Forum Replies Created
Good on you Jodie! That was spot on to how I felt about investing in property, until I heard Ed speak at one of Michael Yardney's seminars. Fantastic books written by these three gentlemen also.
To Anne and Brett, what great timing you have. I am now a Chan & Naylor Client and say to you, that you will never look back, with this type of guy gunning for you. Well done, and thank you Ed for your inspiring information and generosity.
Personal service from an accountant the calibre of Ed, is something you will cherish, and look back on and say, 'that was our turning point on the road to creating real wealth'.What a difference to what started as a negative post!
All the best
pendoHi ya millions
No it was because I had 3 properties in partnership with my two older brothers. We had spent 30 years in business together, and foolishly decided to sell off our joint property interests, when we sold off the business. But you live and learn.
Never be frightened of good debt, but find out how to make it safe. Which is why I say to you, go see one of Chan & Naylor's mob in Perth. I should start a referal service. I can only talk from my experience. My PPOR LVR is 40/60 ie 40% loan. And I am using that equity now to acquire more props. There is no point having equity if it is not working for you.
Depends how much equity you have, and what is it you are trying to achieve anyway. The really successful investors are out there, why not you too? Time in the market, is something that I have heard for 35 years or more. It works for me. But don't take my word for it, hang out with successful investors. Become like your profile name – millionsHi millions
My strategy is get the best advice I can to remain a successful property investor. I don't mind paying for it. However, the person selling the advice must have a solid track record. Also, I will be looking hard at what the make up of a suburb consists of.
Where is the demand for housing going to be. What type of person will want to rent a certain type of residence. Are the neighbouring residents all in good jobs with solid futures. Does the suburb have all the right ingredients, to make it an attractive place to live. Good schools, transport, open areas, etc etc. Timing of the market would be good, but time in the market, is much more profitable. Selling is never an option, as I am an investor, not a trader.
So most of mine are in Capital Cities. I use an outstanding buyers' agent to find above average dwellings. Streets within streets, buying at wholesale rather than retail. Why does this house perform better than the neighbouring house.
I think it is fine to invest in regional areas, but perhaps to a more limited degree. I have 2 properties in the Bundaberg area.
I would prefer to have six $500,000 properties than twelve $250,000 properties. So long as I am getting at least a 7% plus return for every year I own. In reality, it has been almost 11% plus for my 25 years of investing.
I too once made the mistake of selling to reduce debt and increase cash flow, but in hindsight I would have been miles ahead, if I had sought good solid accounting advice from someone that specialized in property.Nigel Kibel wrote:Keep in mind that in New Zealand interest rates are already over 10.5%. The effect is that the market is now slowling. Anyone who has lived in or owned a home for 5 years or so has a lot of equity. Many will just eat up some of the equity that has been created.Which is why the size and quality of your assets is important. The quicker you ramp up the equity gained the safer the investment. Most years of the cycles I have invested in for the last 25 years has proven this. My houses have never gone broke yet.
Hey millions
If you buy time, then you can weather any financial storm without being out of pocket. Assuming of course that you have sufficient equity in your properties to buy that time. The last thing you need is to fund it out of you own pocket. Check out the Equity Charge calculator at The Knowledge Centre.
http://www.chan-naylor.com.au/Hey Richard
I'm one of those people, that if you want to get to the top of the mountain the first, don't walk or run, use a friggin helicopter.
I too read those books and came away thinking 'man what a truck load of work that is'. Successful sure, but not for me. I didn't want property cause I loved it. Nor did I want to deal with the tenants. I had enough dealing with people when I owned a Newsagency. I wanted property for the ability to leverage off, and buy more and more property. And I wanted capital growth, because equity has been my friend for 25 years or more. It BUY'S TIME!…………………But how to make it safe? Ha!…like newsagencies use to be!
Anyway, to cut a long investing story short, someone sent me a copy of Wealth for Life by Tony Melvin and Ed Chan. Turns out, I have been using 70% of this strategy anyway. Buy and Hold good quality properties, and never ever sell. Unless you need to for a life threatening illness. Definitely not for a recession or depression. I actually bought 3 properties in the last recession in the 80's. Best time to buy usually. For every property, I have bought since 1980, every single one has risen, by 10% pa some more, in capital growth. I am only speaking for myself here, and there are plenty of DIY's here having a fine old time, up to their eyeballs in every little detail. Which is fine by me, keeps em off the waterways. I want to enjoy life, as it is very finite.Sorry to waflle, but if I was starting out again from scratch, I would say get yeself to an accountant that knows his/her stuff, in the Property stakes. Someone with a passion for helping you get a great team together for your wealth building future. The fees you pay are returned many times over, not to mention peace of mind.
