Forum Replies Created
Hi and welcome to the forumm.
It’s great that you are changing your mindset.
I can understand why you are interested in finding an advisor, but may I suggest you take a step back before you seek advice from others and educate yourself.
Consider educating yourself first – read books, learn from others on this forum, buy courses or CD’s and attend seminars.
It’s an age old problem of whom you take advice from as there are many people out there giving advice you just haven’t made it themselves.
But be careful who you listen to. The following artcicle may be of interest to you – it discusses the topic of who you should ask for investment advice.
http://www.propertyupdate.com.au/articles/51/1/Who-Do-You-Ask-For-Investment-Advice%3F
Good luck with your investing[biggrin]
Michael Yardney
METROPOLE PROPERTIES
Publisher of Australia’s leading property e-magazine.
Join over 17,000 readers.
FREE subscription http://www.PropertyUpdate.com.auMake sure the person you are considering using is:
1. A licensed estate agent and has professional indemnity insurance – this could protect you if things go wrong – “bird dogs” are not licensed
2. A member of the local Real Estate Institute – theoretically this shows they have professional ethics.
3. Is not a “one man band” – to look after your clients at the least you need a dedicated researcher and a buyers advocate/negotiator
4. Understands investment properties and owns a few – most buyers agents dont!
5. Has been around for years and has a good network of contacts – to access the silent sales.
Michael Yardney
METROPOLE PROPERTIES
Publisher of Australia’s leading property e-magazine.
Join over 17,000 readers.
FREE subscription http://www.PropertyUpdate.com.auI know the City of Monash very well – we are currenlty involved in over 30 development projects in that Municipality – probably the biggest developer in the area – http://www.metropoleprojects.com.au
The council is not going to just let you subdivide the block. You will need a town plannng permit for a dwelling on the second block and they will require you to enter into a Section 173 Agreement – which basicaly binds the owner of the new subdivided block to only build what has been approved on it.
Its not as easy as you imagine.
I would take up Alistair Perry’s offer – you need some smart town planning advice and he should be able to help you.
By the way – Mt Waverley is a great suburb to get involved in property investment or development.
Michael Yardney
METROPOLE PROPERTIES
Publisher of Australia’s leading property e-magazine.
Join over 17,000 readers.
FREE subscription http://www.PropertyUpdate.com.auWhile there are lots of benefits of getting involved in property development their are heaps of risks – especially for beginners. This article will give you some idea of what I mean.
http://www.propertyupdate.com.au/articles/70/1/The-Risks-Related-to-Property-Development
On the other hand buying an investment property with development potential for the future – when you learn a bit more and have more funds behind you could be a great way to go
Michael Yardney
METROPOLE PROPERTIES
Author of Australia’s leading property e-magazine.
Join over 15,000 readers each month.
FREE subscription http://www.PropertyUpdate.com.auThe way one values land is its residual value when put to its highest and best use.
In other words if you can build 3 dwellings on it, its worth more than if you can only get 2 units on it.
As opposed to houses, which are valued using he comparable sales method- comparing it to other similar sales and allowing for the differences.
On the other hand commercial property is valued by its yield amongst other things.
No there is no web site that I am aware of that will give you the values of “land” – you have to do your homework
Michael Yardney
METROPOLE PROPERTIES
Author of Australia’s leading property e-magazine.
Join over 15,000 readers each month.
FREE subscription http://www.PropertyUpdate.com.auCoopranos
There is a detailed discusion about Metropole’s services at the following thread – both good and bad something like 30 comments form various forum members
http://www.somersoft.com/forums/showthread.php?t=25718&highlight=Metropole
Also there is detailed discussion about my book here
http://www.somersoft.com/forums/showthread.php?t=24555
I hope this helps
Michael Yardney
METROPOLE PROPERTIES
Author of Australia’s leading property e-magazine.
Join over 15,000 readers each month.
FREE subscription http://www.PropertyUpdate.com.auAs we now have an office in Brisbane http://www.metropoleproperties.com.au I have developed a better understanding of the Brisbane market and I am not of the same opinion as you.
What is overpriced? If the houses were overpriced – people wouldn’t buy them? That’s what the market things property values are.
But rather than follow this line of argument lets look at it another way…..
There are opportunities in every market. Get to know your market well, find well priced properties – look for motivated vendors or properties with problems.
Then ….
1. Buy well – don’t pay over market
2. Get your timing in the property cycle right – that fits for Brisbane now
3. Add value – creating your own capital growth.This strategy of finding problems and adding value is well described by Bill Zheng here
http://www.propertyupdate.com.au/articles/115/1/Are-you-looking-for-problems%3FMichael Yardney
METROPOLE PROPERTIES
Author of Australia’s leading property e-magazine.
