- PeterElstonMember@peterelstonJoin Date: 2002Post Count: 0
I AM NEW TO THIS FORUM FIRST TIME EVER BUT I AM A VERY BUSY PERSON OF LATE AND JUST DONT HAVE TIME TO FIND POSITIVE GEARED PROPERTIES.
CAN ANYONE HELP ME AS TO SOME QUICK WAYS OF FINDING THESE PROPERTIES SO I CAN START TO INVEST TOO.
PETEADParticipant@adJoin Date: 2002Post Count: 636
Welcome. I have found that the best way to Leverage my time is to use the Internet. So many individuak websites for Real Estate agents and then the genreic ones like http://www.realestate.com.au or property.com.au. Unfortunately starting out takes time as I am finding but it is time well spent when you bump across the first property.
Hope this Helps
In your case it may be best to team up with someone looking to make a quick dollar and say to them that if they source a deal and you buy it then you’ll offer $$$$$.
This is known as ‘bird-dogging’.
Feel free to make this kind of offer here on the forum – provided you spell out the exact nature of your offer and your specifications for the property you are looking for.
AD is right though… your only other option is to pound the streets, Internet etc. looking for deals as they don’t drop from the sky and land in your lap.
Steve McKnightdr houseParticipant@dr-houseJoin Date: 2001Post Count: 281
You can also try leaving details with the real estate agents in the areas you are interested in and let them know what you are looking for or ring them up periodically. Unfortunately, looking for property
is a time consuming exercise, but the right property is definitely worth while.darrenbMember@darrenbJoin Date: 2002Post Count: 71EKfourMember@ekfourJoin Date: 2002Post Count: 35
Hmmm… interesting Darren! Mind sharing with us which regions you look in? How do you guys start targeting an area anyway? I was looking at a “pretty” picture of a $42k house just yesterday & was trying to find out as much as possible about the area- until I found out that the population is 300 people, the bus runs once a WEEK, there are no ATMs etc etc…
Being a newbie, my strategy is to look in country areas with low purchase price, & then start researching the area. Not the fastest way, but if anyone has any suggestions I’d appreciate it! EricKendallMember@erickendallJoin Date: 2002Post Count: 1
We just recently purchased our first wrap property in the Latrobe Valley area. Positive cash flow properties are in abundance down there. In fact we looked at a couple of others on Saturday that just came onto the market late Thursday night. Both are in Morwell and are ex housing commission. The first property was a 2 bedder that needed a fair amount of plaster work along with floor coverings. The hardwood floors had been patched up, but not in a very cosmetic appealing way. It had new wiring, concrete stumps and new aluminium windows throughout. New spouting would be needed. Structurally it seemed OK. Asking price was $36,000. I offered $28,000 but got knocked back. No counter offer. Seems the vendor is firm on his asking price. FMV would be around $33,000 (in my opinion)
The second property was also a 2 bedder, but in better cosmetic condition due to renovation work the vendor has been doing. It’s probably around 80% complete. Asking price on this one is $40,000. FMV I’d say.
Andrew; I respect your comments and suggestions regarding surfing the net for properties, but from what I’ve found over the last few months properties listed on the net are either:-
1. sold already.
3. are “problem” properties.
I guess market forces are at play here (as always). It’s a sellers market at the moment as I’m sure everyone here is well aware. It seems good property deals aren’t out there in the market place long enough for the agents to go to the trouble of listing them on the web or in their standard publications for that matter. It seems most agents (in Latrobe Valley anyway) have lists of investors that they immediately call when a property fitting the criteria comes onto the market. After all, the agent is after a quick sale without the hassle of marketing.
Regina; I tried this approach initially. Ie. Just leaving my name, contact details and property criteria, but I soon learnt that to have the deals come to me, one needs to have some runs on the board, so to speak. There seems to be plenty of tyre kickers out there, so agents seem reluctant to follow up general enquiries. They just don’t need to in the current market!!!
