Robert Kiyosaki's latest investment comments in OZ

[ToGetProperty]

In today's Sunheral, there is an article to describe Kiyosaki's new book, Success Stories, regarding Austrlian investments:

1. Prices of property in Sydney will keep rising over next 10 years, but not a good investment;
2. Best investments will be in Brisbane and Wollogong's real estate as well as share market;
3. "I would pay almost any price to be in the CBD" which is completely against our dominant opinions of avoiding CBD due to the oversupplied units in the city;
4. Cash up in 2005: there was a 20-, 10-, 5- year cycles: a 20- year boom in equities; 10- year boom in commodities (currently in Sydney Real estate market) and a "disaster" every five years, most recently the 1997 Asian crisis and September 11 in 2001. Next one will be 2005.
5. Avoid super.


Any comments on those opinions?

 

[bundy1964]

1. History shows the value of Sydney property rising with some flat spots/ -ive periods. Yield I see as the problem.

2. Know little about either area but shares need more than a simple buy and hold to do realy well.

3. CBD wich one? Good city houses with land content, heritige style residential or commercial with high traffic areas if the numbers worked for me at a realistic yield.

4. Always save for a rainy day yours or someone else's. 5 year disasters, I don't think so, left out a couple of wars and bali in that time span amoung others.

5. Used right it can do a lot for you, if you have a job not much you can do about it unless you can go the SMSF path.

bundy

 

[gameover]

Avoid super? I assume he means avoid shares, since super is a tax structure, not an asset class.

 

[Jamie]

Originally posted by gameover
Avoid super? I assume he means avoid shares, since super is a tax structure, not an asset class.

I think the point Kiyosaki was making was not to "avoid" super, but rather not place too much faith in super alone providing for a substantial income after retirement.

 

[np2003]

Hmm guess I'll wait till 2005

 

[Simon H]

.........................................................................................................
2. Best investments will be in Brisbane and Wollogong's real estate as well as share market;
.........................................................................................................

As far as Wollongong is concerned, I think that there is still room for a strong price rise there, especially on the water and where local council is injecting large sums of money into development, jobs, and lifestyle ( golf course, schools, marina ectra )

(I left a little hint there as to the suburb I have been investing in the most lately)

PS this is not investment advice.

 

[ToGetProperty]

That is the article in Sun-Heral to quote Robert's comment about not to rely on superannuation for retirement:

"When you give your money to a super fund, it makes money before you do." Working for yourself or investing in opportunities was the only way to provide for retirement, he said.

 

[Easymonet]

The bit about a disaster in 2005 due to some strange convergence of cycles sounds more like a plot line from Buffy the Vampire Slayer than sound economic advice.

 

[spark]

Originally posted by np2003
Hmm guess I'll wait till 2005

It's just 13 months...
(2 All - Don't get me wrong, I'm mad at myself not buying in 2000 when I could...)

 

[quoll]

In my opion Robert Kiyosaki is an author, motivational speaker and a seller of merchandise.

I will continue to buy as much as I can in the way of good +cf property, once I get rid of the 9-5 job I might do some trading again, had to use the trading fund to buy some units, they make me more money than the trading did, but it was fun, just took a bit of time. Spend it with wife, kids or waves now.

I will be happy if the rent goes up and the property prices rise slowly, I want better yields.

There are always going to be great niche investments in any area you just have to be lucky enough to find them. The share market has had fantastic rises in some stocks, great deals in options/warrants, easy to see after the fact.

Haven't placed much faith in the crystal ball no matter who is looking at it.

My super has sucked badly over the last couple of years but it will still be nice to get it when I retire. I just don't put any of my cash in it.

Quoll

 

[bundy1964]

Originally posted by quoll
My super has sucked badly over the last couple of years but it will still be nice to get it when I retire. I just don't put any of my cash in it.

Hi Quoll

You going to wait till your 60 to retire when your super comes out?

bundy

 

[quoll]

Bundy

For now I don't care to much about the super, but once I get rid of the 9-5 job I will have a bit more time to play so I might move it to a self managed fund, should give me some cash to play in the share market, trade some wine, do something to make it grow faster than the current fund manager is growing it.

