How far along are you ?

Ps. Clarification... That stuff in pink.... no, that is not my goal at all and I didn't post that! I just responded to the post. I have no want to wear designer clothing (in fact, I went to Bali with a bag of clothes I needed repaired... including a couple of pairs of Target pedal pusher pants I've owned for maybe 15 years that started developing holes at the bsckside!!) The repairs of 5 pieces of clothes cost a total of $2!! And this whole trip I bought in total one dress. (I'm travelling with carry on only remember) and a couple of small souvenirs (mostly soaps).

Anyway, it is a beautiful cream coloured $8 dress from the Salvation Army store. I don't really need it... but the money goes to a good cause.

And nor would I describe my family as less successful. No way at all. I just wanted to say what my goal is as a comment to the post in pink.
I'm really trying to be less consumeristic....

 

I am newbie to NRAS please explain.....

 

Ha... now I know you're pulling our collective legs

Multiple detailed NRAS posts available here

 

It is interesting that the most common option is the 'one down, many more to come option'. I am now in the process of finalising a second IP..

 

I am dead serious...PM me the information....the light flickered yesterday on something..

 

There's nothing I can PM you about. It's a bit more complex than a PM can cater for. NRAS , or at least how I assist clients with it, requires a more detailed conversation and it requires a tailored approach, centered around your taxable income, your servicing capacity etc...

You should start by going back over a number of posts (here and SS) and then letting me know whether you want to discuss further...

4 Rentals & 1 PPOR now im stuck - Somersoft Property Investment Forums


How far along are you ?

NRAS in a post-boom market

Building a Property Portfolio Impervious to Market Forces....

 

Some pics of the Harris Park project - there were 9 NRAS available - sold out in a couple of days.

 

Thanks...will look into it....

 

What exactly flickered for you? Please share.

 

Well given that we are going to more subdued growth environment I would like to see the benefits of NRAS..particularly from a tax perspective.

I am looking it into it...I need to get my head around it..I don't understand NRAS as well as some...

 

@euro73 how did you become well versed in NRAS just out of interest?

 

I have a banking background . years at Aussie, HSBC and then NSW state manager for FirstMac. In 08/09 after the GFC, the owner of FirstMac asked me to look for new products and niches. I was essentially taken off all my key accounts and given free reign to develop new products and policies that would give FirstMac a point of difference. I worked on an SMSF product for a while but securitisation of LRBA's was almost impossible so we shelved it, and I turned my attention to NRAS. The result was - I built Australia's first NRAS specific policy and product . Designed it from the ground up, including a very clever servicing calc. Hundreds and hundreds of hours went into learning the legislation inside out, learning all the NRAS participants models ( there are 134 of them - all sizes and shapes) inside out.. and getting NRAS approved with the mortgage insurers - no easy task let me tell you....

Once designed, we launched the product and I stayed in the role, running the NRAS lending business when it was the only NRAS product available ( until Adelaide copied it) and until the banks got onboard @ 2012-13 , so I saw a LOT of deals... and I saw a LOT of cowboys behind the deals. It would be fair to say I developed a pretty comprehensive understanding of how it' was being sold, by whom, using what models, comms etc...

But I also saw the potency of NRAS, and I saw a massive , massive gap in the market to do it right. What should be a potent tool that all investors have in their portfolio was instead being completely *******ised by greedy marketers .. so I left and started this business almost 3 years ago to the day, as a one man show ( which I still am) with the goal of teaching people how to employ NRAS correctly to get great results from it.

The key is simple - stock that values up, so that you get the maximum returns for the minimum input. It's all about dividend reinvestment with maximum ROE. It's actually less about property than it is about debt reduction. I teach people how to pay down debt and build a portfolio even if the NRAS properties get no growth... ( not suggesting they wont ...just teaching people that they will make money even without growth) and the bottom line is that all of this meant I had to develop my own stock lists, away from the tainted marketer stock and the inflated commissions - which is what I have explained in this post previously... NRAS in a post-boom market

Ultimately, my extensive relationships within the NRAS community ( because Im the guy that got them approved by banks and insurers back at the beginning of NRAS) allowed me to secure lots of spare/unused incentives and transfer them to quality projects. This in turn allowed me to put great deals together all over the country with developers, where I get exclusive stock that values up , which I then use for MY client base. ie the marketers are frozen out. I never sell the stock they sell ( because I cant control the pricing or comms) , and they don't get their hands on my stock ( they wouldn't want it anyway as the comms I charge are less than half their going rate)

In the end , it has allowed me to sell hundreds of NRAS properties in the last 3 years that only my clients get access to, without valuation issues, and deliver NRAS outcomes that deliver precisely what I post about - time and again, time and again, time and again. It has allowed me to run an NRAS business that I think is very different to what everyone else does.

