Any chance of getting mentored?

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G’day….

Yep me again….and its lengthy too.

Not wishing to leave anyone out I address this post to ALL that responded to my last G’day.
I feel that those who responded at least are considering what I had to say and appreciated your input…thank you.

My first purchase in Real Estate was 3x1br Units in a block of 36b Units. It was Unit Plan number 1 in Canberra…near the Hackett shops if you live in Canberra…. @ $6,000 each….promptly sold for $9,000 each.
1st Mortgage 80% of purchase price plus unregistered 2nd Mortgage from Vendor for balance.

This is too easy… next deal 1/3 share in 42 units for $550,000 ( 1971) Sold 36 on the phone
(subject to inspection)within 48 hours prior to settlement. I kept 6 and made a 1/3 profit of the
$112,000 on the 36 that we sold with simultaneous settlements.

Kep Enderby MP (showing my age) introduced a “fair rent” tribunal…some where marked up others down. Overall now negative as interest rates went up, up and away…….. Now not so clever after paying 66% tax on the profits.

2004/005 Interest rates UP whether our exporters like it or not…A$ moves up to .7700 against US$.
Wage increase demands…inflation takes off by 2006…so Howard gets back in before the Sh*t hits the proverbial fan. Real Estate starts it’s next move up but, by now “Real Estate is a mugsgame”.

Those that held don’t worry about their temporary “paper loss”. For them it’s tough mentally. However those with the “magic” off the plan.. with family home now at risk…dump their “I’m gonna be rich investment properties”…along with the rest of the “crowd” that wrapped deals without knowing what they were doing. All proffessions require many years of experience to excell in their chosen field…. it will be blood in the streets. Some will have committed suicide, and I don’t mean just financial.

Just before all this happened…inexperienced players got into the investment market after reading a book or two…most only “talked” about what they were “gunna do”…a lot acted and got caught up in the hype. They tried to wrap properties…they were at the bottem end of the scale as far as expertise was concerned…so were their clients………impending disaster because neither party knew what they were doing…they didn’t get an experienced partner or a mentor.

But this market is different….yeah? October 20th ’87 Stock Market is VERY VERY similar to now, believe me I had clients mostly out…but some still in and watched $250,000 investments crash to about $110,000 within an hour of the market opening.

Back to Real Estate…imagine a $280,000 new landscaped home “stunning” could not sell @ $215,000 within 12 months..that was Canberra 1996…inched it’s way up for a year or two…owner bails out with only a $50,000 loss…he thanks his lucky stars. Today it’s worth $475,000…with another 25% decline…12-24 months about $350,000 odd.

Smaller 2Br. units from $112,000 down to $60,000. Cheap homes $120/$130,000 down to $75,000 if you could find a buyer…..and where did the smart money go…you guessed it ” Real Estate” and made a fortune from 1997 until 2003/04. The Real Estate market troughed in September 1994…9 long years ago. But this time it’s different……..BS.

Not too many of you would know that…in the 16th century in Holland, people got caught up in the Tulip Bubble and actually sold their Real Estate to finance their speculations in Tulips…the early birds made money…the followers didn’t…
No Tulips and No House.

Have a look at some of the country towns a couple of hours from major cities today…now we see For Sale signs…$months ago anything for sale had a Sold sticker on it. You couldn’t rent anything decent unless you paid $200pw…now take your pick at $185pw. The buyers in these towns used Sydney/Canberra properties as collateral to buy them…..some will sell at a loss…others may have to even sell the family home.

One of the earlier replies to my post suggests that they are going to Sell an option to purchase with a lease deal ” as a hedge against the impending fall in values”.This is justified they feel as the poor old client isn’t interested in prices…they just want a roof over their head that they can call their home. One of you MUST get hurt in todays market. They won’t exercise the option and be dissalusioned about Real Estate.
But there’s another “victim” around the corner.

Real Estate is Fantastic…So is the share market
I’ve done both….mostly at the right time…but the times I was wrong…”OUCH”

We had a saying in the share market….
” Let your loss be your lesson “.

Like me back in the mid 70’s…maybe you have to experience a loss/setback before you learn.
I just wish I had a 56 year old mentor like me back then.
But as my wife of 33 years just reminded me
” You wouldn’t have listened to him back then”.

Learn from my mistakes they won’t cost you a penny.

Whatever you decide….
Differentiate your service, find a niche market,
work very hard WITH Integrity and add value to your service that doesn’t cost a lot of money,but has a high perceived value to your clients.

Wishing you ALL the very best.

Billfromoz.
ps. No I’m not negative…I’m the most enthusiastic, positive person I know.

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