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  • Profile photo of NadrobNadrob
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    @nadrob
    Join Date: 2004
    Post Count: 1

    I am looking to invest in Melbourne somewhere. There seems to be no suburbs or towns even close to here where the 11 second rule applies. Steve was buying properties in the late 90’s for under $ 100K with good returns but do such places really still exist? Does anyone have any tips for me? Should I go interstate? For my first investmnet I do not want to try anything DIFFERENT.

    nadine Robbins

    Profile photo of DerekDerek
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    @derek
    Join Date: 2004
    Post Count: 3,544

    Hi Nadine,

    As a broadbrushed statement those properties are very difficult to find (a bit like a needle in a haystack level of difficulty) – and those that meet the less than $100K and 11 sec solution would, in general terms, not be classified as good investments.

    As you rightly point out the market has moved on and more important consideration needs to be given to the all round quality of the investment.

    Derek
    [email protected]

    Property Investment Support Available. Ongoing and never stopping. PM welcome.

    Profile photo of PurpleKissPurpleKiss
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    @purplekiss
    Join Date: 2003
    Post Count: 580

    Nadine,

    You may need to try something different. Can you add value to anything you’ve looked at that will increase the rent so that the property would be +ve cashflow?

    PK

    Profile photo of MonopolyMonopoly
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    @monopoly
    Join Date: 2004
    Post Count: 1,612

    Hey Nadrob,

    Sorry to be the bearer of bad tidings [blush2] but your chances of finding a good investment property anywhere in Melbourne for under 100K is as possible as pigs growing wings and flying south!!!

    If you manage to find ANYTHING remotely worth buying in Victoria, it will more than likely be in a rural country town, somewhere out the back of bourke; miles from nowhere!!! And you certainly won’t be paying less than 100K for it!!!

    Properties <100K still do exist, but not in Vic, however for properties as stated above, although you will need to look interstate, many will be in remote rural country (mining) towns.

    Jo

    Profile photo of GambiniGambini
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    @gambini
    Join Date: 2004
    Post Count: 42

    YOU CAN NEVER MISS THE BOAT
    Someone who also read steve mcnights book said it was shit . Why because they said it was pre boom so i said well if its now post boom than you must look at it as pre boom again
    HAPPY HUNTING

    Profile photo of kpkp
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    @kp
    Join Date: 2004
    Post Count: 509

    OINK! OINK! errrr… which way is south ??

    The book was great but I don’t think you should take it literally…such as trying to find property that conforms to 11 sec rules, etc.

    Surely there is a greater message behind the book…such as developing an investors mindset, and exercising discipline, and getting used to looking at property using the numbers, and taking action.

    If you are limiting your search to specifically Melbourne, then the rule to adopt would have to be forget the 11 sec rule. It will not apply.
    Does not mean that you shouldn’t invest in Melbourne…

    I don’t think the properties mentioned in the book ever referred to Melbourne property, they were all outside capital cities.

    I believe Steve has updated his strategy since then anyway…maybe you could attend his book launch in Oct to get an update …

    KP

    Profile photo of MonopolyMonopoly
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    @monopoly
    Join Date: 2004
    Post Count: 1,612
    Originally posted by Gambini:

    YOU CAN NEVER MISS THE BOAT
    Someone who also read steve mcnights book said it was shit . Why because they said it was pre boom so i said well if its now post boom than you must look at it as pre boom again
    HAPPY HUNTING

    Gambini,

    You know the Melbourne market do you???[blink]

    I never said Steve’s book was good or bad; personally I cannot comment on it either way because I haven’t read it; nor would I knock it simply because it refers to +CF property investing, which has its merits!!!

    HOWEVER….if you believe that Nadrob is able to purchase a “good” investment property in Melbourne (or Victoria for that matter) for less the 100K; then maybe you could point me in the same direction, to the area in question, and I MYSELF will invest there!!!

    I know and LIVE in Melbourne, and it is NOT possible, certainly not within a 150km radius(at least) of the CBD!!!

