The rossv Interview

Welcome to the Interview Number Five.

We hope you enjoy hearing this time from rossv………………


Interview with rossv – 17th October 2006

How did you get involved in property?


It was a natural progression from being a carpenter, builder and doing
work for developers and looking and learning ...
It took awhile but eventually I realised that I was doing all the work and they were making all the money... ding*

What is your property investment philosophy (CF, CG, renos, houses, flats, buy and hold, develop, flip, wrap, etc)?


All of the above (except flips and wraps) as long as there’s a profit. Not a fan of ground up developments as they take too long (too much red tape) and i don't buy just to hold.
I have a particular love for blocks of flats.

What is your IP / property story so far?


Story? ... umm bought my 1st in about 1980 but the truth is I only woke up to “wealth creation” about 4-5 years ago. Along the way i have done things like strata titling, convert a pub to luxury units, backpackers, bog standard renos, convert old system title terraces to Torrens title, ummm .. you get the idea if I see something with a profit I buy it.
At the moment I’ve got 3 flats awaiting reno, am full on with a block of 10 (strata and reno) and just bought another small block of 4 (subdivision, strata and reno).
All at the moment outside major cities...can't find anything worth doing in Sydney, but keeping one eye in that direction.
What haven't i done?? I've really got to settle down one day and buy a PPOR!


Is there a story of a really good IP that you would be prepared to share with us?


Nothing that stands out but mostly what I buy is expected to have CG of 100% in about a year.

Is there a story of a really bad (or not so good) IP that you would be prepared to share with us?

Hmmm .... I’ve have had some great tenants....NOT! Nothing i would class as bad, but there have been interesting times .....
http://www.somersoft.com/forums/showthread.php?t=8284

Do you invest in other asset classes (shares, commodities, businesses, managed funds, cash, forex, etc)?

Some shares, managed funds and I’m completely over businesses.

What criteria do you use when selecting a property to purchase?


I live off property so it has to make me money. By that I mean if I buy something, do some “fiddling” with it I would expect to get a minimum ROI of 100% and if its something that is going take a while because of council or because I’m too busy to move on it straight away it must pay for itself, usually at least a 10% yield.

What are the pluses and minuses with low end properties?


Love them! Always made a lot more from “bad” properties as opposed to the so called nice ones that mums and dads go for. Less competition, have greater scope for improvement, simply easier to increase their value.
Downside..... death threats from tenants .. :)

Do you feel you get a worse calibre of tenant overall?

Ermmm .... yes

If a budding property investor asked "what are the top 5 things I should do", you would say?


Umm... think outside the square, don't go hunting for the same as everyone else,
find out what you are good at and target that, Don't fret about borrowing, the difference between $100,000 and $1,000,000 is ... 0
Find a mentor and read, read, read and then just do it!


And if that same budding investor asked "what 5 things should I avoid", you would say?


Negative people,
Average properties
Average people :)
Properties that don't make you money the day you buy them
Ruby ;)


And in a slightly different vein - what would you advise the property investor who maybe has a portfolio of properties, but is at a loss as to how to proceed?

Next 12 months .... pretty flat.
Assuming facing serviceability probs etc, everyone is different but I would sell down, cash up and go out and buy some “real” properties.
They must pay for themselves.
They must have immediate potential
They must make you money


How important do you feel a team of professionals (eg, property manager, broker, accountant etc.) is to a successful investor?

Property managers... I could write a book on the incompetencies of some of these, I avoid them whenever i can.
Good broker, accountant and solicitor are critical.


How much of an advantage profit wise do you think being in the trade has been?

Massive advantage.

Do you have any thoughts on the CF vs CG debate or on the issue of metro vs regional, units vs houses?

CF vs CG ... always buy for both
Metro vs regional ..... buy anywhere as long as its the right price
Units vs houses...... buy anything as long its the right price.


What do you prefer, fixed or floating interest rates and why?

Not important ...


Finally, where do you see the market at the moment and do you think the current environment is making it harder for newer investors than when you started?

I guess it's harder now than it was. I can remember getting 12% type yields in Sydney.
So the market has changed, One must just change with the market.
I remember thinking what I was going to do when the market “stopped” in late '03 but i have been busier than ever since then.


http://www.somersoft.com/forums/showthread.php?p=246138#post246138
 
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