Positive Real Estate

It has a gym, elevator, pool and games/community room, so I figure that it means that if anything happens to these facilities, there will be (huge??) extra levies if the body corporate fees are small?

Celivia

The two other points about this type of studio apartment is what sort of fundinf can you get and what capital growth are you looking at.

Regarding the property game at the seminars that belongs to ESC or Richmastery. Both Richmastery and Phil Jones the owner have stated that Jason Whitton and positive cashflow now have nothing to do with there organisation

Nigel Kibel

http://www.propertyknowhow.com.au

Australian and New Zealand Buyers advocate
service and seminars

I’m registered on the Positive Real Estate database, they send out free property information evening invites. The one I went to they served food and beers after the presentation and encouraged the group to network. They did plug their services, but the invite highlighted that would occur, and they gave a fairly soft sell at the end for their education courses. I didn’t mind the sell, as they were willing to give me something at the end (Food and Drink). I have never been to a free event where they give you something for free. Why don’t you sign in and see for yourself.

I’d like to know if Nigel is a licensed agent and his track record for putting property deals together. I totally agree with his claims regarding the location of Positive Cash Flow, and the property that JKM presented would fit into a very high risk category for obvious reasons beyond strata fees.

I have extensive experience in the property sector. I am a licensed agent and my corporation holds licences to trade in every state and territory of Australia. I have an extensive property portfolio, have developed Positive Cash Flow, Negatively Geared etc. developments throughout the country. I am a member of the buyers agency chapter of NSW and have dealt with numerous commercial and residential developments. All the properties I own are leveraged positively as I balance my lending to a point that ensures that properties remain self funding. I have been able to do this by transferring the profits I make in developing into physical property, therefore I never take cash profits, keep my tax to a minimum and live off rental incomes.

The point I’d like to add is, building a property portfolio is NOT about Positive Cash Flow, it’s about balancing your Cash Flow and Equity and ensuring you don’t leverage yourself outside of your comfort zone. Positive Cash Flow properties are great because they are self funding, yet as is life, when you get to take advantage of such a benefit, you loose another, and in this case it’s growth. People will challenge me on this, but before you start showing me the equity you have gained in your property located in regional areas, show me some historical statistics going back 10 – 30 years or so. Any idiot involved in the property market over the last 4 years could make millions, but have they survived times in the market when interest rates rose higher than 17% and investors couldn’t give properties away? When you look at historical statistics in some Positive Cash Flow areas using data over a long period, you’ll see why I recommend not concentrating on solely buying in these areas.

Another thing to consider, is that in most cases, when you calculate the overall rates of return on properties in Growth Areas that may be negatively geared, the returns will outweigh positive cash flow every time. Positive Cash Flow should only be used to add to your ability to service the debt you hold on growth properties.

Nigel is right to say that Positive Cash Flow properties are generally in small regional towns, and there is a basic reason for that. As you venture outside of the capital cities, you have less population, more available land and less demand for new housing. Therefore the house prices remain flat, yet the rents increase over time as they are supported by ongoing costs that investors encounter. The capital cities experience the opposite, as there is more competition in the rental markets, and less available land, therefore rents are lower and growth is higher. A wise investor will have a mix of these properties in their portfolio.

Now there are some properties that come up outside of this criteria, such as JKM’s suggestion, yet I would suggest you’d be mad to buy a property like this, as it’s probably one of many properties in the same building that are exactly the same as each other. If one of the other investors fire sale their property that is the same as yours, your market value has been affected. Always look at the unique point of difference when conducting due diligence, in this case, it’s extremely low.

Back to positive cash flow, in the current market the options are extremely low. In my opinion, most areas in Australia are under rented and rents have not caught up to Market Values. Typically, market values rise a lot quicker than rents and it’s only now that I’m witnessing rents increasing at a rate that provides a promising outlook for the future of Positive Cash Flow. Therefore, now positive cash flow properties are located in areas where market values have not increased dramatically for whatever reason, and I’m finding areas that people have overlooked in the last 18 months or so are coming back as rents are increasing.

I’d like to add that from reading some of the comments in this site, there is a large proportion of you whom need to take advantage of any education you could possibly take advantage of. Positive Real Estate are an active buyers agency, and what really impressed me about them is they claim to have located over 400 properties throughout Australia. They highlighted some areas to consider, and I am currently developing in these areas for the same reasons that Positive Real Estate highlighted. I’d recommend that you attend any free event they hold and make up your own mind.

JKM – Nice selection as the rent return is above the average, but your point to Nigel Kibble was that you could find positive cash flow properties in capital cities. As my name suggests, I only trust the hard facts.

The property on your last posting settled on the 15/09/2003 for $420,000. Based on that price and the current rent of $650 (that is above other properties in the area) that’s an 8% return with no vacancy. Once you add costs to this property, you’d be negative pre tax, and positive after tax. Positively Geared

I would think that the current sale price is higher than the last, therefore the returns are effected more negatively.

Although, based on the claimed rents that I cannot substantiate with my current resources, the property has a much higher yield than average, it is not positive cash flow (Pre-tax, financed 100%).

Keep trying, you put your claim in writing, you have to prove yourself!

Dont’ Fight Facts,

You have proven for me that you can have positive cashflow & capital growth in major cities – thanks.

The other point I would like to make is who said anything about 100% finance? Imagine if you had a deposit & purchased with 80% finance?!?!? Not everyone likes LMI.

Nigel, you didn’t answer my previous question – Are you licensed to act as a buyer’s advocate or are you one of the many who claim to be a property professional and work outside your states consumer guidelines?

You seem to have a knocked up your own website and lay claim to be an investment genius, when I knew you, you were just a property manager.

In addition, your site states “so that he can best advice where to purchase to give you the greatest capital growth and returns.” Apart from the grammatical error where I’m sure you mean to state advise, you legally need to be a licensed financial advisor to provide investment advice.

What is your Real Estate Licence number and what is your Financial Planners Licence number, or whose licence do you work under?

That’s interesting, because I saw you give a presentation on property management, where you claimed to have been a property manager for 10 years (from memory). What are the licence numbers you work under. If you don’t let me know what they are, we can all assume that you are not licensed to trade.

This post is getting a little off topic, is it supposed to be about positive realestate or Nigel Kibel?

I have a client who has purchased through positive realestate and has done quite well. What sort of longer term investments regional towns will be is a matter of conjecture, but they do seem to deliver what they advertise, so i have know problem with them.

I would also like to add to dontfightfacts that attacking a regular contributor to this forum, while not disclosing your identity does not paint you in a particularly positive light. I’ve met Nigel a number of times, as have a number of others who frequent this forum. He has been in the realestate game for a long time and held a number of different positions, i can also confirm that he holds the necessary licenses to carry out his business. You may agree or disagree with him, but his experience and consistent contributions to this commubnity gives him a a lot more credability than a nameless faceless person with a couple of posts.

Regards
Alistair

Hi dontfightfacts,

I am aware that Nigel operates as a representative under another licensee. It is up to him whether he tells you any more. However, I don’t see that it is relevant to this discussion. If you have a problem with him you should take it up privately, same with your comments regarding his need for a financial services license.

Regards
Alistair

I do not claim nor have I ever claimed to offer people financial advice. I am not a financial planner. My role is to research the market that is all. When I am referring to structures I do not do this. This is discussed by accountants and Financial planners in Australia and New Zealand. I do not claim to be a a guru. I just resaerch the market and do the best I can to assist people.

Nigel Kibel

http://www.propertyknowhow.com.au

Australian and New Zealand Buyers advocate
service and seminars