Forum Replies Created
Hi Matthew
I love your street savvy, Matt. My wife & I are developers with an extensive portfolio of our own rentals… we’re moving to Brisbane and have just rented a house which we were very tempted to buy, but looked at the opportunity cost of what we could do with the equity. Usually it’s a no brainer – rent for yourself and use your capital to buy (or in my case build) investment properties because you know how to pick them, but the rents are going up (and I love it!)
Do you mind sharing the basic info re the suburb you bought in and what it would realistically rent for?
Cheers
GregOriginally posted by The Mortgage Adviser:
No point issuing a warning if you do not name the party to look out for!!!G’day MA,
Give Resi a break, okay? You wouldn’t get me naming these guys here without legal advice either.
Resi, two points:
~ Congrats on the Fraud Squad
~ I’m a “bullet point” type of guy.
I like things outlined in summary,
point by point form, like:
* I did this…, then
* They said this…
* etc etcAny chance you can briefly outline the scam for us, point by point, Resi?
Cheers and GO GET ‘EM!!
GregOriginally posted by resiwealth:
The company is a medical imaging company (body scanning and other stuff). Can i give more details on this site????
resiwealthHi Resi
How traumatic for you! What Mongrels!
Were you the victim of a “Boiler Room” strategy, somehow combined with you ringing the advert in Financial Review?
Did they make an unsolicited call to you, or did they swing into action with a smoothe plan after you responded to their advert?
Resi, all regulars here know how good you are at making money, so these mongrels must be very, very super slick indeed to reel you in. Thanks for being good enough to talk about it here, instead of going underground to lick your gaping wounds.
I strongly recommend forumites take out the video “Boiler Room” for a real wake up call about how ruthless some rogue “sharebrokers” are. An awesome, scary movie.
I’d also suggest fellow forumites go to:
http://www.investopedia.com
and search “Boiler Room”It’s an excellent site on technicalities of most investment media /terms. I use it regularly.
Resi, we feel for you. Is there a way your warning can be kept alive here and on Somersoft for longer than a couple of week, where people can PM you for details? These slick scammers will be around for some time, and we need to forewarn investors for as long as we can.
I’m sure you’re pursuing the asic option vigorously. Go get ’em, mate!! If you can’t get your own money back, there’s always revenge by closing them down in this country.
Cheers
GregOriginally posted by easymoney:Hi people, Does anyone here own an IP in the mining town Mount Magnet…. I would also like to know an Internet site for the local council where I could get some facts from.
Hi Easy
Re the council quote, just do a google with keywords:
“mount magnet” shire councilYou have 2 more key searches to do:
1. Search function on this site (under Forum Boards: Search) in top LH corner of this homepage.2. Search on:
http://www.somersoft.com.au
Type “Mount Magnet” into this website’s Search function and you will be BOGGLED with how much specific due diligence has already been done by forumites on both Somersoft and this site.Cheers
GregOriginally posted by jkmt:…I guess I just want to say that education is neither good nor bad, it just ‘is’. What an individual does with it is up to them. Yes, some people will come away from Michael’s workshop and make their million from what was in it. Others won’t make a cent. That’s not about the quality of the education, that’s about the individual, their mindset and their circumstances. Happy investing! Jenny
Hi Jenny
I love your summary about the neutral “is-ness” of seminars. Keep ’em coming.[biggrin][biggrin]
Cheers
GregOriginally posted by nspeed:whats the verdict in investing in these towns? Certainly great rental yields but is it a bit risky given that the towns rely on one industry to support them? n speed
Hi n speed
Great to see you posting. My tip is to use the “Search” function (top LH corner of this page) and type in separate searches with keywords such as:
~ “Mt Isa”
~ “Kalgoorlie” etc etc etc.There are literally hundreds of replies with excellent information in the archives of this forum. I’d also be visiting http://www.somersoft.com.au and doing the same searches there.
I do this as part (only part, mind you) of my “due diligence” searches.
