Positive Geared Property

[damien275x]

Hi. I was thinking of investing in property a few years ago but decided not to. I have been reading a lot more financial education e-Books as well as saving all my money. I now have $55,000 in the bank. I'm 21 -

Now I dont like the idea of buying and "negatively gearing" a property - to me, that's gambling. I kind of want to be investing for cash flow - not the capital gains. I think i've missed that boat. Prices can't go up indefinitely. I never want to sell/flip my properties, only have them bring in constant income stream.

In this inflated/bubbley- housing market, are there still bargains? I'm not willing to borrow up to my eyeballs. I want a modest small investment, $150k-200k max around Melbourne. Can anyone point me in the right direction?

Furthermore - are these short real estate courses on the weekends worth going to? Or are they scams? I'm always wary when I see them. It costs nothing, but I don't want them pressuring me into making commitments.

Thankyou. Please move this thread if I have put it in the wrong section

 

[Nathan]

It is well possible to find the information out there.

You will find free seminars which will give small ammounts of information, but usually an upsell to a course etc...

In reality, you want to find a reputable mob which is doing what you want to acheive. You are best to pay for information as it is unbiased as free information comes with a hidden comission cheque etc for the sales mob.

Personally in the past I have prefered to pay to visit a seminar as there is less sales to it, in general.

Maybe read a few books like Jan/Ian Somers books, or even someone like Steve McKnights.

Hope this helps.

Nath.

 

[Ridin-High]

You will find free seminars which will give small ammounts of information, but usually an upsell to a course etc...

In reality, you want to find a reputable mob which is doing what you want to acheive. You are best to pay for information as it is unbiased as free information comes with a hidden comission cheque etc for the sales mob.

The reality is that you are upselling in this thread. For someone who is retired you sure do alot of hustling.

To the thread starter i would say their is plenty of good information on this very forum which you can look at for free. I would also suggest reading books...

this one i read regularly (on the loo or in bed)

http://www.bookworm.com.au/Book/Golden-Rules-of-Wealth-2nd-Edition-9780731806522.aspx

i got it for like $2 at a garage sale, but its $21 from this site.

Plenty of options out their, also their are other investment vehicles which might suite your goals of cash flow (I'm thinking shares)

Regards,

RH

 

[alexlee]

Even if you could find a positively geared property, the cash return would be low. Certainly lower than, say, buying high dividend shares.

Fact is, if you don't expect capital gains, or don't want to 'gamble' on there being capital gains, you shouldn't buy resi IPs.

 

[Nathan]

The reality is that you are upselling in this thread. For someone who is retired you sure do alot of hustling.

To the thread starter i would say their is plenty of good information on this very forum which you can look at for free. I would also suggest reading books...

this one i read regularly (on the loo or in bed)

http://www.bookworm.com.au/Book/Golden-Rules-of-Wealth-2nd-Edition-9780731806522.aspx

i got it for like $2 at a garage sale, but its $21 from this site.

Plenty of options out their, also their are other investment vehicles which might suite your goals of cash flow (I'm thinking shares)

Regards,

RH

Your a twirp man...

I pointed damien275x towards people who can help him.

Did I sell anything? Do I have a seminar to send him to? - I actually sent him to the providers of this FREE forum and another similar provider in the same field which I am not affiliated with in any way shape or form?

Your a fool, I do things I want on my own time.... There is a difference, I dont need to do anything. That is the difference! BTW Hope your having a good day at work Mark (RH!)

Sorry for upselling damien, I dont know what this is of yet...

 

[oc1]

Your a twirp man...

I pointed damien275x towards people who can help him.

Did I sell anything? Do I have a seminar to send him to? - I actually sent him to the providers of this FREE forum and another similar provider in the same field which I am not affiliated with in any way shape or form?

Your a fool, I do things I want on my own time.... There is a difference, I dont need to do anything. That is the difference! BTW Hope your having a good day at work Mark (RH!)

Sorry for upselling damien, I dont know what this is of yet...

Bit touchy there, Nathan You gain nothing by putting people down for "working".

Damien, hang out here for a while and soak up as much info as possible. The other thing I suggest you do is find someone that has the runs on the board from which you can learn from.

 

[Nathan]

Bit touchy there, Nathan

Damien, hang out here for a while and soak up as much info as possible. The other thing I suggest you do is find someone that has the runs on the board from which you can learn from.

Nah all good mate.

Just Mark has been hassling me for some while causing trouble every post I seem to make of late. Its frustrating someone hiding on the other side of a computer with some lame name and avatar trying to post assumptive posts everywhere I am.

