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There is a fair bit of research into Robert T. Kiyosaki on the net that indicates there is only evidence that he has ever made lots of money from selling his books, and that there is no evidence he has ever made money following his own books methods.
http://www.johntreed.com/Kiyosaki.html
http://en.wikipedia.org/wiki/Rich_Dad%2C_Poor_Dad#CriticismI have been to some done by Ray White, in terms of auctions the same as others except you can watch the other properties go (so a bit of drama and entertainment) and more comfortable (chairs) but as the properties are displayed quickly on wall projectors via powerpoint but of course you should have checked out the properties fully beforehand.
A minor thing is if you have expressed any interest in a property you are surrounded by agents begging you to bid (if you havent) or bid higher (if you have bid and stopped).As an aside to this the first property I tried to buy I got at a Ray White in room auction.. after the giddy excitement of the auction nobody bothered to tell us until a few weeks before settlement we were notified by our conveyancer that the contract of sale wasn't valid because the Ray White agents didnt have both vendors present to sign.
leverage? but those guys at Opes Prime are offering up to 95% LVR on shares aren't they.. no wait..
Probably based on the same info this graph from Vanguard.. they mark cash on the graph but would be cool if they had an average real estate investment return plotted as well:
What they are trying to say is in the short term shares are volatile but over the long term they do OK..
In my opinion:
The number can be massively understated OR overstated.. go check out the property and compare with what similar properties in the area have actually sold for (not the silly numbers they stick on the adverts).I just got a place (fingers crossed) for 20% more than the figure on the flier, but I knew that figure was way too low, I have also been to places in the same area where the figure on the flier was easily 40 to 60K too high and the agent appeared amenable to much lower offers once I mentioned the 3 or 4 similar properties that sold for lower prices.
context: I just signed a contract on a PPOR (unit) and hopefully this time it won't fall in a heap.. I've been watching house/unit prices closly in some parts of Melbourne and although they have definately flattened out and may even ramp down a bit I do not think they will crash. There are too many renters hunting for accomodation, too many people looking for somewhere to live, right now, for this to happen any time soon.
When I gave notice I was moving out of my rental accommodation last time (a few months ago) there were people in the yard checking the place out the morning it was listed, and people queued up in the agents clamoring to inspect. Areas which previously had a spread out middle/outer suburb now havily subdivided and getting quite high population density to a near inner city feel..The forums at http://www.invested.com.au/ are OK, some interesting stuff posted there.
As I'm looking to buy, not sell at the moment (for PPOR) "now is as good a time as any" especially as my rent just went up.
Don't let the real estate agent rush you too much, they are always in a mad rush to sell (read FREAKONOMICS to see why) and playing the "other offer" game…
Amazing how short that gap between the Section 32 being available and the offer having to be made is.. despite every other party in the transaction maybe getting weeks on the paperwork..
In my opinion now (several offers, one failed attempt to buy due to agent screwing up the contract) the SUBJECT TO FINANCE clause in the offer can be your helper here.. if you have offered too much the mortgager provider may not approve finance after valuing the place.disclaimer.. I don't know much about this.. late night rambling..
Well it's now months since I first posted this query.. and I have gone with Ratebusters, I found a place and have purchased, now we are in that strange no mans land between paying down the deposit and settlement, let's see what happens.
any other bits of jargon confusing to newbies here? took me a while to twig on PPOR as well.
Also:
CF+ (cash flow postive)
WTF .. no, thats something I say after dealing with real estate agents..just my 2c
I have chosen Ratebusters, although I haven't actually purchased a place yet so I don't have much to report except they have been helpful and fine to this stage (to pre-approval). I chose them because certain features of their loans will be useful to me down further down the track, rather than just the interest rates (though that helps).On the lines of this topic is it a done thing to make use of loan providers valuer ahead of time to negotiate the price with the seller?
Yeah that was a short, relevant answer to the question from someone with knowledge in the field, not spam in my opinion (and I spend a lot of time fighting spam!).
look up Robert Kiyosaki in wikipedia and google. There is a lot of well researched debunking of his claims and books.. of course nothing wrong with getting inspired, just that the Kiyosaki way may not be the best path (and there is a lot of evidence Kiyosaki himself never followed it).
If it's on high ground?
http://news.google.com/news?um=1&q=singleton%20water%20level
On a related note are there any sites that have maps with average sale price mapped as a colour or shade on them for Melbourne etc?
re: Rich Dad Poor Dad – there is a lot of evidence that Richard Kiyosake pretty much made up most of the stuff in the book, and had minimal financial success until his ventures into writing books on how to get rich.
See:
http://www.johntreed.com/Kiyosaki.html
http://www.thesimpledollar.com/2007/01/26/deconstructing-robert-kiyosaki/
http://en.wikipedia.org/wiki/Rich_Dad,_Poor_Dad
http://www.slate.com/?id=2067175OK, thanks guys for the input! It's starting to get clearer for me now.
Looks like the "just simply" overviews of this type of arrangement don't count in the inherent hardlimits in current lending products. I might just apply for splits at certainthreshholds of accumulated equity (maybe every 40K or some other suitable slice).
For example the "ratebusters" product I have been reading the brochure on allows up to 10 splits after settlement for $100 per split.regards,
A.R.P.
