Forum Replies Created
He makes claims on a public web site, so I’ll challenge him on it. The site I showed you indicates wether an individual has a certificate as he’d need to be employed by a licensed agent. Of which he is not. So he has no qualifications what so ever. He shouldn’t give people the impression he is something he isn’t.
N. J.
News for you APerry Nigel Kibel is not a licensed agent. You can search for yourself by looking at this site http://online.justice.vic.gov.au/servlet/bla_search_criteria . This is the Victorian site, and Nigel’s address on his site is in Victoria.
Nigel is also in breach of the Financial Services Reform Act (FSRA) as he claims, in his own words, to give financial advise, and is not a licensed financial planner. Just another guy how’s trying to make a buck from selling seminars.
I spend over $10,000 a year to ensure my businesses are licensed and my staff are trained to provide good service and have a clear understanding of legal requirements. Nigel doesn’t. Yet he is trying to make a buck by claiming he’s an investment genius.
I find it frustrating when people cheat the system like this.
That’s interesting, because I saw you give a presentation on property management, where you claimed to have been a property manager for 10 years (from memory). What are the licence numbers you work under. If you don’t let me know what they are, we can all assume that you are not licensed to trade.
Nigel, you didn’t answer my previous question – Are you licensed to act as a buyer’s advocate or are you one of the many who claim to be a property professional and work outside your states consumer guidelines?
You seem to have a knocked up your own website and lay claim to be an investment genius, when I knew you, you were just a property manager.
In addition, your site states “so that he can best advice where to purchase to give you the greatest capital growth and returns.” Apart from the grammatical error where I’m sure you mean to state advise, you legally need to be a licensed financial advisor to provide investment advice.
What is your Real Estate Licence number and what is your Financial Planners Licence number, or whose licence do you work under?
Nigel, no need to know who I am, I agree with you and you seem to know your stuff.
JKM – you’re being a little silly, anyone can find Positive Cash Flow if you put your own money into a deal. Yet most investors should not leave cash in a deal, if you are trying to build a portfolio, as you need to recycle your equity in the deal to move to new purchases, therefore when calculating positive cash flow, you should always assume 100% finance as this is the desired outcome.
In regards to LMI, most purchasers would draw on existing equity to purchase a property, therefore using 20% of the new purchase price from existing property and the rest from the lender secured against the new property. Therefore using 100% finance no LMI. So who said anything about Mortgage Insurance?
JKM – if you change the definition of Positive Cash Flow property to suit your own falsely stated claims, I’m sure you can find it anywhere. You still need to prove your point or admit that you are wrong, or not experienced enough to make such suggestions on a public forum.
Well done for having a go though!
JKM – Nice selection as the rent return is above the average, but your point to Nigel Kibble was that you could find positive cash flow properties in capital cities. As my name suggests, I only trust the hard facts.
The property on your last posting settled on the 15/09/2003 for $420,000. Based on that price and the current rent of $650 (that is above other properties in the area) that’s an 8% return with no vacancy. Once you add costs to this property, you’d be negative pre tax, and positive after tax. Positively Geared
I would think that the current sale price is higher than the last, therefore the returns are effected more negatively.
Although, based on the claimed rents that I cannot substantiate with my current resources, the property has a much higher yield than average, it is not positive cash flow (Pre-tax, financed 100%).
Keep trying, you put your claim in writing, you have to prove yourself!
I’m registered on the Positive Real Estate database, they send out free property information evening invites. The one I went to they served food and beers after the presentation and encouraged the group to network. They did plug their services, but the invite highlighted that would occur, and they gave a fairly soft sell at the end for their education courses. I didn’t mind the sell, as they were willing to give me something at the end (Food and Drink). I have never been to a free event where they give you something for free. Why don’t you sign in and see for yourself.
I’d like to know if Nigel is a licensed agent and his track record for putting property deals together. I totally agree with his claims regarding the location of Positive Cash Flow, and the property that JKM presented would fit into a very high risk category for obvious reasons beyond strata fees.
I have extensive experience in the property sector. I am a licensed agent and my corporation holds licences to trade in every state and territory of Australia. I have an extensive property portfolio, have developed Positive Cash Flow, Negatively Geared etc. developments throughout the country. I am a member of the buyers agency chapter of NSW and have dealt with numerous commercial and residential developments. All the properties I own are leveraged positively as I balance my lending to a point that ensures that properties remain self funding. I have been able to do this by transferring the profits I make in developing into physical property, therefore I never take cash profits, keep my tax to a minimum and live off rental incomes.
The point I’d like to add is, building a property portfolio is NOT about Positive Cash Flow, it’s about balancing your Cash Flow and Equity and ensuring you don’t leverage yourself outside of your comfort zone. Positive Cash Flow properties are great because they are self funding, yet as is life, when you get to take advantage of such a benefit, you loose another, and in this case it’s growth. People will challenge me on this, but before you start showing me the equity you have gained in your property located in regional areas, show me some historical statistics going back 10 – 30 years or so. Any idiot involved in the property market over the last 4 years could make millions, but have they survived times in the market when interest rates rose higher than 17% and investors couldn’t give properties away? When you look at historical statistics in some Positive Cash Flow areas using data over a long period, you’ll see why I recommend not concentrating on solely buying in these areas.
Another thing to consider, is that in most cases, when you calculate the overall rates of return on properties in Growth Areas that may be negatively geared, the returns will outweigh positive cash flow every time. Positive Cash Flow should only be used to add to your ability to service the debt you hold on growth properties.
Nigel is right to say that Positive Cash Flow properties are generally in small regional towns, and there is a basic reason for that. As you venture outside of the capital cities, you have less population, more available land and less demand for new housing. Therefore the house prices remain flat, yet the rents increase over time as they are supported by ongoing costs that investors encounter. The capital cities experience the opposite, as there is more competition in the rental markets, and less available land, therefore rents are lower and growth is higher. A wise investor will have a mix of these properties in their portfolio.
Now there are some properties that come up outside of this criteria, such as JKM’s suggestion, yet I would suggest you’d be mad to buy a property like this, as it’s probably one of many properties in the same building that are exactly the same as each other. If one of the other investors fire sale their property that is the same as yours, your market value has been affected. Always look at the unique point of difference when conducting due diligence, in this case, it’s extremely low.
Back to positive cash flow, in the current market the options are extremely low. In my opinion, most areas in Australia are under rented and rents have not caught up to Market Values. Typically, market values rise a lot quicker than rents and it’s only now that I’m witnessing rents increasing at a rate that provides a promising outlook for the future of Positive Cash Flow. Therefore, now positive cash flow properties are located in areas where market values have not increased dramatically for whatever reason, and I’m finding areas that people have overlooked in the last 18 months or so are coming back as rents are increasing.
I’d like to add that from reading some of the comments in this site, there is a large proportion of you whom need to take advantage of any education you could possibly take advantage of. Positive Real Estate are an active buyers agency, and what really impressed me about them is they claim to have located over 400 properties throughout Australia. They highlighted some areas to consider, and I am currently developing in these areas for the same reasons that Positive Real Estate highlighted. I’d recommend that you attend any free event they hold and make up your own mind.
