WA Steve McKnight - 1 day Seminar Perth

Discussion in 'Networking & Meetups' started by MTR, 22nd Feb, 2018.

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  1. MTR

    MTR Well-Known Member

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    This will be held this Saturday, 24 Feb, unfortunately its sold out.

    Am hoping that some kind person who is attending will provide a brief overview on PC.

    Anyone??

    Thanks in advance

    MTR:)

    PS
    Steve is always ahead of the crowd
     
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  2. Rusty12

    Rusty12 Member

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    Any update on this?
     
  3. MTR

    MTR Well-Known Member

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    Pleeeeez
     
  4. Biz

    Biz Well-Known Member

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    I went. It was a good night, instead of the usual coffee and biscuits they served McNuggets, a play on McKnight it would seem. Steve was very bullish on Brisbane, said it would boom by 2030.
     
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  5. VanillaSlice

    VanillaSlice Well-Known Member

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    2030 ??!!!! :O


     
  6. Biz

    Biz Well-Known Member

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    Yes, that was the general reaction around the stadium when he said that. He followed it up with the statement "Fortune favours the brave!".

    So just be brave for another 12 years is what I took from that.
     
  7. MTR

    MTR Well-Known Member

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    OK

    Anything on Perth??
     
  8. Biz

    Biz Well-Known Member

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    He said Perth was like Bitcoin. He is thinking of releasing his own crypto currency and calling it McCoin.
     
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  9. MTR

    MTR Well-Known Member

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    Brissy will boom by 2030 is weird, why bother, seriously be watching other markets that are moving, this is a long time between drinks if he is right???
    Perhaps he meant a boom similar to what we have seen recently in Syd/Melb
     
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  10. VanillaSlice

    VanillaSlice Well-Known Member

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    Did Steve share where he's buying and selling at the moment Biz ?
    He seems optimistic about Brisbane and Perth from his recent articles.
     
    Last edited: 26th Feb, 2018
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  11. Biz

    Biz Well-Known Member

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    Guys, please...
     
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  12. Westminster

    Westminster Tigress at Tiger Developments Business Member

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    Has your sarcasm gone undetected??
     
  13. Biz

    Biz Well-Known Member

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    :(
     
  14. Kickstart

    Kickstart Active Member

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    I will go to the Sydney one,but its on March.
     
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  15. MTR

    MTR Well-Known Member

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    Anyone attend this??
     
  16. Karina

    Karina Well-Known Member

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    MTR,
    I am attending the brisbane event. Will update you.
     
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  17. MTR

    MTR Well-Known Member

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    Thanks
    Disappointed booked out in Perth
     
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  18. MTR

    MTR Well-Known Member

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    Hi K
    Have you attended this yet???

    MTR:)
     
  19. Colin Rice

    Colin Rice Mortgage Broker Business Member

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    @VanillaSlice what did he have to say about Perth specifically?
     
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  20. mitsui

    mitsui Well-Known Member

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    @Colin Rice @MTR I went to the Sydney event. Here are some takeaway points:
    • Steve only owns 5 properties today all commercial in Australia - getting 400k net income (plus shares on his US property fund of course)
    • He has some capital and waiting for opportunities in Australia
    • To asses whether to buy, he looks at 2 main things: timing and pricing.
    • You should do a deal if the upside is greater than the downside by enough margin to justify the risk (I found it a very profound)
    • Timing related to few factors, he calls it real estate optics, there are 6 of them:
      • house prices (median)
      • interest rate
      • population
      • jobs and earnings
      • building appraisals
      • finance applications
    • He then went through all states based on those 6 optics above.
    • Sydney is likely going to be long period of nothing - he based that on how Sydney house price behaved in the past cycles. If you're thinking of selling, you probably want to sell now before the buyers dry up.
    • Is it time to buy on Sydney? Based on house prices optics no, but other optics look still favourable, low interest rate, population continue to grow, jobs and earnings are good (can't remember about the last 2).
    • You can still buy in Sydney or anywhere in that matter, as long as the quote above stands, e.g the upside > downside by enough margin to justify the risk.
    • For Brisbane, he pulls out a different graph (which I think a bit inconsistent to justify his point), the graph shows median price correlation between Sydney and Brisbane. It does show a consistent relation in the 3 last cycles, when Sydney peaks, Brisbane will follow.
    • Someone asked about Gold Coast - he says he would never want to touch GC, he thinks there will be a lot of tears after Commonwealth Games is over.
    • Perth, he said looks good price wise compared to Sydney. But the population (migration) to the area is not yet there - he said he'd be more comfortable with Perth when he sees the migration picks up, basically it's still too early for Perth.
    • He quickly went through Adelaide and Melbourne - but didn't say much about them.
    • He sees stronger correlation between price and migration compared to price and interest rate.
    • Be very worried for an area when you see a slowing rate of migration.
    • After talking a lot about those timing factors above, Steve iterated that you should buy for pricing (I am not 100% what he means by pricing - perhaps by undervalued property? or perhaps buy something that has enough upside to justify the risk as he iterated few times)
    • Rules for current climate:
      • Buy for pricing not timing
      • Stress test your portfolio
      • Offload your under performers while you can
      • Check your debt level
      • The grass may be greener on the other side (e.g: don't buy in Sydney now, there are other markets)
      • It's always a great time to buy a great deal
    • Steve thinks the interest rates will go up sooner and faster than we think
    • That's basically the 1st half of the day, the 2nd half we did a deal due diligence exercise, e.g calculating whether a property is appropriate for what you need in your portfolio. This was very fun exercise - I've done it before on his mega-conference. And of course, this is just a glimpse of the education package that he's selling.
    Overall, it was a good seminar, I like that his education program is focused on due diligence - which sounds pretty boring but I reckon it's important, quite different to other property educators out there (I didn't buy the course though).
     
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