Forum Replies Created
- SIS, once you read Wealth Magic, you definitely need to buy the latest one – $10 Mil property in 10 years… Also, talk to Jet – he’s done quite a few of Peter’s courses too….
Thanks Mel – your cheque is in the post!!! [biggrin]
looking forward to your book – when is the big day of the release to the bookstores?
Should already be there – “How You Could Build a $10 Million Property Portfolio in just 10 Yearsâ€
Thanks SIS.
If I sell ½ as many books as Robert I’ll be a happy camper (if I sell twice as many I’ll be a VERY happy camper).
Speaking of books (warning – shameless plug coming up) grab a copy of my new book “How You Could Build a $10 Million Property Portfolio in just 10 Years†at any good book shop – it is currently number 1 on Dymock’s Business and Investment Bestseller list.
By the way – I think “Brain” is the bestest EVER cartoon character.
I subscribe to his uber-plan![quoteOnly fixed interest rates — what do you know that we don’t.[blink][/quote]
Nothing, I don’t think – it is obvious that interest rates are on the rise, the US economy is in a mess and the most likely outcome is that we will be in an increased interest rate environment – most annalists who I respect are saying it will cap out at 10% or 11% this time but that’s a far cry from the 6% that most new investors are used to paying and unless they are prepared for it they could find themselves in trouble.
If I can fix my interest rates for 5 years at 7 odd % which I can at the moment I know exactly how much I need to find out of my pocket to pay for my properties for 5 whole years. That gives me a lot of “sleep at night factorâ€.
Simply by buying bargains when they present themselves and having sufficient funds set aside to ride out and bumps in the market that may occur in the next few years.
[The next few years will, in my opinion, sort the sheep from the goats. Could you expand on your comment.Well, I just think it could get hairy out there in the next few years. People who claimed they were legends by making money in the last few years might find out it was the market who did all the work, not them.
And if that’s the case they are going to find making money out of property very tough in the next few years.
Having said that, those who had good strategies and are prepared to modify them for changing circumstances will still be able to do well.
By this comment do you mean that you simply put the squeeze on a vendor?Not necessarily – the market is doing that for me in many cases, I’m just along for the ride. But there is no doubt that a good negotiator can do better without trying to unduly “squeeze” people.
Have a read of Wayne Berry’s excellent books “How to Get the Best Deal Every Time: Without Rubbing People the Wrong Way.†And “Negotiating in the Age of Integrity.â€
They are superb and will really boost your success in negotiating without lowering your ethics.
Quote:When you say bargain prices — how far below recent market levels are you purchasing.Quote:Well it vaires from a few thousand to 30% depending on the area and the keeness of teh vendor.[The strategy that you outlined in your previous post — is this contained in any of your home study courses.[grad]No sorry – this is my “latest” strategy developed after I completed my Diploma of Financial Planning and started working with clients on their day to day investing – WOW what a revelation that was – you mean people don’t actually do everything I tell them exactly the way I told them to and have their own opinion on things – amazing!
It became obvious that despite how easy and fun I find it, not everybody is suited or could be bothered committing the time to learn options. That put a “cash-flow†hole in my strategy for many people so I needed to come up with an answer to that.
Also, I have been hanging out with a number of my wealthy friends’ financial advisers – WOW what a revelation that was – you mean all these people I thought were mega-successful at their own investing actually had other people doing it for them so they could focus on running their business and spending their money – amazing! And now with 15 years of experience I was able to see some of the distinctions and nuances of their strategies I simply wasn’t able to understand before.
Adding all that together I have developed my “upgraded†investment strategy which is starting to filter its way through to my books, seminars and most importantly wealth strategies for my clients now.
Originally posted by elika7264:WOW!!! Peter: that’s some reply. Now we all know what to aim for[thumbsup2]
Elika – thanks – verboseness is a habit!
Originally posted by geo:Will you be conducting another one soon and if so – are you able to inform us of it – thanks.
Just keep an eye on our website or call customer service to get your name on our list. I prefer not to use somebody else’s website to overtly promote my products.
(Even though I am happy to shamelessly “plug” my new book – has everybody got one yet? My mum has upgraded her rating to “terrific” now that she’s seen I dedicated it to her!).
Here’s a cut and paste of an article I wrote (also posted in another forum).
