New Spann book

[NigelW]

FYI,whilst browsing the investment shelves this lunchtime I came across Peter Spann's new book "10 million in property in 10 years".

From a very quick flick it looks like an elaboration of his technique as outlined in Wealth Magic - but in more detail.

Following the recent trend, it contains some "testimonials" from his clients about what they've achieved using his methods.

Also a well reasoned rejection of the cashflow at the expense of CG approach.

Looks like an interesting read.

Cheers
N.

 

[toony]

Sounds like its worth checking out - esp the part about cash flow at the expense of cap gains.

I spend some time at propertyinvesting.com so it would be good to see this part.

 

[geoffw]

He was asking for stories a while back.

Recently he was asking for stories about how people have succeeded using his share strategies using his method- a free book if your story gets used.

I've done OK with his inspiration- but in property rather than shares- and not in any spectacular way, just a plodding increase in rents, with some cashflow and good growth. Just like many here.

 

[Peter Parker]

I bought it and read it yesterday.

Here are my conclusions (with apologies to Edward De Bono for the method)

Pluses

* Easy to read. Not unlike a Kiyosaki dialogue (Rich Dad = Wealthy Friend)
* No denunciations of his dad (the book's actually dedicated to him)
* Very good method of introducing the key players in property (though tax is discussed, why didn't he visit his accountant)
* Good section on growth, yields and risk, though there have been areas that have offered high growth, high yields but low risks (which is reduced by doing research).
* Suggested reading list - refreshing openness when he says some books were put there to put a counter view to some of his points. Five stars!
* Honesty in saying that the story was embellished to make a good read (unlike Kiyosaki who Spann lists but doesn't recommend)
* Good examination of types of renovations (ie cheap cosmetic vs new kitchen vs structural)
* Excellent critique of buying off the plan high-rise with deposit bonds
* Good explanation of avoiding cross-collateralisation and various sources of finance
* Good section on negotiation

Minuses

* Though there is mention of the dangers of over-capitalising, this could have been fleshed out in more detail. Specific examples could have been included: ie $50k reno on $150k house in poorer outer suburb, things like swimming pools which add less than they cost, & if you don't own the whole block, just doing up one flat, which will probably not pay as renters and buyers will be comparing it with others in the block.
* Assumption that if rents increase $x, the property's value increases $y (I can't see an automatic correllation, especially in mainly owner-occupied suburbs)
* Belief that cashflow positive properties do not appreciate in value over the longer term. Also that cashflow positive IPs can be in regional cities or 2-horse towns, with different risk profiles, so it's not always appropriate to dismiss both.
* Claim that rent growth will make most negatively geared IPs positive in a few years. (eg my own rent in Melbourne has increased from $115pw to $125pw in 6 years - far less spectacular)
* Portfolio expansion is critical on capital growth and properties becoming positively geared over time. If this doesn't happen, you won't achieve the $10m goal and could face substantial cashflow shortfalls.
* Lack of index in back of book
* I'm not sure if taking town planners to lunch would be within council ethics guidelines if it was seen to compromise impartiality
* There are good sections on buying through private treaty (through agent) and auction (through agent) but NOT on buying privately. This would have been a very worthwhile section if included.
* Lack of discussion on matters that a small investor might not need to worry about, but a $10m investor would. Eg asset protection structures, being labelled as 'rent reliant' by the bank AND the superior personal organisation and systems you need to keep track of 30-60 properties or so.
* Makes it sound a little too easy in parts and minimises the downsides in some parts (even though he does say that capital growth is not assured, recommends landlords insurance and fixing as a hedge against rising interest rates)
* Title of book - looks a little gauche or 'get rich quick'. A good thing the $10m part is not prominent on the spine, so I must remember to put the book on the shelf when visitors come!

Interesting

* The technique advocated is most similar to John Fitzgerald (7 Steps to Wealth), except there is more emphasis on rejuvenations and using other investments (eg shares or property trusts) to plug up -ve gearing losses. There is also a lot of overlap with Jan Somers. The main difference here is that Somers does not emphasise fixing up and is evenhanded on CF+/CF-.
* Spann hates the big banks (though ANZ seems to escape)!

Overall it was worth buying and reading and I got several useful tips that will repay the cost of the book several times over.

Regards, Peter

 

[Aceyducey]

Peter,

I reckon that Peter Spann could do worse than have you read some of the earlier manuscripts of his next book

Cheers,

Aceyducey

 

[qaz]

Excellent review and an excellent book in my humble opinion

 

[MarkB]

Spann hates the big banks (though ANZ seems to escape)!

I bet I could tell him a story of incompetance that would make him change his mind.

btw. Good post Spiderman.

MB

 

[NigelW]

I bought it and read it yesterday.

