The 18 year real-estate clock

One guy who used to be known as the largest land holder in a particular CBD has now gone to Spain after making a killing in America.

One guy who sits on various board just sold around $80m of buildings recently and piled into oil stocks and BHP around $13-14. He's just doubled his money.

I know a few who have piled into gold. Also doubled their money these 3-4 months.

Just heard from a very renowned CBD agent yesterday at dinner that many household names are selling (you'll all know these 5-6 names). Not sure what these guys are doing since I don't personally know them, but they've been selling huge parcels. One just signed a deal to sell a 7000sqm land in a particular CBD.

 

Have they completely sold off Australian property with their move?
If so, I might check in on getting my European passport

 

Depending on where it's for, might become worthless after the brexit.

 

Some mid end players have - ie the $50-150m levels. The top ends haven't - I don't think its possible because there's too much.

One of my other mates was managing around $500m+ of properties for a top 50 family. They've sold around 1/3 of it.

I've been trying to tell my parents it's time they took some risk off table and keep key assets. I think it's slowly getting through.

 

Are they in the $50-$500m range as well?

 

Not applicable to Australians back home but if you ever get a chance to go to one of the SMATS events and hear Steve talk about property cycles he does a pretty accurate breakdown on where each of the capital cities are at.

 

Steve McKnight?

 

Dean would you happen to have a link of Steve mckights talk on property cycles your referencing too? Tried googling but didn't locate that info which would be good to read up on if it's available. Cheers

 

I been following Steve McKnight for years, as I have mentioned on this forum a few times now, he is the only property guru I know that has actually made money for his clients if they copied his strategies. He does not source properties but provides the tools, the rest is up to the investor. Everything this guy touches turns into gold.

MTR

 

Going by Steve's recent advice, it seems Australia's property has had its run, and could be at its end.
Also he mentions an extremely important point, when the average person can't afford the average property, there is a problem.

 

Its very clear the writing is on the wall, the data has just not materialised yet

Investors get a taste of equity/gains and think it goes on forever and they just keep jumping into other markets, that may work when we have a strong economy, but we are in a downward cycle, we have yet to replace the mining boom, may take some time. Some markets will be better than others as there are more jobs/industries, immigration etc.

I guess investors need to rethink if they are relying on capital gains to pull them through over the next few years, I think there will be slim pickings.

 

Hmm, I wouldn't go that far.
Have you done his property apprenticeship?

 

I have not been involved in any mentoring programs whatsoever, no idea what these are about.

I am speaking about his track record, what and where he buys/what he has recommended, his strategies over the last 7-10 years have made investors money if they followed.

 

I thought you meant by:

that you had been one of his clients and/or been provided with the tools.

 

not a mentee but did purchase his US package which detailed structures, tax and other information to assist with the process of purchasing in US.

 

Doesn't Steve also think now is also not the time to buy in the US?

 

What I read here and other reports is that he is selling 200? homes he owns in Florida, he has probably tripled his money from what I can see.

He announced he is now moving over the US for 18 months, my guess is to pursue further interests in US. I would not be surprised if he starts looking at developing because US is now in the first phase of building.
Also may be there to ensure that the properties he owns are renovated ready for retail.

 

I don't know the U.S. well enough, but certainly seems on the whole it is better value if you compared cities of similar standing, eg Chicago vs Melb, LA vs Sydney.

I'm not sure - the whole world is a bit out of control. We're all on some massive credit binge. It's all very easy to point to various factors on why asset prices go up, but the real reason it's happenning anywhere from China to US to Australia is the money base is being expanded. Either by more money literally, lower rates, looser credit or a combination of all three. Got to ask yourself where's the end 'productivity'

 

Ah Ok.
I didn't really look at that one, wasn't ready for that sort of thing, but did consider the fund.

 

The fund has made clients 30% return just on currency play