George,
You said that you are young and have bought a place for more than 2 million. Congrats. You have used your inheritance well, if not you are a very high income earner.
For most people, buying a million dollar house for investment is out of their reach.
The higher the returns, the higher risk. One must ask, can I manage the risk and manage vacancies? What if no one rents? You’ll have to come up with the money to pay the mortgages.
And you’ll need a lot of after-tax money to do that.If that’s the game you play, then it’s your game.
Most people are not in the same league as to buy a houses in eastern suburbs in Sydney. BTW, eastern suburbs are difficult to afford in Sydney.So I really think that if buying high end properties is your way of earning large amount of capital gain, go on. Let the rest of us to build our wealth a different way.
Im not comparing postive cashflow properties to Sydney in general, I’m comparing them to decent properties in the eastern suburbs. Purchasing 100 studios in Bondi is not going to put you on the Rich 200 list for example. I purchased a property in Vaucluse in ’99 for $2,300,000 and had it rented for $2,000 a week. This time last year I was paid $4,970,000 for it. I didn’t go anywhere to invest the profit thats for sure.i too would be very intrigued to find out how George did it–so george–we’re waiting.
were you a trust fund baby? were you left somethig substantial in a will or did you really have the motivation and determination to get out there and do it for yourself?! If you did, i too take my hat off to you—I always love a good success story—so when can I read your book?for the person asking about finders fees etc—-richmastery.com.au will give you access to ESC deals which are pretty well analyzed and are separted into positive cashflow or capital growth. You can register for their newsletter which will e-mail you all the latest deals.
Good Luck
HannahHannah,
I have looked at some of these properties on richmastery.com.au and have wondered do they really stack up.Has anyone used this service and purcahsed property through them and how has it panned out.
I might be too suspicious. But I am a believer in if its to good to be true it usually isn’t.
Cheers
RC1Eastern Suburbs Sydney. Great area, no doubt! Costs $10,000 per square metre though. Most of Sydney has to be negatively geared. Even the historical worse Suburb of Sydney (Mt Druitt) has lost its image and prices there now start about $250,000 – $300,00 for a apartment/townhouse. Positive cashflow no longer exists even in that suburb where returns were high.
For people looking to get into Sydney home site market at minimal cost there are still some markets that are financially accessible. You can pick up houses in Shalvey and Plumpton for $195,000 but speculators are entering the market because of the Orbital.
As with the Vaucluse property, it was a case of worst house in the best street. Raising the deposit was thanks to the oldies. I was actually going to move knock it down and move into it but after careful analysis I would of come out even steven and the offer was too good.
George,
Where is your life story of how to buy the $2million IPs.
Come on give it ago you got nothing to lose.
Kind regards
Chandara
[Keep going, you’re nearly reach the end of financial freedom]I think George is just one of those lucky people who gets plenty of help from his parents and know how to use his resources effectively. If he writes a book it will have only 1, 2 pages and is useless to most of us.
We need resource, ability, dedication and luck to do well. If we have little resource we have to work much harder. Steve has great ablity and dedication to create success. He started before the booming time so luck is with him as well. It’s still possible to achieve wealth through PI but much harder now.
My 2 cents & hope it doesn’t upset anyone.
Regards
Huey
Geroge, I don’t agree with you at all
I’m surprised by your comments don’t anticipate the following:
1. Everyone is different, and therefore have different needs
2. You don’t know everyone’s or what their needs areSo before you post again, I hope you can think outside the sandbox and respect others who wish to do things differently.
Thanks for sharing
Do you people actually find +ve Houses? or are they all units? just curious……
Everybody has their own stroke, however +ve gear is not mine – sorry forum.
Huey – i’m actually writing a thesis in the psychology of the typical investor. I’ll send you a copy when I finish.
Chandara – I chase property that I know that has potential but cannot be sold at the full market value because of the owners circumstances. Not all people sell to make a profit. In the last 6 months I have bought a terrace in Surry Hills off a divorced couple and a 2 story unit with beach views in Clovelly off a developer that went broke and off those 2 deals alone I have had the banks revalue the properties and it has given me an extra $600,000 to play with to do the same again.
Hi guys
I think what we’re seeing here is just a different ‘niche’ – sick of hearing that word actually – that George is following. Obviously very successfully too. The “Bank of Mum and Dad” helped me with my first deal (bummer it was a two tier marketing spiel for QLD, but i learnt heaps down the track!). Without them I would probably be trying to be a ‘career’ public servant rather than thinking how I can earn enough income to never work again.
With George’s ‘excess’ cash he can afford to buy lots of -ve cashflow properties that give him more growth. Heck, I reckon 2 mil would set me up for life with the knowledge I have, and the deal i am currently looking at for a 30% return on my cash.
Let’s not criticise, but learn the different ways of doing things. i know that this forum was set up by Steve, who advocates positive cash flow, but it is not the only way to make it investing in property.
I say, way to go George! Someome to learn from, but also please understand that you could learn from others. No one way is the best way.
Cheers
MelHi George,
Sorry, I don’t know much about you so it’s not proper to say you only can write very little. What I mean is you personal experience in property investment is excelent but very specific. Many of us can’t access to good equity like you to buy expensive Ips or can affort paying extra cash monthly for negative geared IPs. If we want to get in PI we have to acquire knowledge and identify our best suited strategy. Both –ve & +ve geared IPs are good if we know how to identify the good ones.
I agree with Mel. It’s better to know different ways. Your thesis is about “typical investors” so I hope you can corporate the knowledge you learn from this forum to write a good thesis. It will be good to have a copy of your thesis. Where are you studying, NSW or Sydney uni?
Best wishes to your study.
Cheers
Huey
To be honest Huey, I’ve bitten off more than I can chew with the thesis. At the moment it is a scrawl of about 300 pages of notes and Im still scratching away.
I’m going nuts actually and to answer your question I’ve learnt more from this forum than anywhere else, so people if I ask questions don’t get offended.
To be honest Huey, I’ve bitten off more than I can chew with the thesis. At the moment it is a scrawl of about 300 pages of notes and Im still scratching away.
I’m going nuts actually and to answer your question I’ve learnt more from this forum than anywhere else, so people if I ask questions don’t get offended.
You must be logged in to reply to this topic. If you don't have an account, you can register here.