As long as I don't have to rely on it for bread and water and maybe rent if things get that bad.

Quoll

 

[Peter 14.7]

Robert K's omments are probably more to do with publicity for new book than genuine advice.

I have his 2nd book and it is very good as motivation but he makes money from books and real estate i hear so he is effectively investing in his income source by making comments. Peter 147.

 

[Peter 14.7]

Wollongong Growth

As far as Wollongong is concerned, I think that there is still room for a strong price rise there, especially on the water and where local council is injecting large sums of money into development, jobs, and lifestyle ( golf course, schools, marina ectra )].


Question for Peter H re Wollongong? Good to see Council investing in parklands and such What are rents like and what is job situation like? and what will effect of ports closure in Sydney be? Comments?/

Peter 147

 

[Simon H]

Question for Peter H re Wollongong? Good to see Council investing in parklands and such What are rents like and what is job situation like? and what will effect of ports closure in Sydney be? Comments?/

Peter 147
.........................................................................................................

Hi Peter

My Name is Simon H not Peter H


I dont have an up to date API magazine with me but according to Jun/Jul figures average rent for Wollongong is $240 for houses and $150 for units, if you were looking at further down the coast Kiama is $345 and $250, it still depends on what suburb you are interested in and your own research, have you tried checking real estate agencies online and finding out what rent they are asking, this should give you a starting point.

Wollongong has had high unemployment but the job market is as always, strong for people who want to work.

Government is spending 14 million to increase the size of the docking facilities to help attract larger ships.

Regards Simon H

 

[MPmelb]

Super overated

I think what Kiyosaki means when he say's avoid Super is to not rely on it or contribute to it.

Why?

Not a great investment. Look at the returns lately.

Too many fees.

Often mismanaged by the funds.

Super as the saviour is a myth for most, a con by the government. I think many people think when they turn 65 years they are going to have $1 million of Super to live on. If you ask most of these people what their Super fund is, who runs it, how much is in it, and what returns, they will not know.

Super - don't rely on it.

 

[Peter Parker]

In relation to super, its performance relies on the underlying investment. And because this has been mostly shares + fixed interest it's not surprising that super hasn't done well lately. But this does not invalidate the concept which is good.

One problem though is that you can't choose your fund. With the average person working 5-10 jobs before retirement, they'll have 5-10 different super accounts! Multiply this by 10 million working Australians and there are far more accounts than people and high overheads. But I must admit that multiple funds does aid diversification.

Super has a lot of tax advantages and is probably OK if you're near retirement. If you enjoy your work and want to be there until 65 then it is probably good enough especially if you make extra payments.

For the average spending Joe, it's a good thing that he can't touch his money before retirement otherwise he'd have nothing left. So super is good, but people should be able to choose between funds so they can shop for ones with low fees.

But for those of us who are younger, have more control over our money and want to become financially independent earlier, then the advantages of your own investment program far outweigh the tax advantages of super.

Peter

 

[Peter_Tersteeg]

I did the math once. If you bought 4-5 properties at 30 and let your super contributions fund any shortfalls then pay off the principal until retirement, you'd retire on a significantly better salary than your super and any available pension could ever hope to acheive.

The only assumption made is that you bought properties which were consistantly tenanted over this period. The average cost of the property would be about $300k, the average return would be about 5% at purchase and the salary contributing to the super would need to be about 60k.

You could probably retire with 4 unencumbered IPs, with a rental income of about 50k.

 

[Easymonet]

My cynical bitter and twisted view is that compulsory super contributions are the first step in the government long term goal of phasing out aged pensions. I also predict that we will see many super fund scandals involving the loss of billions of dollars - all that money floating around but out of the control of the person whose money it is... sooner or later a lot of it is going to disappear into numbered Swiss bank accounts.

 

[gameover]

While there are compulsory contributions, you can still nominate which funds you want to contribute to (unless you work in the public service).

Either that, or use a Self-Managed Super Fund to manage it yourself (plus accountants, lawyers fees for compliance etc.)