So...what are you doing right now???

[hobo-jo]

As for right now, i'm waiting for next year to roll around, hoping to pick myself up two IPs in the next year, wondering if it can be done on $26k p.a, we will soon see, got plenty of hard work ahead of me!

That's would be a pretty ballsy move given that we still don't know how this GFC is going to play out. I was reading in a previous post that you are moving to Melbourne as well? So you are going to move to Melbourne on your own, start a new job and buy two investment properties on $26k?

I'll say this,

Make sure the decisions being made are your own and you aren't being influenced by your parents. I know that the gains I saw my parents make on property over the 1999-2003 period were part of the driver for my purchase in 2006, now thinking independently I decided to sell (but still do not regret buying at the time).

Consider that we are in the largest financial crisis since the Great Depression and very few current investors (including your parents) have invested in housing during such a period.

Goodluck!

 

[grossreal]

hi
couple of things and michael mentioned it before
the poll is designed to ask if you are buying but does not say are you developing
big difference.
the new thing that has started and will go into the new year and well beyond is developing using smsf and thats what I am doing right now.
planting the smsf seeds for a crop in the future.
the developing market is on its knees at the moment and the superfunds are over flowing with cash.
for those out there if you are running standard super funds and not smsf, then look again they can be very usefull if designed and set right.
these are syndicates of smsf so not a single smsf going into a developments
but a group set for long term holds
the super funds add to the income in the first instance until they are neutral or positive and then start all over again
the aim is that the syndicate will do one each 5 years.
with 2 years construction over 100 units then thats 3 years between projects per syndicate.
banks like the concepts of these deals as they see the cash flow but also the backing of a smsf not one but a group.
the land is bought outright so its not encumbent and the smsf buy at completion at cost so the margin is already in the assett.
from a funder point of view 75% is sold when funding starts and the other 25% is sold into the market but only to smsf and those are setup by the group
and adds to the next deal so the base grows.
no websites, no advertising min cost out lay.
the group is setup of smsf's that wish to buy into a market area and when enough smsf wish an area then that area is marketed or if a property comes up then it goes out to different groups.
these are not investments they are straight out purchases but deposit money up front.
same 25 to 30% development margins are required
but at 30% margin will just get 70% of the site to be sold down up front.
they work very well
fixed price build contracts, set price at the end and full management.

this is a very interest quote
Consider that we are in the largest financial crisis since the Great Depression and very few current investors (including your parents) have invested in housing during such a period.
my question is simple why not
the answer to me is simple
alot of people just do not understand. when is the best time to buy gold when its the cheapest price.
the price of anything goes up and down but the best time to buy anything is when it is at the bottom.
now people may say that you are crazy to buy in this market
but for me you are crazy to buy at the top of a cycle not at the bottom
when things are rosy then people say its a good time to buy
because everyone is buying
durr thats not the best time the best time was 2 years before when it was the bottom of the market. or when it cycles down.
is it the best time now.
have not got a clue because it depends where you buy.
but the largest financial crisis if thats not a good time to buy if you have the cash or a funder that will fund you I don't know what is.
the january sales are on soon
working on the statement above the best time to buy in the january sales is around march
as the price will well and truly be back to normal by then
you could buy in feb but just to make sure you don't get the odd bargain march is the safest.
they call it investing for a very good reason
you aim to make a capital or income growth.
well the bottom for me is a very good place to start if you want an increase
...---,, add at will

 

[RumpledElf]

Purchase - 118k Rent 210
Purchase - 130k Rent 230
Purchase - 140k Rent 180

This is reasonable. I can point to a few that are:

For sale for - 105k Rent 140 (this is the one we want to buy lol - needs minor work)
For sale for - 220k Rent 250
For sale for - 130k Rent 250 (needs work)
For sale for - 65k Rent 180 (needs work)
And a recent one sold for 118k that could have rented for 240.

They're out there. What we intend to build next year would rent for 280 (we'll be living in it though) and will cost us just over 100k, but our loan will be much lower than that.

