that yield figure would be way over the mark, Nathan may be able to get that on purchase price of properties but i would be absolutely amazed if anyone could get that on current value of properties as an average across whole portfolio, 5% would be a good result
2ue Interview today
- Thread starter Nathan
- Start date
that yield figure would be way over the mark, Nathan may be able to get that on purchase price of properties but i would be absolutely amazed if anyone could get that on current value of properties as an average across whole portfolio, 5% would be a good result
But he said those numbers himself!!!!!!!!!!!!!!!!!!!
500k P.A rent in this thread
6million value on radio
RH, no one cares for what you have to say. It's actually really embarassing
well that is an amazing return then to be able to maintain 8.33% on current values, i have a different investing strategy but the difference is amazing, i doubt i receive $500k pa rent on my portfolio.
Agreed.
This personalised "attack" on Anthan I believe is both unfair and not in the interstes of most forum members.
Perhaps the moderators could consider this and has been suggested before ????????
I disagree.
If Nathan was any average forum member posting privately I would totally agree with you. But the fact is Nathan is out there in the property market with something to sell. He has links to his own property investing related business in his footer and uses the forum (like many others) as a form of business development. I have no problem with that and Nathan is still a very valuable contributor.
However, others like Peter Spann, Steve Mcknight, Navra etc etc etc who have sold their property expertise in a similar way have all had their statements and claims legitimately questioned by others on the forum in the past. I fail to see why Nathan should be any different.
As someone who has been unfairly attacked myself on the basis of a perceived vested interest (when I have nothing to sell to anyone on this forum) I am very aware of dangers - in the other thread R-H stepped way over the line with an all out attack that was both poorly worded and entirely inappropriate.
However, IMO, R-Hs statement in this thread represents a legitimate question that deserves an answer if Nathan is going to sell his services in this industry and on this forum.
Just my 2c...
You are entitled to disagree
I didn't realise Nathan was actually selling too much on the forum, but that's how much I pay attention.
Here's my quick numbers. Like RH's analysis, there's a lot of guesswork involved but this is how I see it.
- I'd expect average interest rates to be pushing 9's with lo/no doc, commercial and 2nd tier/fringe lending. Not uncommon for portfolios of that size... particularly if he fixed any loans a little while ago;
- Property management fees are going to be somewhere around 7% of rent after letting fees and advertising etc;
- There's 34 sets of council rates and water and repairs and insurance and everything else;
- Land tax on a NSW-based portfolio of 34 properties is not going to be pretty, either.
500k rental income
less PM fees: 35k (ave 7% including letting/ads)
less land tax: 44k (per SRO, assuming only 50% land value / portfolio)
less others: 102k (assume $3k per property)
less interest: 225k (at 9%)
Nett rent: 94k
Less tax @ 31.5% average leaves approx 60k in pocket.
Close enough and doesn't seem to unreasonable, without being privy to the specifics. Residential property is known to be pretty ordinary for cashflow so the nett yield of SFA% shouldn't surprise anyone too much, really.
I'll just add my 5c onto what James has said.
I have some holdings in one of the Regionals that Nathan frequents. Council Rates in this area are somewhat expensive for some of those properties. Off hand, without digging out my stuff, I think I pay in the vicinity of $500pa for them more than some of my Sydney stuff. Add to this the cost of repairs & maintenance (because I know he is not going to travel that far to mow a lawn) which charge a much larger premium to the Sydney stuff and your profit margin is much lower than you at first presume.
As an example, I was charged $300 to mow an average sized lawn when between tenants. This is well and truely more than anything I have ever been charged in Sydney.
I have some holdings in one of the Regionals that Nathan frequents. Council Rates in this area are somewhat expensive for some of those properties. Off hand, without digging out my stuff, I think I pay in the vicinity of $500pa for them more than some of my Sydney stuff. Add to this the cost of repairs & maintenance (because I know he is not going to travel that far to mow a lawn) which charge a much larger premium to the Sydney stuff and your profit margin is much lower than you at first presume.
