Peter Spanns Top 10 Suburbs

[Andrew_A]

Well said Kenster, The RIC story. No specific details as to why Brazil has been dropped from the team though.

In a global world you need to cast the net wider sometimes, I would add Tanzania and Kazakstan to that team.

LyynH,

Suburb/ Median/ 12 month CG

Ashgrove 560, 19.4
Enoggera 425, 17.65
Balmoral 759 (Bulimba), 17.47
Banyo 338, 17.36
Kedron 385, 16.87
Beenleigh 269, 13.24
Daisy Hill 327, 13.59
Albion 449, 20.54
Redbank 222, 11.13
Lota 429, 32.54

 

[LynnH]

Andrew

Thanks for that!! Some interesting suburbs there ... haven't got properties in any of them - yet!!!

Cheers
LynnH

 

[JIT]

(The percentages are my estimation of the slice sizes of his pie chart)

* 25% Direct property (Residential)
* 5% Direct property (Land banking)
* 10% Commercial Property Trusts
* 15% Growth shares
* 12% Magic moo cow
* 9% Australian managed funds
* 8% International managed funds
* 5% Alternative assets
* 5% Cash, Gold buffer
* 5% Tax advantaged

I bet that was a very pretty pie chart!

I think for the beginning investor this sort of diversification is a great way to dilute your returns. I don't think it's very practical or easy (almost impossible even) to achieve. But if you have a huge portfolio, then this sort of asset allocation may make more sense.

 

[Andrew_A]

Andrew

Thanks for that!! Some interesting suburbs there ... haven't got properties in any of them - yet!!!

Cheers
LynnH

And I just think it's a good list because of self interest.

Still think Winston Wolfe's list would be the best top 10

 

[Andrew_A]

JIT agree completely, I would love that sort of diversification but just can't afford it at the moment.

 

[skater]

I
(The percentages are my estimation of the slice sizes of his pie chart)

• 25% Direct property (Residential)
• 5% Direct property (Land banking)
• 10% Commercial Property Trusts
• 15% Growth shares
• 12% Magic moo cow
• 9% Australian managed funds
• 8% International managed funds
• 5% Alternative assets
• 5% Cash, Gold buffer
• 5% Tax advantaged

That only totals 99%.

 

[Kenster]

That only totals 99%.

Oops, estimates are... estimates.

I can bump up whichever you like to make the perfect 100%

 

[Grego]

When quizzed several times about the medium prices by the audience, Peter Spann's reply was it's "REI data". I consider the research incomplete because prices are not current.

It was all free advice anyhow so make of it what you want.
Reply With Quote

Peter was quizzed specifically about Northbridge. I know it is a rather expensive suburb and was quite surprised about the figure he was quoting on the median value( from memory his information from "reiNSW"quoted the median House price of Northbridge around the $700 k mark!) Please correct me if I am wrong.
However I pulled out a recent copy of API and checked in the back where the RP data figures list each 'burb. The upper quartile median house price for Northbridge was $1.9 Mil and the lower quartile median House price for Northbridge was $1.2 mil !!!
Me thinks Peter definately hasn't got his finger on the pulse. To be fair though, I can't be expecting him to be doing his own research anymore as a successful CEO but you would hope the people he employed to do this were a little more competent .

Not that I checked but I was rather sceptical of most of the other figures he quoted as well. I know figures he quoted for Waverly and Erskinville were definately underquoted.

I really enjoyed the evening but felt this did dilute the nights usefulness.

Well said Kenster, The RIC story. No specific details as to why Brazil has been dropped from the team though.

In a global world you need to cast the net wider sometimes, I would add Tanzania and Kazakstan to that team.

Peter thought that Paraguay should be added to RIC for some bizarre reason

It is easy to ridicule the non-currency of the lists but I think it is better to read the essence of what he tries to say, then decide for ourself.

An over-riding theme of his seminars is the booming market condition around the world driven by China, Russia and India up to 2012 to follow by a recession, the subsequent change of world order and how investors can place themselves to benefit.

His asset allocation is changing with less emphasis on residential properties and more towards managed funds, as follows.

(The percentages are my estimation of the slice sizes of his pie chart)

* 25% Direct property (Residential)
* 5% Direct property (Land banking)
* 10% Commercial Property Trusts
* 15% Growth shares
* 12% Magic moo cow
* 9% Australian managed funds
* 8% International managed funds
* 5% Alternative assets
* 5% Cash, Gold buffer
* 5% Tax advantaged

Sorry Kenster, every thing Peter said about RIC made a lot of sense and something i will be considering in all my future investing, However why do you think his emphasis was on managed funds and less on "direct" residential property investment? "cause he get his clients to spend a lot more on His products. imo he does have a vested interest in his "investor updates" and that is to sell more of his products.

Sorry if I have misread your post and I don't wish to offend.

Greg

 

[acer]

Do your own research.

Though he also mentioned he was buying?! commercial property (small shopping centres!?) in the 2,3,4 million range (in Bris?) now because he could, even though it might be near the top of the commercial cycle.

