Its now been about 12 months since the Book has been released.
Has anyone bought 30 properties in the last 12 months?
I know I have not!!!! I blame the stage of the property cycle we are at!!!!!
Whats your reason or excuse!!!!
My wife Niki and I work as school teachers, [grad]but our real “business” as per Kiyosaki’s definition is real estate. Since last July we’ve added another 12 Qld properties [shades2], and our portfolio now stands at 16:
* 1 future retirement house -CF
* 3 neutral CF
* 8 +CF as per 11 sec formula
Over the last 12 months, and largely as a result of reading Steve and Dave’s book, we have jointly progressed from being traditional buy and hold investors, and are about to launch into our new “multi-strategic” selves:
1. Buy and holds currently outside Family Trust
2. New +CF purchases inside new Family Trust
3. Wraps and Lease options inside Family Trust
4. Multiplication by Division strategy in a separate Unit Trust with a few like-minded friends (this is in the process of being set up right now)[biggrin]We’re currently researching NZ, WA, Tas, USA etc
I’ll let you know next financial year how our portfolio’s running.
Cheers
Greg FCongratultaions Greg – keep up the good work.
A couple of quick questions –
1. You got contingencies if interest rates go up 2% over the next few years?
2. You had many tenant hassles? How much time do you spend in addition to teaching?
3. Had much in the way of repairs?Yackster :o)
I have bought 3 houses in the past 9 months and sold one. That for me is doing what is right *for me*. I did have a plan (or a thought) to buy one place a year, but then, with the kinds of places I seem to be developing a taste for, this isn’t really possible (I don’t think- I guess I’m not quite sure- i never really do a financial analysis).
I have a belief that it’s not about quantity… after all, if one buys a 500k IP, it is pretty much equal to buying 10 X 50k IP’s. Sure, the yield is going to be lower, but it depends on one’s strategy. The whole “how many IP’s do you have?” thing, is really like comparing apples with pears. It all depends on what the properties are worth (if you have a growth strategy) or how much income you are getting (if you have an income strategy).
kay henry
Hi all,
I have tried to buy 11 properties sofar, 9 – O&A wasn’t accepted (went to someone else), 1 – didn’t budge on price and was way over its economic worth (11 sec rule and CoC, etc) and the last one didn’t go thru to settlement Thank Goodness for that. What a night mare! DO building inspections – best money I have spent so far!).
I’m not sure that counts, but I’m trying.
[exhappy][exhappy]Cheers
C@34
30 properties in 12 months…
i wish i was doing that…
but personally, 1 a month is my aim
Cheers,
sisWe have [biggrin]
More like 50 or so… but we have also traded out of some of our other deals under the ‘multiplication by division’ strategy.
Cheers,
Steve McKnight
**********
Remember that success comes from doing things differently.
**********Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
Mr McKnight what is your ‘multiplication by division’ strategy??
Oh and as a warning I’m not great with numbers, so go easy on me! (at least property dosen’t have any massivly difficult formulas like trading does!).
O’h and I’ll be trying to buy 1 per month, which while not a huge amount, isn’t too shaby. I’m already up to 6 for this year.
Rgds.
Lucifer_auHey Luc’,
Steve’s multiplication by division strategy is in his last (May 2004) newsletter.
Check it out by logging in and going to https://www.propertyinvesting.com/backissues
Brent
we’ve bought about 20 properties…. averaging at least 2 a month at the moment……
Scott
Pelican Investments
http://www.pelican-invest.comWe have purchased a lot more than 30 in the last 12 months all most of which we have wrapped but surely it isn’t about the mere numbers.
The quality of the property acquired or the strength of the wrappee you have onsold the property to should be one of the most important criteria.
Cheers Richard
richard at fhog.com.au
http://www.fhog.com.auThere is no such thing as a problem.
Just a solution waiting to be foundRichard Taylor | Australia's leading private lender
Hi,
16 in the last 12 mths, (not that numbers count), but one of those was a block of 5 units…
It was quite hectic at times! [confused2]
Good luck to all,
Del
What price range on average have you payed for these properties? Or does it vary greatly?
Hi Jaffa,
Ours did vary quite a bit, with a couple of expensive ones, but apart from them, most of the others were around the $40-$60K price range.
