My Property Investment Journey - Week by Week

Discussion in 'Investor Stories & Showcase' started by Jose Eduardo Slompo, 29th Mar, 2017.

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  1. Big Will

    Big Will Well-Known Member

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    I was in the same boat but about 12 months ago we started looking and it was Melbourne maybe Brisbane by the end it was more Brisbane than Melbourne as the market was hot.

    I think we did very well with less than 700k for a fully reno house 10km from CBD on 1600m2 about 500m to the train station. Comparing to Melbourne value where we would only get 500-600m2 and would be more than 700k and not renovated.

    If looking in Brisbane I would be focusing along the train lines as these would typically be always in demand due to access to the city. I personally spent more time focusing on the Beenleigh line due to Brisbane, Sunnybank & Gold Coast being all on the same line... This is also where I purchased and was rent in about 2 weeks after settlement/appointing a PM.
     
  2. Jose Eduardo Slompo

    Jose Eduardo Slompo Well-Known Member

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    Glad to see you did well, @Big Will. I'm quite confident that Brisbane is a good place to buy, especially for those focused on the long-term rather than speculating. Thanks a lot for the advice regarding the Beenleigh line, it does make a lot of sense and I'll definitely look into that.
     
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  3. Jose Eduardo Slompo

    Jose Eduardo Slompo Well-Known Member

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    Week 10: 29/5/17 to 3/6/17

    Learnings this week:
    - A few more points on why buying in an Owner-Occupier suburb is good: high income earners are willing to pay a premium for the location and won't sell their homes when there's an economic downturn, which means the suburb prices don't fall (or at least not too much)
    - The importance of having a proactive accountant (not just one that you sit with once a year)
    - As a subscriber of the daily emails from propertyupdate.com.au (even if you hate Michael Yardney, I strongly recommend you subscribe - there's a lot to learn in those daily emails), two things caught my attention in info he sent out this week:
    - The importance of quality vs quantity (i.e. 3 good properties are much better than 10 ****** ones)
    - The sins of learner landlords:
    - Don't become emotional. Maybe it needs some minor refurbishments or doesn't meet my lifestyle, but if it's perfect for the demographics of the location, go for it. Go neutral for colors.
    - Minor renos help both with capital growth and rental returns. Don't ignore them.
    - Maintenance while rented is key - makes it easier to re-let in case your tenant leaves you
    - Don't become friends with the tenants - they might become lazy with payments etc. Always keep it professional, i.e. via property manager.
    - Good Property Managers conduct regular reviews on the rent value. They know the market and are best placed to determine the rent value.

    This week I'll start my next step. I've been reading and learning a lot, I know my borrowing capacity and I got my broker ready to go, so now it's time I start getting in contact with a few buyer's agents in Brisbane to get things really in motion. Watch out for news. :)
     
  4. TreeGrove

    TreeGrove Active Member

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    Hey Jose, I enjoy reading your updates :) I am completely new to investing, so following your process is helping heaps! keep up the good work and good luck
     
  5. Piston_Broke

    Piston_Broke Well-Known Member

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    People like Yardney are commentators.
    They talk and comment about it after it happened and then, find causation that suits their narrative and turn it into a sales pitch.
    Previously for his building co. now for his books in his case.
    He used to post on SS forum, not much of use other "it's always the right time to buy" and pay him to be an "arm chair developer".

    The word "quality" means nothing unless it is quantified.
    And i can find plenty examples of what many deemed not quality (and places Pentanol thinks only bogans live) that have far exceeded what most would call "quality".

    Anyways, all the best.
     
  6. Invest_noob

    Invest_noob Well-Known Member

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    Went to one of his seminars in Sydney, every sentence he said was a massive build up to a sales pitch.
    M.Y: 'raise your hand, who wants to build wealth through property' -people raise hand
    M.Y: 'raise your hand, who is ready to be committed to this' -people raise hand
    M.Y: 'raise your hand, who is going to sign up to my mentorship programme' -no one raises hand
    M.Y: 'Ohh so no one is committed?'
    LOL!
     
  7. Anthony Brew

    Anthony Brew Well-Known Member

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    Are you able to elaborate on this?
     