I guess you could say I have a pretty reasonable understanding of how NRAS works, from all angles- the nuts and bolts of the legislation, the consortiums and the finance structures. And given the number of SS and PC members with whom Ive done business, I think it says something that never a negative word has been said about their experiences, on these forums....

Hope that covers what you wanted to know?

 

Thanks @euro73! I am fascinated! I don't know much about NRAS properties and would like to know more about it. I wasn't going to give it any thought having read a book that didn't recommend it....(Michael Yardney). Can you post a 101 lesson or send me to a link to learn more?

 

Hi Pinewood...Ive posted extensively on NRAS. Both here and Somersoft. Start by typing NRAS into those sites search engines and you'll find NRAS 101, 202, 303 and more over the many many many detailed, extensive posts Ive published.

The other thing I would say is this; you are pretty much out of time. There is very very little time left to purchase NRAS properties, so you'd have get really serious and really fast, in order to take advantage of it. There is very little NRAS stock still available to purchase. Opportunities are getting slim.

Im still selling quite a deal of NRAS stock, but I have a very educated client base and these days, every single project I put together sells out in 2 - 3 days. Just sold 9 apartments at Harris Park in a couple of days. Prior to that I sold 19 townhouses in orange in a few days. 28 in Goulburn. 34 in Bunya. 29 in Port Macquarie.... a few bits n bobs in Brisbane ( Mt Gravatt, Alderley, Windsor, Annerley, Cannon Hill) and a few bits n bobs in Melbourne and Perth - all sold very quickly.

I do have a few bits n pieces of stock still available, so you arent completely out of luck, but you really need to do your reading first, decide whether its something you/your partner want to get serious about, then the next step is to organise a budget by working out what you have available for seed costs - I insist on 12% deposit + stamp duty + 10K buffer. and working out borrowing capacity. I will not sell anyone a property without them being able to show me evidence of that first. Its critical to the "system" I use. And then, after you and your broker ( or me if you dont have one - I have a brokerage as well and most my clients prefer that I handle their finance needs ) work out a budget, we can talk about properties ....

My approach is pretty simple... education. budget. then let your budget determine the property choice.

Happy to chat offline if you'd prefer... but do some reading first

 

Thanks so much!... will start my reading... how much time do I have??

 

Revisiting this thread.
I don't know what's wrong with me, I come to this forum daily to read and learn.
However, have not bought a property in about 5 years and no intention anything in future, unless markets tank severely.
Probably just need to find a new hobby...

 

Very very little time... I have only got 3 or 4 pieces of stock left that I have been sitting on for a while, as the pre sales for these projects had been surpassed and I didnt need to sell these...but Im now releasing them..

 

I'm hoping my momentum does not slow in 2016.

Navigating both APRA-caused lending challenges, and then (even if I get the funds!) the prospect of few attractive markets in 2016 (I'm at land tax threshold in QLD and none of the other state capitals or regional centres are exciting me too much..) Is a bit underwhelming really.

Still, I'm in research phase and pretty much starting from scratch strategically.. Current buy and hold strategy is being interrogated and I'm realising that either small-dev or cosmetic/structural reno tactics might be necessary to get CG going, to continue expansion.

 

Well if I didnt get invovled in property for 5 years with no intention of buying in the future, my reasons would most likely be 1 or all of the following:

1. My burning fire for wanting to continue to build wealth is not as strong
2. I have enough wealth, and value more time with my family.
3. Australian markets have completely and totally crashed AND are continuing to fall.
4. I have a mental illness and depression has gotten the better of me, losing my drive to invest and do many other things.
5. I have found a much better asset class/venture/business to invest in, less effort, better returns and less risk.


Those would be my top reasons I would think.

 

For me it'd be a combination of 1 & 2 + more me time too.
Property investing is a hard habit to break.