Del
Del,
I have to say your strategy is working remarkably well! Are you buying in Australia still, Del? Any plans to dump the aussie market, or are you still finding suitable (obviously CF+) properties here?
kay henry
Hi Kay,
We have a commercial property – a chemist shop, (one of the expensive ones, I was talking about) that settles on 30th June.
It cost $250K, and will give +ve cashflow of over $13K pa, with all outgoings paid by tenant. It is in regional Victoria.
Apart from that we have just bought (2 wks ago) a property in Hervey Bay QLD on 10 acres. It has a large 4br home, as well as a SC Unit on the property. The unit is rented currently at $120pw, and the house will rent around $240pw. We are putting in a larger than normal deposit on this one, to make it pos. cashflow, and in 18 months time, we are moving up there to live!!! [specool]
We are so excited about the seachange, it will be hard to wait the 18 months. We have business committments with our asparagus farm until then.[glum]
We are selling a couple of properties at the moment in Victoria that we have owned over 12 months, to cash in on the capital gains. Who knows what will happen with prices in the next year or so, so we figure, take the cash and put it into the Hervey Bay deal and other new ones.
We have about 10 in NZ now. Was 11 but we sold one last month. Bought for $20,500, sold for $43,000 7 months later… Got to love NZ. [smiling]
Have a good day Kay,
Del
Thanks Del :o) But now you have me in incessant questioning mode
OK- question is… they say there is no CGT in NZ, but Jenman was saying the other night on TV that there is CGT for aussies- and if the money made to buy the IP originated in Australia, and not NZ. So for the IP you sold, you made about 23k. Did you have to pay CGT on that money @ 100% rate? (as per aussie rule of selling IP’s in less than a year), and were the exit costs great? Just wondering if you felt it worthwhile to sell the IP (you must have or you wouldn’t have done it [hair2] I’m just thinking that the CG was great (over 100%) but by selling, you would have lost some of that CG to all of the costs involved in selling.kay henry
Hi again Kay,
We have set up a NZ resident Trust Structure. We have seeked various opinions and advice from tax professionals, solicitors etc in NZ and Australia. I will say that it is all too complex for little me to fully comprehend. [blush2]
I will tell you after our tax is completed, whether we have to pay CGT, but I don’t think so!
If we do, I am still happy to sell that one, as the profit on it paid for the deposits on the last 3 that I bought last month.
Don’t believe everything that Jenman tells you. He makes it seem that if you make a profit from investing in RE, that you are committing a crime.[evil4]
Any profit that comes along is a good profit to me. I do consider the tax issues, but I don’t let that stop us from buying or selling.
Del [biggrin]
As many of you have stated, numbers aren’t everything. I have purchased only 3x properties over the last 12 months but they are all new 4×2 brick houses in QLD and one is being built as we speak.
I used existing equity and got the bank to lend me all of the money I needed (2x I.O. loan, + 1x construction loan). I will only be paying about $40pw total from my own pocket once my latest house is tenanted. Two years of rental increases and they should be CFN.
I have already built up massive equity and don’t have any maintenance hassles. The houses are all in major city areas with high rental demand and good returns. So sometimes it can pay to go for quality not just quantity.
I would like to go for a CFP property now but my loan servicability is low because my wife has just started maternity leave and we’ve lost an income. Any hints on who may throw some investment money my way? Otherwise I will continue my investment strategy when my wife returns to part time work.
Why not consider a wrap deal.
Cheers Richard
richard at fhog.com.au
http://www.fhog.com.auThere is no such thing as a problem.
Just a solution waiting to be foundRichard Taylor | Australia's leading private lender
OK- question is… they say there is no CGT in NZ, but Jenman was saying the other night on TV that there is CGT for aussies- and if the money made to buy the IP originated in Australia, and not NZ. So for the IP you sold, you made about 23k. Did you have to pay CGT on that money @ 100% rate? (as per aussie rule of selling IP’s in less than a year), and were the exit costs great? Just wondering if you felt it worthwhile to sell the IP (you must have or you wouldn’t have done it [hair2] I’m just thinking that the CG was great (over 100%) but by selling, you would have lost some of that CG to all of the costs involved in selling.
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