 

[RumpledElf]

That's would be a pretty ballsy move given that we still don't know how this GFC is going to play out. I was reading in a previous post that you are moving to Melbourne as well? So you are going to move to Melbourne on your own, start a new job and buy two investment properties on $26k?

My personal income is not much above that - household is higher of course - and we intend to both build and buy a house next year. But we will have a $100k cash deposit plus $100k magic equity fairy invisible money and only need $200k to buy/build two houses. $100k is quite manageable debt with $8k or so of rent coming in - adjust figures to suit if we can't get the house we have our eye on, there are others in a very similar price/rent range. The rent on my old house alone almost covers the payments for a $100k debt. I'd be very happy with a debt around the $100k mark for 3 properties with $14k rental income. If all 3 were rented it would jump to $28k but you gotta live somewhere ...

Lil Skater's problem(s) is going to be lack of deposit, high living expenses, and the biggie - lack of cheap houses to buy.

 

[Lil Skater]

That's would be a pretty ballsy move given that we still don't know how this GFC is going to play out. I was reading in a previous post that you are moving to Melbourne as well? So you are going to move to Melbourne on your own, start a new job and buy two investment properties on $26k?

I'll say this,

Make sure the decisions being made are your own and you aren't being influenced by your parents.

I don't care about GFC, never will, it doesn't concern me.

And i've got balls, if i didn't i wouldn't be here, as for parental influence, they are the ones saying to me "goodluck", they don't think it can be done, and i'm going to show them that i can.

Plus $26k is the base, doesn't include any sales i make, bonuses etc. But yes, these aren't guarrenteed, yes, but what i've done is worked out my finances after tax, and i've overestimated costs of food, utilities etc. So any extra money i make, i'm planning to put straight towards the houses, and i also plan on getting a second job.

And yes, RE, i'm sure they will be my biggest problems, but we'll see how i go, i know it's a matter of sink or swim.

 

[hobo-jo]

I don't care about GFC, never will, it doesn't concern me.

It should. If you are looking to become a serious investor then the environment which can affect interest rates, employment, credit availability and many other housing market influences then you should read up on it...if on the other hand you're just looking to throw some money at property and hope it does well then I guess like you said it doesn't concern you.

i know it's a matter of sink or swim.

Or you can learn to float first, then start swimming. If you take on a manageable challenge and are well prepared then you will be better position to grow from there.

Moving out of home for the first time (?) to a new city, new job (first out of HS?) and aiming for 2 houses on $26k (+ bonuses) in the first year seems like madness, unless you are targeting very cheap housing. I guess it all really comes down to the amount you're looking to borrow...

Sorry didn't mean to take the thread offtopic, what is everyone else doing?

 

[Lil Skater]

It should. If you are looking to become a serious investor then the environment which can affect interest rates, employment, credit availability and many other housing market influences then you should read up on it...if on the other hand you're just looking to throw some money at property and hope it does well then I guess like you said it doesn't concern you.

I'll worry about that when the time comes..

Or you can learn to float first, then start swimming. If you take on a manageable challenge and are well prepared then you will be better position to grow from there.

Moving out of home for the first time (?) to a new city, new job (first out of HS?) and aiming for 2 houses on $26k (+ bonuses) in the first year seems like madness, unless you are targeting very cheap housing. I guess it all really comes down to the amount you're looking to borrow...

Sorry didn't mean to take the thread offtopic, what is everyone else doing?

I don't mean to get defensive, but when it comes to what i see (which i'm sure you don't mean) people saying it can't be done, i'm stubborn. I don't care if people think i'm mad, i may be young but i've been through and seen a lot.

I'm going to do what i believe I can do, i'm not going to let people limit me, and i'm going to work hard so that my low income won't limit me either. I believe it's more about the mindset and the limitations you put in yourself, not about what you have in the first place. I think that anyone can get to where they want to be, if they commit themselves and believe in theirselves. There is never a reason to be begging on the street, because of the country we live in Centrelink supports them, and this is enough to buy a decent work outfit to go to interviews, anyone can be who they want to be, first they need to realise it and look optimisticly and not let anyone stand in their way.

