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  • Profile photo of Nigel KibelNigel Kibel
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    HI Andrew

    How easy is it to find blocks that stack up in value in Australia at present?

    Nigel Kibel | Property Know How
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    Profile photo of Nigel KibelNigel Kibel
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    I agree Jay but there will always be people who will take advantage of others. However these things can work as long as and I am sure you do and Engelo and myself do the right thing by investors

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    Profile photo of Nigel KibelNigel Kibel
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    I answer lots of questions people can judge me about what I say rather than attacks from a couple of people who only have a few posts and then its an attack. Nothing you have said is constructive. You asked me how much of my own money am I spending I told you.

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    Profile photo of Nigel KibelNigel Kibel
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    For the record Jay I am not a turn key provider we buy properties for ourselves and for our clients at the best prices we can negotiate. If the property needs work we give the client a break down of the costs. Now its true that this complex has been renovated however we feel this is a good deal.

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    Profile photo of Nigel KibelNigel Kibel
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    Hi Jay a some what cynical response.

    I do not say every deal is exclusive however we have put this under contract and it was not being actively promoted.

    However what makes the deal special is that we are putting a group together that makes it a good deal for the individual investors. We are also offering the service into the us to US investors.Often these deals have an angle such as they are under let and we can increase the value.

    Just what deals do you do Jay

    • This reply was modified 9 years, 11 months ago by Profile photo of Nigel Kibel Nigel Kibel.

    Nigel Kibel | Property Know How
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    Hi Ivan yes it is in Florida, remember hat commercial can be apartments once you have more than 5 its considered to be a commercial deal.

    Yes I like to talk about what we do however a large part of our market is out of America not Australia. I would still look at Australia but it is difficult to get things to stack up

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    We have run two tours to the states so far this year settled on an office building hat will end up returning 35% cash on cash and just put a 52 unit complex under contract. We should also have 4 houses under contract to flip. Planning at least 2 trips back to the states this year. Our aim is to further promote our services and the Property Know How Club into the United States.

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    Profile photo of Nigel KibelNigel Kibel
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    Yes it is important to keep reading and work out your strategy then get one thing right

    The most important word in Property Investment is due diligence. Many who fail do s because they do not do this well. Many people who invest in property spend more time researching a blue ray player than a property.

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    Profile photo of Nigel KibelNigel Kibel
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    The benefit in direct ownership of a 52 unit apartment complex is that the investors receive all the benefits.They receive the returns and the end profit. Coming off the bottom from one of the largest falls in a generation offers opportunities. As the economy recovers it may yet again offer solid investment opportunities. If you have never thought of America before you should at least consider it. However it is not for everyone.

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    Profile photo of Nigel KibelNigel Kibel
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    It depends on what you are looking for. Many marketing groups are really just flogging property. However not everyone is like that.

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    Ok Lisa

    Who are you?

    In terms of what I will invest thats a moving target however it will be between $300,000 and $500,000 in the next 12 months. That allows me to borrow as well. The money is liquid so that the total will be higher than that.

    If we recommend strategies we have already done it ourselves

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    I think that there is room for both a fund of the quality of the one Steve runs and direct investment. Some of the funds that have been set up do charge very large fees. Steve fund looks after the investors. I have always respected the care and research Steve conducts.

    If I buy a large complex I may put a number of investors into the properties which gives them all direct ownership. With Steve’s fund it lets them diversify so both methods are good it comes down to the risk profile of the client wanting to invest.

    I have at least one client who has invested in Steve’s fund and is very happy with his investment but also wants to buy individual property .

    It all comes down to who you are dealing with.

    • This reply was modified 9 years, 12 months ago by Profile photo of Nigel Kibel Nigel Kibel.

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    Interesting that your first post Lisa is to attack me. I post information here and answer questions.

    I suggest you go back and read some of my 1200 or more posts and that will give you a good idea of what I do.

    We assist people to successfully invest. My goal is to help people successfully invest ideally without losing there money. We spent 15 months doing deals and making sure ur modelling worked, before we dealt with clients. To do that I spent a lot of my own money. I feel that parts of the US market offers lots of opportunities. Naturally I will continue to invest my own money into this great market.

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    I dont really have to justify myself to someone who has just appeared and appears to attack everyone. I have already placed a great deal of money in the US. I own a business there and we are also looking at development projects. My main reason for being there is to invest

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    Profile photo of Nigel KibelNigel Kibel
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    Yes its true that the United States is not immune to rate rises however the Fed has indicated that any rate rises are some time off. Also with high returns it will protect investors against rate rises to a point. In terms of my own money as indicated I will be using a great deal of my own money in the US. I am not referring to investor funds

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    The US market may not be a gold rush however it to me offers more promise than Australia at present. The fact that we can now borrow money again in the states means that our cash on cash returns are far higher than before and with solid growth now in the US economy I believe it will be the place to invest over the next few years however you do need to be selective.

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    Hi Andrew

    Your comments are not accurate. We can borrow 60% through commercial banks on commercial properties which can include apartment complexes.Also the loans are non recourse which this means is that the loan is based on the property rather than the person investing. So to me that means that the banks do have confidence. There is a view that in most parts of the United States the market has now bottomed.

    In my own view, is that provided you are selective there are better opportunities in the United States than there are in Australia at present.

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    One thing to be very careful about is that interest rates in Australia are at record lows. They will not stay at that level forever. They are more likely to head to 7%. It might be another 12 months before rates start to move but the will move up.

    Now if rates move by 2% how will that effect your numbers. I am also of the opinion that they will bbe a large over supply of apartments in inner city areas around Australia. I think it is highly likely that we will see prices of city apartments fall over the next few years to consider carefully.

    I am taking more and more of m money to the United States

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    Whether you are buying in America or Australia one thing is always the case. The profit is in the buying.

    If you overpay for a property you are unlikely to get your money back. What this means is do your research carefully and ideally use someone you trust to buy the property for you. Most American agents have a can do attitude the problem is that they do not have a cant do attitude. In other words make sure that the person your are dealing with is representing your best interests.

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    The problem in Australia at present is that we have record low interest rates and an economy that would appear to be a little flat. So the question I would ask you is what is the capital growth like in the property you are reviewing because if it is poor as I suspect i will be what is the benefit of buying the property.
    Also although it is unlikely that rates will go up in the new future if we look at the average even over the last 20 years rates have generally been over 7%. Many Australians have invested in Mining areas. Many of those have also lost money.

    So if you are going to buy in Australia personally I would look at capital growth by buying near a capital city, perhaps an older apartment. Be wary of third rate arreas they may well fall again

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