This was worthwhile. Andrew Wilson's presentation was a highlight.
Michael Yardney Sydney Event Sat (15 Mar 14)
- Thread starter devank
- Start date
Notes 1 - MY & Andrew Wilson
Damn... look like I missed all the fun
Here are few abstract notes (sorry I'm not good at this).
- What could stop reaching your goals?
1. Not having plan
2. Finance
3. Property market downturn
4. Fear
5. Illness
6. Losing job
7. Mindset
8. Wrong vehicle
- Don't try to do all by yourself. Don't hesitate to ask for help.
This is the first time I heard Andrew Wilson. He was good! Following from him.
- Pay attention to areas where disposable income increased.
- We never had lower trough point below previous one.
I forgot if he was talking about Sydney or Australia.
For Sydney,
- Correction 2011
- Recovery 2012
- Expansion 2013
- Now recovery now consolidated.
Sydney, Melbourne, Perth Canberra & Darwin - prices at record level.
Brisbane - strengthening
Adelaide and Hobart - raising.
Indicator for middle & upper market <- Peaking budget properties
=> In Sydney, more room for lower North & Northern beaches.
Damn... look like I missed all the fun
Here are few abstract notes (sorry I'm not good at this).
- What could stop reaching your goals?
1. Not having plan
2. Finance
3. Property market downturn
4. Fear
5. Illness
6. Losing job
7. Mindset
8. Wrong vehicle
- Don't try to do all by yourself. Don't hesitate to ask for help.
This is the first time I heard Andrew Wilson. He was good! Following from him.
- Pay attention to areas where disposable income increased.
- We never had lower trough point below previous one.
I forgot if he was talking about Sydney or Australia.
For Sydney,
- Correction 2011
- Recovery 2012
- Expansion 2013
- Now recovery now consolidated.
Sydney, Melbourne, Perth Canberra & Darwin - prices at record level.
Brisbane - strengthening
Adelaide and Hobart - raising.
Indicator for middle & upper market <- Peaking budget properties
=> In Sydney, more room for lower North & Northern beaches.
Notes 2 - MY
- Steps to profit through renovation.
1. Why?
2. Preparation
3. Where
4. What
5. Purchase
6. Plan and budget
7. Renovation process
8. Review
- Why are some people more successful than others?
1. Cause and effect
2. You are creating your future today
- Everyone has a set thermostat. However, you can have more because you can become more.
Neopleon Hill's stuff.
Thoughts -> feelings -> actions => results
1. A burning desire
2. Specialised
3. Discipline
4. Decisive in nature
5. A mastermind group
- 3 walls stop you.
1. Lack of knowledge
2. Lark of confidence
3. Lack of money
- Steps to profit through renovation.
1. Why?
2. Preparation
3. Where
4. What
5. Purchase
6. Plan and budget
7. Renovation process
8. Review
- Why are some people more successful than others?
1. Cause and effect
2. You are creating your future today
- Everyone has a set thermostat. However, you can have more because you can become more.
Neopleon Hill's stuff.
Thoughts -> feelings -> actions => results
1. A burning desire
2. Specialised
3. Discipline
4. Decisive in nature
5. A mastermind group
- 3 walls stop you.
1. Lack of knowledge
2. Lark of confidence
3. Lack of money
Notes 3 - Ken Raiss
- Reasons for not using Company? It doesn't get 50% capital gain tax discount.
- Benefits of Trusts
1. Asset protection
2. Flexibility
3. Estate planning
4. Cash Flow
-Ways to safeguard individually owned properties.
1. Create 'Equity bank trust'.
2. Gift equity to trust on paper.
- Asset protection through SMSF.
Is it only if company as trustee?
There is a 25K contribution cap. What if you have multiple supers? Is it multiple 25Ks?
Testamentary trusts are useful to pass on assets to kids.
Property investors tips:
- Scraping schedule.
- Depreciation - split schedule to make low cost
- Tax variation
Developing with a friend?
'Partitioning' saves stamp duty, gst, cgt if duplex is separated.
- Reasons for not using Company? It doesn't get 50% capital gain tax discount.
- Benefits of Trusts
1. Asset protection
2. Flexibility
3. Estate planning
4. Cash Flow
-Ways to safeguard individually owned properties.
1. Create 'Equity bank trust'.
2. Gift equity to trust on paper.
- Asset protection through SMSF.
Is it only if company as trustee?
There is a 25K contribution cap. What if you have multiple supers? Is it multiple 25Ks?
Testamentary trusts are useful to pass on assets to kids.
Property investors tips:
- Scraping schedule.
- Depreciation - split schedule to make low cost
- Tax variation
Developing with a friend?