As Darren mentioned, there are good positive cash flow deals happening all the time, far too many for any individual to handle. If anyone is interested, I am willing to do the “bird dogging” thing that Steve mentioned above. I can provide digital pictures along with unbiased descriptions of the properties that fit the criteria. Feel free to call me 0418 174 762, or email [email protected]
PS. Thanks for the forum Steve. Good to see it’s so popular…………….
Thanks for your excellent post and for your helpful comments.
You raise the point about properties in the La Trobe valley and I thought that I share my experience about this area since this is where a number of our investment properties are too.
Dave and I began investing in the La Trobe valley in early 2000 – just before the FHOG came in. I remember on trip down in about March and putting in offers on every property we looked at. It was amazing. Houses listed for $40,000 and our offers of high 20’s and low 30’s were being accepted!
Today two things have changed:
1. The way that we invest. In the early days it was solely about finding properties whereas nowdays we try to focus on having an exit strategy before we buy. This means that we need to focus on finding someone to ‘use’ the property before we buy.
2. The market. A lor of investors have snapped up houses in the Valley under a very simple rule – you couldn’t build a house for anywhere near $40,000 – so a house + land must be a good deal.
To a large extent this is true, but many investors buy these kinds of property feeling they can’t lose… that is until they get a tenant from hell!
Rental management runs at about 8% in the La Trobe valley – and there are a lot of problem tenants. Despite this, vacancy rates are low at about 5%.
My experience the winning way to invest in the La Trobe valley is to not let your greed gland run too rampant. Remember that your cashflow depends on the quality of the person you attract to the property (ie. wrap, lease-option, buy & hold strategies) or alternatively your ability to buy high and sell higher (flip, reno strategy).
Good deals can still be done done there. Wtach out for financiers who will only lend <80% in Moe and Morwell. Traralgon seems to be a much better area and there is certainly infrastructure growing (Officeworks opened in September 2001 and there is a Harvey Norman too).
Finally – good on you for suggesting ‘bird-dogging’. I hope your iniative works out.
(on holiday in Mackay)darrenbMember@darrenbJoin Date: 2002Post Count: 71
I agree with Steve, Traralgon is the best bet for newbie wrappers out there. You will at least find a wrappee who has a job there! Take my advice, if you want a descent wrappee there (or anywhere for that matter), get some hurt money from them.ADParticipant@adJoin Date: 2002Post Count: 636
What do you mead by Hurt money ?
What do you mead by Hurt money ?
I understand “Hurt Money” to be like a deposit. Say for example $1-2K down on a property you are wrapping for $40K. By doing this, you are re-iterating to the party you are wrapping the property to that they have to take some risks as well.
This is my first post on this forum so apologies if this doesn’t seem at all like the other posts. Driving this puppy is a new skill for me.
All the best. Matt
Hello Post Men and Women.
I have a question that relates to the GST.
I found several properties that met the 11-sec. solution (11s/s), and jumped for joy. One thing I forgot however was the GST component. This thenmade these properties not much fun at all.
My questions is, do you include the GST component onto the purchase price (if not included), prior to doing the 11s/s? Or is there a way whereby you (as an investor) can received some type of credit back for the GST payed on properties purchased? Can you do this via a business?
Your comments please.
Why is there GST on your property acquisitions?
Provided that the investment property is residential and built pre 30 June 2000, I’m unsure why there would be GST applicable.
Do you have other advice?
Thanks for the reply. Properties were built prior to 2000. I assumed (you know what they say about assuming!!!) that GST was payable onto these properties after talking with someone close to me who was not as ‘educated’. I have just learnt something very valuable…don’t take advice from people who are not as educated as you are. All they can offer is their OPINION!!! This is free and can also be the most expensive advice one could take. (Perhaps this could be the subject of another article. Get people to write in with stories that have happened to them after they took advice from friends and relatives…)
Man…Thanks Steve. I am now going to call the real estate agent and RE-enquire about these properties.
The topic ‘FINDING POSITIVE GEARED PROPERTIES’ is closed to new replies.