How do you own that many houses??

[Realist]

How do you own that many houses?

One sensible way is to:
Find a mentor to show you how he/she did it.

Yep, find someone who bought a few houses before the property boom.

Do what they did.

Then lose the shirt off your back as houses ease back to fair value.

I'll say it again. Warren Buffet believes that if everyone in America entered a coin toss competition, the eventual winner would write books and hold seminars coaching others how to choose either heads or tails.

And as we all know, they just got lucky.

To have someone with $2M in equity running seminars is laughable after such a strong property boom. As I said that lady on tv can sell all her 71 houses now and probably could not even afford to live in a nice suburb of Sydney.

Ridiculous.

 

[Realist]

Perth investors be warned...

From the SMH today.

http://blogs.smh.com.au/lifestyle/r...s/2007/02/negative_gearing_is_it_worth_3.html

The facts are this: in the 2004-05 tax year, rental investors claimed $3.9 billion in losses, a 50 per cent increase on the previous year. Back in 2001-02, taxpayers were subsiding property investors to the tune of only $600 million. Now that investing in property is an unprofitable business, taxpayers are subsidising the losses to a far greater extent than policymakers probably imagined.

There are no simple answers, but is negative gearing a tax break or tax avoidance?

Does it really keep rental properties affordable, or does it allow investors to bid up property prices so that younger, less wealthy property-aspirants can't get a toehold in the market?

 

[Bronte]

where do you find one of these and how do you go about asking them to be your mentor?

On Foxtel at the moment "Untold Wealth" John Fitzgerald QLD
"Investment Club" Kevin Young QLD & WA
"Investors Club" WA
"Somerset Financial Services" Jan Somers QLD
"Destiny Financial Solutions" Margaret Lomas WA
"Property Wealth / Millionaire" Craig Turnbull WA
"Real Estate Riches" Dolf de Roos NZ
"Rich Dad Poor Dad" Robert T. Kiyosaki USA

There are many many more...
Finding someone local to yourself is preferable.

 

[The Mint Man]

On Foxtel at the moment "Untold Wealth" John Fitzgerald
"Investment Club" Kevin Young QLD & WA
"Investors Club" WA
"Destiny Financial Solutions" Margaret Lomas WA
"Property Wealth / Millionaire" Craig Turnbull WA
"Real Estate Riches" Dolf de Roos NZ
"Rich Dad Poor Dad" Robert T. Kiyosaki USA

There are many many more...
Finding someone local to yourself is preferable.

I think Margaret Lomas lives local to me (central Coast NSW) thats where she started Destiny Financial Solutions I believe.

 

[Bronte]

A great place to start.
She is a very nice lady.

 

[tech/a]

Yep, find someone who bought a few houses before the property boom.

Do what they did.

Then lose the shirt off your back as houses ease back to fair value.

I'll say it again. Warren Buffet believes that if everyone in America entered a coin toss competition, the eventual winner would write books and hold seminars coaching others how to choose either heads or tails.

And as we all know, they just got lucky.

To have someone with $2M in equity running seminars is laughable after such a strong property boom.

Ridiculous.

Seriously you really are the only joke here.

You have yourself completely convinced that there couldnt possibly be any property developers or investors who can make a good $$ in anytime other than the recient boom. Profits are being made before during and now after.
Your the perfect example of doing the samething day in and day out expecting a different result

If theyre not Buffet,maybe Gates,or Branson---theyre not worth listening to.

BUT YOU ARE!!!

As I said that lady on tv can sell all her 71 houses now and probably could not even afford to live in a nice suburb of Sydney.

Says he who couldnt afford one of her houses.

Whats this with Sydney.

Over populated,Over inflated,Self opinionated,Narrow minded,Cess pit of Wanna be's.

 

[Bronte]

On Foxtel at the moment "Untold Wealth" John Fitzgerald QLD
"Investment Club" Kevin Young QLD & WA
"Investors Club" WA
"Somerset Financial Services" Jan Somers QLD
"Destiny Financial Solutions" Margaret Lomas WA
"Property Wealth / Millionaire" Craig Turnbull WA
"Real Estate Riches" Dolf de Roos NZ
"Rich Dad Poor Dad" Robert T. Kiyosaki USA

We are....what you might call "Course Junkies"

 

[hangseng]

Mints got it.

