my grand father who never owned a property for many years but rented told me this technique Buy a house and pay it off. Now buy another house and use the rent from house one and house two to pay off house two. Now that house two is paid off use the rent from house one, house two and house three to pay off house three. Now that house three is paid off buy house four and use the rent from houses one,two,three and four to pay off house four you just keep repeating this pattern the first house is the hardest and longest to pay off the 2nd house is a bit easier and quicker to pay off than the 1st house as the number of houses grows the time to pay off each new house reduces
my spin on it when you own a lot of houses buy a negatively geared property to offset rental income
Well I heard one the other day and it goes like this:
Why not buy a block of acerage within driving distance of a capital city that is NOT subdividable.
Prior to purchasing the block seek informal council approval that you would like to ease the Housing Crisis by putting a dozen or more transportable homes on the block and rent them out as a seudo unit complex.
Could end up Trailer Park Trash or could be a real Cash Cow, what do other people think?
mark , i thought that one up 20 years ago and discovered 20 years ago that housing corporations purchased the land earlier and are sitting on it for future sub division for first land and house packages. to the north of melbourne out to at least kilmore.
Hang out at your local nursery home… Make buddies with all the grandmas and read books… even better if you can play a musical instrument.
Tend to their bedside just like their real grandchildren should… Then at one of their most vulnerable moments..
subtly suggest that perhaps you could look after their assets when they are unable.
The best time to do this is generally 15 minutes after they've had their subscription or during a weekday episode of the BOLD.
Ensure that all that "unnecessary" paperwork is dealt with, and enjoy what time is left with your new ageing friend.
These days with hospitals and aged care facilities the way they are… you shouldn't have to wait too long for your ROI and if you want to speed things up a little… just makesure she's visit's the Royal North Shore Hospital.
A little effort now, should make for a brighter future and HEY… the returns should be better than your average Bingo night!!
thats just straight up nasty, just a question for your self, how big are your horns? the way your headed you'll be a defences lawyer very soon.
i must of meet your clan buddy the other day cause he said to me "if you want to get ahead in life, the only way to do it is to take out life insurance on a homeless bum then ran him over and claim!!
i hope they were are both joking and if not, enjoy hell!!!!
but if you want a basic investing stratagy then try mine, find the area you want to invest in then jump on the net and look up the public housing groups that supply housing to unrentables or people with bad rental histroy (don't pay rent or damage the property) and buy a house that they currently rent or a property that they will rent off you once you buy it. (there will be a lot to choose from with the current housing market, one organisation had 600 properties in NSW alone) you should get you normal rental price, or sometimes higher.
now here is how you make it positive geared, because both the rent and any damages are guaranteed under the lease agreement you don't loss out besides basic wear and tear, and because they will do the collecting of the rent and will also organise any repairs needed, basiclly they do every thing a property manager does but at no cost so you are gaining about 5-10% just there. but this is just a short term investment for they will not lease your property for 20 years they will for about 3 years or so, so what you do then is, because the properties are usually of a lower standard you take your positive gains that you made for the prevous years (which should be kept in an off set account and not touched) and do some cosmetic improvments to get CG then move on to your next one.
i bought my first one for as little as $88,000, with a rent of $135/wk paid one month in advance. and the banks love that the rent is guaranteed.
it would have to be the easiest way for a newbie to enter the property market
"DO WHAT YOU CAN, WITH WHAT YOU HAVE, RIGHT WHERE YOU ARE."