Thanks Derek
Appreciate the post..
and welcome to the Forum..REDWING
“Money is a currency, like electricity and it requires momentum to make it Effective”
The doubts I have about the Investors Club are that the properties may be overpriced and these overpayments can be hidden in a boom property market we are going through now.
In this months newsletter my worries are confirmed a little in the article “My Inbox”
Let me quote.
“Thank you The investors Club – $111k – indicative 47% capital growth in two years! We purchased in Jan 02… – our first property purchgase and, if you remember, we had a problem with the initial valuation – came in at $197K..but we went ahead…
Troy insisted on a second valuation done by the bank and it came in at $234k.”They paid $242k.
A recurring theme amongst the Investor Club newsletters is that banks are not good valuers and always value the property for less.
I reckon if you want a Qld property, go buy your own. If you need to have your hand held then buy through the investors club but PLEASE understand you are really paying for their service. Its not free like they suggest.
Just my thoughts and I have been to a few meetings and received their monthly newsletter for about 3 years now.
Doubts about the Investors Club? No way. I have contacted them at least 4 times asking for some info. I have used email and their website. Replies 0.
Doubts not any more
Waf
Retract my last post, sorry Investors Club it was not you I was referring to. Don’t know how to remove it moderators may.
Waf
Originally posted by WAF:Retract my last post, sorry Investors Club it was not you I was referring to. Don’t know how to remove it moderators may.
Waf
to do the remove just go to your post and do an edit!
Warm Regards
ChanDollars
[Keep going, you’re on your way to Frolic Freedom!]Hi Yack,
I can assure you that valuers are not as consistent as we sometimes think. Remember the real estate market is largely based on human judgements, for example how many people only get one market appraisal for a property they are selling – in my case our house was market appraised at $500K, $560K and $740K – with a valuation for finance at $590K by a valuer who also is principal of a local REA.
But valuations for finance are different, you say – yes they are, but the purpose of the above figures was to demonstrate that ‘valuing’ (market or for finance) real estate is not necessarily based on scientific methods. Some valuers use older sales data and cannot/do not/will not capture the mood of the market at that moment in time.
Don’t think for a minute that all values stand the test. Here is a link to a discussion about valuers you may find of interest.
http://www.somersoft.com/forums/showthread.php?t=11945&page=1&highlight=valuers
As a support member we get a list of valuations for property and the discrepancy for the same property can be signficant, in some cases, amazing – and that is why research is required to ensure you are paying fair market price (or better).
For the sake of conversation I would recommend those people so fixated with buying at, or under value, read pages 162 and 179 of Jan Somers book’Building Wealth in Changing Times’ which demonstrates that property is very forgiving if held for the long haul.
Hope this helps.
Derek
Derek
Do you advocate chasing cash flow or Growth ?
The majority of the properties i’ve viewed on the clubs list have been expensive..well, to me anyway..
REDWING
“Money is a currency, like electricity and it requires momentum to make it Effective”
I guess if the property that one view or inspect and found it’s not worth buying then the best way is not to buy it. Simple as that.
There are so many property on the market and you just can’t put your hand on everyone of them.
But do you best and hope for the best which every you do because at the end of the day you do as much as due diligence and market research to your best of your ability.
Warm Regards
ChanDollars
[Keep going, you’re on your way to Frolic Freedom!]Hi all,
The Club’s primary focus is ‘growth’ but researchers are required to get the property at a price giving a better than market rent for comparable properties in the immediate area.
A focus on new (not everyone’s preference) or near new ensures depreciation claims are maximised and maintenance issues minimised. These proeprties are also more attractive to tenants, with all of these factors (and others) combined the cashflow situation is maximised too. Albeit at the moment with the rent and growth and cost of money cycles being out of kilter means there are additional out of pocket expenses than compared to even 12 months ago.
In terms of expensive properties – you should see some we reject. But bear in mind the median price of property in Perth is around $236K and Brisbane $280 ish (? – rubbery memory here). Given we target property closer to the cities and ‘cheaper’ properties tend to go quicker than the more expensive property the nightly stocklist can give a distorted view.
Ultimately Chan$ comment is of utmost importance –
“I guess if the property that one view or inspect and found it’s not worth buying then the best way is not to buy it. Simple as that.
There are so many property on the market and you just can’t put your hand on everyone of them.
But do you best and hope for the best which every you do because at the end of the day you do as much as due diligence and market research to your best of your ability.”
I still encourage individuals to do their own research and conduct their own checks and balances – if they are in any way uncomfortable or nervous – don’t do it.
Derek
Originally posted by Derek:Hi all,
The Club’s primary focus is ‘growth’ but researchers are required to get the property at a price giving a better than market rent for comparable properties in the immediate area.
A focus on new (not everyone’s preference) or near new ensures depreciation claims are maximised and maintenance issues minimised. These proeprties are also more attractive to tenants, with all of these factors (and others) combined the cashflow situation is maximised too. Albeit at the moment with the rent and growth and cost of money cycles being out of kilter means there are additional out of pocket expenses than compared to even 12 months ago.
In terms of expensive properties – you should see some we reject. But bear in mind the median price of property in Perth is around $236K and Brisbane $280 ish (? – rubbery memory here). Given we target property closer to the cities and ‘cheaper’ properties tend to go quicker than the more expensive property the nightly stocklist can give a distorted view.
Ultimately Chan$ comment is of utmost importance –
“I guess if the property that one view or inspect and found it’s not worth buying then the best way is not to buy it. Simple as that.
There are so many property on the market and you just can’t put your hand on everyone of them.
But do you best and hope for the best which every you do because at the end of the day you do as much as due diligence and market research to your best of your ability.”
I still encourage individuals to do their own research and conduct their own checks and balances – if they are in any way uncomfortable or nervous – don’t do it.
Derek
Valited points, appreciated.
Warm Regards
ChanDollars
[Keep going, you’re on your way to Frolic Freedom!]
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