Here’s my view on negative gearing – I “tolerate†it because throughout most parts of the economic cycle what I consider to be the best properties (high growth properties close to major population centres) will come with a return ratio that means your costs to own them (especially if you have a high LVR – and for me and most of my clients that means 100%) will exceed your income – ie they are negatively geared.
In about 3 or 4 years out of 10 the type of properties I buy will be neutral or positively geared. The rest of the time I have to accept that I will be required to “kick in†some funds into my investments.
I am not prepared to sacrifice quality and growth for income as I believe in the long term growth will far outweigh any meagre income I receive from property.
To me, there are far better ways then residential property to generate income. (I know that this is a controversial statement in this forum but before you jump on me please see my previous post about ways to skin a cat).
And that leads me to what I think is my “rather neat” way around the quandary of negative gearing…
Because I don’t like being tied to working for a living (even though I do), I subsidise or in fact totally off-set my costs in owning residential property through higher yield investments – shares, commercial property trusts, trading, high yield funds, etc.
Lately I have turned more and more to commercial property trusts – they are easy to find, have simple leverage through margin lending and if selected well offer good long term growth and excellent income. Their primary downside is volatility (ie – they go up and down in price – a LOT).
That way I get to own the “best†residential property for “freeâ€. (Well at least no cash outlay from my pocket).
This doesn’t suit everybody but I love it. I leave the management of my commercial property investments (all through trusts – none direct) to people like Frank Lowey, get a rate of return that exceeds any interest that I pay, I use that surplus cash flow to fund the negative gearing on my residential properties and use growing equity in those properties to keep buying more – seems like “free†money to me. And, after a couple of years the banks will take into consideration the cash flow from the commercial property trusts when calculating serviceability.
Also commercial property trusts are counter cyclical to residential property and tend to lag behind the share market so that means when the yields are low from residential property they tend to be (but are not always) higher from commercial property, and when I don’t need the income as much because my residential properties are getting high yields, the income from commercial property is suffering. Same counter cyclical effect with the growth – when residential is growing strongly, commercial tends to be down and vice versa, thereby smoothing returns and lowering risk.
I describe my view on this on page 14, 15, 136, 137, 138 and 139 of my new book “How You Could Build a $10 Million Property Portfolio in just 10Yearsâ€.
Oh, I have to add – commercial property trusts are like shares – it really helps to know what you are doing – if you are unsure seek the advice of a licensed financial adviser.
I hope this helps.
Disclaimer: Peter Spann is an Authorised Representative of Freeman Fox Securities Limited, the Holder of an Australian Financial Services License. The material in this article is of the nature of general information only and neither purports nor intends to be advice. No consideration has been given or will be given to the individual investment objectives, financial situation or needs of any particular person. Investments can rise and fall in value. The decision to invest and the method selected is a personal decision and involves an inherent level of risk. None of the information in this article constitutes, and must not be construed as, an offer of securities or other financial instruments. Nor is it an invitation to you to take up securities or other financial products. Nor is it a recommendation to deal in any securities or other financial products. Before making an investment decision on the basis of any information presented in this article the investor or prospective investor needs to consider, with or without the assistance of a Licensed Financial Adviser, whether the strategies are appropriate in the light of their particular investment needs, objectives and financial circumstances. Peter Spann, Freeman Fox Securities Limited and their associates may hold shares in the companies presented and will be entitled to commissions on certain products. While every effort is made to ensure accuracy the laws and strategies relating to investing, financial services and taxation are constantly changing as does the factors that effect the likelihood of investing success for example, but not limited to, the economy, government policy, market sentiment, and time, therefore the writer does not warrant or guarantee the accuracy, voracity or timeliness of any of the information presented. Any examples presented are for illustration purposes only and previous results are no indication of future profits.
Originally posted by geo:I would suggest having a shopping cart on your site with all your products like this site has.
Thanks – I know it’s not obvious on the site but we actually do – just scroll right and where it says “Read the Book!” click on the “On Line Shop” text and you’re in.
Thanks for your suggestion.
Originally posted by redwing:Individual strategies depend on individual circumstances, i believe it’s like advice..listen to everyone and take whats usefull to you.
I agree – the most important thing is to find a strategy that:
1. Works
2. You like
3. You stick to long enough for it to pay its results.There are many (fun) ways to skin a cat!
Originally posted by geo:Hey is there a website for Peter Spann where you can purchase his books or materials – thanks
Just a quick click on the www at the bottom of any of my posts will take you there – thanks for your interest.
