Hi guys, just thought id introduce myself. im a recent convert to positive cashflow property thanks to Steve’s books.
A little about me, i have recently graduated from university and am soon to start my first job in the IT sector.
As soon as i save up some deposits i plan on beginning my property investing career! In the meantime i have been spending my time researching properties in various areas around Australia and as you all probably know, it isn’t too easy when starting out.
Anyways, here’s to property! [thumbsupanim]
A
welcome aboard a train – keep your ears and eyes open !!
D&L Property Projects Ltd
Sourcing Quality Investments in New Zealand.Email to receive current deals & New Zealand Information Sheet.
[email protected]Don Nicolussi | Mortgage Broker - Home Loan Warehouse
http://homeloanwarehouse.com.au
Email Me | Phone Me"I think of finance as a technology, a way of getting things done." Robert Shiller
Keep an open mind. It is important to have a balance of cashflow and capital growth. There is no one right awnser in investing the market changes all the time. If you are going to be a long term investor look overseas as well as Australia
Nigel Kibel
http://www.propertyknowhow.com.au
Australian and New Zealand The United States Property Researcher and education
One Day property investment research workshop The United States. Please register your interestNigel Kibel | Property Know How
http://propertyknowhow.com.au
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There is no one right awnser in investingyes! something very important to consider early on.
regards,
Don
D&L Property Projects Ltd
Sourcing Quality Investments in New Zealand.Email to receive current deals & New Zealand Information Sheet.
[email protected]Don Nicolussi | Mortgage Broker - Home Loan Warehouse
http://homeloanwarehouse.com.au
Email Me | Phone Me"I think of finance as a technology, a way of getting things done." Robert Shiller
Welcome
As others have already mentioned, keep your mind open to other possible strategies for your property investment.
Remember that this book was written in a different era – sure it was only a few years ago, but boy were things different then.
In fact Steve clearly states his investment strategies have moved on from the days of looking for positive cash flow properties. Of course this is one of the hallmarks of astute property investors – the ability to adapt as circumstances change.
It is important to remember that you make your profits form your property investments in a combination of 4 ways.
1. Passive appreciation – slow growth I value as the general market increases in value.
2. Active appreciation – faster growth which you influence; e.g. buying below market price, adding value through renovations.
3. Cash flow – your rental returns
4. Tax benefits – what you get to keep after tax.Concentrating on any one aspect to the exclusion of the others can lead to disaster. This happened during the last boom when many investors put too much emphasis on tax benefits. By chasing negative gearing but forgetting some of the other fundamentals, some investors bought investment duds.
The same has happened to others who just chased strong cash flow (positively geared properties) and forgotten about the other fundamentals. I have heard from many investors who bought regional properties in small towns who are suffering from massive vacancy problems and expensive property repairs (in proportion to the cost of their properties.)
This is a long winded way of saying positive cash flow is not the only way to go.
I know I have changed some of my investment strategies over the years and I will be discussing them in detail, what I have bought over the last year (over $2.3 million in properties) and why and what I am not buying in a series of seminars around Australia – my Annual Property Briefings
These 4 hour sessions will be sponsored by the NAB – further details are available here:
http://www.propertyupdate.com.au/pages/Annual-Property-BriefingsMichael Yardney
METROPOLE PROPERTIES
Author of Australia’s leading property e-magazine.
Join over 11,000 readers each month.
FREE subscription http://www.PropertyUpdate.com.auatrain
welcome to property investment
as a fellow IT person and someone thats put 90% of his investments into property, i thought i’d share some wisdom.just one of my IP’s
i did everything by the book..thats micheal yardleys books…
1. Passive appreciation – slow growth I value as the general market increases in value.
i did that…held for 13 years, watched it grow
2. Active appreciation – faster growth which you influence; e.g. buying below market price, adding value through renovations.
did that…bought at last recession..carn’t get cheaper than that…spent $40k reno
3. Cash flow – your rental returns
did that two….peak season got $2K a week rentals..$1k in down season
4. Tax benefits – what you get to keep after tax.
wow did that 2….paid 15% tax…in my own SMSF..how good was that…
and
sold 12 months ago top of the cycle …..wow can i read the market….profit $500k….
until i realized….
if only i had diversified……
and bought CBA share’s (safe as houses) insteadprofit today….$1.5mil
makes the 500k look dismal
hindsight is a wonderful thing
and really…the economy has had 14 years of real growth….
this is the best its going to get
we’ll be pushing uphill to do 3% growth from now on….do you think property prices are going to double in 8-10 years?
while the government is trying to restrain wage growth….and make australia competitiveget real
Properties MAXd…
good luck….