Join over 15,000 readers each month.
FREE subscription http://www.PropertyUpdate.com.auIf you want to understand the benefits of using a buyer’s agent have a look at the following article:-
http://www.propertyupdate.com.au/articles/12/1/Agent-on-your-side—how-buyer%26%2339%3Bs-agents-work
I must declare a vested interest – I am associated with Metropole Buyers Agency with office in Melbourne and Brisbane – so I am biased, but I have seen many investors purchase some great investments by using a buyer’s agent.
Many people on this forum know enough and have the time to do the leg work themselves, but others are just to busy or don’t have the experience – especially in engotaition – they get emotionally involved.
As Nigel Kibel correctly mentioned – find someone who understands investment property – you would think they all would – but that’s not the case.
Michael Yardney
METROPOLE PROPERTIES
Author of Australia’s leading property e-magazine.
Join over 15,000 readers each month.
FREE subscription http://www.PropertyUpdate.com.auCommercail and Industrial proeprty investment is very different to residential investment – you can’t use the same rules
You can get some idea of the difference in this article
http://www.propertyupdate.com.au/articles/49/1/Residential-Or-Commercial—Which-is-right-for-you%3F
Michael Yardney
METROPOLE PROPERTIES
Author of Australia’s leading property e-magazine.
Join over 15,000 readers each month.
FREE subscription http://www.PropertyUpdate.com.auI guess firstly you should understand why you are getting involved in property and what you are trying to achieve through property, becuase as you move forward you will come across a number of different strategies.
Let me start by suggesting that if you are only beginning – then don’t consider property development yet- if you have to ask these questions then you aren’t ready for development which has higher rewards, but considerably higher risks.
I suggest you begin by educating yourself – reading good books and attending seminars.
There are a number of threads on good books in this forum but I would humbly [blink] suggest you purchase:-
How to Grow a Multi Million Dollar Proeprty Portfolio – in your spare time.
As the author I am biased, but it is Australia’s currect best selling property book – you can get it at all good book shops or at http://www.PropertyUpdate.com.au/pages/Book
There are lots of ways of achieving wealth through property so you will hear or read differnt strategies.
Make sure you listen to people who have not only made money through propertty but have been in proeprty for a while and managed to retain their wealth through a few proeprty cycles.
Don’t get caught up in the latest fads. Buying well located properties and holding them for the long term is a sound strategy that works well. It laso helps if you buy properties to which you cna add value.
Michael Yardney
METROPOLE PROPERTIES
Author of Australia’s leading property e-magazine.
Join over 15,000 readers each month.
FREE subscription http://www.PropertyUpdate.com.auOriginally posted by grant7:Well theres finally some more info on this loan in the latest investors direct newsletter –
See link below:
http://www.investorsdirect.com.au/newsletters/072006/story1.htmSounds like a great deal to me, id like to sign for 3 or 4, pity they didnt leave any clues on how to apply?? Or the requirements…
Anybody know?
I would attend a seminar but im in WA and I dont see any booked for WA[angry2]
The newsletter states many people have switched there loans over to this product since its launch… Is there any forum members out there who have done this and can maybe give some more info??Thanks
Grant!Grant there have been so many requests to do a seminar in Perth, we intend to conduct a seminar there in September.
Watch out for it through http://www.PropertyUpdate.com.au
Michael Yardney
METROPOLE PROPERTIES
Author of Australia’s leading property e-magazine.
Join over 15,000 readers each month.
FREE subscription http://www.PropertyUpdate.com.auI find all this speculation very intersting.
Over 800 people were at the Melbourne seminar and there will be over 600 in Sydney and Brisbane next weekend.
Its a pity none of the attendees have posted what its all about.
I’m going to [biggrin]….have fun speculating or we will see you next weekend.
Deatils at: –
http://www.metropole.com.au/newsletter/0606/juneflash.htm
By the way Magellan- no one asked for the 200% money back thingie[exhappy]
Michael Yardney
METROPOLE PROPERTIES
Author of Australia’s leading property e-magazine.
Join over 15,000 readers each month.
FREE subscription http://www.PropertyUpdate.com.auOriginally posted by delboy:Hi All
Just a quick one. I am just starting to look into possibly venturing into commercial property investing and thought I would ask if anyone can point out any pitfalls to watch out for when doing the figures on a possible deal. Any pointers would be greatly appreciated.
Delboy
Commercial reale state investment is very, very different to residebtial property investment.
The article at the follwoing link should give you some guidelines to getting started in commercial property:-
http://www.propertyupdate.com.au/articles/49/1/Residential-Or-Commercial—Which-is-right-for-you%3F
Michael Yardney
METROPOLE PROPERTIES
Author of Australia’s leading property e-magazine.