Hey Andy
May I suggest that before you do anything, get some good advice from an accountant with a proven track record in Property investment. It will save you tens of thousands in the long run. Not to mention frustration and disinformation that comes from opinion and not fact.
I can recommend a group that is very passionate (they actually like accounting!) about helping all types of people investing in property.I have bought two reports from Terry R thus far. One this morning, as a matter of fact. I'm impressed with the information contained. They seem to be very well researched and written. Good value for money!,………….. in my book at least.
I was also impressed with his recent article in API's August edition. 'The real stars of the show'.I remember the 80's recession very well. Our sailmaking business was doing badly, even though our business was 75% percent reliant on export. We designed and made hang gliding sails with Bill Moyes. So we started buying property with my brother as partner. In fact, we bought our first PPOR on the Central Coast. We struggled, and lived in a caravan onsite for about 12 months. We were owner builders, so saved a bit of money. A block of land below the cliff top we still live on, came on the market, shortly after we moved into the house. They wanted $10,000, which at the time we thought was a bargain. We paid $26,500 for our PPOR block. So we offered them $8,000 and got it. We also picked up a block of three townhouses on the Gold Coast for a bargain, which in time and some good tenants, have grown dramatically in value. Huh!! I remember the joke at the time about Gold Coast units. It was easier to get rid of VD, than sell a property on the Gold Coast. Gradually, with a bit of personal spending restraint, and time, which is on every ones side, thousands turned into millions. Were we scared? At first…sure…but, if you work as a family, in a disciplined way, then it eases the burden of making money over time easily achievable.
Hi Nina
You sound like a very sincere person, and good on you for starting your quest for your family's financial security.
But!!! Just a word of warning regarding advice etc.
Like an awful lot of people starting out, once you sit down and begin sifting through the avalanche of information, you will be bewildered and confused. And as you said, they assume an awful lot about their readers.
Particularly if you are not familiar with all, or indeed any of the property/investment speak that goes on here.
My advice is to find a good financial planner; preferably an accountant, with a proven background in property, who will be able to steer you in the right direction.'You get what you pay for', has never gone out of fashion. The money spent here at the beginning could save and make you, whatever the financial goal you set for yourself. I can recommend a good accountant, in every State of Australia. I will be happy to recommend you to one if would like to email me.
Cheers
pendoWOW Thanks for that info on HLP Richard. We were offered one $40,000 unit in HLP in 2004, and we were told most people had bought at least two. This was through a friend of a friend, who used to be a dentist, and Berlowitz, I think I recall was a former GE hotshot. They were offering 5% first year, 11% second year, 57% third year, 67% fourth year. We had a good chuckle when we saw your post. Hey!….it's a good thing that there is a chronic shortage of dentists. This poor woman sold off a couple of her properties in the Bowral area to put into HLP. Needless to say, we thought at the time 'In a couple of years we will be reading about this in the newspapers'.
With 42,000 new jobs being created in Queensland last year. And, with no apparent slow down,…… would that not convince anyone with a bit of common sense, that supply of houses cannot meet demand. This includes rental, as well as owner occupier housing. The same in Melbourne, albeit a lower figure. Sydney also has a chronic shortage of new housing, and increasingly the type of housing needed. Demographics have changed, making 1 bed/2bed units/apartments/townhouses in huge demand. Immigration is about to be increased in the coming years. Most of these people, (I hope!!?, have read), are qualified professionals, who will be looking for quality housing. They have to live somewhere. Also Australia is a great place to live, and will be in demand by the rest of the world, as a very desirable place to live, for generations to come. As supply cannot as yet meet demand, this will keep driving housing prices up.So rest assured, that corrections, not crashes have been, and will be the order of the day. The world's economies of today are far more fluid and dynamic, than those of the 30's to the 80's. The fundamentals are very strong in the Australian economy, and will remain so under a change of Government. Rudd, if he gets in, will drop a lot of the dogma he has been sprouting, and tow the Howard economic line. After all, it was Hawke, who altered the structure of the economy, to bring it into modern times.
