Forum Replies Created
Many years ago, in the 1980’s and when I was much younger, I did some things I am very ashamed of.
I paid a very heavy price for my indiscretions. I lost my profession, the respect of all my colleagues’ friends and family.
I was punished and in general, society gives people a second chance once they have paid their dues. I have taken that opportunity very seriously.
I have conducted my business and personal life in such a way that I have been able to come home every night and look my wife and children in the eyes and proudly say that I have done nothing anyone could be ashamed of.
My high profile in the property industry means that the events of the past crop up on a regular basis, and the only way I know how to deal with them is with honesty. The only reason I haven't responded is that I haven't frequented this or any other property forum for months.
By the way this has been discussed on a number of occasions on this and the other property forum, in fact since 2002. I guess it comes up every year or so, and interestingly usually when I do my seminars, because there are many new members on the forum.
My professional colleagues, staff and publisher are aware of my past. They have also seen how I have conducted myself not for one or two or three or four years but for all of last decade and this one.
I can’t undo what I have done, or the hurt I caused a lot of people, but I can be proud of all my business and personal dealings for almost 20 years now.
I am a very, very different person today.
If you have nothing better to do this weekend, don't forget the Melbourne Property Expo.
You can get FREE tickets – see post above.
The numbers of attendees were down yesterday to previous years – that's not surprising. Not as many exhibitors either.
But some of the presentations were really good – so if you're not into Bathurst come along – I'll be presenting at 3.40pm today and noon tomorrow
kev2008 wrote:i have tried this promo word about 30 time now on diff computers and i still does not work could you tell me why thanks kev.Not sure why you're having problems Kev – I just checked it and the code METRO worked well for me
Just bumping this up to remind Qld forum members that they can get free tickets by using the code at the beginning of this message rather than paying at the door.
The Expo is next weekend.
wealth4life.com wrote:Oh by the way Mike Y … Philip is not writing these he reads this forum from time to time so you don't need to email him as a worried sole … He has given me a message for you … He said IHHO when u started out he thought what a great bloke and a fresh approach … and now what a shame another nice one has fallen victim to the trap … Michael how can you HONESTLY publically announce that the property market has FINALLY bottomed … you are on record now for 18 months saying this, maybe you will get it right soon and then say "i told you so" … OUR prediction is the market will WORSEN b4 it improves … Read the financial news from around the WORLD Mike not just from Victoria … Petrol at $2.00 a litre interest rates UP AGAIN b4 the end of the year, and other stuff only a financial analyst would understand … Mike if I bought a property under your ADVISE will you personally guarantee that by the end of this finacial year it will not drop in value … lets say a property in western suburbs of Sydney as a MIDDLE class subject and if it does drop you will PAY me the difference …You look great for a 56 year old … and Michael your newsletters are superbly put together … keep up the good work minus the outlandish statements and yr got my vote. … D … LOL
Thanks for admiring my good looks and my newsletter.
I'm not really sure what you read – I have not been on record saying the property market has bottomed. There is not one "property market."
Some regions have done very well over the last 18 moths – haven't they. The latest figures from Residex show that the Melbourne Median price went up 16% in the last 12 months, and similarly in Brisbane.
I wouldn't buy property in Sydney's western suburbs – would you?
<font color=”#000000″>Thanks everyone for the kind words.If you allow me, I will clarify the position.Metropole is a national organization with offices in Melbourne, Sydney and Brisbane. </font><font color=”#000000″>No we don't use contractors in various states – you are dealing with the one firm of Property Investment Strategists nationally.While I founded the company and am still actively involved, Metropole is much, much more than Michel Yardney. I have business partners, shareholders and directors involved in running each of the State offices to ensure that clients get the best attention.The director of our Sydney office is Pino Tedesco who has been a valuer – so he understands Sydney property values well. He is supported by 2 experienced agentsCurrently I visit Sydney regularly and work closely with the Sydney team. And yes we only have a particular type of property we purchase for our clients.</font> <p style=”margin: 0cm 0cm 10pt” class=”MsoNormal”><font color=”#000000″>We specialize in high growth properties with a “twist” – with something special about them – something others may not see or appreciate such as upside or renovation potential so you can “manufacture” capital growth.</font>
The experience of our agents "on the ground" in Sydney also confrim that things are starting to happen.
But it's only patchy – some suburbs are performling strongly due to affluent owner ocupier demand, and others are floudering due to first home owners running into mortgage stress.
There is huge pent up demand in Sydney and when it does take off, it will perform strongly as Melbourne and Brisbane did last year.
But you will have to buy selectively – not all properties will perform well. We are currently buying selected properties for clients in the inner western suburbs, some eastern suburbs and lower north shore suburbs.
