Our Last Meeting - Trevor about real estate investment

The Rotary Club of the Philippines has been a source of support to other community service projects. It holds medical and surgical services in the indigenous communities to serve the needy and also offers scholarships to deserving students.

President Jim delivered his report.

 

Ian – any gas?

Mark – couldn’t have done it without Jim

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Trevor introduced us further to Alex and Larena -22 years in real estate

Power PowerPoint not up and running so has to “wing it“

 

Did presentation a couple of years ago.
(I think Trevor may have bought and sold a bit of real estate around the ridges)
Retired 12 years ago, with realestate a big interest

 

Why are you doing it?

For instance capital gain.

 

Example at Harvey Bay rental/fixup/retire

 

Residential is “safer“ If you lose a tenant you will have a cash flow problem maybe for a month.
Commercial is more risky - tenants may take 15 months

 

Invest close to home?
Not for Trevor - he has property all around Australia.

 

Get to know the area first - get a haircut, or go to the pub talk to locals.

 

I’ve thrown a strange picture in my notes here - your guess is as good as mine.

Red and Blue zones maybe

 

For instance - a commercial building built in the 1960s. He bases his offer on a 10 minute walk-through - in bad condition so offer is $70,000 less than the asking -  then if he gets it, he can spend $20,000 fixing it up, and of course the tenant loves you.

 

Be a good landlord. You don’t have to spend a lot.

 

Student unit - one bedroom old $230,000 – now $350,000 and of course over the time you have been accruing 8% in rental

 

Managed funds

 

Finance

Sort your money first then buy unconditionally - you can save up to $50,000

 

Buy on emotion = no
Sell on emotion = yes

 

Look at long-term

 

Tax – residential
Watch out travel is not a deduction, but by a contractor it is.
Watch out when the tax is charged. It is sold when the contract is signed.

 

See an accountant.

Invest as an individual /company/partnership/ trust
Trust is more complicated

 

? Alex Timing  - answer “gut feel“

 

Mark reiterated emotion = no

 

When you hear people talking real estate they never mention the losses.
Yes they do happen.

 

Rules changed when retired

 

Thanks for the talk Trevor.

 

Directors reports

 

Deborah–

 

Mark-

 

Sergeant Richard fined Jim for poor diving – Mark left him on the beach.

Stand in Sergeant required as Richard is away

 

What did the volcano say to his girlfriend?
I lava you

 

You can pick up your shirts at Jax Tyres, Friday morning.

 

Dues due next week.