Forum Replies Created
- Originally posted by MichaelYardney:
HTW valuers have changed the format of their monthy reports – they are much better – this months one is worth a look
http://www.htw.com.au/pages/info_centre/review/MR%20April%202005.pdf Michael YardneyHi Michael
I don’t think it’s my computer (virtually brand new), but I clicked on your link and it came up as an error. Can you give a few keywords I can use on a google search to find it by an alternative route.
Cheers
GregOriginally posted by Pursefattener:Welcome to the forum Mermaids. Are you hooked yet?…There is no substitute for experience. Enjoy the forum Shawn
Hi again Mermaids
I forgot to add:
~ Go to http://www.navra.com.au Click “Articles” in the dropdown menu and read every single one of them extensively. “Rental Reality” and “Dollar Cost Trading” are particularly good, as well as his stuff on “Living On Equity” both from his website articles and his recent, extensive, long, brilliant somersoft posts.
~ You can find Peter Spann’s site at http://www.freemanfox.com.au (with or without the au?)Cheers
GregOriginally posted by MichaelYardney:Quote:…By the way the checklist is FREE – it shows the guidleines we use when buying development sites. We find them useful. Maybe you would also. Michael YardneyHi Folks
I loved your FREE checklist, Michael. Extremely helpful!
What newbies sometimes fail to appreciate with this site (as with http://www.somersoft.com.au ) is that our ongoing learnings have a LOT to do with the networking. Of course a local draftie could help you with a specific task (ie., s/he will REACT to your request), but will s/he PROACTIVELY teach you the Rental Reality formula, or the algorithms /minimum lot sizes /percentage % of land content etc which helps us to distinguish a good development site from a poor one?
Will such a draftie mentor you so you can independently calculate the precise timing of your proposed investment into the property cycle?
In case you were wondering, I’ve never met Michael Yardney, and this is definitely NOT a paid advertisement! [biggrin][biggrin] I just like to give credit where credit’s due.
In the same breath, can I suggest you log onto http://www.navra.com.au , click on ARTICLES, and read them all extensively. Steve navra’s stuff is so good (as with Micheal’s stuff) I’ve copy/pasted every single article to my word processing file so I won’t lose them.
I did the same with Michael’s free checklist. [cigar][buz2][cigar]
Cheers
GregOriginally posted by mermaids:
…So finally we have 3 properties all rented and we can sit back for a while and ponder on the lessons we have learnt on the way, read the books and be much more diligent in our next search for houses. We plan to start buying again in August if we can find the positive cash flow properties. We have learnt that neither of us cope with the stress and the lows of investing in property and unless we do it differently next time then property investing may not be for us afterall. smjeffordFrankly, MERMAIDS, I LOVE what you’ve done. OF COURSE there was a smarter way, but you’ve got your 1st 2 IP’s and you’ve got us! [biggrin][biggrin] So where’s the stress?
When Niki & I were newbies, there was SFA advice /books out there. Now you’ve got a veritable banquet of battle-tested strategies and fellow forumites to choose from.
Whatever you do, hang onto your 1st 2 IP’s if you can:
1. As a memento of where your heads were at when you first started in this game (be like Scrooge McDuck who framed his 1st dollar he ever earned)
2. Because transaction costs are prohibitive, you’ve already absorbed these, and ocean views will always rise (yes, even the remote ones). The only question is when, right?As someone who’s been around awhile, I can tell you that both here and on http://www.somersoft.com.au you can get quality advice from a lot of highly experienced investors who exhibit variety and a healthy mix of diverse investing styles.
“Lust for property” is what this game’s all about. Look at proven strategies which help you BALANCE your portfolio. To that end I’d like to recommend:
1. You divide your time equally between http://www.somersoft.com.au and this forum
2. Do Searches on both Somersoft and here under the following people, and read their posts /literature /websites EXHAUSTIVELY / EXTENSIVELY:
~ Peter Spann (His 2 absolute MUST READS from your nearest bookshop: “Wealth Magic” and “How to Build a $10 Million Property Portfolio in 10 Years”). In particular, look for his chapter in the latter book where he outlines how he uses Median House Price statistics over the past 10 years to inform him of WHICH city suburbs to buy into and WHEN.
