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Wow, that sounds lame. Was this today, in Sydney? I have some friends going and am curious to see what they have to say after going along.
How many folks in the audience?
Did you get a feel that were many experienced people or all newbies?Sounds like it might just be a motivational session. Which isn't a bad thing if that is all some folks are looking for.
But not real good if you are seeking real "how-to" knowledge.
If you are interested at the ground level of reno's, perhaps take a peek at the Everyday Property Investing site. Those guys appear to be normal folks talking and doing it. They have a podcast on itunes that is worth listening to if you want to go right back to basics. One of the presenters even has Youtube videos of her own reno. They do tend to tell it how it is, rather than try to sell you something. They do now sell mentoring services, but current intake is closed. Other than that, I can't see anything else they are selling. Which is very encouraging.
simple wrote:moxi10 Joined: 06/11/2010 EPI_Den Joined: 13/11/2010 xdrew Joined: 20/11/2010 Funny that, three persons all joined fairly recently, few days apart from each other and have similar view on the subject. Nick-names are not very creative to. I make no conclusion, let time and posters decide
Dude, that is just paranoid. Remember, we see the world as we want to see it. This comment may reveal more about you than about them.
Checkout EPI_Den here at Every Day Property Investing – I have been listening to their free podcasts recently. Seem like straight up investors just trying to make their way in this business.
No way is xdrew related to EPI_Den, except that they post on the same forum, have an interest in property and might both be from the planet earth. IMO xdrew is one of the finest thinkers/strategists on this forum. Track back and read xdrews threads, you may learn something about formal critical thinking and logic. I know I have.
No idea about moxi. But I do love his positivity.
My prediction – I will be successful and retire early.
KevinR wrote:The expansion of the current mine sites, relocation of camp staff from a nearby mine site and the general lack of accom in the town are the main reasons, nearby power station and other govt/private projects underway are also factors I am interested to see what conclusions people have drawn on Collinsville, have others invested there etc Thanks KevA recent work colleague quit his very high paying sales job to do large developments in the Bowen Basin. I spoke to him at length and he is extremely bullish on Collinsville. Bought up some parcels of land. One parcel, apparently running alongside a (the?) golf course he is developing into 20-30 studio apartments fully decked out with all modcons. High-speed internet, large screen tv's, nice furnishings etc etc. On another couple of blocks he moved old houses onto, doing small scale renos and renting. Could be finished, not sure on the latest.
High-risk stuff, to be sure. Too high-risk for me right now, but darn it, I know he is gonna make a motsa. And I can't help but wonder what I might be missing out on. Hmmm, think I will give him a call.
I know very little about Collinsville myself. Except Coal, lots of it, in the middle of nowhere. Looks like rocks and dust on a map to me right now.
bump – Caught this one during a random search.
No bust. Can someone please get the original poster back here to defend himself? Pleeeeeaaaaaase!
Shoalhaven seconded. Margaret Lomas is a fan of Nowra too as I recall. She rarely makes a bad call. (I actually don't know of a one.)
My recent experience;
Feb 2011 settled on 3×3/1/1 villas, single title. Brand new. Cashflow positive after a rent increase. Maybe neutral after a couple of repairs. Strata titled and revalued in Jan 2012 for an extra $115k. Gives me almost enough equity to buy another one just like it. I would buy again in Nowra but my strategy insists I don't put too many eggs in one basket.Just read this after it turned up in a random google search. I love reflecting on past predictions;
The property crash never happened in Australia as mentioned by one poster. If I had listened to him, I would have missed out on a few hundred 1000's equity growth.
Reno Kings keep on charging. I just listened to a podcast of some of the developments they have been doing. So much for only making their money during boom times.
Oh, and they certainly haven't ended up on A Current Affair as someone predicted.
For those that posted these comments. Please come back and share your thoughts. I would love to hear how the past 4-5 years have treated you in property investing.
Completely agree. Margaret absolutely walks the talk and is a bonafide guru.
Have read almost all her books and found them to be the most down-to-earth, comprehensive and balanced of the many others I have read.