Cheers and Good Luck
Greg
Originally posted by petebell:
P.S. car is a 1990 corolla, and is becoming a liability, dont need a ‘new’ car just a ‘newer’ method of a>b. most recent holiday was honeymoon, 7 years ago, HAPPY WIFE = HAPPY LIFE, must look after this aspect of life, still take the point that these are the things that investing provides, it is one thing to spend the cashflow, just dont spend the capital.)Hi Pete
As a general rule, I follow the maxim: “I don’t buy cars, I buy property!!”
But when I am forced to update, I’m a fan of buying quality cars which get a hiding in the depreciation stakes because of Australia’s fascination with Fords and Holdens (that’s why I buy top of the range Mitsubishis).
I also love my luxuries, so my 2 latest cars are a 1988 Jaguar XJ6 Sovereign, and a 2001 Mitsubishi Verada Xi top of the range Verada (all leather seats, leather draped down the sides of all 4 doors, electric front seat adjustor, electric sunroof, cruise control etc etc).
Some poor guy paid $53,000 in October 2001 out of the showroom, and I picked it up in Feb this year for $16,500 with 145,000kms on the clock. It’s an awesome car, top image, and cheap as chips.
Good luck with your car hunting. By the way, stay away from the Verada Ei; the Xi is a much better fitout, and you won’t pay much more for the extra bit of luxury. Go http://www.carsales.com.au and type in a search under “Dealer” cars
Cheers
GregOriginally posted by surreyhughes19905:
1 bedroom apartments are hard to sell (relatively) because they have a limited market. For this reason you get low capital growth.If you were to look me in the eye and ask “Surrey would you recommend buying this unit?” I would respond “No. I wouldn’t even have looked at it based on my criteria for an investment.”
The reason being that at $360k you can get house + land or a 2 bedroom apartment / townhouse. Anything with land is good. Apartments with 2 bedrooms have greater appeal as both investors and first home buyers will have a look. Also, settling in 2 years means you don’t know what’s going to happen to the market over such a long time and it’s land that apreciates, not the chattels so you’d be hoping the development looks really good. The developer will also tend to whack a premium on the OTP unit and sell it with 2 years to completion and it will go up in value (that’s what they say anyway). Look around the same area. Can you find a similar apartment already constructed selling for the same or less?
That’s my advice. For that money you can get much better investments, particularly if you are looking to keep it for 10 years (buy a house with a stack of land as the apartment will look worse for wear after 10 years).
Hi Daniel
Congrats on your enthusiasm to get into IP’s. You’ve already had a host of great people reply in the negative, and I have to add my voice to theirs. As this is your first IP, I suggest you need a “cooling off period” to do some more rigorous due diligence.
The main reason I wouldn’t buy a 1br unit is it rarely (if ever!!) passes the “Rental Reality” test professional property developers use to inform their purchases.
Start your due diligence by going to http://www.navra.com.au , click “Articles” in the dropdown menu and read every article there. Going to his next Brisbane seminar is strongly recommended, as well (very affordable)
Also, go to http://www.somersoft.com.au enrol as a member, click on the “Search” function in the homepage, type in “Steve Navra” and read all his posts.
It’s a fun, rewarding journey. And remember, you’ve got all the time in the world to buy properties. Take your time, chill out, and READ.[biggrin][biggrin][cigar]
Cheers
GregOriginally posted by dmichie:Seriously dmichie, how many doom and gloom threads do you want to start?There are so many gloomy news stories ATM, I reckon I could post 2 or 3 a day [biggrin]
Hi Folks
Anyone want an antidope to fight doom ‘n gloom? It’s been 20 years or so since I first read the biography of the Cattle King:
“Sidney Kidman – The Forgotten King”
I’ve just re-read it, and what a positive morale boost it makes.Talk about a counter-cyclical, +CF investor!! This Kidman fellow SERIOUSLY invested in the ‘back of beyond”. Bought massive strings of drought ridden properties, and made a squillion with almost every deal. He ended up owning nearly 4% of Australia’s landmass in his awesome chain of cattle properties in some of the worst drought-affected areas this arid country of ours boasts.
