My Four Year Old the Property Investor

Discussion in 'Property Information Resources & Tools' started by Phil_22, 28th Jul, 2015.

Join Australia's most dynamic and respected property investment community
Page 1 of 2
  1. Phil_22

    Phil_22 Well-Known Member

    Joined:
    28th Jul, 2015
    Posts:
    153
    Location:
    Regional, NSW, Australia
    Hi All,

    Just wondering if anyone has read "My Four Year Old the Property Investor"

    My GF purchased it for me to read on some flights we were on last week, easy read some things I liked/agreed with, some things didn't add up for me. Just looking to see what other people here have thought of the process they are advocating and any other thoughts...

    Cheers,

    Phil
     
    Phil_22, 28th Jul, 2015
    #1
    Tekoz likes this.
  2. Ace in the Hole

    Ace in the Hole Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    2,874
    Location:
    Sydney
    Ok for a beginner, very basic.
     
    Ace in the Hole, 28th Jul, 2015
    #2
  3. Singo

    Singo Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    50
    Location:
    Australia
    Well written book and would make fantastic book for a newbie. I have read lots of property books and I should say this is one of the best for beginners.

    (What I wrote at SS when I read the book)
     
    Singo, 28th Jul, 2015
    #3
    pugstar205 likes this.
  4. thewisestfool

    thewisestfool Member

    Joined:
    20th Jun, 2015
    Posts:
    20
    Location:
    WA
    Very basic.
     
    thewisestfool, 28th Jul, 2015
    #4
  5. Chilliblue

    Chilliblue Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    1,605
    Location:
    Australia
    A great easy read for the beginner.
     
    Chilliblue, 28th Jul, 2015
    #5
  6. devank

    devank Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    1,669
    Location:
    Inner West - Sydney
    Book is better than their products :rolleyes:
     
    devank, 28th Jul, 2015
    #6
    S.T, Skuttles and Singo like this.
  7. Befuddled

    Befuddled Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    426
    Location:
    Sydney
    First book I ever read on property investment. I liked it. Elementary but an easy read and opens your mind to the possibilities for the uninitiated. Bit of a stepping stone to get things rolling.

    I got the book from the property expo in Olympic Park last year. I enjoyed the way McLellan spoke. Wasn't pushy to sign you up to their services immediately and came off as quite sincere. That might've just been his M.O though so maybe someone else can comment.

    One thing I didn't agree with is his exit strategy. He advocates living on line of equity. Not sure how feasible that is today...
     
    Befuddled, 28th Jul, 2015
    #7
    Realist35 and Tekoz like this.
  8. DaveM

    DaveM Well-Known Member

    Joined:
    14th Jun, 2015
    Posts:
    3,761
    Location:
    Adelaide & Sydney
    Wasnst a bad read but I prefer the book where Spot found his mother behind the washing on the clothesline at their trashed rental property in Wagga.
     
    DaveM, 28th Jul, 2015
    #8
    Sackie, BKRinvesting, jafeica and 3 others like this.
  9. Chilliblue

    Chilliblue Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    1,605
    Location:
    Australia
    Now you spoilt;) the ending Dave
     
    Chilliblue, 28th Jul, 2015
    #9
    Esh likes this.
  10. Phil_22

    Phil_22 Well-Known Member

    Joined:
    28th Jul, 2015
    Posts:
    153
    Location:
    Regional, NSW, Australia
    Thanks for the feedback all, any other recommendations on books to read for those looking to enter the Property Investment market for the first time?
     
    Phil_22, 28th Jul, 2015
    #10
  11. Singo

    Singo Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    50
    Location:
    Australia
    There are so many books catering for different needs. General, Taxation, Development, Trusts, Renovation, Investor Stories etc.

    * Property Puzzle (Stuart Wemyss) will help to develop a property strategy
    * Ordinary Millionaires (Jim Mcknight) contains fantastic investor stories. Not stocked in bookshops now. Gotta find in a library
    * Any Steve McKnight, Margaret Lomas or Michel Yardney books
     
    Singo, 28th Jul, 2015
    #11
    pinewood, Tekoz and Phil_22 like this.
  12. Tekoz

    Tekoz Well-Known Member

    Joined:
    23rd Jun, 2015
    Posts:
    1,374
    Location:
    Sydney
    @Befuddled: So what's your suggestion then ?
    Reverse mortgage or rely on the Super Annuation as with the majority of the people.
     
    Tekoz, 28th Jul, 2015
    #12
  13. Befuddled

    Befuddled Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    426
    Location:
    Sydney
    I'm in favour of selling to pay down debt but stagger the sales to get most tax effectiveness (eg: after you've stopped working, sell 1 per FY etc).

    1. Work out how much you want to live off. Say 80k after tax in today's terms (110k before tax).
    2. Adjust above figure for inflation. (eg: 200k before tax in 20yrs assuming 3% p.a inflation average).
    3. Apply the 4% rule to work out value of debt-free income-generating assets. In this case, $5m in 20yrs.
    4. Build a portfolio greater than that in terms of net equity. Because of selling costs and CGT.
    5. Sell down slowly when ready to do so.

    Super will be a nice little cream on top.

    Options like reverse mortgage or living off LoE can be taken away quite easily by changes in legislation and lending environment, so I'm uncomfortable with an exit strategy relying on things to remain the same forever. What if the banks stop releasing equity for those without a job? What if lending conditions tighten (happening right now). What if interest rates rise sharply? I wouldn't want my whole life to be potentially thrown into chaos by things out of my control. I want to grow old and senile without these concerns :)
     
    Last edited: 28th Jul, 2015
    Befuddled, 28th Jul, 2015
    #13
    House, Perthguy, pinewood and 2 others like this.
  14. Tekoz

    Tekoz Well-Known Member

    Joined:
    23rd Jun, 2015
    Posts:
    1,374
    Location:
    Sydney
    @Befuddled: many thanks for the detailed explanation. That's awesome plan that I haven't think about.

    All the best for your investing journey ahead mate.
     
    Tekoz, 28th Jul, 2015
    #14
  15. Befuddled

    Befuddled Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    426
    Location:
    Sydney
    You might want to hear from someone who's actually traversed these steps instead of me here just theorising though :p
     
    Befuddled, 28th Jul, 2015
    #15
  16. Sonamic

    Sonamic Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    1,340
    Location:
    Sunny QLD
    Basic cause it's written for his kids to be able to read and understand.
    Why not start an SMSF and take control of your Super? Instead of relying on somebody else's decisions what to do with YOUR money?
     
    Sonamic, 28th Jul, 2015
    #16
    sanj and Befuddled like this.
  17. C-mac

    C-mac Well-Known Member

    Joined:
    26th Jun, 2015
    Posts:
    1,348
    Location:
    Sydney
    Good, elementary read.
     
    C-mac, 28th Jul, 2015
    #17
  18. devank

    devank Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    1,669
    Location:
    Inner West - Sydney
    I created '41 Required_Asset_to_Retire.xlsx' to cover more or less the above. It is listed at https://propertychat.com.au/community/threads/excel-list.338/
     
    devank, 28th Jul, 2015
    #18
    House, Jaik2012, Tekoz and 1 other person like this.
  19. Befuddled

    Befuddled Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    426
    Location:
    Sydney
    Thanks!
     
    Befuddled, 28th Jul, 2015
    #19
  20. House

    House Well-Known Member

    Joined:
    13th Sep, 2015
    Posts:
    929
    Location:
    Sydney
    House, 26th Oct, 2015
    #20
    pinewood likes this.
Page 1 of 2