Rate the Guru

Discussion in 'Property Experts' started by MTR, 20th Mar, 2017.

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  1. Biz

    Biz Well-Known Member

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  2. TMNT

    TMNT Well-Known Member

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    Is that business still going???
    From the lack of any feedback after lots of bad ones would have expected it to have gone
     
  3. Orion

    Orion Well-Known Member

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    Very interesting. Almost EXACTLY the same as the period style Toorak 2 bedder I bought with the Wakelins, who you can probably ad to this list.

    Purchased probably above value, with a horrible 2.x% yield and -20k negative cashflow.

    Bought 2007 - $592k (+ stamp duty - $30k + LMI)
    10 years of Negative cashflow - $200k
    Sold 2017 - $830k (- agents fees, etc)

    Went sideways for 10 years - average capital growth of 3.5% each year for a decade.
     
    Last edited: 12th Jun, 2018
  4. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker Business Member

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    So you made about $38k after holding that property for 10 years!
     
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  5. Orion

    Orion Well-Known Member

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    This is a really good thread.

    The lesson I'm getting from all this is it's best to stick with a strategy, rather than a guru or suburb predictions.

    For example, I'm personally thinking for myself (for my 'core' 4 IPs):
    • Buy, Reno, Hold, Refinance
    • Property price = roughly 7/10th of a cities median
    • Houses over units
    • Only buy in metro areas in Mel, Syd, Bris, Perth and Adel
    • 1x per state to reduce land tax
    • Use market timing where possible:
      • Use the various property clocks & recent growth history
      • When a properties yield is roughly the banks standard variable interest rate should show the buy vs rent equation has just tipped in favour of buying / close to bottom
    • Where the population growth is (most of Australia?)
    • Keep LVRs and debt conservative levels
    • Complement with debt free share investing for better cash flow
     
  6. MTR

    MTR Material Girl Premium Member

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    I would add look at ways to add value ie developing property

    Also look at selling down some properties when you see market is close to peak. No one went broke taking a profit
     
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  7. Sammy42

    Sammy42 New Member

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    Hi everyone. Has anyone heard or dealt with a company called JR Prosperity. Seen a lot of advertising recently. If anyone has any experience please share.
     
  8. datageek

    datageek Active Member

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    I found this on their website, "Once an area has been identified, we shortlist key developments by builders".

    Any business with some kind of relationship with a developer is not a friend of investors.
     
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  9. Tash72

    Tash72 New Member

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    Quick note on Ian Ugarte as his name came up on a Facebook ad. He has been commented on this site, but I can’t find him on this post. He’s ex Dymphna Boholt for whom I hold the highest regard (not!).

    We knew Ian years ago when he was the local plumber and built the ugliest house in the street. Which was a challenge! As for his plumbing, we had never been ripped off so royally by any plumber - and still haven’t.

    He sold the marginally successful plumbing business after eking out a living and working out he could make better, and certainly far easier money teaching at TAFE. His ex-plumbing business failed shortly thereafter, it would be interesting to know how much money changed hands for it and how happy the purchaser was. When I last spoke to the purchaser he wasn’t overly happy.

    Being the sort of person with whom I shake hands but check to make sure I still have all my fingers afterwards I remembered the name.

    When it appeared alongside Dymphna Boholt in advertising, I couldn’t quite place it but when it dawned on me I couldn’t imagine a better match. Anecdotally, that was what Ian was passing on to his friends as well.

    Now he’s split with Dymphna, probably for money, but possibly other reasons, he’s certainly out on his own.

    Reading his bio/history on his website was quite amusing. Born to teach maybe, but it was certainly encouraged by a love of doing less for more and as a plumber we would never deal with anyone like the guy every again. We weren’t alone.

    We haven’t been to his seminars but I’d strongly suggest to anyone they think twice* before handing over a cent. I am sure he’s found a strategy that -can- work, but only on a good day in perfect conditions. What he can obviously sell is seminars and ‘teaching products’.

    I can absolutely assure anyone reading this that he is a guy that will wring every single dollar from anyone he can.

    *Or as many times as it takes.
     
  10. datageek

    datageek Active Member

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    I received an email ad for Ian Ugarte's course, hosted by Zadel Property. It said...

    "Approximately 60 - 80% of people looking for rental accommodation are either singles or couples, BUT 80% of the rental marketplace is 3, 4, or 5 bedroom houses".

    I did some calcs. Out of all properties advertised for rent at some point in the month of July 2018 only about 55% of them had 3 or more bedrooms and only 58% were houses.

    Looking at nearly 4 years of rental data, around 3 million listings, I found that only 49.8% were houses with 3, 4 or 5 bedrooms.

    I couldn't find any data available on the family structure of those "looking for rental accommodation". I suspect this data is fabricated, but that's just my opinion.

    I calculated average vacancy rates for houses vs units and found them to be very similar. This confirms there is no chronic shortage of smaller sized accommodation as their marketing suggests.

    There was not a single mention in their marketing of how this "multiple occupancy" strategy affects annual vacancy rates. My guess is that vacancies will rise the more people you try to cram into the one dwelling - regardless of how many new toilets you provide.
     
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  11. Serveman

    Serveman Well-Known Member

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    I agree with what Michael recommends, I just can't afford to buy in those areas with maybe the exception of Brisbane.
     
  12. Serveman

    Serveman Well-Known Member

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    Any views of Peter K from SA
     
  13. MTR

    MTR Material Girl Premium Member

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    I don't know a lot about this guy. From what I have read I think he may be a text book guru? buy and hold and look at the indicators for future growth. Show me his predictions and I tell you what I think.

    I guess considering we have had at least 3/4 booms in Oz since 2013, if a guru has not picked at least one of these ..... then probably not worth wasting your time and energy on what they have to say
     
  14. Handyandy

    Handyandy Well-Known Member

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    I hope you are posting that tongue in cheek.

    This guy has single handedly created more bankrupts and early retirees who are now pensioners who had to go back to work to pay of debt that was instigated on his advice then any of the other guru's I know about.

    Was heavily promoting himself and his systems on Somesoft back between 2004 and 2008. The GFC finished him off as his customers could no longer be encouraged to accumulate more debt as they were all broke.
     
  15. MTR

    MTR Material Girl Premium Member

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    But he has got it wrong many times
     
  16. MTR

    MTR Material Girl Premium Member

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    Interesting they also once promoted LOE in his book

    However.... no longer an option with APRA
     
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  17. Serveman

    Serveman Well-Known Member

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    He is big on tipping suburbs with gentrification. Apparently he was interviewed by Phil Tarrant (Smart Investor Magazine podcast) and in his last book he claims to have scored an "A" with his prediction and only failed with Perth predictions.
    His latest tips are:
    Sydney: Arncliffe, St Peters, Tempe
    Melbourne: Braybrook, Footscray, West Footscray
    Brisbane: Woolingabbi, Anneley, Redcliffe, Sandgate
    Adelaide: Thebarton, Torrensville, Hilton, Hindmarsh
    Canberra: Narrabunda, Bradden
    Hobart: Glebe, N & S Hobart
    On Margaret L's show 2 weeks ago for under 500k houses he went Marion shire.
     
  18. MTR

    MTR Material Girl Premium Member

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    So he predicted prior to boom? Syd, melb, tas

    He can only score A if these suburbs actually boomed
     
  19. Serveman

    Serveman Well-Known Member

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    I'm not sure about TAS, but he claims to have got 20 out of 20 with the Sydney and Melbourne suburbs before the boom.
     
  20. spludgey

    spludgey Well-Known Member

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    Well, they all went up (regardless of which ones he picked), so he's right there!