Steve Mcknight says not to buy now....

V

VCDenton

just got his newsletter and watched his 5 mins briefing on the current market, pretty much suggested similar things as Bill Zheng as for what should be done in the current situation(more cash reserve, more borrowing power...), also he goes furthur and says it is not a good time to buy now.
To those who also watched this, am I understanding it right? ALso what do you guys think about that?

His opinion doesn't really affect me very much right now since I havn't got the cash anyway:p, but I do intend to buy once I have it which could be another two years for a cheap property around 300K
 
i reckon mcknight talks a lot of sense. what he was sayign was forget BnH in this environment, but if you can make a quick buck then go for it. I agree totally and I am fully committed to many such projects... you just need to find the segments of the property market that are still outperforming.
 
Well as a newbie don't think my first property will be for renovation then quick profit due to my relative inexperience(dunno musch information about good tradies, planning beforehand...), so if my first property(should be happening in the near future hmm) is BnH could it be another ten yrs for capital growth, head spinning now.
 
well it will probably be a couple, and if the only positve thing about a neg geared property is the cap gain, then why would you buy now? i.e. why sit there losing money for a couple of years?
 
FWIW, if i was a newbie and owned no property, i would go out and buy a distressed sale. my cousin recently found one... near new 4x2 that despite being lived in for a year is still like a handed over shell, not even the cross over had been done. the bank just wants the loan repaid and hence that is the asking price. a newbie could pick that up, receive all the government handouts that the rest of us schmucks pay for, spend your weekends doing the paiting, gardeing, paving, gardens etc and earn tax free equity whilst the global headwinds blow a gale. safe, easy, gotta be a winner. that's one idea anyway.
 
VCDenton, there will always be indivdual areas and properties that perform well, even if the rest of the market is crumbling. The harder part is to find this area.

As Ausprop mentioned, you can also find individual properties that are undervalued for one reason or another ie. vendor struggling, out of area agent (which never ceases to amaze me!), below land value etc. Of course to do this you need to know the area your researching well and wait for something to appear.
 
Ausprop said:
FWIW, if i was a newbie and owned no property, i would go out and buy a distressed sale. my cousin recently found one... near new 4x2 that despite being lived in for a year is still like a handed over shell, not even the cross over had been done. the bank just wants the loan repaid and hence that is the asking price. a newbie could pick that up, receive all the government handouts that the rest of us schmucks pay for, spend your weekends doing the paiting, gardeing, paving, gardens etc and earn tax free equity whilst the global headwinds blow a gale. safe, easy, gotta be a winner. that's one idea anyway.
Click to expand...

Excellent advice Ausprop... and prob the only way to get ahead at the mo if you're new to the game.

IMHO don't expect much CG for at least the next 3-4 years despite what all the fundamentals are saying. The buck stops with affordability in my book...

If you want to stay alive and buying in the upcoming cycle you're going to have to manufacture your equity thru adding val. Especially with the way banks are valuing at the mo...

Purely my opinion tho...
Rory :)
 
carte blanche advice is normally not worth a lot ...............

Id agree with Aus..............in that it depends.

A few of our clients that havent bought for a few years are starting to come out and are getting back into the market............BUT, on their terms

ta
rolf
 
I disagree...

I reckon nows a good time to buy cause:

a. no one wants to
b. rents are rising
c. immigration is rising
d. rates will go down
e. construction starts cant keep up
f. bld costs are rising (steel to the chinese)

In summary a far better time to buy (im talking syd where i live) now then 5 years ago :confused:

Steve
 
Stevenjames said:
I disagree...

I reckon nows a good time to buy cause:

a. no one wants to
b. rents are rising
c. immigration is rising
d. rates will go down
e. construction starts cant keep up
f. bld costs are rising (steel to the chinese)

In summary a far better time to buy (im talking syd where i live) now then 5 years ago :confused:

Steve
Click to expand...


i was going to type this but couldnt be bothered.

i agree 100% steve.