WRAPS

Do not confuse Rent With Option to Buy (RWOB) with WRAPS or Vendor finance.

3 totally different concepts, often confused by those who don't actually understand RWOB.

WRAPS I wouldn't touch with a barge pole and handled poorly can financially ruin both parties. Also illegal in WA and some other states I believe without a finance license. Vendor finance I like, but not for me.

What do I do? RWOB, negative gearing and straight positive cashflow rental where I can.

RWOB can do wonders for both parties, can create positive cashflow done properly, creates a (refundable) deposit for the option purchaser and shared (future) wealth for both parties. I can assure both parties love this concept. Note: this is not providing finance as is done with WRAPS and you must be willing to forego some of the potential capital gain as the investor. This is not a get rich quick scheme but it is an amicable win win situation.

I am doing this after perfecting the concept on paper first for over 3 months and having had it peered reviewed both legally and financially. I am about to finalise one of them with a young couple who were refused finance due to some bad previous decisions they had made. They said have now paid their dues, left this behind them and will be buying this home very shortly (with bank finance). Whereas they would have had no hope for at least another 3 years at which time property would have moved upward again and as they said they were caught outside the cycle unable to get back in. I gave them the leg up they needed and ended up with the best tenants you could have asked for and a guaranteed sale of the home at a nice profit.

The concept is simple...don't get too greedy, be willing to share the captial gain with the purchaser and calculate everything up front to lock in profit. Most of all you must have a binding legal agreement and choose the option purchasers carefully. If you are after huge profits in a short time frame....do something else.

RWOB will be the most utilised concept in years to come and has been used in the USA successfully for decades.

Slow and steady wins the race.

 

[Stan 101]

In 2002 one could still own a house on over 700m2 land less than 40km from the Brisbane cbd for 46k. I did and sold on the first upswing that made it worthwhile to me. If people were to have held those properties, their equity would be sky high right now.
To me wraps are not on an even playing field, but I do see their adavntages to people who otherwise couldn't get finance.
I have a different methodology, that is definately flawed. I get in early, make a nice profit and then on sell then go find the next one. I pay more tax than I ever need to. But I give someone else the bite of the cherry.
I may be a fool, but to my reasoning partially exonerates me from my love / hate pf capitalist views. And I suppose I'm really just a gambler in a sense, just not the standard way.

The person who mentioned China will have a field day if they have a strong resolve... That would be fun to be a part of. Please start a new thread if you decide to go ahead with it. I'll add my experiences with other asian markets I've bought in..

cheers,

 

[Kimosabi]

I'm not touching Property until sanity returns to the market, I suspect this will occur when +10% Interest Rates rear it's ugly head.

And on another point, who says owning your own house is the Australian Dream. With current housing prices and many people up to their necks in debt, owning property could quite easily become the Australian Nightmare.

The thing that sickens me most is that feeling that if you don't buy now, your going to miss out, so people wind up buying into an over priced market, which continues the prices going up cycle.

At some point they will run out of people to lend money to, and then the **** will really hit the fan.

 

[Flying Fish]

What is
RWOB

 

[wayneL]

What is
RWOB

Rent With Option to Buy

AKA Lease Option

 

[tech/a]

The thing that sickens me most is that feeling that if you don't buy now, your going to miss out, so people wind up buying into an over priced market, which continues the prices going up cycle.

And this wont change regardless of what we "expect".
In the long term the will be no better time than now!

In 1963 my father placed an offer on a 46 square home at $29,000.
The builders stood firm for $30,000. So he missed out.
The last time I saw that home sell in 1992 was $580,000.

Ive bought a lot of property both Domestic,Commercial and Industrial.
That $1,000 that my father refused to pay has made his son a great deal of money.

In almost every case negotiation/timing/gearing all were not at "Bargain point." But Ive gone with the deal.

In 78 housing was sooo expensive $30,000 for a first home buyers home.
In 82 interest was 18%---Yes I paid it--yes it cost me 3 properties.
But I held 2.
One an acre Industrial block I had paid $30,000---sold it in 95 for $420k.
The other I still hold.Was it expensive then---you bet---now??--what do you think.

Point Im making is when you get started it WILL HURT.In 10-15 yrs time it will be a feeling of achievements and security.