~ Steve Navra (“Living Off Equity”, “Dollar Cost trading”, “Rental Reality” and Navra Invest). Seriously consider going to Navra’s and Spann’s seminars.
~ Michael Yardney, who says “I never sell anything”, and he’s got genuinely prime holdings.Don’t follow the doomers and gloomers; just set in place a variety of hedges (Steve Navra will show you how to do that)
Having progressed from being a passive to a pro-active investor (I make deals happen through sub-dividing, development, and “doing things differently”), here’s how I keep my 17 brick IP’s at virtually 100% occupancy over the past 20 years:
~ In the good times, I charge market rents and ENJOY!
~ In the lean times, I drop my rents 5% – 15% below the market, just to get a tenant in there asap. Better to have SOMETHING coming in than nothing, right?I’ve only self-managed once, and it was a big, big mistake. Use quality PM’s. I tell them “I’m an experienced investor with a considerable portfolio, and not too many things phase me in this game (so don’t worry about how I’ll react if you ring up with bad news).”
Hope this helps.
Greg
Originally posted by greenjoy:
…Does it make any difference if we hold back till the end of the year and then just claim it on tax, or is it better for us to install and update prior to the whole depreciation schedule being done?Hi Greenies
Click “Members” on top LHS of this home page, then “Member Search”, then click the letter “D”. Scroll down to “Depreciator”, and PM him with your question.
He’s a Quantity Surveyor, and has been extremely helpful to me in the past. He can tap a whole network of Qty Surveyors, and in my experience will give you unbiased advice re your personal situation. He’s good value.
Cheers
GregOriginally posted by JULES1:…How can I persuade the Bank to give me the terms that I want because the shorter term of 20 years increases my monthly payts, and I need them to be lower. Any ideas?? Jul[cap]
Hi Jul
I assume you’re in a strong position with the bank, as they’re happy to lend you money. But they won’t do what you want, so at the very least you have to threaten to leave them.
However, the only way you can do this is to get WRITTEN QUOTES from at least one other competitor. Banks scoff at verbal threats, and only respond when you put one of their competitor’s letterheads on the table, making you a:
~ Written offer…
~ …of a Specific Product
~ …at Specific Terms (interest rate,
term of loan etc)Any of the above Brokers can help you arrange this, or you can do it yourself. Personally, my substantial portfolio has been built with the assistance of +CF savvy broker, and if you don’t know one of these, maybe it’s time you introduced yourself. It has to do with:
a) Educating yourself into a higher level of negotiating skills with banks
b) Valuing the skills these people have, and being comfortable having the banks pay them a modest commission for rewriting your business
c) Extending your NETWORK /building your +CF team.That’s my personal opinion and experience, but if you prefer to do it yourself, here’s how:
1. Ring your current bank manager, and ask him to fax or mail you a written Payout Figure on ALL your loans
2. Go to another bank and ask them to give you a written quote to take over the whole portfolio you hold with the “offending” bank.
3. When you receive the written offer, fax it to your current bank and ask them whether they’re prepared to BETTER your other.Please be aware that the BOLDER customers, with the BIGGER PORTFOLIOS are on far more favourable terms and interest rates than average investors. Sounds like it’s about time you started to EXPECT (you don’t have to demand) to be put onto a higher level of service.
For my money, I’d be PMing one of the brokers who answered you above. Take your pick, they all qualify as +CF savvy.
Cheers
GregOriginally posted by Ibuycashflow:
You might get it cheaper, I don’t think those towers in the background are there anymore. JeffSICK, Jeff! (But I laughed anyway) [biggrin][biggrin][biggrin][biggrin]
GregOriginally posted by Terryw:Hi, A few years ago I came across a great web site which offers hundereds of properties for sale, all of which have development approvals. I’ve just found the address again and it is still active, and may be of interest to all the buddhing developers out there:
http://members.ozemail.com.au/~gmillar/millar/Hi Terry
Awesome site, mate. Thanx!! I cruised it thoroughly, and added it to my Favourites.