Hi hb,
You made a good point
profit today….$1.5milmakes the 500k look dismal
hindsight is a wonderful thing
but tell me, what would CBA have returned to you if you’d used the same deposit that you’d put into the property? Would it have been $1.5m? (I suspect it might’ve been slightly lower)
And – It’s easy to say “x share would have been the greatest” but what if you’d chosen y share? (You said it – hindsight is terrific) What if you’d put that same money into Telstra? How would you be today?
Still, in the spirit of sharing knowledge, I’d agree that property is NOT likely – over the next 4 years – to do what it did over the last 4 (depending just where you are investing). But you can still do well using the leverage available. Can you get 100% leverage in shares with the same lack of volatility as property? Hmmmm?
Benny
To hb again,
But then, as I re-read, I noted you mentioned SMSF – of course, if you invested in a property that way, you’d have NO leverage !!! Was THAT how you did it hb?
You don’t put too many numbers into your story, so its a bit hard to tell. And maybe you just wanted to take a swing at property anyway – well, we’re used to that. [smiling] BTW, the $500k WAS profit wasn’t it? Against WHAT outlay? I’d be interested to know – wanna share?
Benny
God luck with investing and be careful, as it is as easy to lose money on properties as it is to make.
Bulgarian Properties: http://www.balkandreams.co.uk/
[biggrin]Well done, it’s really great to start young, plant the seeds now and watch the fruit grow.
Good luck
Yes we can all find the deals in stocks and all pull out at the peak of the market and all stand around scratching our heads as to why the dip is so severe and possibly catastrophic…As with any big profit margin there is always a kick back somewhere…Come check out just some of the deals we have got going and realise the micro climates that negate all the doom and gloom…
We’re investors not consumers, lets leave the emotions in bed where they belong…
Go hard newbies!!!! Anyone telling you otherwise is living in a fear bubble, post your success’s and pop it for ’em!
“ask and you shall recieve”
Sincerely, Jarrah
++CASH FLOW PROPERTY HUNTER
(your not hunting if your not hungry)[email protected]
Climbing & Consulting
Arboricultural Services
0431433288“be ye angels?”,
“nay we are but MEN!”Quote: do you think property prices are going to double in 8-10 years?
while the government is trying to restrain wage growth….and make australia competitiveget real
Properties MAXd…
good luck….
hb,Yes, I do think property prices will double in the next 8 to 10 years and I am buying plenty of properties to take advantage of it. So is Margaret Lomas but what would she know?[biggrin]
Todd Burns
http://www.freepropertyhelp.com.authere will be a doubling of prices in the next 8 to 10 years for some real estate , this is absolutely a sure thing – trick is knowing which real estate!
Positive Cashflow NZ Property Deals.Email to receive current deals & Free New Zealand Information Sheet [email protected]Don Nicolussi | Mortgage Broker - Home Loan Warehouse
http://homeloanwarehouse.com.au
Email Me | Phone Me"I think of finance as a technology, a way of getting things done." Robert Shiller
Originally posted by hb:atrain
profit $500k….
until i realized….
if only i had diversified……
and bought CBA share’s (safe as houses) insteadprofit today….$1.5mil
makes the 500k look dismal
hindsight is a wonderful thing
hb……………..[confused2] Mate you havent even put up a good argument Benny is dead right we could all sit back and say oh if only I had known or bought that then blah blah blah.
You should be proud that you have made 500k and didnt just stand there scratching your head and do nothing.Hey here’s a thought if its all that dismal send it over this way (W.A) and I will find something to use it for (property)[exhappy]
Atrain I am only a couple of IP’s in and I do have some shares also I think its a good idea to spread the egg’s amongst the basket’s.
My advice would be to keep a good eye on this site because there are a lot of switched on people who you will learn a lot from. [biggrin] Good luckJarrah a fountain of support for all us newbies as usual cheers!
I think that 500k is a good profit – depends how much he has invested. And of course what was going to hapen if the shares dropped – the property never drops so much. Investment in properies is not as much as risky as in bonds,shares, securities. And once again 500k is a good profit
<lose the advertising Stan – Derek>
You shoul be more than happy.
Stan Jones
/Translations & communication/
http://www.mybgproperty.co.uk
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