Nathan Birch - 11.5% yield unit in FN QLD for $90,500 positive cashflow in cairns

For these kind of deals to stack up you need to purchase the whole block and obtain insurance quotes from a good broker in advance.
In fairness to Nathan cyclone Yasi struck in 2011 from memory and insurance premiums only really spiked for units to ridiculous levels in the following few years. Unit prices were smashed in Cairns a result and have not really recovered compared to houses IMO.
The market has since priced units in Cairns accordingly.

Not having a go at Nathan, it is purely my thoughts about why I do not like regional towns. As the risk is so much greater but so can the rewards to.
 
If I was a betting man which I am not there could be some opportunities in the unit market if the insurance reforms come off. There could potentially be an opportunity to pick up some cheap units if there is a repricing of insurance risk before the market responds to high yields with an increase in prices.It would be a strategy with some risk but potential reward, to achieve this someone would need to act quickly and be nimble. Not for me though
 
If I was a betting man which I am not there could be some opportunities in the unit market if the insurance reforms come off. There could potentially be an opportunity to pick up some cheap units if there is a repricing of insurance risk before the market responds to high yields with an increase in prices.It would be a strategy with some risk but potential reward, to achieve this someone would need to act quickly and be nimble. Not for me though

My thoughts also, as I alluded to in my post.

I remember talk of a reform several years ago but nothing has eventuated of it yet so could be a while away yet. Way too speculative at the moment for my liking.

Much like Aquis....
 
Just before everyone gets excited, is it really a good move to base an investment decision on a possible change in insurance policy?

Even if you cut those body corporate rates in half, this still wouldn't have been a good cash flow deal. A couple of rate increases (which will happen sooner or later) and it just looks worse.

There might be some capital gain opportunity if you timed it extremely well but would be based on short term gains, not anything fundamental and it would rely heavily on a speculative prediction plus good timing.
 
I think Cairns might have some upsides but as a regional Centre, to me, there are just too many downsides to Cairns:

- Cyclones etc. Affecting insurance policies as stated
- I am yet to be convinced/shown proper evidence that it is a mulyi-faceted economy in Cairns (happy to be challenged on this of course!)

Townsville is the commercial hub/capital of north Queensland, I think this market would present better capital growth options (despite it being depressed currently). Abbott just needs to commit to some military deployments and then TSV will go up again :D
 
The insurance premiums are currently so high that there has been a market failure relating the unit BC fees. BC fees have increased by 300% on some units. House prices have recovered post GFC and are now growing, vacancy rates are low. Sometimes opportunities can present in any market due to imbalances. But I'm presently purchasing elsewhere.
 
I have been intrigued as to Nathan's journey.
Not passing judgement on him as he has done very well and followed his dreams and fulfilled his ambitions.

I found it interesting to look at properties he bought in 2011 and prior and compare them to current sales. Not to prove him wrong but just to get further insight.

If Nathan is prepared to post figures on SS and is promoting a BA business then I think anyone wanting to use his services should look very closely at what he is buying and performance, its not about being critical, but going in with "eyes wide open".

I would also be interested in hearing from those who have purchased from Nathan and happy with their deals etc.
 
If Nathan is prepared to post figures on SS and is promoting a BA business then I think anyone wanting to use his services should look very closely at what he is buying and performance, its not about being critical, but going in with "eyes wide open".

I would also be interested in hearing from those who have purchased from Nathan and happy with their deals etc.

I agree with you. People in glass houses as the old saying goes.

You need to go to his Facebook page for those people who all out positive on Nathan and his company.
 
I looked into Cairns and would argue that, with body corp (i.e. building insurance), this would be lucky to be CF+. It wasn't hard to find places that grossed 7-9% yield, but net was neutral at best.

It is damn good value though and a good capital growth play, but not a CF play.
 
If Nathan is prepared to post figures on SS and is promoting a BA business then I think anyone wanting to use his services should look very closely at what he is buying and performance, its not about being critical, but going in with "eyes wide open".

I think that is a very fair comment, but how many other BA's that promote their businesses on here have shared specific & measurable personal or customer sourced deals?
 
I think that is a very fair comment, but how many other BA's that promote their businesses on here have shared specific & measurable personal or customer sourced deals?

Good point, I can't think of any. He also shares what he buys for himself sometimes.
 
I think that is a very fair comment, but how many other BA's that promote their businesses on here have shared specific & measurable personal or customer sourced deals?

This is a very fair point, this sort of thing is difficult to verify. However imagine how you'd feel if a BA published the address and purchase details of a property they negotiated for you on a public form; it would be a serious breach of privacy.

I've dealt with several BAs on the forum with mutual clients and regularly recommend them here. I've seen the properties they're purchasing for those clients and in many cases we've had them revalued a year or two later via full bank valuations when (not the desktop valuations that Nathan regularly promotes). I wouldn't be recommending a BA (or anyone else) if they weren't getting good results.

Most of the BAs promote their business via a passive approach of answering questions, providing market information and being generally helpful. Nathan has directly promoted his business by posting and address and figures. It's a far more aggressive promotional approach. If someone is going to take this approach to self promotion then they need to deal with the scrutiny at the other end as well.
 
Good point, I can't think of any. He also shares what he buys for himself sometimes.

It would be nice to look at some of their deals.

However, this would be difficult to do when a market is hot, imagine BA purchasing in Syd at the moment sharing their deals, it would be suicide in a hot market, it will just create more competition.

Long story but some time ago in a hot market I decided to use a BA and I was pro active myself as it was tough for anyone to secure a property. To cut a long story short I ended up bidding against my own BA, he was purchasing this particular property for another client.
Funny but true, I secured the property and I did not have to pay a BA fee because he did not pass on any details.

MTR:)
 
It would be nice to look at some of their deals.

However, this would be difficult to do when a market is hot, imagine BA purchasing in Syd at the moment sharing their deals, it would be suicide in a hot market, it will just create more competition.

Long story but some time ago in a hot market I decided to use a BA and I was pro active myself as it was tough for anyone to secure a property. To cut a long story short I ended up bidding against my own BA, he was purchasing this particular property for another client.
Funny but true, I secured the property and I did not have to pay a BA fee because he did not pass on any details.

MTR:)

Ive been able to review 4-6 of his deals.
He has enough links to RE.com.au floating around with figures to compare to current comparable sales. Also if you watch enough of his youtube videos you can do the same for a few more like I mentioned.
 
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