Hi start of a New Year I have been reflecting on last year and my unsuccessful year of not purchasing I own 1 PPOR and have 1 investment in the Hunter bought 2010 I swear I must be the biggest procrastinator out there I have been sitting at home this week talking to myself (sounds like I am going mad NOT ) and reflecting on how much time I spend on the Computer looking and looking reading and more reading all the wonderful stories of people moving forward ………. Does anybody else have trouble choosing an area or is it just me.
My education is all self taught I havent spent money on Classes , I have bought the odd report or 2 , I always try to watch Your Money Your Call every week, I read the forums weekly , I buy the property magazines monthly and I still cant move forward with 2nd investment propertyI obviously am to picky This is what I look for purchase between 250K – 320K rental of 6% plus House preferably 5-15 years old neat tidy so I am not having a maintenance issue obviously want some growth in the 5-7 years of owning property
Am I being unrealistic Not asking about where to buy maybe just a few helpful hints
Thanks In AdvanceI bought a place in St Marys <2 months ago in that price range, newly renovated (bathroom kitchen).
Penrith Council is fixing up the area, there are schools, shops, transport, uiversity, hospital, etc. within 2km radius.Off the top of my head the numbers were something like:
6% return on 100% of loan amount (including stamp duty and all associated costs)
6.5% return on 90% of loan amount
Current Cashflow on 90% loan is -$50/week (after paying agent fees, insurances, water, etc.)After some improvements it will be approximately:
7% on 100% of loan amount (including stamp duty and all associated costs)
7.8% on 90% of loan amount
Current Cashflow on 90% loan is +$50 to +$100/week (after paying agent fees, insurances, water, etc.)Granted I could have bought it 10-15k cheaper if I was a better negotiator (lesson learnt – patience is key). A second similar property came up last month, I put an offer in and my bid was 15k under sales price.
Lesson learned: Always keep an eye out for a deal (not online, but on the field) and be patient till the right deal comes along.
lulu1 wrote:I swear I must be the biggest procrastinator out therelooking and looking reading and more reading all the wonderful stories of people moving forward .
I always try to watch Your Money Your Call every week, I read the forums weekly , I buy the property magazines monthly and I still cant move forward with 2nd investment property
I obviously am to picky
Hi Lulu,
I have picked out what I consider were your key revelations.
Seems to me you are overanalysing and trying to get the 'perfect property'
Maybe relax a little, recognise there is no perfect property (coz there will always be a better deal out there somewhere), work out your 'big ticket' items, revisit your goals and objectives, set a deadline and go for it.
Forget reading & viewing all of the information sources you have been. Sit back, make some decisions and have a life.
You odn't say how old you are – but time can erode very quickly if you are not decisive.
PS – not a lot of point coming back in 12 months time and vitually writing the same thing.
Exactly that is why I want to do something about my over analyzing everything I spread my wings to far and i look at NSW then i will go SA then I will go looking in QLD. I do not even realise I am doing it I just sat back this week after a big night of searching on the internet ended up with nothing this is what I did for the whole of 2011 and I do not want the same for 2012.I am 54 and really want to get some investments under my belt would like to buy a few each year and then maybe sell down a few in 5-7 years and put the money I gain onto a couple I keep hopefully this will give me a income better than the pension
I have spent today looking at some on the internet today but the numbers came back a negative 1 was 100 dollars a week the other was about 50 a week in the red I want something better than those returns so its back to looking sad to say but i average at least 2-3 hours per night doing the stuff I do. I am over it need to get on track have a plan and stick to it . Surely I am not the only one having this problem
All suggestions are appreciatedHi Lulu,
No you are not alone, I do the same and jump all over the place. I get an idea in my head and then do the figures and then someone will mention something else and I get all confused, should I buy here or there etc etc
I know its hard but you just sometimes have to go with what you think is best at the time.Remember sometimes the worst thing to do is nothing at all.
Maybe a buyers agent otr similar.
If you are going down this line – work out you rmust haves and get them to do the job for you.
Maybe a buyers agent otr similar.
If you are going down this line – work out you rmust haves and get them to do the job for you.
Derek wrote:Maybe a buyers agent otr similar.If you are going down this line – work out you rmust haves and get them to do the job for you.
Yep, that's what I'm doing for the next IP. I don't have the time or energy to search around.
With the BA, I can provide a description of what I'm looking for and leave it in their hands.
They're not cheap – but given the time saving and access to deals that may have not hit the market, I think it's money well spent.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Seems like you've got yourself in 'analysis paralysis'!
Get out of it this year!
If I were you, I'd have my criteria, and if I find properties that fit that criteria, I would then buy from that smaller list.
You just need to decide and take action!
You already have properties under your belti agree with a lot of what everyone has said. sometimes you just have to bite the bullet and go for it. make sure you do your due diligence and are comfortable with your decision but don't over analyse things. there are always going to be better deals out there, we can't win them all but we can make informed, decisive choices.
there's some tips on on my blog about how to find a good investment location and also how to create a check list so that you can work out exactly what you're looking for – http://www.mypropertyjourney.com
Hello lulu1
You are definitely suffering from ANALYSIS, PARALYSIS. You know what that mean, right??????
For those aren't familiar with the term, it means The term "analysis paralysis" or "paralysis of analysis" refers to over-analyzing (or over-thinking) a situation, so that a decision or action is never taken, in effect paralyzing the outcome…..NEVER ACHIEVE ANYTHING.
Investing in real estate is not rocket science but you are making it….DON'T!!! You've anylysed a lot of properties by now, make an inteligent decision base from the facts, then go with your gut feeling. Otherwise, if you continue on what you're doing, you will get more of the same….looping……….analysis paralysis
Good luckCheers
Everybody is right of course last year I talked . researched spent time and got nowhere This week I told myself I was not going top waste another year so been to the bank today get pre approval said we were in good position so will know Monday how much we have access to . Also spoke to accountant as I really had no idea where the calculation of depreciation sat as far as in the figures so now I know that then I got side tracked as an agent I have spoken to for a while told me about a house in a mining town in QLD silly me I was considering yeah yeah should buy it rang Hubby told him about it I think he agreed cause he is probably sick of me looking and getting nothing .anyway I realised that this house was heaps more than what I wanted to spend 400K rent was minimum 800 per week but the downside was that it may not be tenanted all year DEC the Companys close and no one needs houses for maybe 2=3 months also no big shopping centres about an hour away from major town anyway at the end of the day I realised it was to a high a risk .?????
So the good thing is the banks organised , spoke to accountant . Now I have decided that I will be happy to spend 250K – 330K looking for w a rent return of maybe 300 – 380 per week. Happy to buy anywhere in Australia so tomoz I will look at the back of the latest property magazines maybe look at the Hotspotting site see if I can get a hint or two . What I find hard is what you read and then when you go checking out the suburb the info is not always correct often the rents are not what is written frustrating
Anyway new day again will try to keep moving forward
I truly appreciate all comments they are actually pushing me to be more focused
Thanks
hey lulu! Well done – inspirational that you actually TOOK SOME ACTION! and have been updating us. Keep the updates going.
It'd be awesome if one of your upcoming posts is of buying a property! then we'll realllyy celebrate.
You must be logged in to reply to this topic. If you don't have an account, you can register here.
