John Fitzgerald's seminar and investment approach

[VYBerlinaV8]

I'm not convinced that chasing land content is the only way to make $$ in property. I think there are a range of strategies that work.

I think JF's ideas are ok, but they do require cashflow, at least initially.

 

[Rob Williams]

I'm not convinced that chasing land content is the only way to make $$ in property. I think there are a range of strategies that work.

I think JF's ideas are ok, but they do require cashflow, at least initially.

I agree with your comments on land content. Can be valid in some circumstances, but for my money, it's more about supply and demand for the boxes on the land.
Like you saym there are a range of strategies that work. No right or wrong. The right one is the one that works for an individual.

 

[VYBerlinaV8]

I tend to agree, Rob. I've found that demand for the dwellings themselves seems to have driven growth (in both value and rental return) more than how much land is associated with a given property.

But, as I said, different strokes for different folks.

 

[sash]

Actually....these houses are appreciating faster than the art deco units in Hawthorn as we speak...I think Melton and Werribee appreciated about 3-5% last qtr.

I'm going to be devil's advocate here:

A cheap old house in Melton or Werribee can have a 70-80% land value component; a not much lower percentage than an expensive house in a salubrious inner suburb. Plus it can be bought for below replacement value.

Will this appreciate faster than (say) an art-deco unit in Hawthorn with a similar or slighly lower percentage? Can't say for sure, but most people would say 'probably not'.

 

[DavidMc]

Actually....these houses are appreciating faster than the art deco units in Hawthorn as we speak...I think Melton and Werribee appreciated about 3-5% last qtr.

Buy one of each (and maybe something in between) and enjoy the averaged returns.

 

[normailson]

Before we start getting into whether we agree, % of land content etc:

Let’s look at his forecasting success over the last ten years. As the property consumer advocate would say “it’s there in black and white. He wrote a book!”

- Buy in Brisbane, not Melbourne as it will start to overtake Melbourne by 2010.
While Brisbane did have a burst in growth, it would appear that you would probably have done as well in Melbourne; if not better. Melbourne did not lose population; it gained in record numbers. While Qld continues to be considered in poor light among other states, it’s not likely to happen soon either.
Sorry John, Wrong.

- Buy 20kms out of Brisbane’s CBD (where he also just so happens to sell) to get land content.
It would appear that it has been Brisbane’s inner ring that has really outperformed over the past ten years NOT 30kms out (where they actually end up being).
Sorry John, Wrong again.

- Buy for Capital Growth not Cash-flow. Now this is where we get a real contradiction in terms.
Traditionally, you buy for solid CG in prime locations close to the CBD. Brisbane’s inner ring CG was where we saw huge CG NOT the outer ring. So John, why did you tell us to buy in the outer ring for CG?
Guessed it John, Wrong again.

- Buy new so you can depreciate which assists with your cash-flow.
Buying new means you avoid stamp duty but don’t get rent if his company stalls during construction.
By now, I’m getting really confused: I thought he said “buy for CG” You get far better cash-flow buying from a known property in-situ where you get cash-flow straight away and you can STILL depreciate strongly.
at the very least this concept is misleading, or, just plain Wrong.

- Saying stuff like 1 bdrm apartments have limited potential and therefore limited in CG might be enlightening to a newbie; but it’s hardly earth-shattering news for a seasoned investor. Stuff like that gets stated in this forum every second day.
A non-statement!

People have accused me in the past of having problem when all I have tried to do is warn newbies of this property spruiker. I’m (still) a property millionaire; I don’t have a problem.

Just look at his record/points and decide for yourself whether they are designed to help you or help him.