Hi guys,
Thanks for all your input, it’s refreshing to hear
of people who have done the same investing. It
doesn’t seem like such a challenge then.
Have a great weekend.
itsamoorey[|)]
sis: would you be able to post a quick summary your risk management course?
Risk management was big when I was in the bureaucracy about 7-8 years ago.
The gist of it was to assess risk on the basis of:
1. Likelihood of it happening
2. Consequences of it happeningIf something was likely to happen and the consequences were dire, this was regarded as the most important risk, and if severe enough was a warning not to proceed. On the other hand, risks that are extremely unlikely or of very minor consequences could be noted but ignored.
There were also ways to avoid or mitigatge risk, including transfer it to someone else!!!
Much of this is applicable to IP but there’s also the need to balance it against returns.
Most of us probably do something like this without realising it or calling it ‘due diligence’.
Examples of actions I’ve taken include: 1. extensive research of towns, 2. LVR limit across portfolio, 3. minimum yield requirements, 4. careful selection of property (good location & low maintenance), etc.
But I could see that too much reliance on this could close one’s mind to innovation and force one to accept lower returns than others less constrained might.
Re interstate properties, I’ve always visited them before buying, but then it’s great to have family there!
Regards, Peter
Hi Peterp,
Almost but very similar to the way you have noted,
The main issue was how quickly you can identify a risk and minimise it, avoid it and mitigate risk.
Similar issues discussed were, internal, external and overperiod risks.
Issues that were talked about and explained were how to understand, control and monitor a risk and then how to manage and follow the risk.
This was excellent cause it was an eye opener on how to respond to unidentified and unplanned risks/issues and how to quickly resolve the risk/issue. It would also identified how much a risk could cause impact, but also what ways the risk could be minimised, controlled and prevented.
But I could see that too much reliance on this could close one’s mind to innovation and force one to accept lower returns than others less constrained might.To me this is an important eye opener, not only does it mean you should purchase just +ve cashflow properties, but look at each property, not just as if it is a +ve cashflow.
From my experience i can say, that my +ve cashflow properties dont make the real money, its my neutral geared and -ve geared properties that do, the +ve cashflow properties have only been great benefit to opposed as offsetting my costs.
cheers and hope this helps many others on here,
s.i.sSave on a regular basis
“People forget that by saving just $3 per day and investing it sensibly over a working life, you’ll end up with around $1 million.”
Quote from SIS: A good course i suggest you learn is “Risk Management”.
Hi SIS
From what you and Peter P say about this course, I’d be interested in doing it, but there’s nothing about a Risk Management course in the NSW TAFE handbook (2004).[?]
May be I just can’t find it, or they’re not including this course anymore. Shame
]
Was the acutual title of the course “risk management”?THanks SIS[
]Hi Celivia,
Risk Mangement is simply a subject or can be found as a short course, if your having trouble, call up the tafes that offer business course, that major more in projection managment and ask if they do Risk Managment/Assessment/Analysis (they all mean the same thing) as part of any of their modules, or subjects or in any unit of their study.
Great course if you can come a by
cheers
s.i.sSave on a regular basis
“People forget that by saving just $3 per day and investing it sensibly over a working life, you’ll end up with around $1 million.”We are just back from FNQ having looked at the five units we bought there in the last year. Two of them, the first and last were bought through the internet, sight unseen.
With the first property, I made an offer to the listing agent over the phone, after having researched and spoken with several agents, probably a dozen. Photos and other relevant information was emailed. He then faxed the offer papers which I signed and faxed back. It was all done by fax, with the originals being put in the mail. We were told a few legal firms to contact, chose one who did an excellent job with all the purchases. We picked a pest and building firm from the listings on phonedisk – turned out to be very good as well, photos included. We have one property manager for four units, the fifth being holiday let which has turned out well.
So, had no problems purchasing sight unseen and I would probably do it again, having done the appropriate research.
All the above properties have increased by about $20,000, except the holiday one which has increased by $40,000.
Anna
Thanks SIS I’ll look into this.[
]Great links, Peter, thanks. [
]I liked the article about project risk management, esp the little matrix, I’ll try it out soon!
Regards, Celivia
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