Forum Replies Created
An old developer mate of mine has a saying "what is the true value" of what you are buying?
China is slowing no doubt about that … how will this affect Australian jobs and inflation?
EU financial mess is still not fully disclosed and is losing support to be fixed, will this affect Australia?
Australian retailers are really hurting, I personally do not know one person killing it in business out there, several years ago I knew plenty.
In my own area of Hunters Hill in Sydney prices over 2 million are falling big time and staying on the market for months.
Carbon tax will not cause a rise in prices … sorry Julia all the prices have risen before the carbon tax comes in, small Aussie families are hurting.
2 major Aussie banks borrowed 1 billion each in 2008 from the FRB to stay afloat … are our banks really as safe as the media tells us or are we being brain washed?
As Robert Kiyosaki says … the middle class is being wiped out and they don't know it.
All the talk is on Gold and Silver physical purchasing as the safe haven ??
If you can work out what the "true value" of an investment is then you will win the new money game in 2012 and beyond, what ever yours and my opinion is makes no real sense other than how much we have have in true assets or real cash.
I do not see a property boom ahead in the next 3/4 years.
China, Japan are trading their own currency away from the USD … there is no gold standard on currencies which Nixon stopped in 1971 40 years ago.
We are all being manipulated by the elite who control global finance and the FRB, the FRB has NO gold, all their gold was taken by the Treasury in 1933 and swopped with gold certificates (worthless paper) this is the greatest CON of all time, another derivative set to burst.
My prediction is that homes over 1 million will drop because of affordability, how much who knows … my advise is don't by real
estate from and unlicensed person or marketing company … get advise here and read every piece of news you can … good luck to all i'm confused.
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Philip Sigglekow
Hi Garb,
This will b my last communication with you.
God only knows why u have such a chip on your shoulder.
If you read your replies u will understand that u have not understood my points.
It really does not matter what I respond to you here because u will find a smart a.se way to reply … u r negative energy to me … I have done the hard yards including 4 corporation licenses and 3 diplomas but to someone like u that makes no difference because u will always find a way to put others down to make yourself look or seem larger that what u r.
The only difference between u and me is that I have done it, including my first 50 lot subdivision at 28 years old … OK go reply but I won’t you r a tall poppy in my view.
Thankyou
Philip Sigglekow
Hi Scott,
"The Age" believes that property prices on the top end will drop by 15%
Banks r in the business of lending money to make profits … ah how much profit did ANZ make for the year?
The rich r getting richer and the middle class is being wiped out …. quote by Robert Kiyosaki
Inflation began in 1971 with Pres Nixon and it it compounding into a massive bubble.
Aussie dollar at 97.6 and inflation kicking in … higher taxes, governments running out of money, grow yr own veggies and raise goats hehe
If property prices double who will afford it?
Philip Sigglekow
LREA author
Hi Scott,
Lets see, ah we have no funds? or we have no confidence? or we read in the age that property is overvalued by 15% or we are waiting for the FRB in USA to announce on tuesday what is happening, or I know we want 110% pre-sales before we lend any money aaahhhhh
Philip
Hi Harb,
You sound sooo wise so how many houses have you built?
Money does not make you rich but the process of making money will make you rich, many people are good at playing monopoly but fail in real life using their own cash.
Real estate is not the same everywhere, you can’t compare Penrith to Point Piper or build an AVJ 3 bedroom home in a mining town for under $200K
The GFC is a result of people borrowing 100% loans thinking that the PPOR is an asset that will never go down in price.
In 1980 a home cost 3 times earnings today it costs 8 times earnings.
In Japan they had 3 generation loans because of the cost of real estate was so high.
People are flooding to USA now because the prices are so cheap and ROI is over 30% compared to Australia of 2/3% negative geared new (not second hand) properties.
If Steve and Dave did today what they did in 2000 they would get a different result, times and markets are not static therefor our strategies need to be altered.
Interesting reading your views and would like to hear what advise you have for others to prosper, are you a builder or gatherer
Phil
The federal reserve bank in america is not federal is not a bank and they have no reserves, but make decisions to print cash more than they have in assets (gold) , go figure that.
Nixon changed the rules of money in 1971 when he took away the gold standard from cash.
Philip
Hi harb,
I would like to talk to you or meet you in person I am in Sydney but travel extensively where do you want to meet.
