Easiest way to make $1,000,000 from property

I like DIY. I have a lot of power tools, I like using them and I'm good at it. My job requires me to think fast, compile a lot of information and work to tight deadlines. It's very mentally intensive and mentally taxing.

It's great to spend afternoons and weekends doing manual tasks at a reno or build. Although I don't love painting, I am good at it and love the transformation it makes.

I don't love weeding either but I do like how a well maintained garden looks.

 

Wish I knew you prior, needed someone like you in Perth for a minor cosmetic Reno on one IP(change kitchen cupboard, vinyl make over new flooring other that bedroom and carpets, painting, some landscaping, and general sprucing up..) prior to selling.
Luckily one of our old contractors moved from SYD to Perth so was able to help hence he coordinated all labour and too was paid.

 

Where is Russia in all of those statistics......not even present?
Interesting would be to see how this data was obtained?

 

But I like them......and I want them....

 

Here's a classic example of the misleading USA numbers . This is being promoted as a 20% + yield. But look closer. P/Price is $80,500USD. Say 83K USD when all is said and done with closing costs etc.

Rent is quoted as $1350 USD per month, or $16,200 USD per annum. That's a GROSS yield of 20%, before any expenses have been taken out or any taxes have been taken out.

OK, lets try and look at this is the most generous possible way . Let's go absolutely banana's and say there are no expenses whatsoever associated with running this propertyr; no property management, no insurances, no maintenance costs or anything else. And there are also no vacancies. Just a utopian property investment. Tenanted by perfect tenants, year round. The only expenses are taxes. US State taxes, US federal taxes and then Australian taxes ( minus the US federal tax offset - NOT the state taxes ) when the money is repatriated.

So for someone on a 37% MTR in AUS, paying even 4% state taxes in the USA means an effective tax rate of 41%.

So $16,200 x 41% = $6642 in taxes. That leaves a NET income of $9958.
$9958 represents a return of 12% against 83K ... and that's if there are ZERO expenses and ZERO vacancies.

Now lets get real. Add in management, insurances, maintenance etc, and you'll be doing well to net 6 - 7K from your 83K . 8% NET returns. Still a good return , but nothing closely resembling 20%.

Add in some vacancies and it gets down to 5K or less.... real quick. 6% net, or less.

Add in some vacancies and some repair issues ....

I dont need to own 20 of them to do the math. I dont need to own 1 of them to do the math. I just need to know the math!

One day. someone dealing in US property will stop fudging the numbers and come out and tell the truth. One day.

You are not going to make a fortune buying this sort of US stock... not unless it comes from big growth. YUUUUGE growth. Cos the cash flow isnt what the sellers and promoters say. Not even close.

 

What can I say.....Foolish investors using the wrong BA, not doing the homework

I achieved financial freedom by investing in US property. My only regret is I did not buy more

I can not achieve same returns in Oz and I am playing in rising markets in US

Now I am sourcing finance.... no brainer.... USD


Happy days

 

Do you consider whether stock market is over priced today??
No idea, just thinking is it same as property dont want to buy at peak? Easiest way to lose money

 

I consider many things to be overpriced, I also assume in the future what looks expensive today will be a bargain looking back.
I'll be honest, my main aim is increasing passive income and I see stocks the better investment for that at present.
I've also mentioned on many occasions that I buy to never sell, if I buy at peak won't matter as I won't be looking to sell.
Moving ahead a couple of years, I'll be looking to develop and sell property so timing will be more important then. For now whilst accumulating I think trick is consistency and focus on NET yields and growing dividends

 

yes and no.
depends.. a2m and ballamy or in the us netflix and tesla look expesnive ? there will be an arguement that its very very expensive.

do apple and amazon look cheap or here locally csl and coh ?? some people might argue its cheap.

kinda depends on the company.

 

If this sells for good price at auction, I think it would be a great project:
11 BROOK STREET Coogee NSW 2034 - House for Sale #127892274 - realestate.com.au
Probably needs to be sold, under NSW Trustee and Guardian, bought just in April 2017 for $2,225K but now range indicates $1,9M to $2,2M. Could be converted perhaps to 2nd storey with front access carport, or just renovated into 3 Bed or even 4 Bed...
Apparantly great deals can be found every week if we look around for them.....? Median is $2,5M for 3 Bed and $3M for 4 Bed.

 

Hey @Gockie, what's the app you're using for these price info?

Thanks

 

I think the easiest way would be to inherit a property in a good location in Sydney ( think waterfront).
Probably occurs more than we realise.

 

That's not making a million in property, that's being given a million. Might as well say win lotto, buy property before a boom then wait till it doubles in value.

 

Agreed. But I bet those that are fortunate enough to have this happen say that they've made it.

 

I think people who had been handed a home in Sydney (perhaps paid for by wealthy parents or via inheritance) generally wouldn't say they earned the equity as they acknowledge that:

* The majority of people in Sydney face a HUGE struggle to buy a property, to buy even a small apartment as your first home using your own savings is quite an achievement for anybody.

* To be given a house means you avoid all the ongoing monthly mortgage repayments that most home buyers have. This is huge. Normally homes take 8-30 years to pay off.
Imagine not having to commit to that!

To not acknowledge being given a huge leg up is an insult to everybody.

Nor would I feel that they would say they "made it" in terms of making wise decisions in property purchasing either. They have been handed a silver platter.

If it was me, I'd take the house as a blessing, (acknowledge that I didn't earn it) and then with the saved mortgage repayments invest it with the aim of early retirement freedom. Let that money make me money.

That's the RP Data Pro app, to use it requires a paid monthly subscription though.

 

u wont retire.. u will just keep trying to earn more.. people are funny like that.. haha

 

Maybe take good long holiday breaks then or cut back a day.... I am lucky in that I enjoy what I do.....

 

haha thats more possible, funny how human psychology works... people who are succesfull always want to retire..but cant stop working and its the same thing that makes them successfull that is stopping them from retiring.

 

It is interesting, I have a relo who really needs to work for financial reasons. Me, I have no issues getting a job and while I think taking a sabbatical would be awesome, I just haven't done it because I keep working! Nuts....

 

Not everyone that is successful wants to retire, sometimes they work for the challenge of another deal...not for money!