The point is this: he had a plan (Steve: “Success comes from doing things differently”). If you wanna know how DIFFERENT his plan was, go to your local library and read the book, even if you’ve gotta get it in on Inter-Library Loan.
The bottom line? Let all the doom and gloomers sit on their hands whilst more experienced operators keep making money.
Here’s the Key Question doom and gloomers need to ask themselves:
“Can you imagine Steve McKnight, Rick Otton, Steve Navra, Michael Yardney, Dale Gatherum-Goss etc etc buying NO PROPERTIES over the next few years?”Cheers
GregOriginally posted by lea:Quote:Originally posted by The Mortgage Adviser:
Okay – so I got online and altered my investment mortgages to interest only. I understand now what you mean about leaving the excess in the offset account. I can use it later. Good point. My original logic was, if I pay off some principal, then it increases my equity (coz house prices aren’t going anywhere here, so I can’t rely on capital growth – yet). But the offset should have the same effect – right?Quote:…LeaHi Leah
Congratulations on your decision to buy, but more significantly on your decision to go Interest Only.
Why? Because apart from the fact that all the seriously rich investors I know on this forum and elsewhere go IO, my main reason is this:
1. Suppose you get to the point in the next 2-3 years where you control a mini empire of +CF properties. Your Gross Worth is $3 million, you owe the bank $2 Million, so your Net Worth is a mere $1 Million
2. You make absolutely no effort to pay down your loans, but keep merrily on your way buying more properties.
3. Suppose it takes 7, 10, 12, or 14 years before we get another “Property Boom” and your portfolio doubles (with no effort on your part). It’s now worth $6 Million, you still owe the original $2 Million, and your Net Worth is a massive $4 Million.Not a bad lurk, don’t you think? And this assumes you buy no more properties in the next decade or so. Like, that’s gonna happen, right? [cap][cap][king][thumbsupanim][thumbsupanim]
Cheers
GregHi Folks
Re suburbs, I prefer Peter Spann’s more scientific approach than the more anecdotal stuff above (it’s fun, though).
Try reading the chapter on Median Rent & Price statistics in Peter Spann’s “How to Build a $10 Million Property Portfolio in 10 Years”. He outlines his 5 year cyclical approach for deciding which specific suburbs to buy in a particular city, at this precise moment in time.
Great stuff. Also go to http://www.matusik.com.au
for his Quarterly Reports.He’s tipping Coolum & Marcoola on Qld’s Sunshine Coast as suburbs with a fair bit of rise still left in them. You’d be amazed at how affordable the median house price is in these suburbs, relative to others so close to Noosa.
Cheers
GregOriginally posted by Aceyducey:Hi all, CRIN’s next meeting is coming up at the Irish Club on Saturday 14 May. As a different approach to the panels we’ve run in the past, we’re holding a debate between two teams of investors to answer the question of which type of investment is best – shares or property. The debate will be followed by a Q&A session to answer audience questions about investing in shares versus investing in properties. Audience participation will be actively encouraged throughout the afternoon.
So come along to have some fun (and a few drinks) with us as we settle once and for all whether shares or property makes the best investment.
Details
Date/Time: Saturday 14 May from 1:30pm
Location: The Irish Club, 6 Parkinson Street, Weston, Canberra Cost: Free
Cheers, AceyduceyHi Acey
And by the way, LOVE your posts on http://www.somersoft.com.au
Makes me kinda wish I was a Canberra-ite so I could attend the CRIN meetings. But then, as I’m sitting on the sand at Noosa Beach this Mother’s Day, still swimming on 8th May, Ill be thinking of that Canberra chill and know I’m doin’ just fine. [biggrin][biggrin]. After the swim, we’ll be heading up to Maleny’s Celtic Tearoom http://www.celtictearoom.com. for a spot of great Irish / Scottish / Medieval /Folk music, dancing, food & frivolity. Life’s tough up here in Sunny Qld.
Have a great meeting, and by the way, wanna post the outcomes of your Great Debate here after the meeting?