Cheers
GregOriginally posted by Mortgage Hunter:
Being a business I seem to also get a lot of calls from ink cartridge refillers and stationery supply places too [angry2]Hi Simon
I’ve been seriously into Yoga and meditation for the past 38 years, have been Principal of 3 schools based on yogic concepts and have an Indian preceptor. However, I’m also wise-up to the seedier side of the life of so-called “Spiritual India.” India’s an emerging culture and economy, with a lot to offer the planet.
Re the calls to your business selling you ink cartridges and stationery, I assume they’d be local Australian businesses Simon? If so, I further presume they’d be members of the Australian Direct marketing Association and as such should respect your wishes if you’ve put yourself on the website’s “Do Not Call” Register. Let us know if they keep hassling you, okay?
Cheers
GregOriginally posted by g7:It’s not the one I wanted, but…
http://www.christiesgreatestates.com/greatest_estates/ge_manhattan_ultimate_penthouse.htmAwesome, g7!! A mere $70,000,000!! I broke out into a belly laugh, and then thought: “Why not? Do they have any more like that one?” So I surfed your site and had lots of fun.
Cheers
GregOriginally posted by lifeX:………..sorry greg, being a smart ass does have some draw backs. I should of warned you.
Live, Learn and Grow LifexperienceHey Mate
Relax, I’m having fun. Do you think I’m gonna stop, and take this lying down? [biggrin]I just hope the 450 people who’ve read this post have all registered on the “Do Not Call” Register at http://www.adma.com.au
Cheers
GregOriginally posted by Brisbane 04:
Hi Tina, Hope you are still reading this thread,the last 2 entries are from people who know and have been in the game (Mini and Don and Liz)they wont sugar coat it they will tell you how it is, these are the type of people you will benefit from.As you continue to be part of the forum you will recognise the people who have something to offer and those that dont.Love your response Mini.[biggrin] MartinHi Tina
I’ve only just come on board, but read the whole thread. As someone who’s been around awhile, I’d like to second everything Martin said above. I’d also add that you’re getting quality advice from a lot of highly experienced investors who exhibit variety and a healthy mix of diverse investing styles.“Lust for property” is what it’s all about, then looking at proven strategies which help you BALANCE your portfolio. To that end I’d like to recommend:
1. You divide your time equally between http://www.somersoft.com.au and this forum
2. Do Searches on both Somersoft and here under the following people, and read their posts /literature /websites EXTENSIVELY:
~ Peter Spann (His 2 absolute MUST READS from your nearest bookshop: “Wealth Magic” and “How to Build a $10 Million Property Portfolio in 10 Years”)
~ Steve Navra (“Living Off Equity”, “Dollar Cost trading” and Navra Invest). Seriously consider going to Navra’s and Spann’s seminars.
~ Michael YardneyHere’s a couple of posts taken from Somersoft which show why:
#5
30-07-2004, 09:49 PM
thefirstbruce
Member
Top 100 Join Date: Dec 2003
Location: Mooloolaba, Qld
Posts: 315
Be careful, See Change. When an investment idea hits the forums en masse, then you just missed the ramp and are now on the plateau… Anyone know their economic cycles well enough to guess what the next big thing after resources will be? I’m confused….. Following are the clock hours and corresponding economic conditions….
12 top of boom
1 rates up
2 shares down
3 commodity down
4 moneytight
5 property down
6 recession
7 rates down
8 shares up
9 commodity up
10 easy money
11 property up
Does anyone have any comments about these seasonal share market trends…. Noted by a reputable Aussie share advisor…..
Jan-state of market at end of Jan predicts the rest of the year 9/10 times.
Feb- downward correction- considered bad month for market
Mar- march and april better
Apr-
May- minor peak in May
Jun- nasty month, good time to buy.
Jul- rally- one of the best months for market 6/7 yrs.