If i want to own two IPs when i'm 19, that's what i'll do, that's what i'll achieve, and anyone that doubts it can be done, can stand back and watch me prove them wrong.

 

[hobo-jo]

If i want to own two IPs when i'm 19, that's what i'll do, that's what i'll achieve, and anyone that doubts it can be done, can stand back and watch me prove them wrong.

I'm definitely not saying it can't be done, I'm saying question whether you should do it.

You're saying that you have a goal that relates to having a certain number of IPs by X age, why not instead say I want to have X net worth by X age? That way you can utilise multiple investment vehicles to get there. But hey I guess we all learn from our own experiences, maybe 5 years down the track I will look back and now was a good time to buy resi property, I just can't see that being the case given the global and local factors.

 

[skater]

So you are going to move to Melbourne on your own, start a new job and buy two investment properties on $26k?


Make sure the decisions being made are your own and you aren't being influenced by your parents.

Obviously you have not met my headstrong daughter. Tell her something is impossible and she will go out of her way to prove she can do it. So, keep telling her it can't be done. In fact....EVERYONE.....All at once, tell her she can't do it.

I have had NO input into this whatsoever. Personally I feel she may be a little ambitious to think that she could get two, but one is certainly do-able. I won't say that she can't do it, because I know she is capable of great things, but there are many unknowns out there in this great big world for a young girl starting out without the support of her family living close by. Time will tell, of course. The biggest hurdle is going to be the living expenses, which she would not have if she was living at home.

 

[Lil Skater]

I'm definitely not saying it can't be done, I'm saying question whether you should do it.

You're saying that you have a goal that relates to having a certain number of IPs by X age, why not instead say I want to have X net worth by X age? That way you can utilise multiple investment vehicles to get there. But hey I guess we all learn from our own experiences, maybe 5 years down the track I will look back and now was a good time to buy resi property, I just can't see that being the case given the global and local factors.

I think i should.

I have over a year and a half to get 2 IPs and still be 19, so i think it is quite doable, and also i never said i plan on forking out heaps and buy inner city properties.

But i'll let you know in a years time..

 

[sash]

Well....it can be done....just bought in Albury city 3 months ago...here are the numbers:

Paid 122.5K

deposit - $6125
legals - $1000
LMI - $2200
Stamps - $2800
Renos - $6500

So to get into the deal ti cost me $18,625.00.

The property is now rented for $225pw or 9.6% of the original price or 8.7% of costs other than the deposit as these are sunk costs. Loan was fixed at 5.6%.

So....it is possible....

I am liking these regional deals ....because they cost me nothing ....infact they are putting about $40pw in my pocket....and they also give me a 20-30K CG.

I think i should.

I have over a year and a half to get 2 IPs and still be 19, so i think it is quite doable, and also i never said i plan on forking out heaps and buy inner city properties.

But i'll let you know in a years time..

 

[Lil Skater]

Well....it can be done....just bought in Albury city 3 months ago...here are the numbers:

Paid 122.5K

deposit - $6125
legals - $1000
LMI - $2200
Stamps - $2800
Renos - $6500

So to get into the deal ti cost me $18,625.00.

The property is now rented for $225pw or 9.6% of the original price or 8.7% of costs other than the deposit as these are sunk costs. Loan was fixed at 5.6%.

So....it is possible....

I am liking these regional deals ....because they cost me nothing ....infact they are putting about $40pw in my pocket....and they also give me a 20-30K CG.

Thankyou, and i can afford that! Good return too, at some stage i'll probably look where my parents have a few, but i'll see how i'm feeling at the time..

 

[craigb]

Thats f ing funny , mind the chard is keeping things humerous, i just posted my x-mass message i hope folks read it and they pick up some pointers. cheers luv ya's,

 

[HandyAndy888]

A lot of people are uping the rent...maybe I should too...have to check market...