I dont see any allocation for commercial proerty in his investment spread......or is this included in residential property (25%)?


* 25% Direct property (Residential)
* 5% Direct property (Land banking)
* 10% Commercial Property Trusts
* 15% Growth shares
* 12% Magic moo cow
* 9% Australian managed funds
* 8% International managed funds
* 5% Alternative assets
* 5% Cash, Gold buffer
* 5% Tax advantaged

 

[JIT]

I dont see any allocation for commercial proerty in his investment spread......or is this included in residential property (25%)?


* 25% Direct property (Residential)
* 5% Direct property (Land banking)
* 10% Commercial Property Trusts
* 15% Growth shares
* 12% Magic moo cow
* 9% Australian managed funds
* 8% International managed funds
* 5% Alternative assets
* 5% Cash, Gold buffer
* 5% Tax advantaged

There !

 

[acer]

.....silly me, I thought if he had purchased a few 2-3m commercial properties they may have demanded their own slice of the % cake

 

[JIT]

.....silly me, I thought if he had purchased a few 2-3m commercial properties they may have demanded their own slice of the % cake

Actually, I wonder if Peter Spann actually adopts this asset allocation himself???

Is this what he said at this 'Investor Update'?

I'd be surprised if direct residential property was his biggest holding?!

Maybe it's just one huge PPOR?

Would have thought his business and commercial property would have had taken a much bigger chunk of the pie?

 

[Kenster]

Sorry Kenster, every thing Peter said about RIC made a lot of sense and something i will be considering in all my future investing, However why do you think his emphasis was on managed funds and less on "direct" residential property investment? "cause he get his clients to spend a lot more on His products. imo he does have a vested interest in his "investor updates" and that is to sell more of his products.

Greg,

I agree with you that PS has vested interest in promoting managed funds & moving away from direct residential. The more he can sell his products, the more commissions and fees he gets. (Note that he does make money on residential services like IP management and loans).

As for us the audience, we need to do our homework to decide whether his view is right or wrong then to decide what we want to do (stand aside or join the party).

 

[willy1111]

Anyone care to share his top 10 share picks?

 

[feihong]

Anyone care to share his top 10 share picks?

within Australia only or globally?

 

[WinstonWolfe]

And I just think it's a good list because of self interest.

Still think Winston Wolfe's list would be the best top 10

Was I the first to drive you through the suburb in which you bought your last two properties AA?

Actually Lynn, AA has thrown a couple of his own holding burbs into that list, in hope of generating higher prices, and getting higher revals for his stuff......

Well not really, but there's room for suspicion of anyone publicizing a list here.....or at a seminar.....getting on that list would be worth a REA splitting comm with the list's keymaster....

That's why you'll never see my top 10 these days.....too many cynics out there thinking I am serving self interest.....and too many passive lurkers looking for leads.....

Though I will posit this.......I am not thinking Top 10 locations anymore. Am thinking Top 10 lifestyle choices.......which might include demand for security and like minded neighbours (nothing worse than bad neighbours especially those who won't pay for their half of a fence ) ......like mindeds wouldn't need fences, just lilly pillys

 

[twodogs]

Anyone care to share his top 10 share picks?

ASL
BPT
CCP
HHL
HFA
LYL
RHC
RKN
TWO
TGR

Speculative
AVO
GBG

 

[Grego]

As for us the audience, we need to do our homework to decide whether his view is right or wrong then to decide what we want to do (stand aside or join the party).

Yep, fair enough. I must admit he makes a good argument for getting into the RIC boom. All my investing life I have been directly investing in shares/prop but now I am considering putting some money into managed funds for the kids or self/wife.

Peter told an interesting story ( to communicate the power of compounding)
Where he has a godson now 17yo for whom he has been putting away a regular small amount of money with the plan to gift it to him on his 18th or 21st.

About 3 years ago he checked the balance which was somewhere between 300 & 400K. More recently he checked the amount and found it had grown to more than 700K!
His delimma was that
a) his godson is not aware of the gift/savings plan (unless he is reading this or was at the seminar )
b) does he give such a large amount of money to an 18/21 yo.
c) how do you tell an 18/21 yo he's a millionaire?!!
d) do you tell the godson at all ie: its a tempting amount of money to hang on to! This last point was said "tounge in cheek"

Cheers
Greg

 

[Andrew_A]

Was I the first to drive you through the suburb in which you bought your last two properties AA?

As an investor yes

Though I remember playing on bikes in the street here as a kid in the early 80's, when you could buy a house and land for under 50k.

Of course 11k from the CBD was a lot further back then.

 

[Andrew_A]

...I agree with you that PS has vested interest in promoting managed funds & moving away from direct residential. The more he can sell his products, the more commissions and fees he gets. (Note that he does make money on residential services like IP management and loans)....

And FOF products aren't referred to as 'Fees on Fees' products for nothing.

I believe they are also called 'Fund of Funds' products as well