[DazzlingMember@dazzlingJoin Date: 2005Post Count: 1,150]

June 6, 2008 - 6:38 am

Scamp wrote:

I'm glad you're doing so well Nucopia, you're one of the first people who actually have a POSITIVE geared property investment. Actually, you're the second one that ever posted he had a positive geared investment instead of a negative geared one. It's good to hear at least someone did their maths.

Unfortunately , for every positive geared, there are 500 negative geared ones. So until that is solved, we're still in for big trouble.

Nah, you're wrong there as well.  There's plenty of people out here in the investing world who earn a decent positive income from property……it's just that, unlike some people, we don't carry on like a pork chop about it.

[DazzlingMember@dazzlingJoin Date: 2005Post Count: 1,150]

January 27, 2008 - 12:46 pm

Bugger all at the moment.  Just purchased – probably – my last property and just bedding that down before trying this LOE for a lark.  Our annual expenses, with 3 kids just about to head into private school amounts to far less than 1% of our portfolio, so I reckon we can reasonably expect the portfolio to grow by this every year.  Happy days really.

Of course, 3 years ago when Foundation and I joined this forum it wasn't so comfy.  I chose the positive and active approach to property.  Forget the research and theory……just get out there and do the deals, right ??.  He chose the opposite.  I suppose both time and method have a way of magnifying the philosophy that you choose. 

[DazzlingMember@dazzlingJoin Date: 2005Post Count: 1,150]

January 23, 2008 - 5:47 am

Scored 135…..that is years…not days.

Looks like my unborn grandkids and even their children can now retire.

But what's the point….may as well keep doing what I'm doing.

[DazzlingMember@dazzlingJoin Date: 2005Post Count: 1,150]

October 21, 2007 - 2:00 pm

Yep, plenty of examples of +CF props in Perth.

We've bought 5 of them in the past 2-1/2 years, but they wouldn't suit you. 

They needed lotsa work, were pretty smelly and snarly, and the existing tenants were not nice at all. 

Furtherest out was 9km from the CBD.  Mostly big land components, mostly big upfront prices, and mostly non-residential, which scares the bejesus out of most people.  All the stuff that the textbooks advise you to avoid.

Where exactly ??  Nah, my hunting grounds are fruitful, and I don't wanna share the spoils.  That'd be too easy on your part.  Where are you searching currently ??

[DazzlingMember@dazzlingJoin Date: 2005Post Count: 1,150]

June 13, 2007 - 6:58 am

foundation wrote:

  "I am beginning to be swayed by your arguments."

Don't be! Follow your own mind.

Anybody who'd listened to my argument 2 or 3 years ago would have missed out on a massive windfall if they'd planned to buy in Perth

Ah Foundation is at it again.  I was one of the fortunate ones on this very forum I suppose who had the pleasure of listening to Foundation's excellently researched and most convincing high level economic theoretical arguments.  Didn't believe a single word of it mind you, but it was most entertaining.  You definitely missed your calling F….you really should of been a lecturer, not a quasi- property investor.  And I suppose you're right in some respects, the assets that the average smo' is investing blindly without thought or reason, and following the herd, TIC would be a fine example of this…..yes, they are likely to have problems in the future.

As for us….since reading your theories in early '05, when you divested yourself of your IP's with the dire predictions as so well detailed above…..well we've magnified our portfolio eight fold.  The wife and I now regularly compete against super funds, large institutions and big companies for properties.  It's been a hoot.  The next 4 years should see us quadruple again….I'll come back and give you a hoy then F to see how your theory has gone against mine.

foundation wrote:

  Follow your own mind, but be mindful not to blinker it by filtering out evidence or argument that doesn't conform to existing beliefs. Take it all in, then spit out the pips. I'd suggest to many propertyinvesting forum members 'it' should include books on finance and economics that don't contain 5/7/10 steps/ecrets/lessons on anything. And of course, any advice that includes predictions of house prices doubling every seven to ten years in perpetuity without qualification is a pip. Pfftooey!

F. [cowboy2]  

That's exactly what I did with your dire predictions and advice, spat it out like a pip and then rolled my sleeves up and got on with the task.  It's been plain sailing now for quite a while.  Wish me (astute and prudent investing)…….not luck.   

[DazzlingMember@dazzlingJoin Date: 2005Post Count: 1,150]

May 28, 2007 - 1:00 pm

We used to have these dramas when we bought residential property.  You get over all of the female emotional side of things and eventually you start concentrating on the dollars and treating it like a professional million dollar business that it is.