Here are my conclusions (with apologies to Edward De Bono for the method)

Pluses

* Easy to read. Not unlike a Kiyosaki dialogue (Rich Dad = Wealthy Friend)
* No denunciations of his dad (the book's actually dedicated to him)
* Very good method of introducing the key players in property (though tax is discussed, why didn't he visit his accountant)
* Good section on growth, yields and risk, though there have been areas that have offered high growth, high yields but low risks (which is reduced by doing research).
* Suggested reading list - refreshing openness when he says some books were put there to put a counter view to some of his points. Five stars!
* Honesty in saying that the story was embellished to make a good read (unlike Kiyosaki who Spann lists but doesn't recommend)
* Good examination of types of renovations (ie cheap cosmetic vs new kitchen vs structural)
* Excellent critique of buying off the plan high-rise with deposit bonds
* Good explanation of avoiding cross-collateralisation and various sources of finance
* Good section on negotiation

Minuses

...if you don't own the whole block, just doing up one flat, which will probably not pay as renters and buyers will be comparing it with others in the block.
* Assumption that if rents increase $x, the property's value increases $y (I can't see an automatic correllation, especially in mainly owner-occupied suburbs)

Overall it was worth buying and reading and I got several useful tips that will repay the cost of the book several times over.

Regards, Peter

Good review Spidey and I agree with your conclusion. But I disagree with your two negative's quoted above.

In my experience owning one unit only and tarting it up is no brake on capital growth.

Similarly, when I've renovated a place I've always had no trouble taking it from well below market to slightly above market. The bright shiny paint and apparently new kitchen and bathroom always make the tenants meet your price...IMHO.

Cheers
N.

 

[rexilla99]

So is this book worth getting?

 

[Meisterin]

My local library has it.

I have a policy of reading from the library first before deciding to buy.

Might want to use your library's interloan service (coupld of dollars), and in the meantime read other books on investing.

This is a strategy that I use. Having read about 30 books re investing in my first year, I have formed in my mind as to how I want to go about investing in property and shares. After, first 5 books on property, I tend to skim read books on property- because 70-90% of the time, the basics are repeated and if you have read them 5 times already, you don't need to read about them again. I only read carefully on bits that this book is different about compared to other books.

There is a book by a Japanese reporter named Takashi Tachibana, who wrote a book on how to read books. This reporter was awarded the highest journalist prize in Japan for his research into Rockeed Incident, an incident similar to Nixon's Watergate in the 70s, where some politicians received bribes from an ammunitions company to allow them to export them to a Middle East, which was forbidden at that time. He explores how to read books and articles effectively to gain information.

I hope this helps.

 

[888abundance]

It's not really a new book (been out since 2004). There were some comments on this one by Dale in the Best Books thread.

However, I did read it again recently from cover to cover (rare for me for a second reading), and while I didn't agree with everything in it, I enjoyed it (again).

Based on this alone for me, i.e reading and enjoying a second time, I think it's worth getting if you don't already have it.

Gary

Author of "Property Millionaire, The Guidebook to Having Great Australian Dreams"
www.888abundance.com

 

[The Y-man]

It's not really a new book (been out since 2004).

Gary, you'll note the original post was in fact August last year.... it's an old thread that's been dug up

Cheers,

The Y-man

 

[Peter Spann]

Good news - a breakthrough with the publisher.
My old editor came back to work and has dragged the manuscript for my shares book out of the dustbin and revived the project.
They have asked for a bit of a re-write (and I agree with what they have requested).
I will get stuck into it over the Christmas break and provided I get the re-write to them by early Fenruary the book will be published by June of next year (2007), so let's hope I can get it together!

 

[geoffw]

Well done Peter. Looking forward to it.

 

[rj]

He was asking for stories a while back.

Recently he was asking for stories about how people have succeeded using his share strategies using his method- a free book if your story gets used.

Hes probably kicking himself that he didnt get grubar30 to write something up!

Oh and by the way - with your writing style who knows - you could write a book and make a packet out of that!

http://www.somersoft.com/forums/showthread.php?t=28130

RJ

 

[redwing]

Good news - a breakthrough with the publisher.
My old editor came back to work and has dragged the manuscript for my shares book out of the dustbin and revived the project.
They have asked for a bit of a re-write (and I agree with what they have requested).
I will get stuck into it over the Christmas break and provided I get the re-write to them by early Fenruary the book will be published by June of next year (2007), so let's hope I can get it together!

Hopefully the Markets still UP by then

Looking Forward to the book Peter; take your time but hurry up....maybe get a younger editor?

I'll volunteer to do some proof reading or review if you wish

All the best

 

[man of action!]

Great Read

I still believe it's a very good book for any investor to read.

 

[redwing]

MOA

I didn't think it was out yet?

Though we did get a look at a cover of it at an Investor Update some time ago (I think the price was even listed)?