 

[grossreal]

hi all
couple of things living at home does not stop you get life experience it can do they other in that you get the assistance you need to move forward.
people need help not to get started thats easy
but to get over the problems.
to deal with body corps, tennants and these types of issues
for me the best way is to let the problems happen
let the fester if need be
even let the person have the issues of worry
and then show how to deal with it and show how to deal with it fast.
we have people that have no idea even how to paint a unit
why
because it not in the hsc.
they are going into the work force for one reason
to work.
and then you have investors that know how to invest and they can be very separate and alot of people can't or don't have the connection with each other.
its a problem since time began.
for me if you are not getting that assistance go and find it
boards like this are a good start but so are investment clubs and syndicates.
if you think you can't do it
well I can tell you that you won't do it.
you will always find a way not to do some thing.
if you plan to fail you will succeed in failing
why
its the simplest and shortest path.
do not think for one minute age is a disadvantage its a plus.
if you are 70 you have a wealth or experience (every time some one dies a libary of information goes with them)
if 35 you have a wealth of income or have the experience and time to add the rest and you have lot of time to do it
if you are 18
you are eager to learn you have fresh knowledge from school and you have all the time in the world to achieve what you want and you have a huge planet to do it in.
and all of the above the ten dollar note has the same value it does not change value because you are in a time slot.
I deal with a 55 bankers the same as 28 year old
why
because its not age its knowledge that shows the difference.
1 thing I will tell you is you need to read 30mins aday in some thing that will advance you forward in life
do this and this will give you that experience.
and if you want to succeed the best way is surround yourself with people that are that one or two rungs in front of you in the ladder of life
success breeds success
dought or negativity does the same just its easier to surround your self with negative people
why
because the majority are negative
get 10 random people in a room and 6 will be negative 1 will have no idea two positive
and you
sit next to the two or take them to the pub and get out of that room quick smart.
take the no idea person with you because he could be trained.
I don't like good luck because you make your own luck
good or bad.
the real investor is the one that can take the ups and downs, win or lose,understand what to do and fixes or solves there problems as they come up and fix them fast
(take time or go slow and the thing does not go away it just takes longer to fix).
sees what others don't see and grab a hold of it.
and then waits for the rest to catch up and grabs something else.
I hope you all the best and remember there is nothing you can do that can't be fixed unless you jump out of a plane without your shute and then just hope you are above water and start to pray

 

[RumpledElf]

You're saying that you have a goal that relates to having a certain number of IPs by X age, why not instead say I want to have X net worth by X age? That way you can utilise multiple investment vehicles to get there.

I prefer my goal - enough passive income to live off and a paid off PPoR within the next 2-3 years. Plenty of ways to get there, my partner is a lazy (and fragile) bugger so renovation isn't the best way, houses are just too expensive to buy to rent out for very little gain, but building new houses to sell or rent is pretty cheap, very high profit margin and doesn't need as much hands-on work as renovating so I know where we're going Can certainly put some of the spoils into those other investment vehicles you speak of.

Right now, I'm ogling the 3 blocks for sale down the road. If they're still there when we sell our current house (which is quite likely), they're looking mighty tempting.

 

[HomeBuyAU]

"wondering why people start silly polls. " as there is no option if we are doing something else.

 

[HandyAndy888]

"wondering why people start silly polls. " as there is no option if we are doing something else.

And that's when you comment on what you are doing...

 

[Reality Cheque]

Selling.

IP on the market and another block of land going on the market in the new year.

Need to free up some cash so as to move forward. Will be looking at doing some small developments/ subdivisions for the next 5 years or so. I'm taking a punt that it will be more profitable than holding what I have.

RC

 

[MelbGal]

Recently sold a moderately performing IP to fund a PPOR upgrade..

Due to other committments this year, not planning to buy another IP this calendar year.

Still keeping an eye on the market.