Being forced to wade through people's private lives to protect your investment, and all of the situations that may occur (couples splitting up, divorce, domestic violence, job loss, ill health, pregnancy, the list goes on and on) which have ramifications for your business model trying to extract the maximum growth and cashflow.  Can you see the massive divide ??  As an investor, you somehow have to bridge the gap between their private lives and tangle of emotions with your bank's mortgage payments.  You're piggy in the middle.  None of these excuses wash with your bank.  It's up to you as an investor to convert the situation to cash.

Short term, going head to head with this female tenant, well honestly, what's the point…..doesn't seem to be too much mileage and cash there really.  You could drag her through the tribunal, or threaten to, for a moral victory I suppose…..but at the cost of an ulcer and 6 months worth of mortgage it's probably not worth it.

Look, at the end of the day, if you are going to invest in these type of assets, then this is the type of accompanying domestic problem is always going to rear it's ugly head.  Their top priority is safety of tenure, reducing their expenses to the minimum and doing the least amount of work around the house as possible.  Your goals are not aligned…..never will be.

My short term suggestion is get the property re-tenanted ASAP…..don't sell.

My long term suggestion is, if you don't want to keep skipping around this merry circus, start purchasing assets that attract business focussed tenants where your goals are similarly aligned.

Above all else, treat the property game we play as a numbers game.  There is no emotion on a XLS.

[DazzlingMember@dazzlingJoin Date: 2005Post Count: 1,150]

May 28, 2007 - 6:28 am

wealth4life.com wrote:

And all those Perth people were warned that booms never last … also medium price too high now and ROI shot out the doors …

Haven't posted for about a year now, but this one caught my eye.

What a fantastic "I told you so" post……absolute poppycock the lot of it.

The Perth market is a tad larger than little ol' residential Ellenbrook and Stratton.

The wise ol' sages from the eastern States should stick to what they know.  We are still experiencing a once in a lifetime surge – wouldn't call it a boom…….and the things that are underpinning and driving it all, the 25 and 30 year mining and oil/gas contracts are all still there – they aren't going anyway in a hurry…..much to the chagrin of the chaps that wish to see Perth market crash and burn.

The clowns from all of the Sydney and Melbourne media outlets (especially the oft quoted doomsayesr from BIS Shrapnel) need to stop writing about these things and actually go out and try investing for a change to find out what it's really all about.

You are all hoping to shoehorn the median residential housing market into some much larger industrial international contracting landscape, and as the experts over East have been finding out – she doesn't quite fit.

The premium residential market is still well and truly buzzing along.  Our PPoR did 44% last year, and I reckon it'll do another 30% this coming year.

The commercial and industrial markets in Perth are zipping along beautifully (over 70% last year) and are projected to do even better next year and well into 2009  !!!  Woohoo.   Not good for the wise ol' sages and their predictions that "We lead the pack, and Perth over there will fall in line with us – just watch them, we've been through it all before."  Unfortunately, Sydney and Melbourne aren't writing too many 25 and 30 yr international contracts of late.   Oh well.

Rents are also going through the roof.  Our Lessees have just been hit with rent reviews ranging from 35% way up to 105%.  About time too – they've been woefully low for far too long.  It's dragged them into the real world for a change.  They may need to cut back on the beers and pizza for a while – oh well – so be it.

ROI is just fine and dandy.  Just about settle on a nice Perth property on Friday.  6.9% nett yield to start with.  With a market review scheduled within 18 months, that should increase to well over 9% nett.  It's on St Georges Terrace right smack bang in the middle of Perth CBD, so expect over 30% cap. growth in the next 12 months. 
 

Good people of this forum, whatever you do, do not believe the naysayers and blockers that are out there.  There are deals everywhere you look, in all states, in all capitals, at all times.  Get your finance sorted and get your hunting boots on.

Life's great over here in Perth – get after it.  Whatever you do, don't become part of the "I told you so" crowd.

Steps down from aforesaid soapbox.
 

Dazza

  

[DazzlingMember@dazzlingJoin Date: 2005Post Count: 1,150]

March 19, 2007 - 12:21 pm

Originally posted by Scottybe:

I would actually be applying to the bank that has the lease for that loan, interesting!

Nope….not interesting at all….it’s called “conflict of interest”. You can’t ask your financier to support you as the Lessor when they have a major interest as the opposing party to the Lease contract.

I’d be highly surpised if any institution would allow this. Every other financier is fair game, but not the one who is going to be your tenant.

[DazzlingMember@dazzlingJoin Date: 2005Post Count: 1,150]

March 7, 2007 - 3:09 am

F,

I gotta hand it to you for consistency…..you’ve been bangin’ that negative drum of yours for the full two years that you’ve been on this forum as a member.