As an example, I was charged $300 to mow an average sized lawn when between tenants. This is well and truely more than anything I have ever been charged in Sydney.
Melbourian
http://binvested.com.au/?page_id=33
"With a net worth over $1million at just 21"
http://www.somersoft.com/forums/showpost.php?p=475046&postcount=81
29-10-2008 Note you was 21 in 2007
I didn't make any of this up, it was all said by Nathan. So to all the people saying im embarrassing myself.... i rest my case.
http://binvested.com.au/?page_id=33
"With a net worth over $1million at just 21"
http://www.somersoft.com/forums/showpost.php?p=475046&postcount=81
29-10-2008 Note you was 21 in 2007
I didn't make any of this up, it was all said by Nathan. So to all the people saying im embarrassing myself.... i rest my case.
you still look like a ******** to me
I will confirm that at that point I took a position in CNP (Centro) and used lots of borrowed funds in there. I dont talk shares do I?
And my numbers do add up.
I have $6.3 worth of saleable property.
$475,940 pa rent
$417,384 fixed outgoings pa
$58,189.32 spare.
Now I can reconfigure my portfolio and make #'s look much better however I dont want to and I am still accumulating.
Nothing to hide and a complete open book.
I have shown many people face to face my portfolio, so nothing to hide and the numbers are accurate.
They will differ in a months time, 6 months time, and 5 years time. We can squabble over pennies here or there but at the end of the day being the person of charachter I am I am always happy to share numbers. There is a difference between sharing numbers and being accused for doing well.
I honestly feel those who have been posting in previous threads should pull their nose in now, appologise and remember their manners next time at the dinner table.
If anyone does have real questions, please free to ask and previous line does not apply.
Thanks.
Nathan.
And my numbers do add up.
I have $6.3 worth of saleable property.
$475,940 pa rent
$417,384 fixed outgoings pa
$58,189.32 spare.
Now I can reconfigure my portfolio and make #'s look much better however I dont want to and I am still accumulating.
Nothing to hide and a complete open book.
I have shown many people face to face my portfolio, so nothing to hide and the numbers are accurate.
They will differ in a months time, 6 months time, and 5 years time. We can squabble over pennies here or there but at the end of the day being the person of charachter I am I am always happy to share numbers. There is a difference between sharing numbers and being accused for doing well.
I honestly feel those who have been posting in previous threads should pull their nose in now, appologise and remember their manners next time at the dinner table.
If anyone does have real questions, please free to ask and previous line does not apply.
Thanks.
Nathan.
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$6,300,000 worth of property.
$475,940 pa rent
$417,384 fixed outgoings pa
$58,189.32 spare.
A sensible business person (i.e. property investor) cannot make blatant observations of a 1.5% expenses fee etc. This is obsurd, as there are many things to consider such as land tax, management fees, council rates, water rates, strata fees, insurance, tenant insurances as unavoidable costs of doing business.
Now I can reconfigure my portfolio and make #'s look much better however I dont want to and I am still accumulating.
Nothing to hide and a complete open book.
I have shown many people face to face my portfolio, so nothing to hide and the numbers are accurate.
They will differ in a months time, 6 months time, and 5 years time. We can squabble over pennies here or there but at the end of the day being the person of charachter I am I am always happy to share numbers. There is a difference between sharing numbers and being accused for doing well. - My passive income was incorrect it was more oh and so was portfolio value
I honestly feel those who have been posting in previous threads should pull their nose in now, appologise and remember their manners next time at the dinner table.
If anyone does have real questions, please free to ask and previous line does not apply.
Thanks.
Nathan.
$475,940 pa rent
$417,384 fixed outgoings pa
$58,189.32 spare.
A sensible business person (i.e. property investor) cannot make blatant observations of a 1.5% expenses fee etc. This is obsurd, as there are many things to consider such as land tax, management fees, council rates, water rates, strata fees, insurance, tenant insurances as unavoidable costs of doing business.