Aug-
Sept- early sept often sees market peak
Oct- often some gains – but can be huge swings
Nov- seasonal low late nov- early dec
Dec- Santa Claus market- about week before chrissy- prices rise from here till Jan. 37/43 years pre 1998…if doesn’t happen, the following year is dicey. Wall St gained 1.5% in last 7 trading days of DecAceyducey
Originally Posted by thefirstbruce
Be careful sc. When an investment idea hits the forums en masse, then you just missed the ramp and are now on the plateau…
Actually, from experience, that isn’t true. Posts in this forum (Somersoft) generally are leading the market. PI (www.propertyinvesting.com) tends to be behind the market. I compare the discussions on the two to help pinpoint where the market isAcey Ducey’s a stirrer, but really knows his stuff. My tip: You need both forums.
Cheers
Greg
PS: If you MUST sell (I wouldn’t, unless you were going headlong into NZ with Mini and USA with Westan: take them both up on their offers), I like the “sell 1, buy 4 new ones” each year. Brilliant!!Originally posted by lifeX:brilliant resi. Thats the way greg…making others angry is much more fun. Other good phone conversations are: Tell them their mum would be better qualified to answer that and would they like to speak with her as you’re in bed with her at the moment. (heavy panting works well)Lifexperience
Hi folks
Am I paranoid or something? Yesterday, after having a bit more fun as per LifeX’s suggestion above at the expense of yet another Indian caller, I got phoned back 2 more times and there was dead silence on the other end of the line each time.
When I tried to hang up, I found I couldn’t get a dial tone. Were they getting revenge of their own, or am I just imagining it? [blink][blink]
It kept my phone line out of action for over half an hour.[angry2] What trick were they using?
Cheers
GregOriginally posted by Gorden:I agree with all those insights Greg F…. Once Gladstone develops a class of merchant bankers and wealthly professionals, I’m sure the premium real estate would be great in Gladstone. Otherwise, this would be the worst time to buy quality.
Hi Gorden
I love your perspective re the need for regional towns to develop a class of merchant bankers and wealthy professionals before premium RE prices are achieved. There’s a lot of good advice in that comment.
It’s a good rule of thumb to help explain why one current Gladstone vendor will struggle to realise the $1,600,000 asking price for his house on the mountain with ocean views to die for (even though I know he’s spent $1,200,000 developing it). Overcapitalised? Maybe, maybe not. Time will tell. My take on it, like you Gordon, is that it’s a hard ask to sell a $1.6 Million house in a town like Gladstone. But making money out of more creative RE investing in Gladstone’s a very different issue. Crikey mate, even though it’s an industrial city it’s still on the ocean, with awesome beaches and harbour plus a burgeoning resources sector which will only keep expanding.
Just for the record, the RE agent I recommended above is a person I’d never met until she became my Property Manager. She has done an EXCELLENT job with a former tenant who broke every window in our IP then proceeded to punch his fists through every gyprock sheet in the house. Purely as a result of Eileen’s efforts, I’ve been pleasantly surprised to find that I’m now receiving monthly cheques for $100 from the Gladstone Magistrates Court from the mongrel tenant who I’m told will be going to gaol if he stops paying. Apparently he’s had run ins with the magistrate before on other issues, and I’m benefiting because he’s so well known up there.
That’s the 1st reason I trust Eileen from LJH.
The 2nd reason is that she gave my wife and I very unbiased advice re the fact that in her opinion, we’d been sold a ‘croc’ and could have bought better than I did (note, we bought this in our Former Lives as typical passive RE investing mugs).
Cheers
GregOriginally posted by Gorden:Investing purely for capital gain in a town like Gladestone is nothing short of dangerous. Greg F obviously knows the market well, and I’m sure its a beautiful spot, but to make money on a premium priced piece of real estate, you need a class of wealthy and high earning people.
Gladstone may have a rising number of wealthy baby boomers running to the coast, but is that enough in an environment rising interest rates, rising inflation and potential overinvestment. Unfortunately, the party is over.
Hi Gordon
“The party’s over” ONLY applies to people who:
1. Buy a piece of real estate
2. Sit tight and
3. PASSIVELY wait for market conditions to change.Such people (and I was one of them myself until a few years ago) allow themselves to become unwitting victime of market forces, because of their fundamentally ‘passive’ view of what investing in RE is all about.