You have come up with a massive array of thoughtful, well researched data about why the sky is going to fall in. BUT, you have consistently avoided my questions about what you would have or did invest in.

It’s OK to pour cold water on property if you wish, but instead of telling us 10 or 15 reasons why you think property is inevitably headed downwards, tell us 5 or 6 reasons why you WOULD invest in something….and what that something is.

Whilst you’ve been dissuading everyone from property investing, the wife and I have been taking action on a reasonably large scale….to the point where that investing reward from our risk taking endeavours has grown (Bank’s Mortgage Valuations came in last week) by about $ 80K p.w…..every week, for the past 2 years. This has literally set us up for life, and we now compete against super funds and institutions for prime CBD properties.

Keep on encouraging the newbies to be cautious and rent, so that they don’t make the plunge…..but they should know it’s going to cost them a fairly large price to listen to your naysaying.

All I can recommend is do your DD, play your cards smart, grit your teeth, get disciplined and get cracking. Time is ticking.

[DazzlingMember@dazzlingJoin Date: 2005Post Count: 1,150]

January 29, 2007 - 2:27 am

That’s a real shame….SIS was an amazing mind who really shone when it came to investing.

I can remember one of those “young investor” threads, and many many young investors jumped and said things like “Yeah I started at 22 and am 24 now and have 3 properties” and different versions of these. I can distinctly remember SIS wading in saying “I’m 22 and have over 20 properties, having traded alot more”. Talk about cause a sensation, with people jumping all over him for advice and encouragement.

SIS (Still in School) probably had no idea how many people he inspired via his postings.

Just quietly, I am also going through a similar form of depression right now, and have been for quite a few years. Your outwardly appearance and investing success, which is supposed to set you free of life’s hassles, sometimes does the opposite. [guilty]

[DazzlingMember@dazzlingJoin Date: 2005Post Count: 1,150]

January 2, 2007 - 6:10 am

… i asked the support member why he thought the stock represented good value and investment potential.

All he kept saying was that the club has thoroughly researched the property which represented a peace of mind purchasing decission.

Go figure ???

Exactly…..and if you’ve ever had the opportunity to meet one of these highly praised “Club researchers”, you’ll quickly discover that the blind faith placed in these guys is staggering to say the least.

Of the two I’ve personally met, both stood up at the front of the meeting and proudly claimed that they had no formal qualifications, and having been ‘doing this’ for only 3 or 4 years…..but with the Club’s ever so helpful support – everything is OK.

One had 4 properties worth about 900K and another had 5 properties worth 1.2 MM.

How that possibly qualifies them I’ll never know. The wife and I buy individual properties worth 6 or 7 times their entire portfolio and still wouldn’t have the gall to stand up in public and declare they are one of the vaunted “Club researchers”.

Still, if you are coming from a low investing base, these people must appear like demi-gods.

Love the free cup of tea and chocky bickies though – they are excellent for that.

[DazzlingMember@dazzlingJoin Date: 2005Post Count: 1,150]

December 31, 2006 - 2:29 am

First time on here for 2 days…..looks like all of the other Mods / Admin are on holidays as well.

Just spent an hour getting rid of the worst of them.

Please point out any more to me and I’ll get them wiped as well.

[DazzlingMember@dazzlingJoin Date: 2005Post Count: 1,150]

December 28, 2006 - 7:31 am

So really, you aren’t asking what will happen to the Perth market, but more specifically what will happen to your little patch.

This is where ‘most people’ diverge from the successful investors. They all want to know what will happen to the Perth “market”, but unfortunately the “market” is so large that they cannot possibly buy it, and therefore profit from it.

All you can do is profit from the little patch that you have the capacity to buy.

What is going to happen to the following ;

Eden Hill single residential property
Spearwood duplex
Como triplex
Tuart Hill quad
Welshpool industrial plastics complex
Penthouse suite in the Raffles tower
Rockingham vacant block 2 streets back from the beach
Perth CBD office block
North Fremantle container yard
Mandurah spec home
Dalkeith riverfront mansion
Small strata clothing outlet in the Claremont glitzy retail strip
Lesmurdie B&B overlooking the city plain
Banjup 5 acre semi-rural horse stud
Cinema complex in Warwick
Gym in Joondalup

They are all part of the “Perth property market”, but no-one who knew anything about what they were talking about, in their right mind, would ever try and lump all of these different types of properties into one big melting pot and come out with some logical – verifiable conclusion.

What if I told you the Welshpool industrial yard was set to go up by a further 40% this year, the asking price of the penthouse suite in Applecross was likely to drop by 6%, the Tuart Hill quad was going to flatline and the vacant block in Rockingham was going to double in 2 years, whilst the CBD office market was to plunge 35% within 2 years. How on Earth are you meant to gather all of that up and come up with a prediction about what your Eden Hill property is going to do.

