- daniel_73Member@daniel_73Join Date: 2007Post Count: 15
I have just read Steve McKnight's book which argues that positive gearing is more suited for long term financial freedom. I do agree with some of the points stated by the author. What i cant really comprehend is how some one could ever find a property that gives more than 10.4% gross return (based on the authors 11 Second Solution) ? I'm from Melbourne and i have been on the look out for positively geared property for some time. I have read the latest statistics from RPDATA and i could not see even a single suburb giving more than 6% or so returns. So how can some one really put this 11 Second Solution into practise? Anyone been successful on this?ToolsParticipant@toolsJoin Date: 2003Post Count: 363
Daniel, you need to read his later book, as the one you read is a few years old now, and not really relevant in todays market
Toolsv8ghiaMember@v8ghiaJoin Date: 2005Post Count: 871
Yep, this ones been discussed a few times now – O for a time machine eh? SOme people still claim you can guy properties like this, but not so. They are in piddly rural towns, mining towns, or require a lot of renno work, or are rented room by room. When this book was written, the yield on places like that would have been 50% probably! THe principles certainly still apply though. When you look at how quickly things can change on the 'world scene' (in a matter of weeks sometimes- ie US market, Rams collapse', Interest rates etc etc) you can't expect a book several years old to still apply when it comes to specifics such as pricing, yields, examples etc. Still, a great read, and as mentioned, if it gets you thinking outside the square, being creative, and helps start you on your investment journey, it has still served it's purpose. AND Welcome to the forum,daniel_73Member@daniel_73Join Date: 2007Post Count: 15
Thanks for both the replies. Yes i get what you guys mean. It certainly got me started. And yes i'm planning to attend some seminars and read more books to expand my knowledge before i start buying any property. Any suggestions, for books or seminars? ThanksiscoMember@iscoJoin Date: 2007Post Count: 2
I'm a new investor too. If the 11 second rule doesn't work these days then, what does?
I've read the book……got myself all excited , and then………..! Should have got started a decade ago. Missed the boat again.
Is property investing still viable? It seems that the prices are too high in relation to the very low rents, even in rural towns.
Can anyone advise?
I am so sick of these threads,….. It seems every week some one reads that book and posts this same post, wanting us to unlock the secret of positve income for them,foundationMember@foundationJoin Date: 2005Post Count: 1,153
As long as the book is on sale, I can't see why people should stop asking the question.
Cheers, F. [cowboy2]iscoMember@iscoJoin Date: 2007Post Count: 2
Cheers for the comment F.
No worries Tyson boss 1.
I can understand your frustration and anger. If I knew this question keeps coming up again, and again, and again it would drop a turd in my soup too. I have just finished reading the book and as a result found my way to this site. I wasn't to know that so many people have had the same thoughts as me. My apology for upsetting you.
As for your secrets on positive income, don't fret. No one would ask you to divulge your secrets, and certainly I haven't, and won't. Your secrets aresafe.
I'm just starting out on this journey. I'm a little bewildered at the amount of information out there and a little daunted. But I am excited by this. I guess I was looking for a bit of encouragement. That's all. No offense was intended.
If I seem a little naive to you it's because I don't know as much as you do. I will be the first to admit that I have a lot to learn.
Please remember we all start somewhere.
Even you did.
Stay humble friend.
Sorry mate,… you must have caught me on a rough day.
I shouldn't have been so quick to mouth off,…GuanMember@guanJoin Date: 2007Post Count: 9
Stafford Heights, Chermside West, Chermside & Aspley. If you can afford the high negative gearing.
Go for growth!jfioriMember@jfioriJoin Date: 2007Post Count: 14
To Tysonboss and others like you;
Don't worry, you can keep your apparent 'liitle' secret about positive gearing properties. I'm sure if it was making you so wealthy you wouldn't bother being on this forum big noting yourself. Its a sure bet that this is how you are in real life – just like one of those desperate people we come across now and then looking for a quick buck and falsely thinking they've found it, the type of person we steer away from.kellylockMember@kellylockJoin Date: 2007Post Count: 60
Hi Daniel and isco,
I started by reading Steves book 3 years ago, when the market was changing. I would recommend reading Steves second book, 260+ properties in 7.5 yrs, and then read a variety of books by different authors. It can be confusing, but I have found it really useful to "collect" a range of strategies from different authors, and you can begin to see that different strategies work for different people in different circumstances, at different times.
It is also a good idea to re-read books a few years later, because you will have skipped over stuff you didn't understand the first time and you will be able to absorb it the second time.
Get on some email newsletters. This will give you small amounts of information regularly. I find Michael Yardney's newsletter has useful articles attached. (His website is called property update I think)
Get involved in an investing group in your area, or start one yourself, where you can learn together. This helped me to see what I could do and gave me some more people to get ideas from. And some more people who I could borrow books from!
Then, once you have some more knowledge, make a plan of how you want to achieve whatever it is you want to achieve.
Some books I've found useful:
Rich Dad Poor Dad – Robert Kiyosaki (and his other books too)
Five Years to financial freedom – Morris Kaplan
Margaret Lomas's books on Positive cashflow property
Jan Somer's books
There have been other threads on what are good books to start on. Maybe do a search and see if you can find it.jfiori wrote:To Tysonboss and others like you;
Don't worry, you can keep your apparent 'liitle' secret about positive gearing properties. I'm sure if it was making you so wealthy you wouldn't bother being on this forum big noting yourself. Its a sure bet that this is how you are in real life – just like one of those desperate people we come across now and then looking for a quick buck and falsely thinking they've found it, the type of person we steer away from.
I don't have any "secrets" re-read what I said and you will see that I was using the word "sercret" sarcastically as in that people read that book come onto this site wanting to get rich quick and wanting to know the secret of where all the positve geared properties are,…. I was not saying that I had a secret to weath which I wanted to protect,…
secondly you will find that there are many wealthy investors who regularly use this site, so your comment about if I was already wealthy I wouldn't be on this site is also wrong,…..
I would not class my self as "wealthy" how ever I started with pretty much nothing but a suit case of belongings when I was 18 and am only 25 now and hold over over $1M of investments….. Although my achievement is not what i would class as spectacular and I feel that I still have alot to learn myself I try to offer advice where I can on things that I have learned from my own experiance
How ever I can only help people that ask the right questions, when people ask questions like "where can I buy a cash flow positve property" or "I am new tell me everything I need to know about property" I can't really help them,. People need to ask the right questions.
Besides all that I have already apoligised for my first comment as I said I shouldn't have be as rude as I was, I must have had a rather short temper that day.