Advice From Those That Have Been There!, Housing / Real estate Options

[Spudly]

Im trying to find a way to start getting ahead in life, and get somthing behind me, and i beleive the best way to do that is with property..

In my position i am not sure how to go about this though.

I am living and working in the central west, However do not want to buy in this area due to the price of property (ridiculas because of mine) I also do not know how long i will be here.

I do not particularly want to buy somewhere else (Ie coast) because i already pay $800 monthly in rent and paying off a house that im not living in full time seems ridiculas and expensive..

I could buy an investment property, however loos my first home owners / stamp duty dicounts which is like trhowing away $12k..

Any ideas on the best way to approach this and get a start would be greatly appriciated..

[hustler57]

Hey Rum,

before i got involved in security i was in real estate for 4 years, and many of my friends are still in the industry both in this country and overseas,

if you are looking to buy a property but can not afford the high costs that are involved, then maybe you should look at investing in a property over seas,

new zealand seems to be the best area to buy a property outside of Australia at the moment, but if you wish to buy in Australia then look at the city's which are still well priced for example perth and adelaide,

a good friend of mine sold 4 of his investment units in darwin and has well is in the process of buying 2 properties in perth and 1 over in new zealand

[Spudly]

Yea, sounds like to much work overseas.. haha!! But possably a good option..

[Fed]

Get a rich woman.

[poly]

Yea, sounds like to much work overseas.. haha!! But possably a good option..

rum take the tax hit and get started, think about it mate u are talking about your retiment here o.k. u are paying $800 a month big deal average rent here i the city is $350 a WEEK so get off your butt and get it on

[Christos]

This is a very big topic you are asking and each of us will answer from what we know. I have done things that have worked out and I have done things that have not worked out. You can only learn from the mistakes and move on to the next adventure.

I will mention that last year I have read a book that gave some incite to a way of thinking. This book is called The Richest Man in Babylon by George s Clason. It is only about 144 pages and does cover quite a few aspects. I would recommend reading this.

I will mention one thing that stood out clearly for me was to firstly pay yourself. This is better explained in the book but let us think like this. You pay tax x%, you pay rent or mortgage x%, you pay for the general monthly items (Petrol, food, drink, phone, electricity etc) x%, then on entertainment x% and finally save some x%. The book says to pay yourself first 10% and do not use that for general purpose but for investment purpose. Each pay slip you put aside 10% then the rest is used on the stuff that governs our lives.

I only started this last year I put 10% of my wage aside and when I had enough I bought shares. Not risky shares but shares a company that will pay a dividend. This dividend is paid into the share account and earns interest by being there. I am still putting 10% of my wage in this account and still earning interest. Once this builds up again I will buy some shares in a different company. You do not become rich overnight but if things go on like this I should be ok by the time that I retire. There is risk involved in shares and since I am a long term investor I do not care if the shares that I purchased go down and up. Every now and then it is good to keep an eye on them.

Here is something to think about. We in Australia have to put 9% of our wage in super. Do the extra 10% on your own.

Doing this is a way of getting started on a deposit for a house.

Now investing in property is a little more to think about. It is always best to know the area that you are going to buy. Spend some time in this area looking at property and looking at what will be the worst possible rent. How long property will be vacant between tenants.

Investing in anything is always going to require some research. I think that I should say that a little different. It will require a lot of research.

[Jumpus GooDarus]

For Starters !

Get off the Bloody Piss

[Spudly]

For Starters !

Get off the Bloody Piss

NEVER

[Fed]

One thing I will say Rum, it's a lot harder now than it's ever been.

[SUMOFISHIN]

Hi Chad, I have tried buying houses and renting them, I have come to the conclusion that they are a dead loss, too much maintenance and too many renters with bad attitudes and thoughtlessness.

now here is a tip if you can find them:: Mini storage units,, If you purchased a block of mini storage units, a small block will have about 30 they are about the size each of 10ft by20ft NO Maintenance you pay Rates plus agent fees of 7%
the return is between $15 and $25 PW depending on where you buy or build them. they are always in high demand and generally once a customer has one they are generally long term as they do not want to relinquish them even if they are empty because of the low cost,

NOW say you have a small block of 30 at a mininum price of $15 this would return you $450 per week which is $23400 per annum less 7% agents fee of $1638 and rates. Leaving you with a return of about $20000 per year.

Now if you rent out a house it might return $10 to $15 thousand per annum less high residential rates less 7% agents fees and about $5000 per annum repairs if your lucky. leaving you with between $5 and $10 thousand return.

GOOD LUCK

PS: Capital outlay on a block of storage units will be consideably less than Purchase of a House.

This post has been edited by SUMOFISHIN: Dec 9 2007, 03:06 PM

[poly]

sumo how long is it that u priced one of those storage units, here a unit that size is $170 a week and i know that for a fact as possum and i look at them a month or to back to store the boat in. :o :o :o

[SUMOFISHIN]

Poly here in Manilla they are $17 to$19 per week I can get them for $15 and there is four blocks of them around Manilla , they are rarely available.

Poly at that price it would be worth keeping your boat at Manilla.

This post has been edited by SUMOFISHIN: Dec 9 2007, 11:47 PM

[poly]

at that price SUMO, i am keeping it at home.

[Christos]

at that price SUMO, i am keeping it at home.

A very wise choice.

I am going a little off track and I hope you guys do not mind. I was in Mascot coming back from a friends house and heading towards Hillsdale. For some strange reason I turned into a street that I never turn into and towards the middle there were some guys parking a boat into a garage. It was a little bit of a delay but I was not upset. This seem to go into a office block type place garage.

[Fed]

$170 a week for a 10' x 20' storage unit, oh come now.

[kkw]

Fed - a 4m x 5m storage unit at a place close to you (Canterbury) is $450 per month. Check it out. You can't buy stuff for 2 bob any more. The currency has changed. Cash in all you old pound notes.

[Fed]

$170 a week for a 10' x 20' storage unit, oh come now.

[hustler57]

just curious , whats the average price to but a storage unit in sydney ? if i can rent 1 out for $170pw whats the cost in buying 1 ???

[Fed]

You can buy a 1200 square foot factory unit for about $220,000 in Chipping Norton, I just sold one about 6 months ago. That unit would return about $250 per week gross.
That's why I questioned the "$170 a week for a 10' x 20' storage unit" = 200 square feet.