- episode18Member@episode18Join Date: 2009Post Count: 1
Thanks Adam and Dazzling;
I am the king of procrastination as my wife says or a typical Cancerian apparently they act like a crab going sideways all the time and never going forward. Well its time to ACT and so after reading Steve's new revised edition 0 to 130+ , we are selling one of our rental properties to make better use of "lazy money" we were quite surprised at just how much potential lazy money we have, all things going well. We have applied Dean and Elise Parker's system for renovations and surprised by just how easy it is to turn theory into practice. We stuck to the budget and the valuation came back 3% more than expected it just has sell now and on to the next one.
Adam and Dazzling you hit the nail on the head; get out there turn theory into practice.
Here's a thought… dual occupancy properties.
I just built one for myself. it cost me 410'000 for the house and land package in hillcrest qld, and is going to pull in approximately 6-700 per week, once I move out. I am renting out the second half for 300pw, and when I leave, I should be able to get 350 for my half.
I'm currently in the process of talking to a builder/developer who will be able to get me more of the same. If anyone wants to know more about how to get their hands on one before it hits the market, flick me an email.
I also work for a self managed super company, and if you have any super, I can show you how to buy property using the money in your superfund as a deposit. (Betcha didn't know you could do that, right?)basbogParticipant@basbogJoin Date: 2010Post Count: 58
Well I have just joined so I am able to comment on this topic.
There are heaps of cf+ properties available!
I brought sept last year, with a 13% return. Either those who know stuff don't want others to know, or want $ to tell.
Have a look at Port Hedland, WA
Have a look at Morranbah, QLD
Understand what is going on in these communities, one is coal based the other iron ore. Do not jump without understanding first.
I have a house for sale in Adelaide for $550,000, it returns $1,100 PER WEEK. A normal house costs me $100 a week to own for costs like rates, insurance, maintenance etc. This one cost 300p/w, so you do the numbers.
I am an investor only and I make my living from property, I do not develop or renovate, just buy houses.
Maybe this sort of thing has been said before, I couldn't read all 16 pages. Hope it sparks some intereststinga59Member@stinga59Join Date: 2010Post Count: 1mumofthree wrote:hello, "…cosy 2-3 bedroom home walking distance to CBD, all in original condition, a little tlc and you have yourself a good rental property. Rental expectation is $130 per week, rates approx $900 p.a. … $65,000 " Is this a good invsetment in terms of fitting the 11 second solution? And a CF+ Deal? Would anyone purchase such a place for investment? How much deposit would YOU place and how much would YOU budget for a reno? Just curious…
Sounds good to me! Wondering what the mid to long term growth would be in the area. At that price it sounds like a small rural location. Is it on the up or, like many rural areas, losing population.
Does it have capital infrastructure ear-marked for it. Is government or the private sector investing in the area?
I'm new to this forum, but there is some great stuff in here. Thankyou to all contributors.
We are personally on the verge of embarking on a 10 year investment strategy so we can enjoy our retirement.
There are some incredibly intuitive minds out there with incredible knowledge – use them up, I say.
Best of luck everyone.
I'll be checking in here regularly.
Yes dead right Ben,
Anywhere where you can get more than one income stream from the one purchase/piece of land you have a far better chance of being able to achieve higher yields and positive cashflow.
In fact in my portfolio, i only have one single tenancy property (3 bed house) all the rest are either houses with minor dwellings, or even better still, my personal favorite – blocks of units/flats, 4 x 2 beds, 10 x 1 beds, 11 x etc.
The beauty with these is when you increase the rent by $30 per week, over all 10 units in the block it equates to an annual rental increase of $15,600, try and do that with one 3 bed house!
Of course a block of units doesnt get valued the same way as a home. But it gets valued on Cap rate (Capitalisation of the rental income) the same as a commercial property does.
So assuming a yield/cap rate of 7.5%, by raising the rents by $30 pw over 10 units you have also increased the value of that property by a massive $208,000.
You can see how this can get quite exciting very quickly, particully when you buy a block of units that is currently under-rented, and all you do is lift the rents to market rate and get a whopping increase in cashflow and gain in value.
I hope i have made some of you think beyond the stand alone house
Further to my post above about blocks of units.
Dont be put off by thinking "Thats alright for you, but i wont be able to afford to buy a whole block of units"
My very first multi unit deal was a block of 4 x 2 bedroomed units in Rotorua NZ, that i purchased for $225,000 all up back in 2002.