Now I can reconfigure my portfolio and make #'s look much better however I dont want to and I am still accumulating.
Nothing to hide and a complete open book.
I have shown many people face to face my portfolio, so nothing to hide and the numbers are accurate.
They will differ in a months time, 6 months time, and 5 years time. We can squabble over pennies here or there but at the end of the day being the person of charachter I am I am always happy to share numbers. There is a difference between sharing numbers and being accused for doing well. - My passive income was incorrect it was more oh and so was portfolio value
I honestly feel those who have been posting in previous threads should pull their nose in now, appologise and remember their manners next time at the dinner table.
If anyone does have real questions, please free to ask and previous line does not apply.
Thanks.
Nathan.
Hiya Nathan - chin up champ. Don't let the bar stewards get to ya.
One day ol' son, you'll take that 6.3m gross figure, ditch those 34 boxes and go get yourself one proper sized box....with one proper Tenant, like this one matey.
http://www.realcommercial.com.au/property-industrial+warehouse-vic-geelong-5770103
Then your figures will look like this ;
At that stage (why not now ??) you can do as you please.
Of course, you might want to start collecting 34 of these boxes.....and why not I say....
Your detractors on here won't be able to afford the front gate mate.
Onwards and upwards matey - see you out in the deep waters where the krill swarm !!!
One day ol' son, you'll take that 6.3m gross figure, ditch those 34 boxes and go get yourself one proper sized box....with one proper Tenant, like this one matey.
http://www.realcommercial.com.au/property-industrial+warehouse-vic-geelong-5770103
Then your figures will look like this ;
At that stage (why not now ??) you can do as you please.
Of course, you might want to start collecting 34 of these boxes.....and why not I say....
Your detractors on here won't be able to afford the front gate mate.
Onwards and upwards matey - see you out in the deep waters where the krill swarm !!!
I asked for proof Nathan, from my reading and analysis of some deals that you have posted (actual data of comparable sales) it shows you have a tendency to stretch em a lil bit, so what weight should you just telling me its worth 6.3million have?
I'll be happy to come over, look at the documents (since you are an open book and geez its going to be a crap load of documents that i request)... infact lets do it at one of the somersoft meetings in Parramatta, ill also bring along the old thread (lucky i printed it) which got deleted so people can admire your fantastic character. You called me a chicken **** in the other thread, which i really don't mind as i have no harsh feelings towards you anyway. But when i got your number via private msg, you wouldn't pick up the phone to discuss. If everything totals 6.3million, 3.5million in equity. Based on valuations of recent sales ill stand on the stage and apologize.
Hopefully this doesn't send you on another demonic rant abusing me over and threatening to post my address and other details.
If you are only generating 58k income from 3.5mill in equity i would suggest selling your entire portfolio, invest whats left over after CGT + selling fee's (circa 2.57mill) invest it @ 6.5% and get 167k P.A hassle free (conservative lics) rather then make 58k and have to manage 34 tenants.
Regards,
RH.
Edit: This is my last post on this... hopefully lol
I'll be happy to come over, look at the documents (since you are an open book and geez its going to be a crap load of documents that i request)... infact lets do it at one of the somersoft meetings in Parramatta, ill also bring along the old thread (lucky i printed it) which got deleted so people can admire your fantastic character. You called me a chicken **** in the other thread, which i really don't mind as i have no harsh feelings towards you anyway. But when i got your number via private msg, you wouldn't pick up the phone to discuss. If everything totals 6.3million, 3.5million in equity. Based on valuations of recent sales ill stand on the stage and apologize.
Hopefully this doesn't send you on another demonic rant abusing me over and threatening to post my address and other details.
If you are only generating 58k income from 3.5mill in equity i would suggest selling your entire portfolio, invest whats left over after CGT + selling fee's (circa 2.57mill) invest it @ 6.5% and get 167k P.A hassle free (conservative lics) rather then make 58k and have to manage 34 tenants.
Regards,
RH.
Edit: This is my last post on this... hopefully lol
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