RE Media Watch

"The One"
In the Aug API Mr Yardney has decided to tell us that Real Estate is not a "When to" but a "How to".
So I find it interesting that he constantly bangs the drum on now being the right time.

August 21, 2009 "This is the time of the property cycle when
fortunes are going to be made."

March 03, 2009 "through decades of property and economic
cycles and those who focus on them when making decisions will reduce their
risk and increase their returns."
Now tell us this is not about timing the RE market?

December 19, 2008 "In Australia property cycles last seven to ten years"
Does it really matter if it's not a "when to" market?

10 October 2008 "But this is nothing like the early 1990's recession"
And I thought it did'nt matter. Personally I did well from the early 90's

18 July 2008 "then the next months or year could create some tremendous buying opportunities."
Does it matter which month you buy? Or is it about "know how"

19 October 2007 "it's our population growththat will drive the next property cycle."
Is this a time cycle or a "know how" cycle?

21 September 2007 "I firmly believe we are at the beginning of the next property wave and not at the end of the boom."
31 August 2007 "An opportunity like this -- to take advantage of the beginning of a property cycle only happens 2 or 3 times in your investment lifetime"
And 2 yr later it does'nt matter?

1 June 2007 "We are into June already and the first half of the year has identified a number of important factors impacting on our property markets as they move through their cycles."

9 March 2007 "heed the lessons from our markets on the east coast in late 2003 when they were at a similar stage in their cycles."

17 November 2006 "In fact the best opportunities since the beginning of this decade."

17 May 2006 "I personally think that, the current market is the greatest market"
It's like a broken record...
How bout some real data like numbers, balance & P/Ls?

-------------
API Aug 09
Mr Heaven (Paradiso)
The jack of all trades who sold his "million dollar business" "at a profit".
Nicole (author) what is a "million dollar business"?
a. One that has gross sales of 1mil
b. One that has gross profit of 1mil
c. One that has ebit of 1mil
d. On that is sold for 1mil
e. none of the above

"by age 19 A had already purchased his first property...12 mths later for an 80K profit"
Great! But don't you think your readers would want to know how he did that?
What did he buy? Where? how much deposit? Improvements?

"A has decided to pursue property options"
And how are these reflected in what you call "the numbers"?
Actually where is the LVR? No loans?
"sustain his lifestyle, he uses a LOC"
Now there you have it! What great advice for your readers.
But wait, we need a climatic happy ending:
"in 5 yrs plans to earn a passive income of 150k, 500k in 10 yrs"
Really? Now how is he planning on doing that?
Any numbers? Hints?
You really don't invest in RE do you Nicole?
 
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The guy is a spruiker selling his products so of course he has a barrow to push and talk things up.
I thought that was pretty obvious.
 
quite agree with the above posts, not because they are right or wrong, but merely because anyone who listens to someone whos remuneration is correlacted with sales is a schmuch.
 
The Debt Hole

API aug 09
"The Debt Hole"
This is my worthless opinion, not advice. Never attempt anything i post.
Now this is pretty tough one.
Obviously they have done well at buying lots of RE, and smart enough to realise that the land had to go as it could've sunk the whole ship.
Now the 2 "experts" do have it right by saying "too much too fast", but it's easy to say "sell this and that" just by looking at a sheet of paper.
What they don't seem to also realise it that there is an estimated valuation, are sale price, and a SHTF price (shithitsthefan) which can vary greatly.
And in my experience selling is darn expensive. So while the LVR is 82%, I'd say that's optimistic.
Now how do "eliminate debt fast"?
You don't need 12 ways, only one: Pay The Bank.
The good point here is that income is pretty good at 215K, so there is something to play with.

The current numbers:
Total in 23,112
Total out 17,479
Which leaves 5,633 per month for bills, bread & water.
Not sure what the cost of living is out there in WA, but I'd assume it's cutting a fine line if rates go up, sudden repairs etc.
So how the hell can equity be injected here?
The real pain is coming from IP 3 that costs 1,995mth to hold:eek: , and if this is supposedly valued at 950K it's earning 2.3% yield.
So why is it earning only 2.3%? Can it be made to earn 4%? Old house big block? Either way it's infecting the whole portfolio.
If not, it needs to be cut off before the gangrene spreads.
Even if it is eliminated, and 800K is paid out, the situation is still precarious imo. But with a +7628mth cf situation which gives a little oxygen.
The real problem here is that selling the CF+ IPs just makes the situation worse, so I see no point.
The 2k mth will give some breathing till the ppor change which may bring in another 2k mth. Once this happens then the mth cf 9628 which is a bit safer.
In: 23312
out: 13684
bal: 9628
Looks ok, but I always take 20% off rent for expenses. So I still see it close to the edge, though much better. So with gr rent of 11362, take off 20% leaves 21039 as income and 7355 as cf.
Then it's either bread & water (overtime?) to pay down non deductable debt asap, or if rates go up and rents don't, it's crunch time again but much worse.
I'd definetly have a rent review asap.
Tough decisions to make though... all the best.
 
Yip

YIP Sep 09
Now here's a forward thinking organisation, you can pickup Sept news on the stands in mid Aug.