Ironically we don’t stock my property book – “How You COuld Build a $10 Million Property Portfolio in just 10 Years” – you’ll have to get that from a book store, but everything else we have is there.
Originally posted by Erika:Hi Expat
Are you waiting for Peter S to tell you it is time to buy, only you know if it is time to buy property. I am a Peter Spann graduate and the main thing I have learnt is that you make you own deals, keep looking and you will find.
ErikaAnd this is a VERY good point.
I made my first million during the recession “we had to haveâ€.
Lucky I had nobody to ask advice from – they would have probably told me to stay out.
And I remember that in 1997 most annalists were saying that it was all over for property – sheesh, if I’d stopped buying then I would have missed the greatest property boom we’ve seen in ages.
Buy when its right for YOU to buy.
Originally posted by Expat:Um yeah so the answer is ?
[cowboy2]
Regards
ExpatSorry – must have been a SNAFU
My answer goes something like this…
There is no doubt that capital growth will be limited in most areas of Australia in the next few years.
In fact some areas have already gone backwards, but this is just natural correction of the normal over exuberance shown at the end of the property cycle.
Interest rates are likely to be heading up – most annalists I respect are saying a limit of about 10% this time – which is never a healthy market for property.
So, if you need immediate capital growth you are really going to have to look for it.
My view is that I am a long term investor and although capital growth is my game I don’t need it immediately as a justification to buy.
I’m not a cash flow investor (and that comment is likely to get me thrown out of this forum immediately!), and I explain why in my book, so that doesn’t bother me either.
The flip side to all this doom and gloom is that this type of market can offer opportunities to those who are brave of heart, entrepreneurial in their approach, and prepared to sit out the worst of it, if it comes.
And, at the moment you can find quality property at genuine bargain prices – and I can’t remember the last time that happened.
I mean people are actually negotiating with buyers at the moment, not lining them up to pick who to accept an over inflated offer from – who’d of thought???
The vendor of a property I was looking at to buy recently had it on the market for $5 million – I bought it last Thursday for $2.8 million (and still think I could have extracted a bit more if I was prepared to let it go but this was prime, prime land with extraordinary potential and an OK income in the interim so I wasn’t about to let it go).
Deals can be done, and this is exactly the environment where I am at my best.
In the last few years I have been buying no better than anybody else and like everybody else the market has done most of my work for me.
The next few years will, in my opinion, sort the sheep from the goats.
Those of us who have been through a few cycles have been waiting for this moment and are poised to take advantage of it.
I will rejuvenate where necessary and where I believe it will add value but I will not be going overboard.
So my strategy is mostly to property bank over the next few years, just buy as bargains present themselves – be patient, negotiate hard and not overstretch. This way when the market takes off again in a few years I’ll be ready to take advantage of it. I’ll fix my interest rates as I go along and happily look at my growing portfolio.
Originally posted by melbear:One quick question – it says all over the book that your ‘other’ books Wealth Magic and Little Pot of Gold. I’ve not seen Little Pot of Gold anywhere…. Is it not as readily available in all ‘good book stores’? From the price tag I’m guessing it’s a pocket type book?
Yes, it is a “pocket bookâ€. It is quotes from “Wealth Magic†– cure little book – excellent “stocking suffer†and created by a young editor at Harper Collins who got noting apart from a small royalty from sales so if you have somebody you think might like it…
Hello everybody!
And thanks for the positive comments… I appreciate them.
I am out and about in forums at the moment because as you probably know I have just launched a new book – “How You Could Build a $10 Million Property Portfolio in just 10 Years†– and (stupidly – you know what people say about “writers†and their reviews) I am keen to know what people think of it and answer any (intelligent) questions.
I am very open to the idea that my strategy is just one strategy amongst a myriad of strategies, all of which can work to make you wealthier, so don’t want to debate the merits of one or the other (after all if I liked another strategy as much as mine, I’d being doing it!). But I can answer any questions people may have on my ideas as long as I am not drawn into giving advice. I also can’t answer anything on shares or options.
I’ve already been dumb enough to be drawn into an argument on one of my strategies on another forum so need to say up front, if your up for a fight on some bug bear, I’m not going to bite (OK, I know it’s open season on self appointed gurus but as most of you seem very nice I’m hoping the big birth mark on my forehead won’t be interpreted as a target!).
So, I’ll pop in from time to time and say hello if you’d like.
And please, buy the book – my mum says it’s good! [blush2]
