Steve McKnight book launch

[attrill]

I had a ticket to the book launch in Perth the other night. Not that I am a big fan, but it gets me out of the house.

I ended up not being able to go so I was wondering if anyone on the forum had gone and could sum it up for me in a few lines. (Dazza is really good at this!)

Thanks in advance for any replies.

 

[Ausprop]

dam- i thought it was tonight (I couldn't go tonight but would have gone Tues night)

 

[MTR]

Hi all

It was a good night and I got alot out of it.

Will try to give you some snippets that may be useful.

Possible reasons for recovery:
Market reawakening after lull
financial gap between owning and renting fallsing (low interest rates)
Government incentives
Property seen as secure vs stockmarket

SYDNEY
- second consecutive increase
- news highs
. 2% above pre-GFC
. historic high (above March 2004)
- increased media interest

BRISBANE
- Prices still below March 2008
- Weakest growth among national capital
. 1.0% increase for the quarter
. 1.7% for the year

MELBOURNE
- Highest growth in Australia
- New highs
. 6.1% quarter, 11.4% year
. but rental growth flat
. Increased media interest

ADELAIDE
- Moderate growth
- 3.3% quarter, 2.6% year
- Strong rental growth
- Increased media interest

PERTH
- Return to growth
. three quarters of growth
. 1.7% quarter, 2.1% year
- Increased media interest

NET MIGRATION

NET MIG LAST 12 MONTHS
VIC 76,662
QLD 72,578
NSW 60.590
WA 49,308
SA 11,548


Other suggestions -

If you are starting from scratch buy:
- Ugly house
- 3+ bedrooms
- 700m2 + (sub-divide), reno front, sell rear repay debt for cashflow IP
- buy 180 day settlement


Interest rates:

Keep variable for
quick turn over
- renos
- subvisions
- buildings

Fix rate now:
- residential -cash cows
- long term
-commerical

Outlook for 2010
- Lage of Federal government stimulus leading to inflation
- RBA increasing cash rate, banks following suit with loans.
- Spike in property prices to mid 2010, before higher interest rates slows demand
- Slight increase thereafter

MISSING INGREDIENT FOR A BOOM
Difficult for a boom to happen until credit becomes easier, but when it does expect a massive boom.

GOOD TIME TO BUY
- Commerical (but on a long settlement)
- Positive cash flow (will get harder to find)
- Multi-family subdividions (aim for price at $450K or less)

SUMMARY
- Global crash looking unlikely, but still possible
- Its turning into a sellers market
- Prices and interest rates to rise
- Its time to take action

Steve currently investing in USA, presented a couple of deals, here's one:

duplex 2x2 (1bth)
rent $450 x 2 = 900pcm
appraised value = $32,650
purchased for : $13,000
ROI: 83%

I think he is investing in Florida.

Cheers, MTR

 

[Ausprop]

If you are starting from scratch buy:
- Ugly house
- 3+ bedrooms
- 700m2 + (sub-divide), reno front, sell rear repay debt for cashflow IP
- buy 180 day settlement

hmmm... it is painfully difficult to do this sort of subdivision. you still need to go thru all the council hoops, apply to WAPC, 90 day statutory period at the end of which you are given a list of criterias to fill and govt depts that need to be paid off. Am just not sure the time, cost and effort is worth it. Looks good on paper tho.

 

[Piston Broke]

duplex 2x2 (1bth)
rent $450 x 2 = 900pcm
appraised value = $32,650
purchased for : $13,000
ROI: 83%

And the holding costs, taxes and unpaid taxes?

 

[MTR]

Hi Piston
not sure what you mean, this deal in USA is cashflow positive deal.
Steve mentioned that the taxes/back taxes owing on property is available and you would need to do DD prior to purchasing making sure the deal stacks up.

 

[MTR]

hmmm... it is painfully difficult to do this sort of subdivision. you still need to go thru all the council hoops, apply to WAPC, 90 day statutory period at the end of which you are given a list of criterias to fill and govt depts that need to be paid off. Am just not sure the time, cost and effort is worth it. Looks good on paper tho.

Hi Aus
have no idea, but it may stack up depending on city, am told Melb is easiest for developments. Will find out soon.



Cheers, MTR

 

[investor2009]

I don't mean to sound harsh here but, how can anyone take this guy seriously. Seriously.. I saw a funny story in thie latest edition of API where he plans on starting his long walk and making it a charity run so it's not so embarrasing as walking it alone.

Oh and by the way, he still expects to see 20% falls in housing sometime soon, just so you know.

Hang on a second, I'm talkin bout Steve Keen! Sorry wrong post.

 

[redwing]

Here's a piece from the Barefoot Investor and ends with Pape's own thoughts on one property

I RECENTLY asked a book publicist who has been badgering me to write about his authors: "What have you got for me?"
"Well, Steve McKnight's got another book coming out."

You know the boom's back when this spruiker brings out another book.

McKnight is Australia's best-selling property author ever ... well, according to his publicist anyway. He has sold 160,000 copies of his ridiculously titled From 0 to 130 Properties in 3.5 Years.

Then, as the property market slowed in late 2006, a defiant McKnight doubled down and followed up with From 0 to 260+ Properties in 7 Years.

"What's next? From 0 to 720 Properties in 23 Days?" I asked.

"No," said the publicist, "he's revising his original 0 to 130 book. Give him a call."

cont.....

 

[Ausprop]

had a speed read of Steve's book in the shop last night... seemed ok to me. he still makes the point that neg gearing sucks because for about 66% of the time the property is going backwards or nowhere in value. He didnt seem to address the deflation of debt tho which to me is seriosuly important (conversely he attacked the deflation of the increased property value).

 

[crowdsurfa22]

I have read the book, and it is anti negative gearing. He sights many examples from his early days in the 90's when he made his fortune but many of the property prices in the examples are unrealistic in my opionion, compared to property prices in Brisbane for example. He seems to be more supportive of fast turn over of properties and postive cashflow.

Having said that, he does say there are various strategies, negative gearing being one of them and he explains how to make it work.

I guess it's good to get a different perspective on it all compared to other books like those written by Jan Somers and John Fitzgerald's "Seven steps to Wealth".

 

[APerry]

Here's a piece from the Barefoot Investor and ends with Pape's own thoughts on one property

Its interesting this guy accuses Steve McKnight of being a property spruiker, when he is clearly not, and has never been a property spruiker.