Forum Replies Created
Hi Hutch,
I just had a quick read of the website, and it doesn’t seem such a bad idea to me! If i had loads of cash one of the things I would be doing would be looking for opportunities to purchase large tracts of land at a wholesale price and then holding it or developing it breaking it up and selling it retail. To me it makes sense if you can come up with a way to get the cash and give you the buying power you need, then you are well on your way…..
My main concerns would be what the overall return being achieved is – as I guess some properties have been turned over for a good profit, but I presume others will be buy and hold, perhaps for some time and they will be producing little or no yield in the mean time…
Craig.
Hi Mat,
Can I ask whether you have been able to get your commercial property revalued and pull some money out of the deal now that you have been able to up the yield?
Thanks,
Craig.Hi Luke,
I purchased a property through Quartile quite a few years ago, and have sold it since. I continue to receive the Quartile email newsletter.I found Quartile to be a honest, up front organisation. The group was started by the father, who is apparently quite well known in Sydney circles for the large property holdings he has. His son was running the business and I presume still is.
Their philosophy is to buy off the plan or just after completion select developments. They are negatively geared, but not highly. They aim to do a good deal with developers for their buyers. They make their money in two ways (which they are open about): they get a cut from the developer on sales, and they hope you will let them be your property manager once you have bought. I don’t recall having any issues with them as managers for the time i had a property with them.
The were two big things I liked about Quartile. They stopped recommending property altogether in Sydney when they thought it was over-priced. At one stage I recall they had almost nothing on their books on offer, but they just waited until they cound stuff in other markets (Cairns, Melbourne……east coast areas). The other positive I took from them was that (I hope) they planned to make a bunch of money out of you being the managing agent, and if they sold you junk you would be unlkely to remain with them when you found out!!
Craig.
Hi Gross,
Thanks for the clarification. No, I think your calculator is working just fine! I just needed a few details for me to understand…..I had figured you meant that you took out the 70% lend on the property immediately – and could not see how the deal would fund that – now you have explained that each year you take out a little more that is covered by the tenants increased rent – lovely! Only thing stopping that I guess is if interest rates climb?
I also did not understand where the $1m valuation comes from – and still I am a little lost? I thought commercial valuations were done primarily on the rental income possible on the property? Can you give me an idea of how a valuer would have arrived at the figure of $1m on the property?
I know this deal is not the main deal you are going into detail on, but as you have given out this much hope you don’t mind giving a little more…..
Thanks,
Craig.Hi Gross,
I wanted to get some clarification from you on the deal you explained on a commercial property you picked up for $400k. On that deal if you are getting a $38k PA rental income then I guess you are approaching a 10% yield, but certainly nothing outstanding. Why was the property offered at $1m, and how is it that it has been valued at $1m when the return on it at $1m would be a lowly 4%?
Also, the higher valuation allows you to take out a mortgage for far more than you have paid for it, but what is going to pay for the mortgage?
I think I am missing something…..
Thanks,
Craig.Hello maxolau,
I was a Roy McDonald student a few years back. The company was SMW back then. He is a very charismatic person!
My initial impression was very good and I not only did the 4 day course, but several follow-up courses. I also used his financial planning services. What I found was that there was little substance once you got past the veneer. I was able to get a refund for one of the courses I did (a few grand).
My understanding is that things went down hill quickly at SMW, hence the new name and new start. Most of his staff left, he lost licensing rights to one of the main tools he was using at the seminar, there were also registration problems for his financial services arm, and products that one of his partners recommended have performed quite badly……
Craig.
Anyone out there from the south coast of NSW? Comments? Opinion?
Originally posted by GPSNetwork:What I found funny is that he says sell your investments, and also says no one buy property.. So if everyone is selling, who buys?? Where is the logic there??
I just thinks it’s just one point of view and there are alot of others..
At the end of the day, people need housing and if it means everyone is rushing to the market desperatley to sell.. Me and my client investors are there ready to snap up the deals.. “Buyers Market”
And if no one is buying, then everyone is renting, better returns for us!
There are a million ways of looking at this; when ever there is a gloomy cloud in the sky, there is a bright sun right behind it..
Roy H.
L.R.E.A., Dip FS (FP)Guardian Property Specialists (GPS) is a research-focused company that specialises in sourcing and providing residential investment properties Australia wide!
Hi Roy,
I watched the story beginning to end. I must point out that he did not say “no one buy”. He was quite specific in suggesting that for investors there was no rush, but if you were a PPOR purchaser and the deal was right and you are going to be in it for the long term then go ahead and buy….that’s what I heard anyway.Also, I think Mr Symonds is a realist. And he would know that if he suggests that “all investors that own property should sell and those in a position to buy should wait”, that only a percentage of people in that category are going to follow his advice, and there is always going to be a market for buyers and sellers. You could present the world with the most valuable peice of knowledge and only a portion would be willing to grasp it and use it – that’s the variation in the species!
Craig.
Hi,
I’ll be working night shift that day – may be able to come along but would need to leave early.Craig.
Hi Maruco,
I’ve gone through the purchase and sale of quite few properties, and have never been charged for phone calls. It was either a pre-agreed total price, or a pre-agreed total price plus or minus incidentals (which didn’t include phone calls).I have really only had two times when I have lacked confidence in my conveyancer – one was when I bought a property in QLD, and the other was when I sold a property in QLD! They do have their own way of doing things…….
Craig.
Hi All,
Thanks again to Len for organising. The venue was fine, as was location. We briefly discussed other locations, and it seemed somewhere around the area where the M5 meets King Georges Road might be a suitable compromise. Another suggestion was rotating venues, so everyone is equally disadvantaged!Seriously though, I think all those in Syndey that are serious about investing in property and who would like to meet like-minded people WILL travel. Unless you are planning to only buy and build in your own ‘backyard’ you are probably going to have to do some travelling anyhow…..
Craig.
Hello All,
My wife and I are planning on coming along. We can be there at 6:30pm, but would be happy for the time to be pushed back to 7pm or 7:30pm.Craig.
Hi,
Quoting from ‘GST and BAS For Dummies’ by Angela Ryan : residential rents are an input taxed supply. “For residentail rents, it means that a landlord doesn’t charge GST on the rent charged, but the landlords are also not able to claim input tax credits for anything purchased in respect of the property.” Then for commercial residential properties : “Commercial residential premises are a seperate category in relation to the GST. Such premises include hotels, motels, inns, hostels, boarding houses, caravan parks and camping grounds. Accomodation let on a short-term basis is usually taxable, but residential rents are usually input taxed. To help you work out the difference, remember that rented commercial residential premises are taxable (the GST is charged) unless the premises are used for long-term accomodation, which is defined as renting for a period of 28 days or more.”I have cut out some of the longer explanation….just left the facts!
Craig.
My wife and I have four vending machines – (snack and drink machines), but they are managed for us. Pays 20% fixed return on the base cost of the machines. Works out at about an 18% return after costs (ie initial stock, float, insurance). They take care of siting machines. And you can depreciate then over five or six years – so should be no tax for those first five or six years. Machines have an expected life of about 10 years, then another five or six with some work (usually requires a new compressor after about 10 or 12 years). Good reliable income. Other option is to run them yourself – but a good site is critical. The company who runs our machines says their average return is about 30% – if you could not do better than 40 or 50% I don’t think it would be worth your time to run them yourself.
Happy to provide more detail if wanted.
Craig.