Join over 15,000 readers each month.
FREE subscription http://www.PropertyUpdate.com.auOriginally posted by Magellan:“Probably” ????? Thought there was a money back thingie. Like I said options open–
You are right – there is a 200% money back thingie
Interestingly we had a fantastic session in Melbourne yesterday – over 800 attendees and not one person asked for the thingie
I guess they all thought they got their money’s worth which is great
Michael Yardney
METROPOLE PROPERTIES
Author of Australia’s leading property e-magazine.
Join over 15,000 readers each month.
FREE subscription http://www.PropertyUpdate.com.auOriginally posted by Magellan:…. I finally let the moths outa me purse and put up $59 to go to The Yardney day at Luna park(Oh I hope that venue name is not a prophetic indicator)– on readin all this thread I seem to have wasted one third of me entry fee all ready!! that’l learn me– Still, i will use me own Motto- Keep me mouth shut and me options open until—-???
You probably haven’t wasted your money.
If the seminar isn’t any good you could always go on the rides at Luna Park[biggrin]
Michael Yardney
METROPOLE PROPERTIES
Author of Australia’s leading property e-magazine.
Join over 15,000 readers each month.
FREE subscription http://www.PropertyUpdate.com.auHI
This article on the development process may be useful:-
http://www.propertyupdate.com.au/articles/14/1/The-Property-Development-Process
Michael Yardney
METROPOLE PROPERTIES
Author of Australia’s leading property e-magazine.
Join over 15,000 readers each month.
FREE subscription http://www.PropertyUpdate.com.auI thought I had made the “initial wager” which was for 2013 – I still plan to be around then.
The median price of Melbourne property will be above $736K by 2103
Michael Yardney
METROPOLE PROPERTIES
Author of Australia’s leading property e-magazine.
Join over 15,000 readers each month.
FREE subscription http://www.PropertyUpdate.com.auOriginally posted by foundation:Mr Yardney, may I refer you to my recent post:
https://www.propertyinvesting.com/forum/topic/24432.htmlBefore you read it, perhaps a gentlemanly wager is in order… Melbourne median house price 2013 (ten years from peak at $368,000). Above $736k*, you win, below $736k I win, as measured by APM/RBA series. Name your poison!
Cheers, F.[cowboy2]
*I’m happy to make it more interesting, say above/below $500k by EFY 2010? That’d be under 36% in seven years, far below “the average 10% per annum” that you’ve stated! Remember 10% = Doubling every SEVEN years.
Thanks for the challenge [biggrin]
I’m happy to take on your challenge and donate $2,500 each to 2 charities – total of $5,000 on your initial wager..
The best indicator of future performance is past performance and for the 30 or so years I have been investing there have always been others who have siad it won’t happen again. And everytime there “excuses” seemed to make sense at the time.
The bet is on!
Michael Yardney
METROPOLE PROPERTIES
Author of Australia’s leading property e-magazine.
Join over 15,000 readers each month.
FREE subscription http://www.PropertyUpdate.com.auFoundation
I am as keen as anyone to find out all the details of this loan product and as I explained, I have no financial interest in this – nor do we get any refferal commissions.
Let’s look at your figures another way…
What if we bouight a well located but average property.
It only goes up the “average” 10% a year ( for Melbourne Sydney or Brisbane) because we were not smart and didn’t negotiate the purchase well.
It only goes up the average 10% per annum – not every year but over a 7 to 10 year cycle – because we weren’t smart enough to buy a property in an area with above average growth.
It only goes up on average by 10% per annum because we don’t know how to increase the value of our property by adding value.
Then after 1 year the property is worth $110,000
After 2 years the property is worth $121,000
After 3 years the property is worth $133,000
After 4 years the property is worth $146,000If this is the case, why would iIworry if my loan principal has increased from $80,000 to $88,000.
I am still so far ahead with extra equity that it doesn’t matter.
Over the 4 years my loan to value ratio has dropped from 80% to 60%.
There are much better ways to make money out of property than cash flow – non taxable capital growth seems fine to me.
And even if the property only grew at half that rate you are still ahead.
Michael Yardney
METROPOLE PROPERTIES
Author of Australia’s leading property e-magazine.
Join over 15,000 readers each month.
FREE subscription http://www.PropertyUpdate.com.auWe cover this situation in our commercial proeperties by always requiringa bank guarantee for at least 6 months rental as a condition of accepting the tenant as a lessee.
The tenant always tries to say no – but we have them in all our commercial properties , even from big and international companies.
Michael Yardney
METROPOLE PROPERTIES
Author of Australia’s leading property e-magazine.
Join over 15,000 readers each month.
FREE subscription http://www.PropertyUpdate.com.au