Just as long as people can see its an ongoing thing I guess we can have a little humour from it.

 

[Ridin-High]

changed your signature abit before the reply i see was looking alot more hypish before.

I won't bother pointing out the bleeding obvious... people can read the thread starters post and then yours and do the maths in what you was trying to achieve.

It's funny you resort to name calling Nathan, it's actually what i was expecting. Try not to get upset when someone critiques your posts.

Regards,

RH

Edit: I'm not going to enter into this BS about hiding behind a screen and having a lame name and avatar. you saying this stuff is speaking oodles about your character and is achieving more then me critiquing your posts

 

[Nathan]

Ok Riding High, Good luck with what your hoping to acheive.

Damien stick around the forum, its not always this entertaining however

 

[damien275x]

Well thanks for the advice and starting points. I have a eBook Reader and I'm pretty savvy so I know where to go to get the eBooks I want on the cheap

I don't think I just want to invest in just property per se, I just want assets. Things that put money in my pocket. Whether thats a house, a business, a stock (I dont like the idea of "paper" assets though) .. I think I Will commit to another year of self-education before I make any moves.

Is anyone a fan of Robert Kiyosaki - he talks about cash flow, he doesn't sell his assets for capital appreciation, he just expands his means. That's sort of what I want to do, so by 30 I am a millionaire and dont have to work. Hopefully thats possible. Would like to at least be free to work casual/part time by 25.

Had to figure out the best pathway. We have too much info on hand in the Information Age! The hard part is picking out what works and filtering it.

 

[jaycee]

Well thanks for the advice and starting points. I have a eBook Reader and I'm pretty savvy so I know where to go to get the eBooks I want on the cheap

I don't think I just want to invest in just property per se, I just want assets. Things that put money in my pocket. Whether thats a house, a business, a stock (I dont like the idea of "paper" assets though) .. I think I Will commit to another year of self-education before I make any moves.

Is anyone a fan of Robert Kiyosaki - he talks about cash flow, he doesn't sell his assets for capital appreciation, he just expands his means. That's sort of what I want to do, so by 30 I am a millionaire and dont have to work. Hopefully thats possible. Would like to at least be free to work casual/part time by 25.

Had to figure out the best pathway. We have too much info on hand in the Information Age! The hard part is picking out what works and filtering it.

Good on you, keep searching and you will get there.

 

[alexlee]

Is anyone a fan of Robert Kiyosaki - he talks about cash flow, he doesn't sell his assets for capital appreciation, he just expands his means. That's sort of what I want to do, so by 30 I am a millionaire and dont have to work. Hopefully thats possible. Would like to at least be free to work casual/part time by 25.
.

Do you really think having 1m in net assets by 30 means you can afford not to work? Inflation will kill you.

Run the numbers. I think you'll be unpleasantly surprised.

 

[murph14]

I kind of want to be investing for cash flow - not the capital gains. I think i've missed that boat. Prices can't go up indefinitely. I never want to sell/flip my properties, only have them bring in constant income stream.

Can't they? It's called inflation and that's why you don't invest in the dollar. Capital gains must be on the agenda when buying property - always.

Negative gearing is not (shouldn't be) a permanent thing anyway.

 

[Belbo]

It's damned humourous seeing Riding High constantly riding your @$$, Nathan, even if it does peeve you little a bit now and then. But you're a legendary investor and you've got my vote of confidence, so keep the wisdom coming and just ignore the silly insinuations.

One of the things I've learned from this forum (was a lurker for many years, to my disgrace) is that there are many paths to serious wealth in property. Nathan's the exemplar of one: What I'd call "the buy the crappiest thing you can find and make a bucket through incredibly-smart renovating" strategy.

What's your incredibly smart strategy, Riding High? Because you'd damned well want to have one, I'd think, with all the bucketing you've been doing.

 

[Ridin-High]

It's damned humourous seeing Riding High constantly riding your @$$, Nathan, even if it does peeve you little a bit now and then. But you're a legendary investor and you've got my vote of confidence, so keep the wisdom coming and just ignore the silly insinuations.

One of the things I've learned from this forum (was a lurker for many years, to my disgrace) is that there are many paths to serious wealth in property. Nathan's the exemplar of one: What I'd call "the buy the crappiest thing you can find and make a bucket through incredibly-smart renovating" strategy.

What's your incredibly smart strategy, Riding High? Because you'd damned well want to have one, I'd think, with all the bucketing you've been doing.

Hi Belbo,

Just wanted to give you my thoughts into why i "Ride nathans ***" as you put it.