    Jo

    Profile photo of kerwynkerwyn
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    @kerwyn
    Join Date: 2004
    Post Count: 145

    Hi Nadrob
    I am in an area also that does not come anywhere near Steve’s 11 second rule, but don’t let that stop you. I just changed tactics and looked for houses that needed a bit of attention, not over the top repairs but cosmetic ones. Bargain hard with the re/agents point out all the faults tell them its going to cost heaps to bring up to rental standard, then put in a way below offer. Best to put it in writing with all the faults listed and see what happens. You will get alot of no your an idiot but don’t be put off.
    I ended up with a really nice 3 bed for $20000 under its valued price.
    Spend a little bit fixing it up and you will be surprized that some people are willing to pay more rent to live in a nice home. You know business types who want to make an impression etc. Not only that but you have good equity in the property.[cap]
    Hope this helps.
    Kerwyn

    Profile photo of GambiniGambini
    Member
    @gambini
    Join Date: 2004
    Post Count: 42

    wouldnt hav a clue bout melbourne just know the boat fair is more forget about under 100k
    like i say i hav no clue of victoria but whats horsham like [bonjour]
    my money and time is invested up north

    Profile photo of 1Winner1Winner
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    @1winner
    Join Date: 2004
    Post Count: 477

    Hi Nadine.

    All of the above, plus…

    Something to ponder: Entrepreneurs are by definition inventors, lateral thinkers, innovators, people who brake the rules, go against the trend and against popular wisdom.

    In post ’90ties depression’ era I “discovered” Regional NSW and the fact that I could buy houses for 60-80K and rent them for 150 plus. I had been investing in Sydney as everyone else did, on the mantra of negative gearing for capital gain.

    When I asked my mentors about investing in regional towns they laughed me out the door.
    I felt like a fool while they explained to me how I would “never” have any capital growth and I would just work for the bank.

    When their wise talk did slow me down for a year, I finally had the courage to dismiss their fixation with capital growth and my best performers are now in regional NSW.

    When Steve’s book came out, I did buy it and found it very informative and helpful, but the idea that you could go 2 hours out of Sydney or Melbourne and buy good solid investments was already a thing of the past. An army of investors was then already combing for properties in ever widening circles out major cities and the book only made such army numbers double.

    I remember a few years back when the NSW south coast was a bonanza for cheap holiday places. No one liked the south coast and everything worth mentioning was up north. Suddenly someone started a TV series on the South Coast and I remember commenting that this was the beginning of the stampede, and time to start buying somewhere else.

    Whilst the crowds filled the real estate agency in Merimbula and Huskisson, I turned to Tasmania where there was a lot of bargains for the picking.
    I don’t know how but the rush found it’s way into Tassie and for fear of being run over I returned home to Sydney to relax.

    Cost x 2 / 1000 = rent.
    I am now on the look for something that fits such criteria in Sydney. If I say I found it I would be jumping the gun….. yet I think I did.

    I am negotiating a purchase that if all goes according to plan will work out positive cash flow in the middle of Sydney. Of course it is not a suburban brick veneer 3 bedroom to be rented to a family of 4. That would set me back 4 to 500k and get 250 rent if I am lucky, and no it is not a commercial property.

    I am not at liberty to say much more but must stimulate your thinking juices so that you can invent your own discovery.

    One think I want to ask. Whenever you find your market, PLEASE do not write a book about how to do it.
    I am out of breath from trying to stay ahead of investing “systems” and in Sydney it is so nice and peaceful now that one can even think. Don’t spoil it please [biggrin]

    May God prosper you always.[biggrin]
    Marc

    Profile photo of arborphilearborphile
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    @arborphile
    Join Date: 2004
    Post Count: 11

    I am in the same situation as you Nadine.

    I have found Steve’s book inspiring in that it has opened my mind to look for opportunities that are not always apparent (and made me question the -ve gearing paradigm). However, I am convinced that his story could not be repeated directly in the current market.

    What I am still wondering though is, to continue with your metaphor, whether the boat has gone for good, or is it on a return journey? ie has this boom and increased interest in property investing permanently changed the market so that +cf properties will always be this hard to find? Or is this just the current market status and changes to the variables, (rent, inflation, interest rates, capital appreciation etc) in the future coincide to make +cf more viable?
    Arb

    “I am not young enough to know everything” – Oscar Wilde

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