There are great opportunities there and relatively healthy rental yields
Since the Sydney Property Expo is on next weekend, I thought I would bump up this post to remind forum members that they can get FREE tickets to this and save money and the time queing up at the venue.
Please go to the first post in this thread to see how you can get your tickets.
I'll be there some time each day – so please come up and say hello.
I sort of agree – It's taken a while, but I'm really beginning to appreciate my mac
I have moved to the dark side – yes I've swapped to a MAc and it's great.
I agree you need firefox – it's a free download
If you do what most lottery winners do – you will be happy for afew months, but by the end of the year, you'll be back where you started.
If you didn't know how to 'do money" before your inheritance" you better become financiall fluent before you spend this money.
If you educate your self, you've got a great chance of makng ue of these funds.
Please check out this article by clicking here – it could help you.
cu@thetop wrote:Thank you for your comments Michael. I suspect that there is more money in 5k /weekend seminar with 100 participants then flipping 3 houses. just remember one education guru using the forum to raise $ for property investments- avoiding the ASIC prohibitions.Old and cynical is my propblem.
I guess cynical is better than gullible.
By the way Ed's Rich Uncle is in the BRW Rich 200 each year . It makes agreat story – I wish i had a good one like thant to tell.
Real estate agents commisons are negotiable and vary form 1.5% to over 2.5%.
They are more likely to drop their commisions on larger properties.
I agree you shoud negotiate a commision, but I'm not sure playing one off against the other will work in your favour. You want someone to work hard for you to get you the best price for your property.
Don't "screw them" too much and then expect them to give you first class service
cu@thetop wrote:…… Real successes are unlikely to be giving seminars etc- they are too busy making money. …..Hi cu@thetop
The general tone of this thread, being be careful from whom you take advice and be careful who you trust is very sound advice.
But I find the above an interesting statement and with all due respect a common one made by the "not so rich"
While I agree you should listen to people who have achieved what it is you want to achieve, I also know lot's of successful people and very wealthy people who teach because they enjoy it. (Sure I'm biased and may fall in that category.)
But let's look at Steve McKnight who kindly hosts this forum. Many would agree Steve is successful, but he teaches and gives seminars.
How about Robert Kiwasaki (Rich Dad Poor Dad), Anthony Robbins, Dolf De Roos, Brian Tracey, Zig Ziglar, John Demartini, Christopher Howard, The Reno Kings – the list goes on and on.
cu@thetop, successful people or rich people realise true wealth is much more than money. It is having health; friends and family to enjoy their money with; spirituality (whatever that means to you) and contribution.
Successful people don't need to spend all day "making money". Money is attracted to successful people.
In summary it's fine to be sceptical, but not so sceptical that you tar everybody with the same brush.
Again I will declare a vested interest – I'm proud to say Ed Chan is a personal friend and I know he is a man of integrity.
Further as he is not a member of this forum, I will take the opportunity to clarify that he recieved his accounting degree well over 25 years ago. I also know that he does have a substantial property portfolio
And by the way… yes he does have a Rich Uncle.
Boy in Blue wrote:From my calculations, the article stating Darwin prices to hit $8.36M in 30 years, based on 8% growth and median price of $385,000 is WRONG.
Based on 8% growth over 30 years, the price would be $3.87M, and after 40 years, $8.36M, after 100 years $846M,
……..
So what has to give?
I just read this thread today … very intersting.
Boy in Blue – you are right – the figures are wrong .
A junior journalist misquoted me over the summer holidays almost a year ago.
What is correct is the basic principals of compounding growth and leverage.
And despite all the arguments to the contrary of why it can' happen and how simplistic my argument is, a recent study by Massy University in NZ showed that since 1920 Australian property has returned an average of about 15% per annum – made up of capital growth and rental return.
When my predictions were quoted 12 months ago I was a lone voice, saying the property markets on the east coast were moving into the next phase of the property cycle.
Now – 12 months later – while many investors sat on their hands waiting for the "sky to fall in" due to higher interest rates, the median house price in Melbourne increased by over 23% and in Brisbane by over 18%.
This means that investors who purchased a property in good capital city locations a year ago (not regional or cash flow positive properties) doubled their intial equity – not allowing for negative gearing – but if your property increased in value by a few hundred thousand dollars does some cash flow shortfall really matter if you have allowed for it in your budgets.
By the way – I'm not just talking from theory – I grew my personal portfolio very substantially without "putting my hands in my pocket for money" – just using equity in my properties. And so did hundreds of clients of Metropole and readers of my book who followed the principles that have worked for years.
