then sell. You could earn a better income return in another investment and take your 50-60000 CG and reinvest it for higher returns. Don’t lose money every week.
LuckyPhil, if you didn’t have the “bad” consumer type debt I’d say hold but would you be better off selling your home, wiping your car and credit card debt, taking the CG and reinvesting it for better returns, then start automatically saving or investing 20% of your weekly income into some sort of investment be it a managed fund or property to add to your income each year and NEVER using consumer debt again ie pay cash for everything (or the modern equivalent of use the credit card but pay it off at the end of the month). With rentals approx half of a mortgage pmt you will have more cash to add to investments.
Skippygirl[8D]

[skippygirlMember@skippygirlJoin Date: 2003Post Count: 127]

October 23, 2003 - 11:39 am

Michael,

Great post – thank you for the terrific rundown on the development process. Just today I was trying to find out all of that info because I was evaluating a 1000 sqm block with an old 50’s house on one end, corner block running nicely east-west on it’s longest side. I rang a local surveyor who was terribly kind and helpful and gave me the abridged vesion of the process you have outlined.

Can I pose a question? I could get 3 x 300 sqm lots from this block (and all the time and cost of the development process say 2 years) but would I make more profit (and sooner) from simply splitting it in 2 x 500 sqm lots via a straight subdivision (12 mths) and letting the buyer design and choose their own house design, and at a reasonable block size?

It’s just a bog standard Melbourne suburb on the fringe. All 70’s bdr brown brick veneers.

Thanks
skippygirl []