Nathan Birch in today's Sydney Daily Telegraph

[knightm]

Well done Nathan.

A double page spread, nice! Nothing beats free publicity. Congrats Nathan.

I might add too that I, among others, respect your unorthodox investing strategy and how you've conducted yourself throughout your journey.

For others who don't know the path Nathan has trodden is fraught with danger and challenges that most investors would shy away from. It's not easy getting your hands dirty and Nathan has done the hard yards here. Certainly testament to his character.

Jake, can I ask what you mean by "unorthodox" and "fraught with danger"

I see Nathans formula as very low risk and very simple: work very hard to find very cheap deals that cover their own costs completely in a range of metro and regional areas. Buy lots of them.

Its not easy, but I don't understand how its "fraught with danger"

 

[geoffw]

I see Nathans formula as very low risk and very simple: work very hard to find very cheap deals that cover their own costs completely in a range of metro and regional areas. Buy lots of them.

You've missed a big bit.

It's not just buy cheap- it's buy below value. Cheap and below value are not necessarily the same thing.

And it's value add.

By buying below value, and by adding value through renos, Nathan had the equity to buy more. Without that equity he created by buying well and renovating, he would not have been able to expand.

I'd suspect it may be more difficult now to achieve quite as much as quickly as he did, with a static marke. I'm not saying not possible- just more difficult.

 

[Rixter]

Well done Nathan. You are an inspirational asset to this forum mate.

 

[knightm]

You've missed a big bit.

It's not just buy cheap- it's buy below value. Cheap and below value are not necessarily the same thing.

And it's value add.

By buying below value, and by adding value through renos, Nathan had the equity to buy more. Without that equity he created by buying well and renovating, he would not have been able to expand.

I'd suspect it may be more difficult now to achieve quite as much as quickly as he did, with a static marke. I'm not saying not possible- just more difficult.

Below val is what I meant - hence the "work really hard" bit. Otherwise cheap is just cheap. Im not taking anything away from his model, I really like it, and think its quite bulletproof in a range of markets and areas.

If getting "more difficult" means the sydney market is moving up and the numbers no longer stack up, he (or someone following that model) would just move to somewhere the numbers do stack up, and repeat the process.

 

[Nathan]

Thanks for all the kind words everyone.

As for doing it again, look outside in other areas where the markets are smashed. I now days purchase a lot in QLD due to there being a depressed market and I regularly buy like 30-40% under market

 

[wylie]

Nathan, very well done... but I'm curious about how you get around paying massive land tax?

Do you buy in different names, trusts, or something else?

 

[Nathan]

Tax is cost of doing business, gotta pay the $$$ unfortunately.

Its not too much though.

 

[Rixter]

Tax is cost of doing business, gotta pay the $$$ unfortunately.

Its not too much though.

.......and tax deductible too

 

[geoffw]

Thanks for all the kind words everyone.

As for doing it again, look outside in other areas where the markets are smashed. I now days purchase a lot in QLD due to there being a depressed market and I regularly buy like 30-40% under market

I know that you are still getting deals- and plenty of them, enough that many other people are getting benefit.

What I said though was that I suspect it would have been harder for you to start in the way that you did and to get where you are now in a different market. You started in your own back yard in Sydney, and really for to know it well. You know that market well enough to know that there aren't the deal now. You've been able to expand- you have the resources to cast the net wider.

So Nathan wannabe in the western suburbs of a capital city might take a few more years before he could get to where you are now. I haven't got anywhere near what you have done- but I certainly would not be able to reproduce now what I did then.

 

[MTR]

Wel done Nathan...... Yay..... 100 on the way

 

[travelbug]

You've missed a big bit.

It's not just buy cheap- it's buy below value. Cheap and below value are not necessarily the same thing.

And it's value add.

By buying below value, and by adding value through renos, Nathan had the equity to buy more. Without that equity he created by buying well and renovating, he would not have been able to expand.

I'd suspect it may be more difficult now to achieve quite as much as quickly as he did, with a static marke. I'm not saying not possible- just more difficult.

Really?? He's done this in the last 9 years (after the boom). What's different now than it was 2 years ago (when he increased his portfolio the most)?

He's still doing it now but admittedly he has branched out to regional whereas he started in Sydneys west.

I have no doubt that if Nathan was starting now he'd still have the same success.

 

[DaveM]

The one thing I can see Nathan has gone drastically off course on and made a huge decision mistake on is wanting to get a Lamborghini. They have the maintenance costs that will eat his $5m equity and leave him destitute on a street corner in Bidwill.

 

[saiman]

The one thing I can see Nathan has gone drastically off course on and made a huge decision mistake on is wanting to get a Lamborghini. They have the maintenance costs that will eat his $5m equity and leave him destitute on a street corner in Bidwill.

Knowing nathan he will more than likely find a bargain lambo wreck in a scrapyard somewhere and employ a team of professionals to restore it to its former glory adding mostly toyota parts beneath the bonnet to prevent maintenance issues in the long run

 

[wylie]

Tax is cost of doing business, gotta pay the $$$ unfortunately.

Its not too much though.

I just know that the house we are selling will cost us close to $10K in land tax per year.
That is because of how we must hold it, what names, no threshold, our wish not to buy it in another name and pay costs to do so etc.

That is not the reason we are selling it, but the land tax is one reason why we have chosen to sell now rather than hold a little longer. If the Brisbane market was rising, we would do things differently.

 

[DaveM]

Knowing nathan he will more than likely find a bargain lambo wreck in a scrapyard somewhere and employ a team of professionals to restore it to its former glory adding mostly toyota parts beneath the bonnet to prevent maintenance issues in the long run

I wonder how many fire damaged ex-DOH lambos there are in 2770? Though maybe if he test drives one and parks it in Shalvey for an hour, it will be fire damaged on return?

 

[datto]

Get real Dave. Depends what time its parked. The boys don't get out of bed til mid day.

 

[Nathan]

I got pulled over in 2770 recently in my gtr by cops because they thought i had stolen the car and had to wait while they ran checks oni t for 15 mins.

 

[Player]

I got pulled over in 2770 recently in my gtr by cops because they thought i had stolen the car and had to wait while they ran checks oni t for 15 mins.

Get used to it especially if you escalate the calibre of vehicle.

To mitigate the risk though keep your face and head as they are. Someone I know has been pulled up three times in Melbourne's northern suburbs on his way to work (high position in a very large company 20 km to the north of the CBD) as he has a shaved head, a goatee and drives a black CLS 63 AMG.

 

[knightm]

I got pulled over in 2770 recently in my gtr by cops because they thought i had stolen the car and had to wait while they ran checks oni t for 15 mins.

Hilarious!

 

[saiman]

I got pulled over in 2770 recently in my gtr by cops because they thought i had stolen the car and had to wait while they ran checks oni t for 15 mins.

good problem to have