Cheers
Greg[biggrin]Hi Damo
Love your determination, and encourage you to keep thinking of Steve McKnight’s advice to “Take Massive Action Immediately”.
HOWEVER, while doing this please reflect on the fact that Steve & Dave kept their jobs as accountants while they built up their “130 Houses in 3.5 years” property empire.
I know many property multi- millionaires who still keep their day jobs which have nothing to do with the property industry.
My wife & I have what we consider to be a modest portfolio of 17 IP’s, and we’re working on our first 30 x 1.5 acre block subdivision. And guess what?…
…To keep growing our portfolio into more SERIOUSLY impressive figures, I still need to keep my job as a schoolteacher.
Happily, I love teaching, and am quite content to keep doing it for another 5-10 years. In fact, we’ve deliberately set ourselves up to just need one more round of this new property cycle to retire very, very comfortably indeed. Will it take 7, 10, 12 or 14 years before the next property boom doubles the gross value of our portfolio? Haven’t got a clue, but one thing’s for sure, it’ll happen sometime, right? And when it does, you’ll hear our whooping YAHOO!! YAHOO!! all the way from sunny Qld.
You’ll get there too, Damo, just like we will. Be patient, and keep thinking outside the square.
Cheers
Greg
PS: Re doing your own renos, I remember my father’s saying: “Manual Labour’s a Spaniard!!” The really serious success stories on this forum and on http://www.somersoft.com.au hardly ever lift a tool on their own projects.I thought the whole concept of LEVERAGING was to use OPM and OPT [biggrin][biggrin][biggrin]
Oh, and by the way, have you read:
~ Peter Spann http://www.freemanfox.com.au
and
~ Steve Navra http://www.navra.com.auStrongly recommended. Don’t do anything until you’ve dived thoroughly into their worlds, okay?
Originally posted by LKGK-88:
Hi greg After listened to your advice I have print out every single article and have file in a special folder. Thanks for the website info. [email protected]Hi Lily
Glad you like the websites & articles. There’s a heck of a lot of reading in there, but it’s crucial you read a fair bit more before you put ink on another contract (without falling victim of “analysis paralysis”)
My tip on Ashmore is to read the chapter in Peter Spann’s “Wealth Magic” where he teaches determined investors how to use median house statistics to choose:
1. Which suburb to buy in
2. What year to buy into particular suburbsGood luck
GregHi LK
In my experience, the “fear of debt” you say you suffer from is your biggest obstacle. When I was 27, I suffered from the same malaise. Now I know better.
If you do not take immediate action to educate yourself to overcome it, I predict:
1. You will keep buying IP’s till you reach your comfort level
2. Over the next 30 years or so you will achieve a modest level of assets and financial security.In other words, you are dooming yourself to mediocrity. Is this what you really want? Is this why you visited this site?
The good news is that there is a much, much better way.
But before I offer my suggestions, I hope you appreciate the collective wisdom behind the quality people who have ALREADY responded to your post. Some extremely experienced operators have given you the benefit of their experience. I hope you will honour them by acting on their suggestions. Here’s what I would do:
~ Log onto http://www.navra.com.au
~ Click the dropdown menu under “Articles”
~ Print out every single article in that link
~ Put them into your “self-education” folder, and treat them like the “investor’s gospel” they are.Also, log onto http://www.somersoft.com.au
~ Click the Search function
~ Type in “Steve Navra” and read all 18 pages of the threads Steve has contributed to. Exhausted yet?You should also read Peter Spann’s 2 books “Wealth Magic” and “How to Build a $10 Million Property Portfolio in 10 Years”
Now it’s up to you. Just act on all this advice, okay?
And by the way, I have never met Peter Spann or Steve Navra, and I have absolutely no affiliation with either gentleman. I just know quality when I find it.
Cheers
GregOriginally posted by LeighK:…and this week everyone reading this thread should post the following message to the Sunrise Team at 7. I just sent it through and if enough people do the same it will get some coverage.
Go to http://seven.com.au/sunrise/form_contactus
and paste this message“Privacy Invasion is not only for celebrities.
