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My Four Year Old the Property Investor

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

  1. Phil_22

    Phil_22 Well-Known Member

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    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
     
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  2. Ace in the Hole

    Ace in the Hole Well-Known Member Premium Member

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    Ok for a beginner, very basic.
     
  3. Singo

    Singo Well-Known Member

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    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)
     
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  4. thewisestfool

    thewisestfool Member

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    Very basic.
     
  5. Chilliblue

    Chilliblue Well-Known Member

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    A great easy read for the beginner.
     
  6. devank

    devank Look, lets just get on with this, ok? Premium Member

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    Book is better than their products :rolleyes:
     
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  7. Befuddled

    Befuddled Well-Known Member

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    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...
     
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  8. DaveM

    DaveM Adelaide Buyers Agent & KFC Strategist Business Member

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    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.
     
  9. Chilliblue

    Chilliblue Well-Known Member

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    Now you spoilt;) the ending Dave
     
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  10. Phil_22

    Phil_22 Well-Known Member

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    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?
     
  11. Singo

    Singo Well-Known Member

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    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
     
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  12. Tekoz

    Tekoz Well-Known Member

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    @Befuddled: So what's your suggestion then ?
    Reverse mortgage or rely on the Super Annuation as with the majority of the people.
     
  13. Befuddled

    Befuddled Well-Known Member

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    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
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  14. Tekoz

    Tekoz Well-Known Member

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    @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.
     
  15. Befuddled

    Befuddled Well-Known Member

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    You might want to hear from someone who's actually traversed these steps instead of me here just theorising though :p
     
  16. Sonamic

    Sonamic Well-Known Member

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    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?
     
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  17. C-mac

    C-mac Well-Known Member

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    Good, elementary read.
     
  18. devank

    devank Look, lets just get on with this, ok? Premium Member

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    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/
     
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  19. Befuddled

    Befuddled Well-Known Member

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  20. House

    House Well-Known Member Premium Member

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