What stopped many others was over-analysing and missing the big picture by getting caught up in the detail.
mauricio wrote:mauricioI will be presenting an updated property clock and an updated status of the markets including Hobart in my next e-magazine – it comes out this Friday free to over 30,000 subscribers –
It also included details of a free webcast with 5 property experts form around Australia giving their forecasts of the market ahead.
I know many forum members already get my e-magazine – but if you don't you can subscribe for free by clicking here
Elwood is a great area to invest in and if you are talking about a long term perspective – you will achieve above average capital growth.
But I'm not sure you could call the apartments underpriced.
3 years ago we bought 2 bedroom unrenovated apartments for clients in good positions for $280,000 in Elwood.
Last year we bought similar apartments for $350 -$375,000
Today these apartments would cost $450 -$475,000.
Having said that I bought a block of apartments in Elwood at the end of last year as the position is superb and the ongoing demand from tenants and owner occupiers will continue unabated.
And you are incorrect about the transport. Depending where you are in Elwood, there are trams, buses and trains
Zoe Jones wrote:Interesting to read all of the above. Would any of the experts like to suggest which areas of Sydney to watch? Are we talking about the eastern suburbs/north shore only or can we include the inner west, places like Ashfield/Summer Hill. What about the Sutherland Shire/St George area? Would appreciate any input on this.
We have just opened a Sydney office of Metropole Buyers Agency so we've been doing a lot of research into the Sydney market and which areas are performing well..
And it definately will not be the western suburbs where prices have fallen. These are performing poorly and are unlikley to increase in value for a number of years – affordability is a real issue there.
But many of the eastern suburbs and north shore suburbs have performed particularly well over the last year and are likley to continue to do so.
hleung wrote:
My friend's unit was close to the Melbourne University, one of many which was suited for student use. Yes, it was probably too small but appeared to be well located.You've reinforced my point that you generally shouldn't buy one bedroom apartments which are part of a large complex, unless they have got some special features such as water views. I'm also a great believer that you should buy something in which you can add value.
Loved your book, Michael. It should be a standard read for anyone who is interested in property investing.
Great that we can get feedback from Michael Yardney and Steve McKnight, 2 of the most respected thinkers and successful doers in property investing in Australia.
Student accomodation is not the same as one bedroom apartments. Most is considerably smaller than a one bedroom apatrtment – in larger complexes and has less general market appeal.
Many compexes were sold by developers at highly inflated prices to inexperienced investors.
By the way – thanks for the kind words about my book
hleung wrote:MichaelYardney wrote:SpudBoth Melbourne and Brisbane commenced the upturn phase of this new property cycle in mid 2006 – so there is still some way for them to go yet.
Sure both cities have had tremendous capital growth in the last year, in fact too much for my liking at this early stage in the proeprty cycle, but there is still lots of upside in both cities.
Brisbane and Melbourne's house prices both increased by about 20% to the year ended 30th November, 2007. If they still have lots of upside then we are looking at a median price of over $500,000 in the next few years. This is frightening for those trying to get into the market. It's going to be more and more difficult to get positive cash flow properties in the future, unless you start looking at commercial properties (as suggested by Steve McKnight) which I'm not yet prepared to do.
I'm really not sure what the need for positive cash flow is when your property increases in value by 10% per annum or 20% as has happened in Melbourne or Brisbane.
By looking for the wrong thing many investors hve missed out on the opportunities that the beginning of a property cycle can bring.
If your property increases in value by $100,000 over a year or so – does it really matter if you get $50 a week more or less rent?
Sure you have to be able to fund your purchase, but many investors do this out of their increasing equity.
This time last year I went on record to say that 2007 would be the year that you would regret you didn't buy more properties. I also said it would be the year the rich get richer. To be honest, what our research did not predict was how strongly the markets in Brisbane and Melbourne would rise over the year.
Having said that I believe there is still strong upside in Melbourne and Brisbane's inner and middle ring suburbs. I think the outer suburbs which are more ineterst rate sensitive will continue to have difficulties in 2008 – especailly if we will have the 2 anticipated interest rises.
I agree with Steve McKinight that Sydney is the city to watch in 2008. It is a year to 18 months behind Brisbane and Melbourne's cycle and should continue to move forward – it started to do so in mid 2007.
There will obviously be affordability issues. Not everyone will be able to buy the right type of property in Sydney.
If you learn the lessons from our other markets over the last year and the news from our people in the Sydney market confirms this- it is the affluent owner occupiers who are currently driving the Sydney property market,.
So the suburbs to buy in are those being chased by the more affluent owner occupiers – definately not cash flow +ve areas.
