I also found your summary on Bill Zheng very interesting. You said that you have loads more info. Could you share any more of his "gems" from the seminar??
Good Property Choices
` Land content should be greater than 40% of the whole property price.
` Buy around median price or not over 150% of the median price.
` The area you buy in should have gone up by three times in past 15 years. Eg. 100k to 300k.
` Buy high demand properties in well established areas. Not new estates and definitely not in mortgage sensitive areas.
` Avoid luxury properties and extremely low yields.
Highly Geared Investors
` Wait for the growth of your property or add value now.
Investors who have large portfolios
` Diversify your debt allocation with multiple lenders.
Investors with Gained Equity
~ Create a cash buffer offset account.
Mind Strategy
- Feel good about yourself especially as an Investor.
- - Think about how much freedom you have given up in order to obtain your financial freedom and reach your goals.
- What you expect is what you get. Set and forget. Focus on the good.
- Educate yourself constantly. Wealth is always transferred from the uninformed to the well informed.
- Less is more. Stick to properties that do well. If in the downturn you have a dud and you need to sell – sell it and don’t look back. Become more intuitive. Try not to confuse yourself by doing too many things and looking for too many options.
Valid Points
Debt=Cashflow.
Debt services Debt.
If you have more than 4 properties you will be servicing your debt with debt and this is now a business. Remember you are running a business and debt servicing debt is the way to do it.
Buy and hold Mortgages
Don’t pay off your mortgage. As your mortgage increases over time, properties prices double. NB: Also take into account inflation.
1 x Investment property now for 350k will be worth 22 mil in 40 years.
Thought I'd add this bit of interesting info in from Anne McKevitt - member of Bill Clintons, Clinton Global Initiative.
Global Warming
The North Pole is melting. It is salt ice and will not cause sea levels to rise. It will be totally gone in 23 years.
The ice reflects the sun and keeps the temperature down in the North Pole. The waters will become warmer and Greenland will melt. This will raise our water levels by 8 metres.
Build environmentally friendly buildings. These will be in demand in the not to distant future and people will want to pay more for them.
So....don't buy waterfront properties!
