Any see the Nathan Birch interview with Kochie on Sunrise?

[Peter_Tersteeg]

I dont know why everyone is bashing Kochie, he is talking a lot of sense i feel. So is Nathan too. Poor ole Linda looks to be carrying a debt bomb though and will likely get burnt in a few years time.

I've got to agree. Kochie is looking at this from a financial planning perspective which is all about risk management. Whilst many investors won't agree, there is a significant amount of risk in Nathan's strategies.

Nathan is looking at the wealth creation strategies and that's great, but the properties are generally (and often by Nathan's own admission) in highly volatile areas. The positive cash flow part of the strategy is sound, but that can turn around very quickly with a rate risk or high unemployment levels.

Nathan's strategy is a very good one, but it's not without its risks. Kochie doesn't really know Nathan's background and strategy, so I can appreciate his skepticism. You've also got to consider that Kochie looks at Nathan and sees a 'property sprucer', not a successful investor.

 

[ok180]

I
So what if the value of the properties drop in coming years, as long as the rent doesn't drop....thats the main thing.

And as long as rates dont rise.

And as long as life circumstances dont change and she has to exit in a hurry.

And lets face it, negative equity is about as fun as a fart in the bath.

 

[John_]

I got ripped of two times by a buyers agent, one from the forum i won't mention names and another by a known buyers agent from WA.

You live and learn plus karma is b.itch. This forum is on a payroll by select buyers agents, i have learnt that NO buyers agent has access to what you and i don't, they are a real estate agent but these days they call themselves buyers agents with access to property no on else has.

Whatever

 

[Moneyman_85]

In what way did you get ripped off?

 

[ok180]

This forum is on a payroll by select buyers agents,

Lol

*Play Sim's entrance music.

SPANK!

 

[monalisa]

Given that we are early on in the cycle

Cliff

Hi See change - why do you believe we are early on in the cycle in Sydney / NSW? How long do you reckon we have to go?

I keep seeing posts re Perth going strong - and the Perth cycle started before Sydney's - does this mean Sydney has a few more years? Though it is expensive as it is!

 

[saiman]

Buying fickle regionals with price inflation mostly by investors. When rates start to rise and those prices dip she'll be F'd. Its not as easy to sell a regional as it is something in a big city either. If you were buying those 5 years ago you would be ok but anything in the last couple with poor fundamentals look out.

Remember, one of Nathan's key strategies is to buy below market value. If you youtube Linda's binvested video, she goes through the purchase prices of some of her properties (if you believe it) and they seem to all be wayyyy below market value with prices from more than 10 - 20 yrs ago. If prices dip back to those or below those prices in the near future, I'm sure Linda and Nathan will be happy to save a spot in the park for you, me and many Australians who invest in property

That said though, I did use Binvested once a few years back when the fee wasn't $10k and it has been my poorest performing property yet. The value did come from opening me up to a completely new market and mindset which helped pave the way for the properties ive bought since....some consolation I guess?

 

[see_change]

Hi See change - why do you believe we are early on in the cycle in Sydney / NSW? How long do you reckon we have to go?

I keep seeing posts re Perth going strong - and the Perth cycle started before Sydney's - does this mean Sydney has a few more years? Though it is expensive as it is!

How long ? Don't know .

In reality prices have only been going up in Sydney for 6-12 months strongly and by an average 15 % .

The prestige market has only moved to new highs in last 6 months . I'd expect more movement than that and I also expect the economy to get stronger , but I may be wrong

I'm starting to see confidence in the big end of town pick up .

Cliff

 

[John_]

As Kerry Packer said

"You only get one Alan Bond in your lifetime, and I've had mine"


Change Alan bond to different names and instead of one person have a few to a couple of hundred and you are set.


Linda does look scared well 4m debt on 6m, must say good strategy.

 

[Sim]

This forum is on a payroll by select buyers agents

Payroll? I wish!

 

[GaryA]

Yes, unfortunately I have heard a few negatives of late regarding his services.

MTR, what type of negatives are we talking about here?

 

[datto]

And as long as rates dont rise.