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  8. Jose Eduardo Slompo

    Jose Eduardo Slompo Well-Known Member

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    Thanks for following the thread, I'm glad to know it's useful. Hopefully there will be some exciting news in a few months time. :)
     
  9. Jose Eduardo Slompo

    Jose Eduardo Slompo Well-Known Member

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    @Piston_Broke @Invest_noob Definitely agree that he's a salesman more than anything. What I did make very clear in my post, though, is that the daily posts from his blog are a good source of learning - not only about property, but also about economy, investment strategy and life mindset. There's about 5 daily posts from different authors (sometimes him, but most of the time not). I recommend you subscribe to it and have a read with an open mind, even if you hate him. That was my point. :)
     
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  10. Jose Eduardo Slompo

    Jose Eduardo Slompo Well-Known Member

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    @Anthony Brew A renovated kitchen can simultaneously increase the value of the property and of the rent, for example.
     
  11. Luke T

    Luke T Well-Known Member

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    Hi Jose,
    sounds like yr getting closer mate well done!
    Just be careful in the inner ring (some of these guys you are listening to are recommending) -city of Brisbane as there is getting as fair bit of heat in there now but still some deals around.Prices have risen quite strongly over the past couple of years so just use wisdom.Also your cashflow may be very limited .You may be better go a bit further out say 15-20 kms and ill give u a tip go close to the water without direct waterside . You can get something around $500-$550 do a $20-30k reno and still be under the medians of $650K
     
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  12. Jose Eduardo Slompo

    Jose Eduardo Slompo Well-Known Member

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    Thanks a lot for the advice, @Luke T. I don't think I'll get a good house in the inner ring for 500k anyway (that's my ceiling), and apartments are out of the equation for now, given the oversupply, which means I'll definitely need to move further.

    Question: when you say close to the water, do you mean the ocean or the river?
     
  13. Luke T

    Luke T Well-Known Member

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    as close to the eastern coastline as you can
     
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  14. josh76

    josh76 Well-Known Member

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    Hi Jose,

    Awesome thread. Every post has been interesting to read and I look forward to seeing you purchase your first property. I have learnt so much from everybody on this thread.

    Totally agree with the propertyupdate subscription. Some very good info in them emails, I just filter out the extra ones that come along about Metropole. As with the mention of seminars as well, most seminars I have been to (mostly business seminars) end in a sales pitch. But I find that the information before the sales pitch can be very good and educational.

    Look forward to your further updates and learning more as you progress

    Are you referring to Wynnum/Capalaba/Redland bay areas? I haven't yet done any research on this side of town but will be interested to have a look.
     
  15. Jose Eduardo Slompo

    Jose Eduardo Slompo Well-Known Member

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    Tks @Luke T!

    Glad to know you are enjoying the thread, @josh76! And yeah, I see the Michael Yardney emails the same way as you mentioned: it's like a free business seminar, in which you can learn a lot and simply say "no" when they offer their product in the end. :)
     
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  16. merylyn

    merylyn New Member

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    I work in property management and people invest for different reasons, i suppose you should ask yourself is this for short or long term gain?
     
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  17. Jose Eduardo Slompo

    Jose Eduardo Slompo Well-Known Member

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    Definitely long term, @merylyn. I'm not in this to speculate or try to time the market - much to the contrary, I want to buy thinking about the long term (20+ years).
     
  18. splatters

    splatters Well-Known Member

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    jose is the slight edge an audio book do you know? i have bought so many books and have so little time to read them! but podcasts in the car are awesome
     
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  19. Anthony Brew

    Anthony Brew Well-Known Member

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    The crux of it is - do a little bit consistently every day, and it accumulates.

    eg don't buy a car so that you have to walk 10 minutes to the train station twice a day. the effort is "slight", but gives your health a massive edge over someone who does not do it, provided you do it consistently over 40 years of working life.

    eg. put aside just 10% of your income (and invest it in something with average returns). the investment is slight, but gives you a massive return over not doing it.

    similarly with everything else - small habits, with consistency, are a slight amount of work at any one time, but give you an almost unfathomable edge over the long term.

    I'll PM you my bank account for the cost of time saved in reading it.
     
    Last edited: 12th Jun, 2017
  20. splatters

    splatters Well-Known Member

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    great thanks!! few hours saved then. haha
     
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