I bought them sight unseen. In fact i was living in the south Island at the time, and i owned them for 1 year before i eventually visited them. – I still own them today.
Stinga59, let's get in touch. I'm all about setting people up for a better retirement, through ten year property deals, using cashflow positive property, and buying with your super! Send me an email, we should talk.minichickParticipant@minichickJoin Date: 2009Post Count: 54
Buy my ppor will rent back at 7% for 12months on buying price looking for 350kMPSMember@mpsJoin Date: 2010Post Count: 19
Hi there, Check out our website – http://www.multiplepropertyservices.com.au.
We don't tell you what we think you should do nor do we try to sell you house and land packages, off the plan apartments, books, CDs etc!
We work with you – and your own circumstances to help you achieve the goals and dreams you have, using property as the vehicle! We provide ONE ON ONE coaching – not sitting in a room with 100s of others and only giving you half of the story/skills etc.. We work out your goals and objectives, the timeframe you want to acheive it in and then start working through structures, finance, different strategies, asset protection etc.
I too have many postively geared properties – some stand alone tenancy, some dual occupancy, some units.. I have and also assisted my clients through property reno's/flips, add value – buy and holds, options, developments (I just helped one of my clients through their first development which is going to provide them a minimum return of over $300,000!)
We have also done JV's between clients as well. We also have experience in buying property through their self managed super funds..
There is no wrong strategy or venture you just need to ensure that you are fully informed and aware of the pros and cons of each – continually referring back to your goals to ensure that each step or decision you make gets you closer to achieving your goals! Its also beneficial to have someone there to call upon to help, support and motivate you to make your dreams a reality!
Would be happy to catch up if you would like to discuss further, you can email me at [email protected]
Take care and best wishes on your property journey!ksherwell10Member@ksherwell10Join Date: 2010Post Count: 8
How would you feel if the bank of your choice paid you for your business to them? and you got to deal directly with that bank for the whole loan process.
Money for Jam gives 75% of the referral monies back to the client. That's $300 per $100k loan
Check it outSailesh CMember@sailesh-cJoin Date: 2005Post Count: 62
Dual occupancy will help you earn extra income. We can help you build a 3 bedroom house with a self contained granny flat for around $210k (220 sqm) turn key in the Brisbane area.
Do some research and see if this will work for you. I believe it will help you improve your cashflow.Ryan McLeanParticipant@ryan-mcleanJoin Date: 2010Post Count: 547
You can use a positive cashflow property finding service like CashflowInvestor.com.au
It is getting harder and harder to find positive cashflow properties these days, so to have a team of people working to find them for you is a great idea.
I don’t like property brokers as usually there is an upfront fee of at least $500 and then you can to pay them about 2% of top of the purchase price, which on a $400,000 property can be like $8,000. The site above isn’t a broker, its a subscription finder service. Hope some of you will find it useful.hewlett25Member@hewlett25Join Date: 2009Post Count: 15
Ive bought in tas.
The fed govt has opened up some great opportunities in Tassie and the entry level is cheap starting from $240k.
I paid $440k for 2x 2 bed duplex (brand new) which has gross return of $1,070 pw and govt guarntees portion of rent for 10 years!!
For $240k I can buy a 2 bed home that has gross return of $539 pw again with fed govt guarantee for 10 years for portion of rent
Not many people know hobart has highest ave capital growth growth for past decade of all capital cities averages 14% pa!!!!
Im currently putting together syndicate to buy 40x 1 bed units in retirement village for $200k ea that will return $575 per week!!GavrossMember@gavrossJoin Date: 2010Post Count: 4
I am a newbie, I have just finished the book 0 – 130 properties. I just need to confirm my own thinking. I own a property in Townsville, bought in late 2003 and lived in as primary residence (defence family move every 2 yrs). Current conservative value of $350k I owe $120k, with gov paying $120 of the interest for me a month. The property is currently rented at $330 a week. My thoughts are before I embark on my real estate empire is to use equity to renovate (approx $30k) so I can increase rent and value of property and push me into +CF territory as at the moment as the property costs approx $5000 a year (maybe I have set aside to much for maint, managers and all other costs). I already have a guaranteed passive income of $55k (CPI indexed). I would like to increase this substantively so my wife can retire and we can maintain our same standard of living (medical issues life is short, need to enjoy life a lot more before I no longer can). As I already have this passive income this will be my full time job / hobby. I would just like opinions on wether to focus on this current property first whilst I learn the ins and outs of full time property investment and forming our own family property business.