'Partitioning' saves stamp duty, gst, cgt if duplex is separated.
Thanks devank.
Any detail information about this topic above?
Would like to know his view about 2014 & 2015 about major city.
Cheers.
This is 2014 & 2015...
Sydney, Melbourne, Perth Canberra & Darwin - prices at record level.
- Meaning there is a bit of room to go higher and then hit the peak
Brisbane - strengthening
- just starting to go up. Fair bit to go to hit the peak
Adelaide and Hobart - raising.
- Coming off 6pm.
Australia.
Definitely not.
Broad state-wide motherhood statements shown at a property seminar carry absolutely no weight whatsoever when purchasing individual title deeds.
All of the normal myriad due diligence criteria when selecting individual title deeds to purchase cannot be ignored and cannot be over-ruled.
If on the other hand you were choosing between buying Brisbane or Hobart, that would be an entirely different matter.....but then no-one can afford to ever do that, so it doesn't matter.
These are the things I personally learnt.
1. It is time for me to start looking into development.
2. 'Partitioning' (Doing development together and then separating without any financial setback). I didn't know anything about this before.
3. What stops me from taking the next step is 'fear'. Fear of loosing. However, how can I not have 'fear' when we have 3 young kids and two older parents?
DevanK
If keen on developing as a strategy, I would start off by reading some of the posts on SS "adding value", there are a number of people currently developing, have projects on the go which outline figures etc, including my Spearwood project.
Rockstars posts may interest you as he is from Syd and outlines in detail his projects, also mflying from Syd currently has 2 projects on the go.
I would personally recommend you start in your own backyard before venturing to any other States, and keep it simple start with smaller projects, such as a build at the rear of a property, just a suggestion.
From what I recall some time ago now, MY had a project management company which put together development deals for investors, the project management fees were very high. Not sure whether he still does this? However, I would search SS there is a very long post regarding this and a detailed account on a project managed by MY company from start to finish. Not a pretty picture from what I recall.
Cheers
MTR
If keen on developing as a strategy, I would start off by reading some of the posts on SS "adding value", there are a number of people currently developing, have projects on the go which outline figures etc, including my Spearwood project.
Rockstars posts may interest you as he is from Syd and outlines in detail his projects, also mflying from Syd currently has 2 projects on the go.
I would personally recommend you start in your own backyard before venturing to any other States, and keep it simple start with smaller projects, such as a build at the rear of a property, just a suggestion.
From what I recall some time ago now, MY had a project management company which put together development deals for investors, the project management fees were very high. Not sure whether he still does this? However, I would search SS there is a very long post regarding this and a detailed account on a project managed by MY company from start to finish. Not a pretty picture from what I recall.
Cheers
MTR
Thanks. I have not been involved in JV before.
Definitely Geoff.
Yep. That is what they said about 'Partitioning'. I don't know the cons of it but seem like a good way to do it.
So far we built our own home and also built a Granny flat at one of our IP. However, never bought a property to develop or renovate.I would personally recommend you start in your own backyard before venturing to any other States, and keep it simple start with smaller projects, such as a build at the rear of a property, just a suggestion.
I think all these companies' target market is people with money but no time or 'will'.
We've done two subdivision on the north shore .
Both profitable , but time consuming and frustrating at time . Down side was on both occasions the time and money in doing them kept us out of the market at times when the markets were moving strongly and we could have made money with simple and less stressful buy and holds .
I'll be surprised if we do further developments . Not on our plans at this stage.
Cliff
Both profitable , but time consuming and frustrating at time . Down side was on both occasions the time and money in doing them kept us out of the market at times when the markets were moving strongly and we could have made money with simple and less stressful buy and holds .
I'll be surprised if we do further developments . Not on our plans at this stage.
Cliff
Hi SC
My guess is that when you were developing that particular market was not rising.? Still made a profit though.
Its a different ball game when you are developing in a market that is rising, profits of 20% can easily turn into 40%, when you are building 3 or 4 units the results can be quite staggering. The effort is well worth the reward.
Just to give you an example one of Westminsters projects Gwellup, 4 unit development, almost completed will make a profit of around $850,000, 12 month project I think? That's pretty amazing in anyone's books.
MTR
My guess is that when you were developing that particular market was not rising.? Still made a profit though
.Its a different ball game when you are developing in a market that is rising, profits of 20% can easily turn into 40%, when you are building 3 or 4 units the results can be quite staggering. The effort is well worth the reward.
Just to give you an example one of Westminsters projects Gwellup, 4 unit development, almost completed will make a profit of around $850,000, 12 month project I think? That's pretty amazing in anyone's books.
MTR
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