NOW IS THE TIME FOR SYDNEY, too hard to buy in 12-24 months time.

sticky this thread and see whos right in 2 years time.

philosopically i agree with mcknights thinking, and i guess it all depends on which market were talking about... the outer market is negative, but the inner market for some capital citys is ripe for boom, and supply and demand will kick in. cant wait, well i can coz i wish to double my holdings before nex boom, but guys, you will only know we have had a boom, when tomorrow has been and gone.

DYOR.
Nath.
 
You honestly have to take what people like this say with a grain of salt.... do you think he wrote his book 0 to 130 properties BEFORE or WHILE he was doing it? He would have already done it before he decided to release the book, a little too late then. I doubt Steve McKnight is going to come out and tell us all when he is buying property - if he's really that good and can make so much money off it, why would he tell people for less money? I honestly believe those truly sharp people keep their systems, methods and analysis to themself and simply profit from it, they have no need to share it to the masses.

Personally, I love seeing such pessimism... I always want to be on a new trend before everyone else is jumping on the bandwagon and while everyone is so glum & depressed over interest rates, fuel prices, etc. it simply motivates me even more because I can afford it now and I can afford it if they go up even futher yet.

And historically, not all cities have boomed at the same time as each other. Sydney has been stagnant for the last 5 years or so, but there's been the boom in Brisbane and Perth during that time where people have made some serious money.

The more I hear don't buy, the more I want to buy!
 
Just because people have made serious money in the past, doesnt mean they will in the future. I have seen the property market at this stage twice and there wont be any growth for years, possibly 5-6 and wil be falls relative to inflation or otherwise.

Go right ahead, buy as much as possible.

Bon said:
The more I hear don't buy, the more I want to buy!
Click to expand...
 
Well that all depends,
For instance, I just signed the contract on one for 290k, knocked 30k off the asking price and it now rents for $430 per week. . sounds good to me.
 
I take Steve McKnight with a grain of salt too. He can't possibly earn more money now by telling people to buy and hold, rather he is doing heaps of collaborative seminars about renovations. I think this is apparent in his last video. I also think that by stirring the doubt to people that watch him and saying "but, you can make money in this market; let me show you how" it seems a little sus.

Perhaps his forecast is right, but he is a terrific salesman first and foremost so I don't rely on his forecasts.
 
Agreed Evan. I guess I shouldn't take much notice of my older clients who have gone through a number of cycles and made a few million from various types of investments. Maybe I should ignore their advice to sit on cash and wait patiently. Learn the art of Zhen one of them said. I am not touching anything at present, looking at watching and waiting but wouldn't dare touch anything. There are wiser sages than me and none of them are saying jump in. Too many variables present. The resources boom will have hardly any affect on Sydney in my view. Increasing costs of food, costs of petrol, interest rates at high levels (and despite what some people think not going down anytime soon), uncertainty in world markets and it all makes for interesting times. Speaking to people not many are glowing. Many of them expect a recession and are cashed up to ride it out. My clients will fare quite well during the 12 months but they are all expecting a grim 12 months. These are multimillionaires. Not average joes with a $50K income. I am purely talking buy and hold here for resi. Development is a different ballgame.
 
Evand/Coastymike

I agree with the pessmistic views myself but what's their view of rents and the rental market?

A lot of people on this forum already have a substantial portfolio.
 
I just watched Steve's video and wonder if I missed something.

What I got out of it was - his initial message was - don't buy property "now"

Then later he said - get your cash reserves up - not as a buffer for a rainy day - but to take advantage of the buying opportunities.

He also mentioned an option some could consider is "quick turn" property - buy add value and sell. With stamp duty costs, GST and Tax - this is a potentially dangerous strategy at this flatter stage of the cycle.

And then he finished off by saying - go to the local real estate agent's office and see if they have a bargain property for "silent sale"

So he is really recommending that you buy now :confused:
 
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