Book recommendations on Australian investment properties

Discussion in 'Investment Strategy' started by Flossin, 14th Sep, 2020.

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  1. Hari Yellina

    Hari Yellina Well-Known Member

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    That book is a classic, never ages. I read it once every year.

    Very good book.


    Michael doesnt preach, 8 pack in 8 days. Once you understand his strategy, we will be very very wealthy. He has the same strategy for decades and it work and made lots of people like me very very wealthy
     
  2. MTR

    MTR Well-Known Member

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  3. Jey2018

    Jey2018 Active Member

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    Yes, Its a great book giving good coverage over financing, pitfalls etc.

    Another good book about property investment structure etc is
    What Every Property Investor Needs To Know About Finance, Tax and the Law: Fully Updated 3rd Edition

    by Michael Yardney, Ken Raiss, Rob Balanda
     
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  4. Hari Yellina

    Hari Yellina Well-Known Member

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    That book is not for sale anymore.
     
  5. Hari Yellina

    Hari Yellina Well-Known Member

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    That's an excellent book.
     
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  6. MTR

    MTR Well-Known Member

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    Shame, any other way??? Library???? No idea

    Its the best, once you read this you will understand the reason why cycles matter so much and how timing the market is critical
     
  7. Fargo

    Fargo Well-Known Member

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    I would avoid buying a house of you and MY. Investing for negative income is fundamentaly flawed. Invest on the metrics like ML, You have the same and sometimes better drivers in regional areas but better metrics (sensible aquisition costs) The proof is in the pudding. Margaret Lomas's strategy from 10 years ago has proven to be real life changing and wealth producing. Micheal Yardney's strategy has been disastrous, he was selling houses he was telling people to buy ! destroys servicing abilty and and make you a servant to your master (property). The essence is to make money so you can get finance , that makes MY strategy fundamentally wrong. ML recomendations to buy in places like Mildura were spot on MY was wrong when he said to avoid, cash flow positive from day one doubled in 10 years 45% increase in units just in the last year now yeilding 10%.. MY is a salesman, it is how he makes his money his strategy of losing money is fundamentaly flawed and not sustainable, or allow investment and risk diversity, multiple assett and income sources compounding, as funding and negative income wont allow it.
     
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  8. Serveman

    Serveman Well-Known Member

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    Interesting topic. I have read quite an array of books, newsletters, vlogs, listened to podcasts and watched online property shows and found that a lot of what will work for the individual will depend on your risk profile, financial situation and income capacity.
    With that being said I have found that I could classify the authors and property experts into pitching at 2 types of people:
    1. Those who are already wealthy and or have very high incomes. These people can afford to borrow lots of money and carry the debt burden themselves and are prepared to use extensive equity to then buy more property. These investors are the ones who will try to buy in the inner ring suburbs of the 3 largest capital cities.
    2. The average person on a low to middle income trying to get ahead.These people look at properties in the lower 1/4 price point all over Australia to find opportunities where they can afford to keep because the renter covers most of the mortgage and therefore the person with a lower income can manage his/her financial stress ( Sleep at night test) They need both the yield and growth drivers to work for their investments.
    There is probably a 3rd group of property books that sought of fit into both categories.
    After reading and listening to many of the Property experts I have found that there are some things that I agree with or are viable for me with some of the guru’s and some just wont work.
    For example there is no way I can afford or would be lent the money from any bank to buy a house in the inner ring suburbs of the 3 biggest capital cities. I have to buy in the middle and outer suburbs of any area other than Sydney and Melbourne. Sydney and Melbourne are no go places unless I buy a unit in the outskirts at best. On the other hand I do not have the way or will to purchase property sight unseen. Many more examples but will stop here for now.
     
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  9. John_BridgeToBricks

    John_BridgeToBricks Buyer's Agent Business Member

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    Fargo, thanks for your comment. I wouldn't say my or MY's strategy is to target properties that lose money. The concept is more to target properties that are in permanently high demand due to their attributes, but most importantly their locations and demographics. These are often lower yielding, but that reflects other desirable qualities. I dare say, that this is a time tested strategy. Sure, recent change to lending requirements have meant a tweak to an otherwise sound strategy.

    I would add that (particularly over the last 10 years where the cost of capital continues to decline) even low yielding capital city properties can produce positive cash flow these days.

    That said, there are many strategies that work, and it is great to hear that your strategy has produced great results as well. If it works, keep doing it - no qualms from me.
     
  10. Hari Yellina

    Hari Yellina Well-Known Member

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    Michael Yardney strategy is to buy well sought out properties and add value, by renovation or property development.

    They always buy properties, which can add value in future.

    They buy properties which will outperform the market. (very good capital growth)
    add value through renovations, to increase the value of the house and increased rent.
    develop the property into 2 lot subdivision with 2 townhouses.

    They even buy, good blocks of old-style apartments, do a quick reno and we can get instant capital growth plus increased rent.
     
  11. Hari Yellina

    Hari Yellina Well-Known Member

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    Material Girl,

    Finally, I was able to get it on eBay. Right now there is one more book left at $205 + $40 postage.
     
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  12. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    I haven't read this book, but it is available on scribd as an ebook. If you have a membership you can read it for free.
     
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  13. Hari Yellina

    Hari Yellina Well-Known Member

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    A real case example from my own experience:
    Property 1 purchase: $955,000 (Property was rented while planning permit process was going on).
    Construction: $847,000
    Management + other costs: $198,000 (including stamp duty, holding costs)

    Total Cost: $2,000,000 ( I have rounded to the nearest dollar, assumed I have borrowed all the monies, including the costs.)
    Interest Rate: 2.99%
    Interest per year: $59,800
    Rent (760 per week, each property): $79,040

    Other benefits of depreciation,

    ME Bank valuation: $1.36 million each (i took cash out already)
    Total Value : $2,720,000


    Pros:
    1) Instant equity of $720,000
    2) rents cover the Interest payments and expenses.
    3) Depreciation benefits.
    4) I went to visit the site only twice in the whole process.

    Cons:
    1) for your first project you need some money.


    Thanks
    Hari.
     
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  14. Jey2018

    Jey2018 Active Member

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    Thanks @Terry_w. I did read from Amazon Books. A good read for a novice like me to get an idea about different approaches and asset structures. The good part is that you can buy an audio version with a little bit more payment.
     
  15. PropDir

    PropDir Well-Known Member Business Member

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    Yep, this is a very good one.
     
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  16. Cousinit

    Cousinit Well-Known Member

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    Its a good book but the information is a bit dated now IMO.
     
  17. Cousinit

    Cousinit Well-Known Member

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    I think I have read most of Michael Yardneys books and although they are very good and I'm sure the man and his companies are hugely successful, I would not be inclined to use the services of a BA.

    The fees charges are very high indeed unless you are making multiple millions in profits every year and are extremely time poor.

    I have plenty of time and patience to hunt for my own deals and build relations with agents and maybe learn a few things.
     
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  18. MTR

    MTR Well-Known Member

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    Enjoy:)
     
  19. Jey2018

    Jey2018 Active Member

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    Hi @Hari Yellina,

    Not related to the topic. How CGT Works out when you buy a property and split it into two developments? Sorry for asking a non-related question. I am looking towards that pathway.
     
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  20. Hari Yellina

    Hari Yellina Well-Known Member

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    There is no Capital Gains Tax when you split the property. Nominal fees to pay for the council and titles office.
     
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