Hi Yu Yu

I am amazed you got 80%LVR on a serviced apartment with the NAB.

Last i heard they were doing 60%LVR has there been a policy change or you must have or know one of the big players.

I have found that shifting NAB on policy is like pushing Ayers rock.

regards
alf

Hi Peter

I was coming to a point where i was going to stop buying property investment books as they generally say the same thing with a slight variance in some cases.

But…..

Given that i haven’t read any of your material before i decided to purchase your new book $10m and was duly impressed.

In particular the way to interrpret the median sales information and using it to base some decision on when to invest.

There are some things that i would like to say and ask and hope you are gracious enough to answer.

Do you feel that with all the wealth you have now you may lose touch with what people are trying to achieve?

The reason i ask this is i noticed you mention on page 172 of a person say 40 and buying three houses now etc. to achieve over time 10.2m in property and 4.8m in borrowings. These are big figures to the average person.
Then in other areas you say Don’t overstretch/don’t be greedy etc.
Most baby boomer people i speak to want and are looking for-
Enough to be able to retire at there present income levels
They like residential property for its low risk factor
They dont want to get down and dirty but buy and hold for future growth
Many don’t have the experience to start in a big way but want to start
They want something simple that works but realise that time is getting shorter and shorter as they wait…Risk vs time

Most are still paying there own PPOR and are questioning whether they still should.

There main concerns are
vacancy factors
interest rates
If things go wrong

These appear to be limiting factors and bring some fear to move forward given that NG is a factor with quality property..

For a person like yourself that started from nothing what would your strategy be knowing what you know and the risks involved and for a say Mid 40’s individual that wants to retire at 60 has some equity in the home. Currently earns $50000pa.

Well Peter i did really think we needed another property investment book like we need another cosmetic company but i would have to say that yours is right up there with the best if not better. I could give you the reasons but this post is a bit long already.

How does one get an invite to your parties…?

regards
Alf

Hi Helen

Well there seems to be some good responses on this.

At the end of the day you have to be comfortable with the amount of debt you take on.

In relation to a LOC its quite sound, i am doing it and as far as my accountant is concerned it is tax deductible. The LOC is only dedicated to Investment. So whether i chose to use it as a deposit or to pick up some shortfall then it is still dedicated to investment income producing property.
So it can act as a buffer incase of an unforseeable event.

You also hav tax refunds etc you can put back into the LOC etc.

It really depends on the amounts and security that is in question. If it is all at 80% LVR then it shouldnt be a problem.

According to my accountant its sound and doable with the right set up.

If you feel its too much and are uncomfortable dont do it. Forget the get out of your comfort zone arguments.

Don’t forget we are in a falling market generally speaking. Interest rates are more likely to go up than down. LOC are dearer.

regards
alf

Hi Fnomna

I live in adelaide. Things have slowed a bit i feel. Where R/E agents had to just sit and sell now they have to work.

Your own observations would tell you that houses are sitting on the market longer now than previoulsy. The frenzy has gone out of the market. So some of the upstarts are being tested and resorting to other tactics.

Jenman gives good advice in his books i have some and happy to lend to you. I wouldn’t use a jenman agent again though. The first and the last time for me.

Email me if you like.

regards
alf

Hi

Where do you find the 90 day bill rate and 10 year bond rate. Are they really good sound indicators? in regards
to IR.

cheers
alf

Hi Acey

Yes i agree with what you have suggested. I also would say that not everyone has the eloquence to embark on creating networks. How does a beginner start.

I ask because i recall network marketing companies that would say anybody can do it showing a housewife in rollers and a fag next to her porsche outside her coastal mansion.

Reality is alot different.

So haveing been there down that so to speak how did it start adn then to get the deals coming to you.

I have read Steve Mcknight say the same thing but with his volume of inveting i could understand. But to people just beginning? Can you give some insights.

Kind regards
Alf