have you looked at the area around the unit? what types of tenant cars are there? Is the complex looking dirty or reasonably clean?

I have a 2 bed unit with study worth around $200k and I am struggling to get a tenant for $150 a week and I am in surburban Melbourne (Sth Frankston).

So good luck.

I totally agree with you. We are at the stage of the property cycle where the returns are not worth the effort. Again thats MY interpretation.

Yeah, prices are just stabilising. Yeah there have been some decreases (only minor) but thats good. You cannot expect good growth every year. The surburbs I invest in Mentone (down 1.8%) I expected and South Frankston (up 16.5%) I sort of expected as this area has sort of exceeded my expectations. However there is some good stuff happening…[Read more]

Actually if there are any dropout, I would love to know why! What were there experiences? Why did they change their minds? They were all extremely keen at the start? No opportunities out there now? Return not worth the effort? The property cycle not good for positive cash flow at the moment? How many properties has each bought? So many…[Read more]

So if the Millionairre Apprentice Program is up the Schinzenhousen, then is it fair to say the substance to the Book 0 to 130 properties is not really as relevant at this stage of the property cycle as it was 6 months ago?

If we all started this program in 1997, we would all be millionairres now in 2004.

Keep your principal place of residence PPOR as a hedge when you get back from overseas. My wife and I went to San Francisco for 12 months. If we had sold our PPOR we would be in the shit now.

As for selling the negative geared property or not. As you have little income it may be worth selling and using that equity in your PPOR as prices may…[Read more]

When you see a place – you know within 11 secs if its the right place for you to purchase.

If that does not make sense, then read the Book – “From 0 to 130 Houses in 3.5 yrs”

Its the premise of the Book.

Westan – you are right. I dont really have much idea about rural properties. I rather invest closer to home so I can keep abreast of my investments. I also work full time and dont need travel pains. I also want properties close by so I can add value to them by doing periodic renovations amd make cosmetic improvements.

Maybe one day I will…[Read more]

All I am really saying is that we are at a point in the property cycle where the 11 sec rule is highly unlikely to be achieved. Unless you buy a rural property where the hassles, in my view, exceed any postive cash flow you can get over the LONG TERM.

Let me give you an example of where, I wish I knew the 11 sec rule back in 1997.

In North…[Read more]

aussierogue
I am not sure what you are saying. Are you saying you would only buy if it met the 11 sec rule. Or are you saying you would still buy if it did not meet the 11 sec rule but was a quality property? Or are you saying there are n decent properties out there that meet the 11 sec rule. I am confused by your last post.

Today Tonight and ACA ALWAYS play these stories. Every 2-3 months you will see them. I reckon its part of their TV program formula. I always have a good laugh. Usually those caught with a bad tenant have done the rental themselves or they have a VERY bad rental manager.

I remember a few months ago there was this couple who trashed a house.…[Read more]

I am surprised there has not been much debate on this topic

There is a database that property managers contribute too and use. I dont know the name of it, but thats one of the reasons I always use a property manager.

I would prefer to sit on my bum and do nothing than buy $50k-$100k properties that give me a $1,000 positive cash flow.

There will be some good opportunities in the future. I would rather sit tight now than waste my time with the hassles of these rural properties.

I just could not believe how prices were increasing so much and that interest rates only had one way to go, and thats up. Well more like 2 yrs ago. Thats when i bought my last property and I was umming and aaarging about whether to buy or not. Or wait for prices to go down. At that stage I thought they might. Since I bought the place prices…[Read more]

peterp

Thats why I am concerned about investing in rural areas. I am also concerned about all these people new to property investing going out and buying rural properties that are cash flow positive. If you want income NOW fine, but property investing is about gaining access to growth assets.

My view is that its very difficult to time the market. The best time to buy is when you can afford it. I thought property prices were going to go down 3 years ago, yet there has still been some growth. If I had waited then, I would still be waiting now.

If you do buy now, just factor in a few interest rate increases and that the property may…[Read more]

Property management fees are the best for peace of mind. Sure sometimes they get paid for merely banking cheques and sending me the difference, but when there are problems thats when they earn their money and I have some peace of mind.

No. I am an accountant, but not a Tax Accountant. I still get an accountant to do my tax. But seek professional advice. Dont take my word for it.

Looks like you got nothing to worry about if the tenant has said he is keen to stay. Ask the agent why a lease has not been signed esp if its been 60 days or something since you signed the contract.

If its just been because the agent is slack, then proceed. If the agent has been telling you porky pies and you dont think its that easy to get…[Read more]