Rixter, care to elaborate on this? Did you manage to purchase one of the 'half price' lots?
Craig Turnbull
- Thread starter Kennethkohsg
- Start date
Rixter, care to elaborate on this? Did you manage to purchase one of the 'half price' lots?
Hi Rixter
Thanks, very interesting. Couple of questions....
I did not realise you could purchase land in SMSF, thought property needed to provide a return, neutral/positive??
The discount is fantastic, very hard to buy land at this price, though I know very little about this area. Be good to get your imput on this.
The down side as I see it is the holding costs perhaps $5500 pa, I guess the discount well and truly makes up for this. (3-5 years)
Also, most of the R40 blocks are around 450 sqm2, these are too small IMO. To get 3 decent villas you need a minimum of around 728 sqm. Not sure how this would work especially in a new estate.
Cheers, MTR
Thanks Aaron, I do recall some time back when I was going to purchase property in SMSF that we needed a certain yield so that the property was almost looking after itself, but that was some time ago now.
Cheers, MTR
Yes I did in Stage 1..
Yes you pay the discounted price now with no more to pay.
So i guess the risk is that if the project folds you have no recourse and no title. Great deal if all goes well (hard to argue with those prices) but that is what held me back from looking at it further.
Hi Sanj
Imagine if investors all built multis, majority of blocks are R40/r30
I still like the 50% discount.
Rix
I think in SMSF good way to go, and if All goes to plan nice fat profit
MTR
Not correct.....the purchase contract that you & the developer both sign is set up where by you have mortgage over the entire parcel of land. Not just the block being purchased but also the entire development stages 1 through to 4.
Think of it as if you are the bank and your purchase price is in fact a loan to the developer and you take hold of the entire parcel of land to be developed as security for the loan (purchase price) until such time as titles are issued to you.
If the project does not go ahead you get your money back so I guess the only real risk is if it does fold you miss out on the lost opportunity that money could have been working for you else where.
I hope this helps.
Caveat Emptor
Went along to "his" seminar last night.
It was essentially a sell by a company called Macro Realty.
They consist of some of Craig's students from his previous iAspire business and they have set up an all-in-one real estate business.
We went with two friends who are on the look for cash flow positive properties.
Craig basically gave an intro into why cash flow properties are so good and why he now wants to get in on the game (which I find surprising after ready his books and thinking he was already in it). Went through the metrics of the China market and how iron ore is an important factor.
Then the Macro Realty spiel came along saying how there was a lack of land in Port Hedland (did not mention SH) and Newman. Showed a picture of Port Hedland (not SH) and showed that all the land was subject to flooding and there was no land available, implying that property would only go up in value. Then mentioned Newman that there was no land available because of the hills around it. Mentioned for both that there no properties to rent (and showed a Domain listing for June 2012
) and that rents and prices were going up, up, up.
They had their own brand new projects, with a finance broker there, mentioned 95% LVRs, cash bonds, flipping, OTP, rent guarantees, all the things that set off alarms in my head. Then there was the disclaimer at the end that went by very quickly, and I was trying to pick up something about commissions etc, that was mentioned but I could not read quick enough.
Craig then came back on and wrapped things up.
There was no time given for Q&A time, for points to be clarified (see below).
This sounded very scary to me as it was only half the truth and a very convenient half at that.
They did not mention South Hedland at all, this suburb was built because there's no land in Port Hedland and is where the dveelopment will occur in the greater PH area. ATM, it has a large rental surplus with rents actually easing off. This is where LandCorp is to be releasing many hundreds of lots and this will take the heat out of the market.
They briefly mentioned Karratha in that the market is easing, for the very reason that land supply is increasing. They seemed to gloss over that very quickly, mentioned Point Anketell port and that population will increase and everyone will be happy again, but this "might" happen.
This very thing is about to happen in South Hedland (flowing onto PH) and Newman (as there actually is land there to be developed).
If you want to get into the market, there is plenty of stock you can buy in PH/SH/Newman.
I think these markets are in a state of flux. There are redevelopment projects occurring with Royalty for Regions money, land being released through LandCorp (this mostly being for owner occupied through ballots) and major projects have been on-hold for the last six months.
It pay big dividends if one buys there and the market goes up, but thinking about Karratha where there has been extra land released, rents have come off 20% and prices maybe 10% with yields now about the 8 to 9% range where they might have been 9 to 10%.
I think do you DD very carefully. A 95% lend in one of their projects might end up burning a few people if the market corrects 10 to 20% downwards in the next few years.
Went along to "his" seminar last night.
It was essentially a sell by a company called Macro Realty.
They consist of some of Craig's students from his previous iAspire business and they have set up an all-in-one real estate business.
We went with two friends who are on the look for cash flow positive properties.
Craig basically gave an intro into why cash flow properties are so good and why he now wants to get in on the game (which I find surprising after ready his books and thinking he was already in it). Went through the metrics of the China market and how iron ore is an important factor.
Then the Macro Realty spiel came along saying how there was a lack of land in Port Hedland (did not mention SH) and Newman. Showed a picture of Port Hedland (not SH) and showed that all the land was subject to flooding and there was no land available, implying that property would only go up in value. Then mentioned Newman that there was no land available because of the hills around it. Mentioned for both that there no properties to rent (and showed a Domain listing for June 2012
) and that rents and prices were going up, up, up.They had their own brand new projects, with a finance broker there, mentioned 95% LVRs, cash bonds, flipping, OTP, rent guarantees, all the things that set off alarms in my head. Then there was the disclaimer at the end that went by very quickly, and I was trying to pick up something about commissions etc, that was mentioned but I could not read quick enough.
