Forum Replies Created
Say Jeff – i noticed you said:
There's no time like the present.
Don't wait to buy property, Buy property and wait.I'm guessing many people in Sydney followed this same advice during the past 3 years or so and soon found that they owed a lot more on their property than what it was worth…
In Steve's book "0 to 260+ Properties in 7 Years" he advises to sell some of your property portfolio in a downturn – certainly not to acquire more property. Debt reduction is paramount in such a situation.
Realtors will have us believing that there is no such thing as a property downturn, but i reckon Sydney is not the only place in Australia that is being set up for a downturn. A reality check is in store for the rest of the country in my opinion.
I have read Steve's first book '0 to 130 Properties' and part of his second book "0 to 260 Properties' …
I hadnt actually reached the point yet where his newer approaches to property investing are discussed. Eg. his 11 second rule obviously doesnt apply to properties nowdays. in fact any form of 'outof the box' positive cashflow deals are near impossible to find and need to be 'created'… so i can imagine that he must discuss new methods in his latest books.
As i understand it, Steve handed over his half of their considerable property investment portfolio to Dave and he opted to continue down the 'education' route … much the same as other gurus like Robert Kiyosaki and Dolf De Roos.
I was fairly impressed by De Roos' book "Real Estate Riches". at least for me as a novice i thought it explained most of the concepts pretty well about why property investing is superior to other types of investing.
However, i was always aware that what he says is applicable to the US and only applicable to AU in broad principal, as our tax laws vary quite significantly from that in the US, and are unfortunately generally far more punishing for an investor / property owner…
what are your impressions of Steve as a guru and how relevant and up to date do you find his methods discussed in his latest books? (I havent read them yet)
foundation wrote:And please, please, please, if you intend to be a successful investor, expand your reading way beyond the Kiyosaki/spruiker books!I hear you on that front! Last year I stumbled across some disturbing facts – at least they disturbed me – which basically came down to the fact that his so-called 'rich dad' was/is an imaginative character – simply there as a 'teaching aid/prop'…
After that i stumbled upon Steve and his books and realised this is more what i'm looking for!By the way – who/what is 'spruiker'?
foundation wrote:It's up to you whether to believe the MSM or fact-based analysis.
I prefer to work on facts, and am therefore fascinated by the facts you've supplied here.
My question though is how can the prices in Australia be explained if there is indeed an oversupply of properties about and not an undersupply as the media is reporting?
The owners should challenge the 'valuation' by the state government in court …
The fact that a neighbouring block of land sold for a third of the price during that same period would mean a certain win of their case.
It's about time the people took on the greedy government. It's an attack on property owners' rights… it amounts to legalised theft!
Foundation – thank you for the interesting observations and facts.
I based my opinions of a land/housing shortage on
1. what i've heard on the radio comparing the rate of influx of people compared to rate of building of new dwellings in South East Queensland. The ratio is not at all good.
2. i've heard similar arguments presented on television, and not just for Brisbane. Melbourne and Perth and other capital cities are also exeriencing population growth outstripping housing supply by a large margin.
3. i've witnessed and often hear about open home viewings (especially for rentals) where anywhere between 20 and 150 arrive for the inspections!All indications are that the supply of housing is nowhere near keeping up with the influx of people (due to immigration as well as moving in from other parts of Australia) in South East Queensland.
If there was an oversupply of properties we definately would not be seeing the ridiculous increases in house prices and rents that we have been seeing…
Brisbane experienced over 20% price growth in 2007 on average. This despite the highest interest rates in 12 years causing people to spend disproportionately large portions of their income on a roof over their head.
I have often heard that there is an oversupply of housing in the US, and this makes sense and explains why housing is far more affordable there.
According to the numbers you quoted, there is a similar scale oversupply of housing in AU as there is in the US …
The simple market forces of supply/demand determine pricing, and the continued property price inflation in AU doesnt support there being an oversupply at all.Hi
I am encountering this same problem! I am busy reading the 0-260 book and now wish to do the quiz online but cannot access it at the URL indicated in the book.
Steve – could you or somebody at PropertyInvesting.com please investigate this and let us know how to access the link or restore it?
thanks
NeilGreat!
i'll finish the 0-130 one then and move on to the 0-260 book …
cant wait!
ANYBODY with some ideas on the subject i raised here about corporation structures that they themselves use and why??
thank you Richard – I appreciate the contact details.
I bought the book "0 to 130 properties in 3.5 years" and can honestly say that i like Steve's approach.
It seems honest and informative – and without the hype which i've seen in other guru's books.
I'm new to Brisbane (and Australia) – have only been here since Feb (am all the way from South Africa) and in that short time i've gained the impression that property here is extremely expensive and in short supply due to the shortfall in housing created by the influx of people not being countered with building enough housing in the region.
I also gained the impression that realtors here have an easy ride – which explains why they set inspection times to suite only themselves and not prospective clients. After all they can expect anything from 5 to 100 people to come to an inspection due to the housing shortage so why try to accomodate the prospective renter?
And its not just the rental market where those seeking a roof over their heads seem to be at a gross disadvantage (having to pay whatever rent is being asked).
From what ive seen of the seller/buyer market it seems much the same – a sellers market. Too few houses and too many people looking to purchase – which means that sellers are getting whatever they're asking, some even more as buyers fall over each other to secure a deal.
This is especially evident in real estate auctions – which are traditionally supposed to favour buyers – since bidding begins at the 'lowest' …
I have been amazed to see houses sell for more than the seller originally wanted through auction! I see this in the realtors offices where they record auction results of properties they have sold under auction. Amazing …
It is for all these reasons that i am puzzled as to how and where one could possibly in these conditions of housing shortages find positive cashflow properties? Especially around the Brisbane area…
I noticed a post by Jarrah about ++ cashflow properties in Brisbane and so emailed him my impressions of the marklet here so far – and he encouraged me to share this on the forum so here I am.
My perception thus far is that property prices in Australia are very expensive and are EXTREMELY negatively geared! This is certainly true in Brisbane.
Certainly the realtors ive spoken to think i'm an idiot for even trying to find + CF properties. They reckon they dont exist here in Brisbane!!
There is a similar forum to this on http://www.richdad.com which obviously is focused on the US market. From the posts i've read there it seems as if finding ++ cashflow deals in the US is easier than here. This is partly due to the genuine market cycles experienced over there – I recently read posts referring to "falling markets" in various areas. By contrast realtors tell me that there is no such thing as "downs" or "drops" in prices here in Australia – prices just keep going up and up and up – although at varying rates.
Is this true??