Firstly i see holes in the numbers that nathan posts (i'll post an example below)... now i couldn't really care if he was posting his achievements (using figures which stretch the truth)... but when he uses these results as a precursor to generate business for his buyers agency thats when i feel i should post some rebuttal so other less experienced forum members can have another opinion rather then getting lost in the excitement.

Now for the example i promised.

http://www.somersoft.com/forums/showthread.php?t=61749

i did post in this thread but will revisit and add info.

Facts:

- He purchased a 2bed 1 bath @ 54-66 Hutton rd for $212,100

- He says the closest things are 1 bedders selling for $220-240k ("Closest things are 1 bedders in he block selling for $220-240k.")

- 2 bedders selling for $300k ("Outside the block 2 beds are selling for $300+)

- "I am always conservative when quoting the numbers"

- He implies that his place is worth $300k again ("however there are comparables right now for $300k")

- He made the thread title "Waterfront unit 4 years old $212,100 renting $320pw"

In this video about the property goto 4min 55sec
http://www.youtube.com/watch?v=ayrkWRVMBkw

He says:

- Compariables 300-350-400k, making out that 300k is the absolute minimum

- the property lends it self to capital growth.

- rent $320 pw

Now ill address some comments

- purchase price is correct via info obtained from onthehouse.com.au

- he says the cloest thing to his is one bedders selling for $220-240k... well lets see

* Unit 11 (1 bedder) - $180k (sold on 21/02/2010)
* Unit 110 (1 bedder) - $180k (sold on 22/03/2010)
* Unit 104 (1 bedder) - $160k (sold on 24/03/2010)

So in the best case the price over stated by 23% and in the worst case 50%

see he tells people they are selling for 220-240k but in reality they are selling for 160-180k.

- He says multiple times his place is worth minimum 300k based on comparable sales.

Ohhh really?

- Unit 16 (3 bedder, 2 Bath) - $262k (03/03/2010)
- Unit 29 (3 bedder, 2 Bath) - $285k (16/03/2010
- Unit 5 (3 bedder, 2 Bath) - $255.5k (28/03/2010)

NOTE these have 1 extra bedroom AND bathroom and are still selling below Nathans valuation on his 2 bedder 1 bath

Seems like someone is stretching the valuations + anyone else can have a look for themselfs type 54-66 hutton rd north entrance into onthehouse.com.au (heaps of other sales suggesting the same)

- "Lends itself to cap growth" More like lends it self to crap growth with 3.6% long term average *quoted from http://apm.domain.com.au*

- "I am always conservative when quoting the numbers" Do i need to say more?

- He says its water front... its water view buddy a difference


So if he keeps the cream of the crop (wow if this is the cream) and flogs the rest to his customers i wonder what sort of awesome deals they are getting.

Remember to get this Awesomeeeee deal he had to get 14 other suckers to sign up, unless he was getting sucked in by someone else. (not saying its a bad deal, but im not getting wet like some of the followers)

Now if the figures here have been overstretched it gets you wondering his most recent interview in the paper which i saw where it says he has 3.5million in equity i just wonder if thats over stretched as well.

http://binvested.com.au/
"How you can realistically retire from the workforce, within 7 years."

I've seen nothing realistic yet

Peace out

RH

Ps. Belbo stop nut huggin

 

[BuildingBlocks]

RH - if you really want to start a war then start a new thread for it and please stop polluting other threads with your personal battle.

OP - I found Kiyosaki good for general motivation and mindset, but not good for a strong understanding of investing in Australia. Spend a couple of months reading these forums too and that will help you work out where to invest and also the strategy you want to use.

 

[jaycee]

Hi Belbo,
BLAH BLAH BLAH

Why don't you invite Nathan to take it outside and get it over with. It's starting to get quite annoying.

 

[Ausprop]

I see Lomas has gone head to head with Steve by releasing a cheeky book called somehting like 'why CF+ property sucks'... anyone read it? can imagine the gist... CF+ is poorly located and you wont get cap growth. Surely this couldn't be the substance of a book?

 

[jaycee]

I see Lomas has gone head to head with Steve by releasing a cheeky book called somehting like 'why CF+ property sucks'... anyone read it? can imagine the gist... CF+ is poorly located and you wont get cap growth. Surely this couldn't be the substance of a book?

Why not ?!! It sounds enough like 1/2 a story to me, so why shouldnt; that be enough to flog a whole book.. Seems to fit other "quality" book offerings I've seen latley.... Sell the sizzle even if there is no steak

 

[Belbo]

So you think you've got a point to make? Then make it informatively and politely, and show us your point of difference in making money. I'm "nut huggin" for saying so? Saying that just makes you a turkey in my eyes, RH, and simply not worth talking to.