Kindest regards
Philip Sigglekow
LREA authorIf the government changes policy who is liable … the sales person or the government … I believe this is a very risky investment … risk means u have no control … never trust a government because u can’t sue them …
Philip Sigglekow
LREA authorHi unmester,
Good points … is there a difference between rich and super rich … is our rich middle class as we know them and supper rich another level we never talk about? … super rich pay 20 million for a penthouse and don’t care if it value drops here and there ??? … who are poor people and what level is poor?
Overseas buyers buy properties in Australia that are never occupied or rented they just sit there …
What is the true value of a property?
What is the difference between passive income and positive cash flow ???
Regards Philip Sigglekow
yep must agree Mel is the best in Sydney and Vic I believe his legal agreements r very tight … regards Philip Sigglekow
Hi Harb,
Firstly I cannot understand why you are so sarcastic in your responses.
I don’t know how many houses you have built or investments you own and the limit of your experience.
When you get a quote of $200K from AVJ the end price will be $300K
$800K was a quote for a finished Peter Binet home I paid $425K for a 5 bedroom finished Westminster home, go do one one yourself. This is my PPOR and I do one every 4 years plus JVs with friends on others, we are currently building 3 on the North Shore in Sydney.
Single story houses on the Nth Shore are hard to sell hence the 2 story 40 squares with a few bells and whistles to attract a better quality buyer.
Lastly don’t worry about the state of the Rich and the Poor in society Hard, in the long run they will all be OK.
Philip Sigglekow
Hi Harb,
Sorry I didn’t go for the solid gold fittings hahaha funny comment
Secondly I built a project home not a designer builder … I had Peter Binet give me a quote at the time which was around 800K I went for Westminster Homes and did my own personal touches like 40mm granite in the kitchen, marble floors in all baths and fully tiled walls to give a better feel.
This is the 15 house I have built.
With inflation are we any better off? yes I am worth more money but if I had to replace it in the same area it will cost me 500K extra.
Yes financial literacy is important in all cases and comment sense is invaluable.
I just got back from a semi world trip of Europe and Asia … the same news is there as well … bottom end becoming expensive and the top end suffering … Yesterday I was in Taiwan standing in front of the hotel were millions of scooters and a completely different lifestyle, I think Kiyosaki is correct in saying that there is a division happening of wealth and the middle class being segregated between the two??
Regards
Philip Sigglekow
LREA authorGood comments
IMHO I believe we are separating the wealth from the middle class into the poor and and rich classes.
Will we ever see another BOOM like the last in our life times?
Paris has a population of approx. 10 million people, a 15 square bed sitter rents for $1,500.00 per month – London prices are dropping, Rome prices are dropping, USA most ares are still dropping BUT in all the areas I visited in the last month the cheap end is getting the best ROI not “houses” as we Aussies talk about them.
Theres and old saying “there is money in sh.t and now I believe it seeing it personally.
Phil Sigglekow
LREA authorHHmmm good points here however,
How long is a piece of string?
I bought an old sh.tter in 2000 knocked it down built a 40 square pool 3 marble baths and am up one million profit HOWEVER
If I had to upgrade in the same suburb (Hunters Hill) i need another 500K
I don’t believe a lot of people make money because you have to replace it … 99% of people don’t like to go backwards.
1971 Nixon took away the gold standard from cash and since then inflation has gone through the roof.
Lot sizes have come down from 900 – 350 m/2 … actually OS people live more in apartments than houses, aussies will have to change their way of living.
Over the last month I left Sydney for a World trip including. London, Italy, China, Taiwan, Paris, Switzerland etc NOT usa because every one else is doing that.
Australia is CHEAP on the bottom end like bedsitters, Motel rooms, and studios and that is where I am going to focus … the PPOR is too hard to pick because even on one side of the street to the others prices change.
Paris is $1,500.00 per month for 15 squares thats about a car space.
Top end is dropping folks get on a plane and do your home work it is better than turning up to a 3 day boot camp believe me.
I think Kiyosaki is right over the next 10 years middle class will be wiped out unless they get financially smarter.
Regards to all and I am in Taipei returning to Sydney Monday after 33 days on the road.
Phil Sigglekow
Yes W agreed.