ACTIVE RE investors (ie., me), as Steve says, “do things differently” in quality markets. We make the deals happen.
Gladstone is a GREAT place to make deals happen. Hint 1: “Buy wholesale, add value with your knowledge, and then sell retail”
Hint 2: If, like Michael Yardney, you prefer to never sell anything then don’t sell, just revalue and margin loan for new purchases /stockmarket investing etc).Cheers
GregOriginally posted by **PropertyGuRu**:[biggrin]Cheers PropertyGuRu
Love it! I’m chuckling away at the same time as Copy / Pasting it to my friends. [biggrin][biggrin]
Cheers
GregOriginally posted by resiwealth:
I have the best strategy of all.
1. Can you give me your number so I can call you back??
2. Whatever question they ask say one word – he he.
3. Say you work for the tax office and ask for the company abn, keep repeating.
Be a pain in the ….. soon you will be off the list, give me your number so I can try it … just kidding !!!!!!!! PhilHi Resiwealth
Your strategy works BRILLIANTLY!! I just got off the phone with an extremely persistent Indian lady who rang twice, only to have me tell her “Goodbye” and hang up on her as soon as she opened her mouth. When she rang for the THIRD TIME inside 5 minutes, I was so desperate, I tried your strategy! (how’s that for a “backhanded compliment! [biggrin]
Guess what happened? She was GOBSMACKED! I’ve now printed out your post and blutacked your one-liners above my phone so I’m ready to ambush the next blighter who harasses me. I almost felt sorry for her….. NOT!! [biggrin][biggrin][comp][comp][comp][comp][comp][comp][comp][comp]
I’m working on my anger. Turning it into a GAME like you suggest sure makes it more FUN!! [biggrin] After all, it’s their money, and using verbal legerdemain sure beats the hell outta frustration! [cap][biggrin]
Thanks again for the brilliant one-liners. Anyone got any others?
Greg
Originally posted by emcdonald:
hi richter, …You might like to check out:
http://www.gladstone.qld.gov.au
http://www.sunzine.net/gladstone/welcome.html
http://www.gladstoneregion.org.auHi Richter
Go to http://www.somersoft.com.au
Then do a Search by playing with different combinations of keywords such as:
~ Gladstone
~ due diligence
~ statistics
~ demographics
plus any others you can think of.Gladstone’s in a bit of a lull at the moment, because one of the larger companies TEMPORARILY pulled out their massive workforce and moved them to Darwin (they’ll be back in a few months).
But many on this forum feel Gladstone’s a sleeping giant. Its Harbour rivals Sydney Harbour, and that’s saying something!! Go for quality stock. Many pundits say Boyne Island’s the place, but I prefer the beach at Tannum Sands.[biggrin][cap] Expensive, but as long as you get good stock, you should be on a winner.
If you get serious, ring LJ Hooker and ask to speak to Eileen Woodward. She’s my PM, and as someone with a reasonably large portfolio, she’s a GREAT PMgr. Tell her Greg F recommended you call her, and he said: “Give this person the same straight talkin’ advice you gave Greg and Niki about their brick IP.” She’ll know what you mean. PM and ring me if you want a bit more specifics.
Cheers
GregHi Folks
A quick progress report. It’s now 6 days since Niki & I put our names on the “Do Not Call Register” at:
And guess what? We haven’t received a single unwanted phone call, fax or sms in that time!!! Yahoo!! Is it just coincidence, or did our actions get a quicker response than the 6 weeks it says it takes on the Australian Direct Marketing Association site?
Pity help the next poor sucker who slips through my net and phones me! I’m waiting like one of JRR Tolkein’s monster spiders to pounce! [angry2][angry2][angry2][angry2][angry2][biggrin]
Cheers
GregOriginally posted by Melc:Have you tried looking at local council web sites? they usually have information on population services etc. Melinda
I assume your google search will throw up the local council’s website. This is always my 1st port of call (but only the first). I just type in the name of the town / suburb, then the keywords “council”. If this doesn’t work, I click my Back button and add the word “shire”
Good luck
Greg