The message is, for serious property investors, buy as best you can, in the best possible areas, but do it for the long term, and add to it when you can. For aggressive investors, they will ramp it up always, and go for it. Some will do well, others will blow it. It all depends on the individual, and his/her mindset.Personal debt levels are high, yes! But,.. employment is strong, and gaining strength. The majority of Australians own their own homes. Affordability is not really the major issue that the media is banging on about. It is always wise to view the popular medias take on the economy, (and everything else) with a degree of scepticism. And if China implodes, like many informed economists think, then the Govt, can start digging uranium as fast as possible to make up for the shortfall in taxes from the mining sector. Yes sir re bob, we sure are 'The Lucky country'
Hi Devo
I suggest Bundaberg. Close to the coast, plenty of cheap land, thriving local economy, about to get an extended runway to take the big jets. Bundy is a wonderful mix of back packer tourists, and old fashioned friendly locals. The Burnett River area is very undeveloped. The Bargara, Coral Cove area is about to get a new satellite city, and 600 new dwellings, shopping pecincts etc etc. Oh!…almost forgot….the barra fishing is great. And the temperature is consistent year round. Mind you I am biased, I have 3 properties up there……and I live that dream part time now.
Have fun fishing!!!
I thought I noticed a shift in focus away from Steve himself on the site last week after, watching his latest book presentation.
Also, where did all your blogs go? The one that stood out for me was your affirmation that another property boom was happening. You know the one!………….The house that someone paid more than the asking price, and the billboard that he bought.
Another excellent source is Terry Ryder's Hotspotting.com.au . I have found his reports to be very good sources of info, and very well priced. Check it out.
Unless you have a waterfront at Mindarie Quays, WA. My eldest Brother hesitated over buying a waterfront block here approx 9 years ago for $230,000!!……..Well, after much goading from my old man he bought the waterfront and sold his house in Shelley. He plonked a pretty average project house on it for less than than $200,000. Well last month, straight out of the blue he was offered $3.15 million for it. At first he could not believe it, as he is currently working in China. But in subsequent weeks, it was the real deal……………………… It was not even listed! Thats almost 25% per annum for 9 years. Good thing the old man talked him into it though. I remember having a look see at it when I was over there at the time. Beats the hell out of 10% pa I've made on my ppor for the last 24 years. Anyone know of any cheap waterfronts out there, in a developing area where demand is still low? Silly question I guess!
Anyway, he has agreed to the sale (DOH!!!), and is looking for another waterfront in NSW around Nelson Bay. I don't recall too many waterfronts in this area, and if anyone knows of one please let me know.pendo
Hey benbrophy
I've been a frequent visitor to Bundy for the last 2 years ,as my Brother moved from Sydney at that time, to build a house in the Innes Park area, and I have a free place to stay when I visit. The town of Bundaberg is huge, and from what I'm told has the largest growing tourist sector in the State. Whatever that means? Lots of cute looking 'backpacker girls' anyway. From my casual observation, real estate prices have gone up in some areas and types of dwellings, and down in other areas and of course types of dwellings. There are plenty of opportunities to be had, as a large percentage of blocks have old houses on them, and are easily subdivided, and fairly cheap to come by. Or! should I say were!!!……, until last week that is! It seems all of a sudden, investors are moving in on these bargains. I know that the stupidest thing to happen in Bundy, was for the council to reject extending the airports runway to take jets out of Sydney. As you may know, Hervey Bay put its hand up and got the jets. Dumb! Dumb! Dumb! Anyway, I love the area, and the relaxed, friendly style of the locals. I bought a double brick two story unit in South Bundaberg with a long term tenant. Its a 2 plus 2 arrangement, and when I was looking into them, the two that were for sale, went overnight , as I left my phone on re charge in another room. Talk about DUMB! I got the third one though.
BUT!!! The best part of Bundy has to be Bargara. What a great little sea side town. I reckon if there was the ideal picture that one might have of the 'sea change' cliche, then Bargara fits it. Check it out for yourself. I cant get enough of this place, and have decided to build a house there and some. Oh and by the way……..There is a 600 dwelling town with resorts, shopping centres and waterways, to be built between Turtle Cove and Coral Cove, and the machines are on site working already. Some serious Singaporean money behind it.
I guess with 78,000 people moving to QLD every year, not all of them want to live in Brisbane, The Gold Coast, or The Sunshine Coast.