THank you all forumites for your wisdom
GavrossbasbogParticipant@basbogJoin Date: 2010Post Count: 58
Don't understand, if you owe 120k @7% = 8,400 P/A + 5,000 in costs =13,400 costs. Rental income 17,160 + interest payment from gov 1,440p/a = 18,600 income. Is it not cf+ already.
As well you equity should give you a lot more than 30k if you owe 120k and the value is 350k, should be around 180k
BarryGavross wrote:G'Day All, I am a newbie, I have just finished the book 0 – 130 properties. I just need to confirm my own thinking. I own a property in Townsville, bought in late 2003 and lived in as primary residence (defence family move every 2 yrs). Current conservative value of $350k I owe $120k, with gov paying $120 of the interest for me a month. The property is currently rented at $330 a week. My thoughts are before I embark on my real estate empire is to use equity to renovate (approx $30k) so I can increase rent and value of property and push me into +CF territory as at the moment as the property costs approx $5000 a year (maybe I have set aside to much for maint, managers and all other costs). I already have a guaranteed passive income of $55k (CPI indexed). I would like to increase this substantively so my wife can retire and we can maintain our same standard of living (medical issues life is short, need to enjoy life a lot more before I no longer can). As I already have this passive income this will be my full time job / hobby. I would just like opinions on wether to focus on this current property first whilst I learn the ins and outs of full time property investment and forming our own family property business. THank you all forumites for your wisdom Gavross
Feel free to contact me, i am happy to have a consult with you free of charge to get you on the right track.
Clint.Don NicolussiParticipant@donJoin Date: 2005Post Count: 1,086
Gavross – if you are buying from OZ at the moment I am told that you will need to put in a 30% deposit on investment property purchases in NZ. There were a few NZ brokers on this forum years ago but I don't know if any stop by now.
Also, one tip I have found extremely valuable over the years is to compare the rents on offer to market rents. NZ is great for free stats so you will easily be able to find statistics for market rents for lower to upper quartile rents published.raresaturnMember@raresaturnJoin Date: 2010Post Count: 15
Hi, you could try searching on PropertyKeyword.com. Just type in "corner block" for instance, and it will find all properties across the major sites with that description. Some of my favorite keywords to search for are disused, abandoned, and former. You can find some really interesting properties this way.jack1234Member@jack1234Join Date: 2004Post Count: 22
I have not read all the 16 pages – so could be repeating.
I am about to give an example of a client who purchases only CF+ properties and at any given time he has 100 + such deals available to choose from. His formule is simple –
"Buy residential and convert to commercial usage"
The method is very simple, all one has to do is visit any council and get a plan of the city – close to the town centre – there is always an area which is marked for commercial usage – but is currently being used as residential. And one of them is available for sale. When any purchaser looks at the property, they look at a residential property, but not my client – he either sees it as an office, restaurant, retail outlet or some other commercial usage.
Before purchasing, he then visits all the local real estate agents and talks to them – most agents will not give you quality time – so he offers $100 for their one hour – most decline – some take it – but all give him the quality time he is after. Once he has a collective opinion of atleast 10 agents – he then talks to council office and local architects about converting the usage to commercial.
By this time, he has a fair idea of the expected rent as commercial property. The next thing is find a tenant – this can be hard – but his team of 10 REA help him and give him an idea of holding time – he takes the next step – if the wait is only 6 months of less – that is the time it takes him to lodge the proper DA to convert the usage –
An example of a last purchase is in a small town where he paid $220 – spent another $30K to renovate for a doctor to occupy – believe it or not the doctor is paying him $30,000 + gst as annual rent.
He has 7 other properties, each deal gives him about 3 – 4 % more than what it costs him – as after purchasing he refinances on rental return and removes his capital for the next deal – so each property is 100% financed – his capital of $300k (which has grown from $100K) is still intact with him for his next purchase.
He contributes in his super to reduce his income – Now he purchases property with his super fund.
Should any one want to learn how to purchase property with your self managed super fund – they can visit http://www.trustdeed.com.au/seminar – there is one on 24th March 2010.