And as long as life circumstances dont change and she has to exit in a hurry.

And lets face it, negative equity is about as fun as a fart in the bath.

There is always risk eg driving a car. Just got to manage it.

 

[jeffb5ltr]

I don't see why people are attacking Kochie here. He is TV presenter. He is raising few concerns an average Joe may have in this occasion. It gives Nathan & Linda a chance to answer them.

I think Kochie was asking the hard questions because of the way sunrise had advertised the story and having his background i am sure he has personally seen the results from poor investment strategies given by other so called property experts. (Not saying this is a poor strategy, just saying what angle Kochie may have been coming from)

Watching the lead up to the story it made it out like she came from nothing to $6 million and any person can do that in a couple of years.

Reality was she owned her PPOR and already had a investment property this puts her in a good position to capitalise on a well set up investment strategy.

 

[Peter Parker]

And as long as rates dont rise.

That's the key risk. Assuming the properties are neutrally geared now, a 1% rate rise on $4m of debt means having to find about $40k per year. 3% up is having to find $120k per year. That doesn't factor in tax deductions, but these also vanish when these depress taxable income.

Unless you're on a top income that will wipe you out or eat into even a large contingency fund. You may be forced to sell, and with a high loan ratio there may be little equity after agents fees and a poor sales prices you may have to accept.

While there is a 'never sell' bias here, I think there is something to be said for sometimes 'selling one buying two' (where there's been capital growth on lesser located properties) rather than to aggressively buy three properties in one go and ramp up debt.

It may even be possible to use this gentle churning to end up with a lower maintenance / nicer area portfolio that will be less work to maintain when one gets older. Eg the first property in a portfolio may be a modest unit in a larger country town or outer suburb. Then you might move onto suburban houses. Then maybe small group apartments/townhouses in good inner suburbs (bought at a time when prices and yields are reasonable). Each could be considered to be a milestone in one's progress and a step towards a robust diverse portfolio.

 

[willair]

I got ripped of two times by a buyers agent, one from the forum i won't mention names and another by a known buyers agent from WA.

You always pay for experience,, not your fault just don't let it happen a 3rd time,btw how long has the buyers agent been in the site that will narrow down the candidates..

 

[Coconutwheels]

The term "borrow within your means" was used several times on the interview. Made think what exactly does that mean?

I know there's SANF and what you "feel" comfortable with, but do people break this down into numbers?

I've been working towards portfolio that is neutral at rates of 7%, and a cash buffer to sustain 2years at 9%. I think maintaining that would be "borrowing within my means".

What do other people consider is "borrowing within your means"?

 

[MTR]

MTR, what type of negatives are we talking about here?

What I was told was over estimating prices and returns, I have not used his services by the way but my sources would be pretty much on the ball.

 

[MTR]

I got ripped of two times by a buyers agent, one from the forum i won't mention names and another by a known buyers agent from WA.

You live and learn plus karma is b.itch. This forum is on a payroll by select buyers agents, i have learnt that NO buyers agent has access to what you and i don't, they are a real estate agent but these days they call themselves buyers agents with access to property no on else has.

Whatever

I think you may be referring to Herron Todd and Momentum, lets call a spade a shovel. I used Herron Todd and found myself competing against my BA, WFT... how does that work.... think about that one, are you prepared to part with $12K-15K... ??? do the sums, do the homework

 

[Deltaberry]

a) Kochie or whateve his name was was being an absolute A-grade *****

b) Nathan has done well in his portfolio

c) I'm always very sceptical about paying someone to help you invest.

As a professional advisor on acquiring/selling multi-billion dollar projects and sophisticated investor by legal definition in real estate/equities/commodities etc, I find you only get value for expensive service IF you know what you are doing.

In other words, if you are already a guru, paying another guru helps you bounce/verify ideas, brainstorm etc and the service, the output you get is a lot more intelligent, considered and worthwhile. If you are a newbie in whatever it is you're trying to do, then paying for an expensive service means you get minimal output from it.

 

[Highlygeared]

I think the problem with Linda's portfolio is the lack of QUALITY. I wouldn't have the nerve and propensity to hold any of them.