After reading everything I could get my hands-on, I became a Destiny customer 3 years ago. Cost us a few thousand for a lifetime platinum membership and has given us the fantastic start we were looking for. We went from zero properties to currently holding 5 (4xIP + 1xPPOR). Currently ramping up to buy 1 more again before the end of the year. The plan has us buying 3 more next year and 2 in 2013.
If you are looking for a tried and true method for financial freedom with property investing, the Destiny strategy will deliver. It isn't the most exciting, high- risk or dynamic road to untold riches. It is just a boring method that works. So if you are a conservative or risk-averse investor that still wants financial freedom, I reckon you are a good fit. If you are high-risk, super-dynamic and want to do development or rennovations, Destiny is NOT for you. It is definately straight buy and hold. That said, I have found myself wanting to do developments recently. I think this comes from becoming comfortable with all the basics of property investing. So naturally I am curious about the fun I can have in adjacent investment spaces.
Could you do it without paying Destiny money for mentoring etc? Yes, absolutely. It just depends on how much time you have to piece together the knowledge from other information sources. If you have access to a great mentor that walks the talk or a good independent investors group, this could put you in a great starting position.
8 months later….so much for the bubble and the impending collapse in the market. Another fear post down the drain.
It doesn't count as a prediction if it happens in one suburb in the next 10 years. So don't give me that "it is yet to come" nonsense. Heard it all before.
Not a bull. Just a dude that loves dredging up these old posts and whipping them for my own self-gratification.
End rant.
fWord wrote:Bottom line is this: get involved, or get out of here.
This about sums it up. I would like to redirect this conversation back to creating new ideas. Let's refrain from the critical "black hat" analysis for now, there is plenty of time for that later. Let's keep this voraciously "blue sky" thinking.
Comon "hbb….", you are a smart dude, give us some ideas. I for one, promise that I will not criticise any of them. Perhaps you can think of how to take fWords idea and make it better or more workable?
We are really going for quality THROUGH quantity here. Anything goes, no matter how crazy it sounds!
BTW – thanks for posting your idea in here fWord.
xdrew wrote:emptyvessel wrote:Can someone define the term "over-leveraging" for me? I hear it alot, but nobody ever seems to quantify it. And if it is quantified by a number, does that number change based on other conditions or is it a cosmological constant (or fudge factor0?You expose yourself to more debt than you can possibly handle on the premise that the markets will move in your favour and the fact you are using OPM (in this case banks) to leverage yourself. Over-Leveraging is the pushing into an area that either leaves you EXTREMELY vulnerable to market moves … or has you in a position where any market maneuver outside your expectations leave you unable to service the loan.
In an upwardly moving market when its boomtime .. thats how to make a motza (a heck of a lot) off a little by gearing it to the maximum. However .. its a true gamble because most of the transaction is done highly leveraged. So the gamble is more that you hope for maximum gains .. and dont really know what to do when you are forced to maximum losses.
Thanks. It was a rhetorical question and the answers I received reflected my own view,. There is no quantifiable objective measure of "over-leveraging". It is completely subjective.
For me, I keep my LVR across my entire portfolio below 80% and at the moment it is around 70%. This, of course, doesn't tell the whole story because this is across multiple asset classes, investment vehicles and currencies.
Anyone else have a strategic target for their LVR based on an actual number?
Or is everyone going by "feel"?
(I wager that most investors don't know their LVR and of the ones that do, most don't have a target. And of those that have a target, they can't explain why they have that target. Except to say that "it sounds good and makes me comfortable so I sleep at night." And of the ones that can, they most likely DO have a plan for keeping it in line with that target should values in an asset class go up or down.)EV
CheevesFinancial wrote:Things to watch out for in Florida:
- Shady brokers
- Rental Guarantees ….come on, really????
- Chinese Drywall
- Seller Financing
- Tax Deeds
CHEEVES
Thanks for the heads-up cheeves. Are you able to explain why Seller Financing and Tax Deeds are something to watch out for? I just listened to a podcast with Steve McKnight interviewing Aran Dunlap. Aran appears to have done very well out of pursuing both these. Is it perhaps because he is mitigating the risk of these with due diligence or other methods? Or are they just bad and that is the end of it?