Craig then came back on and wrapped things up.
There was no time given for Q&A time, for points to be clarified (see below).
This sounded very scary to me as it was only half the truth and a very convenient half at that.
They did not mention South Hedland at all, this suburb was built because there's no land in Port Hedland and is where the dveelopment will occur in the greater PH area. ATM, it has a large rental surplus with rents actually easing off. This is where LandCorp is to be releasing many hundreds of lots and this will take the heat out of the market.
They briefly mentioned Karratha in that the market is easing, for the very reason that land supply is increasing. They seemed to gloss over that very quickly, mentioned Point Anketell port and that population will increase and everyone will be happy again, but this "might" happen.
This very thing is about to happen in South Hedland (flowing onto PH) and Newman (as there actually is land there to be developed).
If you want to get into the market, there is plenty of stock you can buy in PH/SH/Newman.
I think these markets are in a state of flux. There are redevelopment projects occurring with Royalty for Regions money, land being released through LandCorp (this mostly being for owner occupied through ballots) and major projects have been on-hold for the last six months.
It pay big dividends if one buys there and the market goes up, but thinking about Karratha where there has been extra land released, rents have come off 20% and prices maybe 10% with yields now about the 8 to 9% range where they might have been 9 to 10%.
I think do you DD very carefully. A 95% lend in one of their projects might end up burning a few people if the market corrects 10 to 20% downwards in the next few years.
Nope. Last night was all focused on the Macro Realty product.
Went along to "his" seminar last night.
It was essentially a sell by a company called Macro Realty.
They consist of some of Craig's students from his previous iAspire business and they have set up an all-in-one real estate business.
We went with two friends who are on the look for cash flow positive properties.
Craig basically gave an intro into why cash flow properties are so good and why he now wants to get in on the game (which I find surprising after ready his books and thinking he was already in it). Went through the metrics of the China market and how iron ore is an important factor.
Then the Macro Realty spiel came along saying how there was a lack of land in Port Hedland (did not mention SH) and Newman. Showed a picture of Port Hedland (not SH) and showed that all the land was subject to flooding and there was no land available, implying that property would only go up in value. Then mentioned Newman that there was no land available because of the hills around it. Mentioned for both that there no properties to rent (and showed a Domain listing for June 2012
They had their own brand new projects, with a finance broker there, mentioned 95% LVRs, cash bonds, flipping, OTP, rent guarantees, all the things that set off alarms in my head. Then there was the disclaimer at the end that went by very quickly, and I was trying to pick up something about commissions etc, that was mentioned but I could not read quick enough.
Craig then came back on and wrapped things up.
There was no time given for Q&A time, for points to be clarified (see below).
This sounded very scary to me as it was only half the truth and a very convenient half at that.
They did not mention South Hedland at all, this suburb was built because there's no land in Port Hedland and is where the dveelopment will occur in the greater PH area. ATM, it has a large rental surplus with rents actually easing off. This is where LandCorp is to be releasing many hundreds of lots and this will take the heat out of the market.
They briefly mentioned Karratha in that the market is easing, for the very reason that land supply is increasing. They seemed to gloss over that very quickly, mentioned Point Anketell port and that population will increase and everyone will be happy again, but this "might" happen.
This very thing is about to happen in South Hedland (flowing onto PH) and Newman (as there actually is land there to be developed).
If you want to get into the market, there is plenty of stock you can buy in PH/SH/Newman.
I think these markets are in a state of flux. There are redevelopment projects occurring with Royalty for Regions money, land being released through LandCorp (this mostly being for owner occupied through ballots) and major projects have been on-hold for the last six months.
It pay big dividends if one buys there and the market goes up, but thinking about Karratha where there has been extra land released, rents have come off 20% and prices maybe 10% with yields now about the 8 to 9% range where they might have been 9 to 10%.
I think do you DD very carefully. A 95% lend in one of their projects might end up burning a few people if the market corrects 10 to 20% downwards in the next few years.
Thanks HR
you pretty much summed up why I would not go to these events, a real waste of time, promoting their own product and high risk IMO which annoys me no end cos so many would think this guy is amazing, not really, just a sales man.
A rule that I always live by is this..
"Is the person giving me this advice going to financially benefit from me taking that advice?"
I've lost count of the number of times my bank has offered me 'free financial advice' over the years when everything they want to recommend is one of their products.
Just a thought..
"Is the person giving me this advice going to financially benefit from me taking that advice?"
I've lost count of the number of times my bank has offered me 'free financial advice' over the years when everything they want to recommend is one of their products.
Just a thought..
Craig's been overseas for a few years, though still looking at the Aussie Market
His updates on AM Radio on the weekends were always interesting if you were involved in WA Real Estate for the good, bad and the ugly in what was largely an advertising segment interspersed with some good information
I saw this piece on Youtube re: Agincourt
CNBC: Craig Turnbull of Agincourt Capital
His updates on AM Radio on the weekends were always interesting if you were involved in WA Real Estate for the good, bad and the ugly in what was largely an advertising segment interspersed with some good information
I saw this piece on Youtube re: Agincourt
CNBC: Craig Turnbull of Agincourt Capital
I would have thought his business gives him the cashflow
Similar threads