"financial freedom at 34" p62
Huh? Really? Is that so...? and who is the author?
1997 Ok he bought an apartment, good.
2007 He then bought a house for 500k, spent 4K and made it 600K.
How much LVR?
2007 2 bed house ~400K rent $350.
So he reckons he has a DA and it now worth 1.4mil. Has anyone told him he has to actually build them first? And of course no numbers
2007 600k rent 350 One day...blah blah
So how much is the LVR?
2008 500k +20k (balcony falling apart) levy apartment.
Great! but where are the numbers?
Then Ken says:
"My calcs told me the protfolio could support itself for around 3-5 yrs via rent and any short fall is covered by equity & LOC"
Wow! So how much equity do you have?
Now lets see, in 2007 he bought 1.5mil of property from a base of one apartment worth ~300k? and another in 09 for 500K
If the total LVR is 70%, then loans would be ~1.6mil
If the loans ae @ 5%, then interest only is ~80k yr, + land tax and all other holding expenses. But wait do those prices include buying expenses & stamp duty?
Of course this would mean deposits of >600K, so where did the money for the deposits come from?
And how can such a portfolio "pay for itself"? Is the LVR even lower?
Did you win lotto?
How the hell does the rent cover this?
And where the hell is the financial freedom at 34?

Well since there's no author I can only refer to the editor who goes by the name of Nila Sweeney.

Dear Nila, do you think all your readers are just stupid?
Do you do much investing in RE yourself?
Did you have a problems with maths & numbers at school?
Why do you keep on telling your readers they will learn "secrets"?
Who come up with the such a BS headline?
Are you auditioning for Cleo, Cosmo or maybe Today Tonite?


 
YIP Sep 09
Now here's a forward thinking organisation, you can pickup Sept news on the stands in mid Aug.

"financial freedom at 34" p62
Huh? Really? Is that so...? and who is the author?
1997 Ok he bought an apartment, good.
2007 He then bought a house for 500k, spent 4K and made it 600K.
How much LVR?
2007 2 bed house ~400K rent $350.
So he reckons he has a DA and it now worth 1.4mil. Has anyone told him he has to actually build them first? And of course no numbers
2007 600k rent 350 One day...blah blah
So how much is the LVR?
2008 500k +20k (balcony falling apart) levy apartment.
Great! but where are the numbers?
Then Ken says:
"My calcs told me the protfolio could support itself for around 3-5 yrs via rent and any short fall is covered by equity & LOC"
Wow! So how much equity do you have?
Now lets see, in 2007 he bought 1.5mil of property from a base of one apartment worth ~300k? and another in 09 for 500K
If the total LVR is 70%, then loans would be ~1.6mil
If the loans ae @ 5%, then interest only is ~80k yr, + land tax and all other holding expenses. But wait do those prices include buying expenses & stamp duty?
Of course this would mean deposits of >600K, so where did the money for the deposits come from?
And how can such a portfolio "pay for itself"? Is the LVR even lower?
Did you win lotto?
How the hell does the rent cover this?
And where the hell is the financial freedom at 34?

Well since there's no author I can only refer to the editor who goes by the name of Nila Sweeney.

Dear Nila, do you think all your readers are just stupid?
Do you do much investing in RE yourself?
Did you have a problems with maths & numbers at school?
Why do you keep on telling your readers they will learn "secrets"?
Who come up with the such a BS headline?
Are you auditioning for Cleo, Cosmo or maybe Today Tonite?



lmao good post
 
I have only read a couple of API's ages ago and they were pretty average. I think they've gone downhill since then. Don't bother.
 
I used to read API, but haven't bothered with YIP. They make the most basic mistakes on obvious stuff so wouldn't put much faith in the sort of figures they quote above PB.
 
Well I still like reading. So I'm always searching for brain food.
I like reading biographies, I like reading what people have done and how they did it. Be it Sam Walton, Frank Lowy, Vic Smorgon, G. Patton, Alexander the great, Rockefeller, Rothchilds or the guy down the street who bought his first IP.
I do like to see people having a go and doing well. It gives me inspiration & motivation.
It just annoys me that the RE mags write such poor articles.
 
I like reading biographies, I like reading what people have done and how they did it. Be it Sam Walton, Frank Lowy, Vic Smorgon, G. Patton, Alexander the great, Rockefeller, Rothchilds or the guy down the street who bought his first IP.
I do like to see people having a go and doing well. It gives me inspiration & motivation.

Couldn't agree with you more on the biographies, love 'em. Enjoyed Lowy's - also liked Murdoch's, Schwarzenegger, Ray Kroc/McDonalds, Branson and others that escape me at present. Started making a list a while back which I'd forgotten about till you mentioned biographies.
 
Michael Yardney wants to tell me that Louise Bedford is an "expert" in share trading..
But I have a few questions:
Has she made profits trading?
How much profits over her "two decades of trading experience"
Or is she an "expert" at talking about trading?
Or as you put it yourself:
"I have found it fascinating how many people have the theoretical knowledge "
Yeah Micky, once again me too...me too.

I was also amused with him trying to tell me "how to get on the BRW Rich 200 List"
Uhmm...where you ever on that list? even close?
It's like John McEnroe telling me how to be a pro footballer.
But alas the $$$ signs have a blinding effect.
Back to that "theoretical knowledge" again
"I have found it fascinating how many people have the theoretical knowledge "
Yeah Micky, once again me too...me too.

"Many of the Rich 200 had an instinct feel for assets when they were oversold or overbought."
How would you know? Which ones did you talk to?
Did they tell you what and when they bought?
 
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