Thanks for your help,
EVummester wrote:Debt has been growing unsustainably for a long time now – possibly as far back as the 80s. It has to correct. Doesn't matter what is done, the underlying problem has to go away for real growth to resume.Only sustainable solution is a deleveraging the likes of which the world hasn't seen since the great depression.
That's my take anyway.
Doesn't mean there won't be oppurtunity – just means over-leveraging yourself in this environment is a little foolhardy, be it with property, shares, gold or whatever.
Can someone define the term "over-leveraging" for me? I hear it alot, but nobody ever seems to quantify it. And if it is quantified by a number, does that number change based on other conditions or is it a cosmological constant (or fudge factor0?
kong71286 wrote:The last time round it was a flight towards 'Liquidity'This time round it will be a flight towards 'Safety'
Sounds good to the ear, but in reality doesn't mean anything tangible IMO.
Safety and Liquidity are in the eye of the beholder. [Even I am not sure what I meant by that]
shoooshoo wrote:this video summarises the sharemarket: http://www.collegehumor.com/video/6477219/remix-e-trade-baby-loses-everything hilarious!!!Gold! Awesome vid, thanks for the laughs
Great article here from Robert Gottleibsen; http://www.eurekareport.com.au/iis/iis.nsf/lpages/MEZT-8AP7HW
He is predicting a mild-disaster and some ways to mitigate your own risk.
John555 wrote:I heard someone say that it costs more to insure the US against default than Brazil. (Credit Default Swaps). Now Brazil has an S&P rating of BBB. So the US should be BBB or lower. Also in Oct 2010 Brazil last sold government bonds, they had to pay 8.85%, so what should the US be paying?S&P are part of the problem. The market needs to stop viewing these ratings agencies as some sort of all-knowing independent gauge of the risk/value rating of a security. Throw them out, start again.
I think the market is over-reacting to the credit downgrade in response to their ludicrous overestimation of the credibility of the 3 big ratings agencies. Remember, these are the ratings agencies largely responsible for putting AAA+ on those vastly complex derivative securities that were ultimately underpinned by high-risk, low-grade mortgages.
Great article here; http://www.nytimes.com/2011/08/08/opinion/credibility-chutzpah-and-debt.html?_r=1&src=me&ref=general
All-in-all there doesn't seem to have been any fundamental change in any of the fundamental economics in the U.S. It is still struggling, the growth is anemic to flat. And this is exactly what has been predicted all along. So I don't think it is a surprise. Their leadership is struggling to deal with the debt, no real surprise there, it is, afterall, a monumental problem with no magic bullet answer. Mix in political powerplays and it is no wonder things have gone the way they have. I am not surprised at all.
I kind of agree with Xdrew. My view is that this is the fall the market should have had without all the sovereign money being pumped in. But I don't agree that it will be deeper and longer. Recession may be approached or touched, but not drawn out over years. More of this anemic growth with a gradual decrease in volatility over the next few years.
I also agree that this is a good thing. The sooner it happens the sooner we can get on with the next era of prosperity. Survival of the fittest companies will prevail and be stronger on the other side. Do not underestimate the creativity of US businesses and their "low friction" environment for starting up and bringing new ideas and products to market. I have experienced this first hand. I work for an American company that has prospered greatly since the GFC primarily due to great culture, amazing innovation, fantastic vision and great leadership over an extended period. They do think about and approach business in a different way.
My 2c.
Today's idea;
$10 for every "open source" idea you submit for use by any Australian citizen.
The idea is, generate lots of ideas.
As for the selection / qualification process……that is another idea…
Out of interest, what do you regard as "highly leveraged"?
Is it an absolute measurement or a relative one?
This is awesome! So many great ideas.
All for the single Australia idea. As a kid I never understood it. Reduces the government, more money to get stuff done, less government to get in the way of getting it done.
Water dispersal and national solar. Hell yeah! Now that's worth spending all that carbon tax on.
Agreed, get rid of the handouts and get everyone back to work.
Great stuff, keep it coming! I started another thread dedicated to this topic over in Opinionated! if anyone cares to post there; https://www.propertyinvesting.com/forums/community/opinionated/4337531