Dont be Paralysed by FEAR.

 

[Flying Fish]

Anyone tried this? By a grotty unit for a song. live with your druggy noisy neighbours etc. Use this as incentive to spend almost no time at home, but rather work a second job. Pay the dump off in a year. Still live in it buy a second property rent that out. Tenents and you contirubute towards repayments. In about five years house is paid off even at inflated house prices rates etc. Then have two properties house and grotty unit. From there the options are limitless, still live in grotty unit and go for second house using money from teneants of house one + new tenenst in house two to pay off the second house mortgage, also contribute own income to second house repayments.... the mind boggles

 

[Kimosabi]

And this wont change regardless of what we "expect".
In the long term the will be no better time than now!

In 1963 my father placed an offer on a 46 square home at $29,000.
The builders stood firm for $30,000. So he missed out.
The last time I saw that home sell in 1992 was $580,000.

Ive bought a lot of property both Domestic,Commercial and Industrial.
That $1,000 that my father refused to pay has made his son a great deal of money.

In almost every case negotiation/timing/gearing all were not at "Bargain point." But Ive gone with the deal.

In 78 housing was sooo expensive $30,000 for a first home buyers home.
In 82 interest was 18%---Yes I paid it--yes it cost me 3 properties.
But I held 2.
One an acre Industrial block I had paid $30,000---sold it in 95 for $420k.
The other I still hold.Was it expensive then---you bet---now??--what do you think.

Point Im making is when you get started it WILL HURT.In 10-15 yrs time it will be a feeling of achievements and security.

Dont be Paralysed by FEAR.

I'm not paralysed by fear, I'll be buying property when housing affordability comes back to reality.

Effectively, buying through the dips.

 

[tech/a]

Really!

Just post up here when that dip arrives. When its "The right time to buy a house".

Guarentee there will be another reason NOT to buy.
High interest rates, Possible recession/depression. Inflation too high. Combination of them all.

 

[Kimosabi]

Really!

Just post up here when that dip arrives. When its "The right time to buy a house".

Guarentee there will be another reason NOT to buy.
High interest rates, Possible recession/depression. Inflation too high. Combination of them all.

Buggar, you just worked out my BUY signal.

In the meantime, I'm busily squirreling away cash during the boom...

 

[tech/a]

Hahaha.

Well I hope you do.
But will be harder to do then than it is to do now.

For most its never Cheap enough or the right time.

 

[robots]

In the meantime, I'm busily squirreling away cash during the boom...

hello,

at least your getting one thing right kimosabi, but you could be doing both by the sounds of it, with one "investment" capital gains free

thankyou

robots

 

[nizar]

And this wont change regardless of what we "expect".
In the long term the will be no better time than now!

In 1963 my father placed an offer on a 46 square home at $29,000.
The builders stood firm for $30,000. So he missed out.
The last time I saw that home sell in 1992 was $580,000.

Ive bought a lot of property both Domestic,Commercial and Industrial.
That $1,000 that my father refused to pay has made his son a great deal of money.

In almost every case negotiation/timing/gearing all were not at "Bargain point." But Ive gone with the deal.

In 78 housing was sooo expensive $30,000 for a first home buyers home.
In 82 interest was 18%---Yes I paid it--yes it cost me 3 properties.
But I held 2.
One an acre Industrial block I had paid $30,000---sold it in 95 for $420k.
The other I still hold.Was it expensive then---you bet---now??--what do you think.

Point Im making is when you get started it WILL HURT.In 10-15 yrs time it will be a feeling of achievements and security.

Dont be Paralysed by FEAR.

Great post.
The best in this thread hands down.

Property is never cheap, and is never a bargain. But fortune favours the brave.

You only live once - so LIVE - dont just SURVIVE.

Basically there are risks to starting any business, be it trading, property development, or any other business. But its those willing to take those risks that make it big.

You can choose not take such risks, and have an average job, average salary, and have an average life (or in my opinion, half a life).
Its those types of people that in their 50s or 60s look back on life and think, what wouldve happened if tried that idea i had? Imagine if id bought that property or stock instead of just "not taking the risk". If only... IF ONLY...

But those that take (calculated) risks are the ones that succeed and if they dont well at least they wont have any regrets, and they wouldve lived a much more exciting, life, to the fullest. A full life.