richmond yeah- that’s probably the one. I just thought I’d post about it because Steve did mention it the other evening in refgerence to CCoR.

My money just lays there and won’t work at all. It needs a holiday.

kay henry

Perhaps the lesson in this- and Ausprop just said it- is to keep the dogs… because in a few years time, they may become Best in Show )

Really, if people sell at a loss- a 10% loss on a 600k unit in docklands, for example + costs (could be around 70k), then they have made a loss. Sometimes it’s better to keep it and make a profit later.

kay henry

In fact, Yorker, Steve made a comment at his launch the other night, that he had made far more money from capital gains, than from cashflow.

We can’t all buy 10%’ers, Yorker. Some of us wish to buy lifestyle places etc, and the rents are not 10%… hence, they are negative geared.

I find it weird when people refer to people who buy neg geared properties as stupid, or “lemmings”… Who would have regretted buying a property in sydney 10 years ago and making so much money? How could that have been stupid or lemming-like?

kay henry

prdnationwide,

The seminar thing will also depend on who you’re targeting. Some of what you’ve said in your posts are what other investors take for granted. But new people might find that info informative. If you’re looking t people who are already investing, they need to be able to know that you know more than hey do- otherwise, why would they attend? If, for example, you did a seminar on whyt RE is a good investment… well, we know that, but it would, again, be interesting info for those who are not yet investing, to hear.

How much will you charge?

I would be interested to attend a seminar where the info wasn’t being covered by others, the media, or in books. For example, if I want to know about sydney demographics (Bernard Salt provides all this info), I can find out about it on google news or a range of other sources. What can you provide that gives insights into other areas? What’s your specialist knowledge/nich area?

I would be happy to go to a seminar that spoke about a particular area… for example, if you ran a seminar on why the inner western suburbs of sydney will outperform other suburbs over the next ten years (as an example) then I’d be happy to hear that info- because it’s novel, and it isn’t already being said around the traps.

If people do seminars and tell us how much money they made in the past decade- and that’s why it’s good to invest in the next two.. well, unless people are taking into account current conditions, would find that awaste of time. Anyone who invested in the past made money- but now we are looking forward to the future. What do you have to say about the future of property? Some stuff we can’t find out from Residex or the other sources.

And if you are gonna do seminars, keep your info current. All that data about “only 5% of investors own 2 properties or more” and “90% of Australians retire in poverty on the pension”… [hmm] that data is really old, and does not reflect the current position of the population. Up-to-date info, and info that is not easily accessible off the net, is what I’d be looking for.

As for me, I wouldn’t care if you had 400 properties, or one or none. If I listen to someone, I care not about what they have, but about what they have to say. also, a seminar presenter can lie about how much property they have- they can say, “I made $4 million last year from property.” Well, maybe they did and maybe they didn’t… but it’s what they have to say in their presentation that gives them credibility, from where I’m sitting.

kay henry

Brett,

I’ve heard about this as a shares strategy- using the curves to purchase and sell… but for property? I think it would be a disaster to buy when IR’s reach their peak. Imagine buying when IR’s are 17%- you’d be likely to end up with negative equity- or, if you were imagining that RE would be out of dashoin if IR’s were so high that you could buy cheaply, then you’d be losing your margins on the cost of repayments.

I think the best time to buy is when IR’s are decreasing or stable. Watch the economy for hints about IR’s. They become more predictable when you check out the macro state of the economy.

kay henry

Doug, you said:

“I’ve wondered about laundries… could they be quiet little earners?”

The couple who own my local laundromat work 7am-7pm 7 days a week. I think they would work about 80 hours each week. I would suggest most laundromats don’t just have machines with noone working there- but they do ironing, and a bunch of other stuff.

I get all my clothes etc laundered (I’m not much one for domesticity), and I think the people who work at the launromat deserve every penny they earn. They work their guts out.

kay henry

Yes, I think we do what makes us feel good, but then again, I’m a hedonist :o)

I worked out last night that I spend an extra 20% of my income- over and above minimum payments- on investments, so I reckon I can spend the rest on what I like. I am hardly going to miss out on the things I enjoy in life, so that I can have a few extra bucks when I’m too old to enjoy them. I’ve never denied myself the things I want.

Some people would call this “wasting money on non-essentials”, but I call it having a life.

I think the thing is, too, that we all spend money on what is important to us. Some spend on home reno’s, others on school fees, others on seminars, whereas my income is disposable with no commitments.

Anit Bell reckoned to drive around in a torana and dress your kids from an op shop, rather than spend one cent on anything other than investments… but I would rather live now, than rely on this unimagineable wealth when one is at retirement age, and then possibly have a stroke so it becomes useless sacrifice anyway.

kay henry

LMI is basically like an entry duty (like an exit duty). I wouldn’t use it, but if you do, I would only use it for a property that appears to have potential for CG. If you’re paying 2% LMI, then that’s an extra 4k onto a 200k property. You’d want to have the opportunity to recoup that money in the deal. I don’t think LMI is suitable for vanilla buy and hold CF+ deals- it would take too long to get that $$ back. I would be factoring the LMI cost into any exit strategy.

kay henry

kp,

I get my yield based upon purchase (cost) price. It’s not hard to find properties with this sort of yield. I wouldn’t use market value or possible resale price in any of my calculations, and I don’t use CoCR- I find that an artificial method.

kay henry

Interesting article, Derek. The last seriously abusive guy who behaved like that in here, did get banned, but he sure caused a bit of grief during his stay.

kay henry