Most people ..... Who should you listen too ?

Every so often I have what I think in an important insight into property investing , or a different way at looking at things.

This is copied from a Post I've just made on somersoft and as somersoft is about to close I chose to post it here as well . It's a reply to John Henry who is a relatively new member to somersoft and has been asking many questions about OTP units and more recently about H&L packages .




John Henry . You've been asking about OTP places for around a month or more . My recollection is that most people on the forum who have responded to you have suggested alternatives .

Doesn't that say something ?

We don't gain anything by getting you to buy certain properties , but the agents you are talking to have a signiificant potential gain if they do get you to buy certain properties . They don't have those jobs because they are bad at them . They're salesmen .

A good sales man can convince most people in the community to buy what they're selling .

Most people in the forum are here because they're not like most people in the community .
They want or are prepared to give independent advice .

Because there isn't one way to do things , you're going to get different advice .

Most people in the community don't become successful property investors .

Most people on the forum , who are long term active members , who listen to and take on board and act on the advice offered freely , have become successful properties ?

So which group do you want to belong to ?

So who should you listen too?

That up to you

Cliff

 

Excellent repost.. valuable content for those open to its implications.

I've gotta say, it really makes me happy when I see someone turn up seeking input, receiving it and taking it on board, then adjusting course (if that's a wise decision).

The flipside saddens me a bit..

 

Fantastic post See Change.

Its like walking into a Ferrari dealership and the salesman telling you to buy a Lamborghini..

Always follow the money trail,how is this person being paid and by whom?

Whilst people on PC way have varied ways to invest I can ensure you they don't have a vested interest in the advise they give you..

Coota

 

Look, I'm sure there's a much better way to say this, but John Henry had been getting on my nerves, simply day after day, his comments were jumping all over the place!! Where to buy in Sydney? Then lots of random locations.... Now Brisbane. And I dunno, ignoring the idea that buying OTP or OTP house and land packages is not a good idea??

MsAli's post was a good one:

Quote:
Originally Posted by JohnHenry
So between Edmonson Park and Schofield, which one that you guys think will be growing better or gentrified more ?


Hi John,

Are you a troll? Or you simply have a mental block? That's a chunky distance you're talking between Edmonsdon Park and Schofields!

I'd strongly suggest you get out of your 'analysis paralysis'. Pick AN area, do the numbers and see how it seems to you. Ask yourself:
- Is it positively geared?
- Is it too negative? but the property has an upside such as development or renovation potential?
- What happens when interest rate goes up by 2%? Do you have buffers in place?
- Is it neutral/slightly negative but the property has an upside such as development or renovation potential?
- Can you improve the rent & value through renovations?
- What sort of investment is happening in the area (look up Rixter's posts that explain this very well)
- What are you trying to achieve? Are you just starting out? Are you just building your basis/base portfolio? If so, can you be single minded about this and just do it?

When a "Region" e.g. Sydney goes up in value, all suburbs do. It's all relative. If you have a 200k property or 400k or 4mill, it will be relative. It's called compounding.

What's your mental block and preventing you from deciding on an area?

If he can answer this question, I feel can finally get some peace!
The thing that really worried me though was he was suggesting to other newbies what to buy.... Not a good thing.

 

The OP never heard this one ;

Don't ask the Barber if you need a haircut - W.E.Buffett.

 

He said all his friends are buying OTP. To rationalise their own purchases, I'm sure they're whispering a lot into his ear, hence the confusion. Although he already has a few IP's so you'd think someone with that level of experience would be less impervious to this sort of thing.

 

First thing first: these areas haven’t been slums, less desirable, inner city, well located, traditionally working class etc.

These areas are new or newer subdivisions - there's obviously a perception problem if they require gentrification with their first 20 years of existence.

Areas like Glebe, the Cross, the 'loo, Balmain, Rosebery and the like are all inner-city and became more desirable 100-150 after they were settled.

You've got a long wait.

Secondly, a deposit, high spending lifestyle, lack of saving discipline, unwillingness to take the first step who knows.

 

It may be that some of these people are tied up in Property Investment Clubs, the ones that push OTP unit and townhouses. Situations and relationships I guess that have vested interests. Doesn't really help establish an independent thinking mindset.

 

Yes … but we have the best property investment club right here

Cliff

 

Maybe this question should be a separate thread... However a. moderator please feel free to transfer it.

General question for everyone. Who are your property / investment mentors or who are you listening to?

 

I think you are right Tillie.....now i'm going 1.2.3.4...sorry silly game

 

I note that JH is now asking about buying OTP in brisbane in his SMSF with 50k in it. Never ceases to amaze.

 

I'm struggling to think what you'd be able to buy OTP with 50 k to play with ...

I'm assuming 80 % LVR .

250 means 50 k deposit , and that's not including stamp duty and legals

200k OTP's in Brisbane anyone ?

Fee fi fo Fum ....

Cliff

 

The problem with JH is that someone says something & next thing you know, he's quoting this and saying XYZ is surely going to happen. Then he's quoting a newspaper, next he's quoting some journal somewhere, then he's quoting his friends, family & workmates. He doesn't have an original thought in his body.

 

LOL! You are right, of course.

 

Probably Heart ache & remorse, Im afraid.

You can lead a horse to water but you cant make them drink... sometimes they need to stumble to hopefully learn for themselves.

 

This is the biggest problem with a new forum. There is NO HISTORY. Newbies come along, they do a search, they don't see how long someone's been contributing, they can't search the archives (and don't know to go to SS). Everyone is on an even playing field, so to speak for those who don't know the history of SS.

They can't go "Oh, Seech has been here a long time, seems successful, I might listen more to what he's got to say". Instead they see a heap of people who all started at the same time & get jokers like JH sprouting "Investing in Marsden & Rivo is surely profitable in the next 5 years !!!" or similar, and they go & listen to him instead.

Of course, newbies should do their DD, but we all know that many of them don't.

 

Not true ...

No one else has thought of using the nick johnHenry , and it's an ok one .

Cliff

 

But if they stubble as they're going to the trough , they might hit their head , go unconscious and drown in the trough ....

Cliff

 

Skater , you better get posting then

Cliff