What is a millionaire in 1980 today is probably valued at 10 million dollars to be a millionaire.
This all began (inflation) in 1971 when Nixon too away the cash value from gold … read the conspiracy of the rich by Kiyosaki.
Here in Paris and London the sentiment is the same … affordability.
Cheers Philip Sigglekow
Hi Guys
Well I'm sitting in the Sheraton N0.1 hotel in Rome we just did a 18 day tour of Italy and over the Swiss boarder.
Tomorrow I go to Paris and then London, I have 3 mates from the states with me and a few others.
There are opportunities in the states for sure, Europe is quite different BUT I am blown away with the number of tourists, one bus company has put on another 100 buses just for September to handle the demand _ go figure that.
All the talk is that Aussie will drop by 20% in the top end … lets see if it does happen.
Remember that if all real estate goes up and you want to upgrade you are further behind because every thing else is rising as well. In Europe tourism is a big booming business.
Your home is not an ASSET if it the only thing you own, like in the game of monopoly you need to be in a position of getting 4 green houses to pay for your PPOR and not your take home pay.
I'm enjoying being away from Australia and encourage everybody here to travel and see what is happening in other parts of the world.
Take care all i'm looking forward to checking out Paris and London.
Regards Philip Sigglekow
LREA authorHi Poss,
yes yr sparky mate is correct
Pole and 3 phase cabling max $2,000.00
New board with CBs and safety devises plus rewiring the whole house not including fittings, $6,000.00 MAX
Did one 4 years ago.
Philip Sigglekow
LREA authorYes interesting,
We are borrowing 100 million every single day of the week, welcome to “labour”
Mortgage reset loans are kicking in now.
Commercial vacancies are rising.
Developers can’t get finance, and the banks are tightening up more because they are not getting funds from overseas.
Obama is spending more money, now on roads, rail and airports … to get people jobs so that they then “spend” into the economy.
Listen to what “Katter” the independent is saying about North Queensland, it is going back wards.
Gold Coast real estate is shocking, Mirage gone into receivership, Palm Meadows golf course closed, and lots more.
In the last week I spoke with 60 real estate agents, people are really hurting out there. A development I looked at in Terrigal of 230 apartments has 30% for-sale and have dropped in price by 30% in the last 5 years (ah real estate doubles every 7 years lets see … who said property in Australia never drops ????
Hunters Hill peninsular in Sydney a friend of mine had a valuation of a new waterfront he built 6 years ago for 7.5 million, just sold it for 4.5 million and lost money, don’t laugh this could be you one day. Oh the reason he had to sell is that his “business” has dropped by 50% over the last 2 years, he sells products into the building industry.
There are many more facts I can throw in here … some of you are thinking I am being negative … NO … this is valuable INFORMation that can make you millions of dollars … Is Robert Kiyosaki correct or a w..ker … he says that in the next 5 years the middle class could be wiped out IF we dont get better financial education.
Timing and Luck = Success
I am not making predictions I am researching all the FACTS to make better decisions for my future and the people around me.
The role of a government is to make you “feel good” so you spend money into the “economy” the problem comes when “people” stop spending and begin saving, that is why Obama is “creating” jobs so people will spend again, bizzar isn’t it??
Yes there are lots of deals out there and the only two problems that you need to solve is 1, how to fund them and 2, who will buy them from you for massive profits.
“Cash Flow” and “Passive Income”
Hey great to be in real estate at this time in history.
Good luck to all,
Philip Sigglekow
LREA authorHellow DW,
Yes it is all over the place.
400 properties in the Eastern Suburbs of Sydney are about to hit the market from bank repossessions.
Civil works costs in Sydney have been increased by $30,000.00 per allotment on new sub-divisions.
Bottom is more expensive to develop and the poor people once again are the ones to feel the pain.
Inflation + devaluation of the dollar, electricity up 30%, postage stamps now 60 cents, living expenses up, feeding a family plus school fees, what about child care who can afford that now that ABC stuffed up “Gillard” couldn’t fix that either.
USA and EU can’t print enough cash to fix the problem, gold and silver set to rise sharply.
I’m trying to put the financial jigsaw together hhmmmm how to make the pieces fit?
I focus on cash flow whether the market is up or down I don’t want my passive income to be affected, or my clients.
Regards
Philip Sigglekow
LREA author