IMHO, forget about the “Perth property market”, it’s a complete nonsense to refer to any such beast with so many differing facets controlled by far too many differing factors. It’s fantastic for the young journalists in the West Australian who don’t own any property to sprout off things like “the Perth median has gone up 46%”……but has yours ?? That’s all you really want to know. If you were told the Dalkeith riverfront mansion went up 70% last year, would you really care – does it affect you – yes it does – massively negatively in fact, as it’s got further out of your reach.

Study your very local issues that will influence the growth and squeeze out whatever you can with whatever resources you have available.

Cheers. [suave2]

[DazzlingMember@dazzlingJoin Date: 2005Post Count: 1,150]

December 13, 2006 - 7:20 pm

…..and if you didn’t know this was an Ozzie site, you probably also didn’t know one teensy little rule about the site, and that is that blatant crass advertising and trolling for business is slightly frowned upon.

Have a walk around Irvine if it’s so wealthy…..they’ll no doubt be plenty of people who’ll take you up on your offer.

Happy days. [biggrin]

[DazzlingMember@dazzlingJoin Date: 2005Post Count: 1,150]

December 13, 2006 - 6:56 pm

Yeah mate….

I’m not interested in any of that technical mumbo jumbo or stats or whatever….it’s all double dutch to me.

Alls I wants to know is how do youse guys buy 10 MM bucks worth of really good houses without having any of the hassles…oh…and I don’t want to pay anything either. Giv vus a cuppla those and she’ll be apples mate.

I don’t have a deposit…..but me Monaro mate – ya should see her – she’s a beauty. 10.5 for the 1/4….better than this property lark any day.

See yas. [happy3]

[DazzlingMember@dazzlingJoin Date: 2005Post Count: 1,150]

December 11, 2006 - 5:11 pm

No land component – wouldn’t touch it with a barge pole…

Forget the cashflow side for a minute…..what do you {project / think / believe / guess} it will be worth to you in 10 years time ??

[DazzlingMember@dazzlingJoin Date: 2005Post Count: 1,150]

December 11, 2006 - 4:57 pm

Good on you smiley71…..congratulations on your first IP purchase.

[DazzlingMember@dazzlingJoin Date: 2005Post Count: 1,150]

December 5, 2006 - 9:43 am

I heard they were first worn by the Roman foot soldiers, slogging it out over long marches. Sounds realistic for me to be founded in some form of truth.

It was literally a rag around their necks to wipe both the sweat and dust from their faces and brows as they marched through the parched battlefields.

How it went from there to be worn by posh swanning around business suit types is unknown, but I think it’s original useful purpose has long disappeared. [eh]

[DazzlingMember@dazzlingJoin Date: 2005Post Count: 1,150]

November 30, 2006 - 4:32 am

The wife and I walk past # 20 every morning during our daily constitutional. It’s been permanently knobbled.

It used to be on one title, on the corner and fronting the river. A beautiful 102m frontage to a quiet street, and a 40m frontage to both Jutland Parade and the Swan river. A prime 4,000 sqm block.

Since the river frontage was carved off and sold for two tiny battleaxe blocks, it’s permanently wrecked it. The remaining house on about 2,200 sqm is a shadow of it’s former self, on only half the dirt with two low brick boxes permanently wrecking it’s river views.

Whoever paid 12.3m got royally ripped off. Probably expat Chinese clients of ‘big Willie’, who bought the 15.5m house, mistakenly reported in the attached SMH article as being “high on the hill in Claremont”. In fact that place was on Victoria Ave in Dalkeith also.

The journo’s certainly didn’t do any homework when they wrote that article. Must be Sydney based.

The largest and most expensive house in Perth by far is the monster on the Mosman Park foreshore. Anyone travelling up the Swan river by boat would know what I mean. People offered 42m for it just recently and they were told to go away – not enough.

[DazzlingMember@dazzlingJoin Date: 2005Post Count: 1,150]

November 29, 2006 - 5:09 am

Originally posted by GoldCoastGirl:
[br

So in the end it is the USE of the land that determines its value ??

No, it’s the highest use of the land that determines its value.

There was an old heritage building in the Brisbane CBD district a few years back. It had 3 values. As is, listed and unable to be altered, it was worth about 1.5m. If the council allowed development behind it, but had to keep the facade intact, it was worth ~ 5m. If it was able to be knocked down, the vacant block was worth about 11m.

All the same dirt….but 3 wildly different values, depending on what the highest use of the land the council allowed.

Rarely are owners of freehold titles fully in control of their dirt – much to their dismay.