Bruham,

You seem to be swinging a fairly broad brush there…are you sure about most of your assumptions.

“So far S.McK. is far and away in front of anyone on this website“….are you sure ?? How do you know how much Steve has or anyone else for that matter ?? # of props is usually a really poor guide as to net wealth. Is there a truthful,…[Read more]

Sol,

By definition I always purchase at market value…I’m the buyer, and therefore I am the market for each individual property that I successfully negotiate to contract acceptance stage. What other people “think” it’s worth…well that’s down to speculation and hearsay.

What’s my opinion on the Perth ‘market’. I don’t have one. How could…[Read more]

Sol,

You mean to say that there is actually activity outside of Sydney, Melbourne and Brisbane ?? But how can that be ?? [blink]

All of the journo’s in the SMH, Age and Courier Mail say that the property market in Australia is overheated and has been heading down and likely to go down further ?? Maybe when they say the ‘property market in…[Read more]

I work with quite a few Americans in my job, most of them coming from either California or Mexico dodging their own IRS. They all say their local markets are going nuts, and have been for a few years.

On the other hand, just read that article about Steve buying 30 houses in the US and reckons there are bargains everywhere.

Perhaps the US real…[Read more]

Or maybe the residential tenants aren’t paying enough rent to make it fly.

We own our PPOR outright and have it fully hocked to buy IP’s.

We consider this to be the equivalent of having your cake and eating it too.

Cheers,

Dazzling

“No point having a cake if you can’t eat it.”

I’d go along with Duckster but take it down another peg or two. I can’t for the life of me understand why someone just starting out in employment with little to no savings would want to burden themselves with a whopping $ 300K NTDD…seems crazy from where I am sitting.

Why not start out with a crappy 60 or 70K apartment somewhere in some dive…[Read more]

Surely if your pockets are deep enough and your aspirations are low enough you can have your cake and eat it too.

That is, when your deposit for the PPOR is more than significant, greater than say 50%, and your choice of PPOR is not outrageous for your current station in life…you can have both stability and the opportunity to leverage the…[Read more]

I read somewhere that you shouldn’t invest in the same industry as that which you earn your main source of income from…diversification apparently.

I don’t fully subscribe to it myself – I think leveraging off specific industry knowledge can pay handsome dividends. But when the proverbial hits the fan, you don’t want to simultaneously lose your…[Read more]

Heya resiwealth,

We have a far more modest target of income to live off personally, over and above our investment expenses. With what we are buying currently, we can confidently extract 8% nett from our CIP’s, so the amount we need is nowhere near $ 2 MM over and above the fully paid off PPOR.

Our target date is April 2007. The target was set…[Read more]

Hmmm…2.8% nett yield for a RIP in a suburb of Perth – sounds about right.

Zen, at 6.8% for the cost of money, your cashflow loss is ~ 4%. Assuming you are on a middle tax bracket, your refund will be ~ 1.5%, therefore you’ll need CG of about 2.5% to go nowhere.

Therefore, the entire business proposition hinges on what you expect the CG to be…[Read more]

Oshen,

I’ve just re-read your post from a few above and indeed, it looks like I’ve copied your advice word for word…

What can I say – GMTA.

Or as my wife likes to say – “Fools never differ”.

Happy days…[biggrin]

Cheers,

Dazzling

“No point having a cake if you can’t eat it.”

Kate,

Excellent post. Revolution indeed. I believe as vendors become more savvy through education and experience, REA’s will not be able to hoodwink people into their overpaid ‘services’.

One point you missed, to be successful in selling, a salesperson has to know their product inside out and back to front. This is where the vendor selling…[Read more]

Luke,

I believe if you took your “flog at all cost” private business interest blinkers off and actually addressed Redwings post – you’d see just how non-sensical your suggestion is !!

It’s like Redwing asking for healthy tips on running faster in preparation for a big race and your proposal is to take a dodgy clapped out bus ??

Maybe I’m off…[Read more]

Elodie,

Well done…chalk it up to experience. Dust yourself off, regroup your resources and get out there and carry on…you are much wiser from the experience – probably something that is extremely detailed in your mind now, and not able to be summarised or gleaned from books or seminars.

Oh, and on second thoughts, probably is best to talk…[Read more]

[biggrin][biggrin][biggrin]Now there’s a challenge…but then the reward is so alluring and attractive how could any reasonable person refuse.

The only insurmountable problem is Rob, your opinion will be the sole judge…and therefore doomed before it starts.[biggrin][biggrin][biggrin]

Thanks but no thanks.

Rather than talk generalities though…[Read more]

I’m constantly amazed and quietly encouraged by the number of investors who have no experience in, yet claim that commercial property investing is somehow riskier that RIP’s.

None are risk free…if you want that…bank accounts are your ticket…

I believe all props have different risks, you just need to slot them into your risk profile and…[Read more]

Rob,

I think you’ve got your “30 yr old up to speed finance broker / advisor” hat on.

Try putting your “75 yr old – only had one mortgage in my life, taken out in the 50’s and paid off in the early 80’s” hat on.

Explaining to a 70 yr old that “There is nothing fancy about a reverse mortgage. It almost operates like a capitalising Line Of Credit…[Read more]

Thanks Rob for tearing my post apart and setting me straight on the error of my ways. I agree, none of those points were remotely valid…even though it was highlighted they weren’t the main reason.[angry2]

One can write whatever one likes in a lease, in the real world there are two major obstacles between writing it down and it happening,…[Read more]

Having spoken to quite alot of people in their 70’s and older in the past couple of months gleaning as much info as possible off them, I’d suggest that applying for something like a reverse mortgage or accessing their equity in their home would freak them out completely. They were all brought up in the era of ‘work hard, pay off your house,…[Read more]