The benefits of property developing

Hi Michael
Because of the quality of your posts I’ve just subscribed to your newsletter, and my wife and I are checking our diaries to see if it works coming to your Brisbane seminar on the advertised date.

Re the LOC I already have one with my reasonably large portfolio. However, my accountant warns me to keep a clear distinction between “Investment” and “Private” expenditure. Am I missing something here, or do I need to get a new accountant? [biggrin][biggrin][blush2][biggrin]

Cheers
Greg

Interesting post but I still don’t get it.

You say it costs $7k per annum to get $93k. (This i get).

But…If I earnt $100k i’d pay approx $50k in tax but I’d have $50k to call my own. With the $93k I use for living/investing, it’s is now a debt. $50k to call my own or $93K I owe. Maybe I’m missing the point but what’s the benefit of doing this?

Be gentle I’m just learning [biggrin]

If you have $93k of expenses and only $50k to call your own you are bankrupt!

The point being made is you can take $50k as cash, or leave it there as $93k cash and a debt of $93k secured against the property. The cashflow from subsequent developments funds the slight negative gearing on the earlier properties. My problem with this whole scenario is that a new building will drop down significantly in value (like a new car) once it has been lived in as you are dealing with a retail product, so you need to consider whether that $93k asset is really worth $93k, or if on the second hand market it will be worth $50k, in which case you may as well pay the tax and run with the cash.

Extensive list of ‘Off The Plan’ property available for sale in Perth.

John – 0419 198 856

I had the same thoughts John, I have heard this drawing equity plan before and it could work….providing homes do go up every year remembering they did not move in Brisbane and many other places for around 13 years previously.
Developing is being made to look so easy.
Should they go down and you are highly leveraged you are sunk, should they level off you will quickly run out of equity, depending on your equity this could be a good way to draw part of your income but imo as Michael and many others do it pays to have income streams, he does that by selling the idea and presenting seminars, some do it by selling books and presenting information at the end of the day I feel there may be a conflict of interest on closer inspection, I may be wrong but it sounds too easy I would be hesitant to follow this strategy as a form of income over a long period of time.

I think Michael Yardney’s seminars are a bit of a rip off / scam. He uses them as a vehicle to get peoples money to fund his developments (or project manage as he calls it) and to take a large slice of the pie. The only reason he is on this site is to sell these overpriced seminars. He says he never sells his properties but I bet if you knocked on the door of any of the developments on his web site, he would not be the current owner. Whilst I am sure he is a knowledgable man he seems to only give out small peices of information on the forum and says come to the seminar you will find all the answers, ddid this guy learn from Jamie McIntyre.

Mike

Its about time mikejackson said something that everyone has been thinking for a long time… I completely agree that these ‘seminars’ are a waste of money and pitty the people that feel they will benefit from attending.

I to doubt that Michael Yardney would be on this webiste if it did not generate a source of income…

Seriously, think about it before you hand your money over for a advice that commonsense would tell you.

Cheers

While I don`t think all seminars are scams I can`t see how they justify what they charge for one, two or three days posturing/lecturing.
They would have to PAY ME $3000 to sit there for this period of time and listen to so called experts.
I have been studying R/E for 20 yrs and while not investing heavily till the last few years much of the stuff when thought through is smoke and mirrors, or less than ethical for many and virtually unattainable for most imo.
If these guys make so much money in R/E why do they run seminars and sell books?, or why charge so much if you are trying to help people, I don`t buy that one.
You can be rich you can be successful, whether seminars will help you is debatable but one thing is for sure if you think it`s easy to start from nil in R/E and become financially free you are dreaming or being mislead.[buz2]

I was interested to read posts on the somersoft forum about Michael Yardneys services. My advice to those considering using him, his company or attend his seminars is to read this first. Be careful before you sign anything and dont rely on his own self confidence and the ability to talk himself up to make you a dollar.

cheers

Mike

Mike,

Relying on *anyone* to make you a dollar is a mistake, in my mind. It’s our money, and we have to take responsibility if something works or it doesn’t. Any person can talk themsemves up- and it is a marketing technique for the seminar presenters to do so- but to allowa salesperson to sell you a prpoduct that is not useful to you, or that doesn’t work out on paper or in practice… well, that’s where one has to stand one one’s own feet to decide. same with the books and any other product.

kay henry

So Pickworth,

If you do your due-diligence on them correctly and ask them to disclose the content before you attend the one would not have to ask for a refund!!!!!!!!!!!

Go figure … there are more q&a here that at a $3,000.00 seminar