It is time for the Roswall to look into unsolicited marketing in our homes. Calls from India, telecommunications companies at your front door, spam emails it just has to stop. If we want your service advertise it and we will come and find it.”See how we go, remember folks it takes a lot of voices to be heard these days and not everyone is going to be reading this message to know about adma. Cheers Leigh K
Hi Leigh
And thanks for your initiative in posting the link with an easy letter forumites can simply:
1. “Copy” your message (or mine below)
2. Click on the link
3. Fill in the basic form, and “Paste” the message into the “message” box.Why didn’t I think of it? [blush2][blush2][biggrin]
And you’re right Leigh, it’s gonna take a groundswell of support to get it on the Roswall, so come on folks, let’s ALL do it. Here’s the message I sent some time ago:
“Indian Phone Calls not blocked by “Do Not Call Register” on http://www.adma.com.auI registered on the “Do Not Call Register” @ http://www.adma.com.au This has massively decreased the amount of unsolicited phone calls to our home phone line, BUT it has absolutely NO IMPACT on calls from Indian telemarketing companies. Does our government choose to be “powerless” under International Law to block such massive invasions of our privacy?
Many of these calls are from Australian companies, and some I suspect are from an Australian company whose largest shareholder is the Australian government. These companies have chosen to base their Call Centres overseas, thus:
1. Taking Australian jobs overseas
2. Neatly sidestepping the membership restrictions placed on them if they are members of the Australian Direct Darketing Association (the “self-regulatory” body)
3. Neatly sidestepping any present or future Australian government legislation restricting their ability to base their marketing campaigns on continued invasions of our privacy.Please, please help.”
Cheers
GregOriginally posted by depreciator:
$33.30.Not looking forward to my NSW one.
http://www.depreciator.com.auYou guys are A REAL CRACK UP!! [biggrin][biggrin][biggrin]
I’d be going WAHOOOOOOOOOOO!!!
[cap]
Cheers
GregOriginally posted by surreyhughes19905:I think look for a satelite community with good access to a city and buy big blocks there. Given 10 or so years those big blocks will be worth their surface area in gold.
Hi Guys
Steve Navra’s slant on the original question of “Property Affordability” is to keep ruthlessly applying this “Rental Reality” formula (go to http://www.navra.com.au and click “Articles” in the dropdown menu: read all articles exhaustively).
He bases his “when & what property to buy” decisions on this Rent-based formula, and it’s very, very time-honoured.
By the way, can anybody tell me where Steve got this Rental Reality formula from? Given that ROI calculations have been “bread & butter” to property investing since time immemorial, I presume Steve didn’t invent it, but perhaps just tweaked an existing rule of thumb.
Is this right? And if so, what keywords should I put into Google to research its antecedents?
Cheers
GregOriginally posted by g7:Greg,The reason it wouldn’t be working is that you need adobe acrobat reader to view the *.pdf file.
Hi G7
I’ve got Adobe Acrobat Reader, I get pdf files all the time on this computer (I researched 3 large pdf files only last night), tried Michael’s link again just now and it still didn’t work!! What gives?
Adobe flashed on the screen for a millisecond then disappeared into the ether, the screen went white, the message at the bottom LHS told me the search had been “Done”, and there was no scroll bar down the rhs.
Can anyone suggest what’s happening?
Cheers
GregOriginally posted by stargazer:
Guess what i hardly get any calls now apart from the occassional local charity which is ok.SGHi Folks
Just reporting that I haven’t had a SINGLE Direct marketing call since I put my name on the “Do Not Call” Register at http://www.adma.com.au site on 21st March 2005.
As Stargazer says, I’m not counting calls from charities I’ve supported in the past (and will continue to support). The adma website says that member companies of which I am a customer will still keep ringing me, and I guess this is ok.
I’ve also noticed a decreasing frequency on calls from India since I’ve followed some of the strategies recommended by you kind folk. [biggrin]
Anyone else like to comment about whether you’ve had any calls since you put your name on the “Do Not Call” Register?
Cheers
Greg
