Tim gurner

Thought this was interesting...

It all started with a tiny gym in the suburbs.

 

Inspirational guy and phenomenal achievement. Anyone saying otherwise is pure sour grapes. There is a lot of that these days.

 

He also had a good interview on 60 minuets. Just watched on youtube.

 

I was doing some research this morning into how he built his buisiness.

So many gen y were upset because he said to stop buying $4 cofeess and $9 smashed avacados on toast every day - it would help first owners save for thier deposit.

These two figures, even add up over time dont equate to much. But the main point is it establishes the mindset.

He also said straight after "you may need to buy an investment property first. The equity can help you pay a deposit "

The crumb from a rich mans table is better than a banquet with an idiot....

 

too right. What's the point of saying that he's got $34k which made it easier for him to start on entrepreneurial journey? He saw the opportunity to sell the gym business and made a profit which he rolled on to other things. He saw it and seized it. No point comparing. It is what it is. One might as well blame his or her parents for not being rich. The couple who struck lottery of $200k recently. lets see if they will be a millionaire in 10 years. They have the financial advantage but went buying a boat instead.

Fact is Tim gurner is rich. You either accept it or give excuses for how he became rich. It doesn't change the fact that he is rich.

 

It's not "sour grapes" to question the stability of this guy's investments. He has $2.7b in apartments on his books, and if you look through what he owns, has built and is building, the majority of his stock is inner Melbourne apartments - one of the most incredibly oversupplied sectors of the entire Australian market.

He's made some very good money, yes - around $460m I believe? However, it would only take a 15% correction (something well within the realm of possibility given similar falls in other cities in this asset type) for him to lose more than he's gained.

Honestly I think his recent criticism of young buyers and his media push seem like an effort to bring attention to his company, possibly in the hopes of kickstarting stalling sales.

I'm not trying to can the guy's achievement, but the fact he's done very well on the back of a bubble does not mean he's not now at risk of substantial losses. Apartments, especially off-the-plan apartments (and he has more than 1400 Melbourne projects under construction according to his website - over half right in Melbourne's CBD), are flooding the market.

He's put an awful lot of eggs in one basket, and given changes to IO investing, banks upping rates, changes to deposit requirements, banks often no longer lending to foreign buyers... let's just say he's got a lot of hurdles to achieving the rate of investment he's previously enjoyed, and an awful lot of new construction relying on investor purchases. He might have done very well, but past performance doesn't predict future performance.

 

What separates gurner from other developers is his customers. His developments target higher income young professionals and they still sell out. I read an article in a qantas magazine about him a while back, he said his strategy was to "follow the coffee". Where ever you had a new coffee shop open up, build apartments there. If people were happy to pay $4 for a coffee theyd be happy to pay a premium for an apartment (somewhat ironic that he is now telling people to stop buying coffee).

Trying to find an apartment in fitzroy or collingwood right now is crazy competitive. A standard 2 bedder can be renting for over 600/wk and youl have easy double digits of people turning up and applying. Apartments developed 5 years ago will very likely be positive geared against their build cost and still claiming depreciation, so i imagine his portfolio is well protected.

 

Even if Tim "went to the wall", with his knowledge, experience and skills, I would expect he would be back bigger and better.

 

We live in a crazy, ****ed world.

Tim gets $34K from his grandfather and turns it into $M's - not fair, he didn't do it on his own, ...

Couple in WA win $200,000 and spent it on ****, a boat, a car, ... - that's OK, it is their money, they should be allow to spend it where they like, ...

I know who will be further ahead in 1 year, 2 years, 5 years, 10 years, ... time - I will put both of my ginger nuts on it!!!!!

 

Common don't be like that...every homeless man deserves a boat at least once in his life.

 

I will remind the wife of this next time she turfs me out onto the street .

 

Clearly, Tim didn't read this thread.......

Unfair Advantages

 

This is baby Tim's PR agent handing him the thread to read and his reaction.

 

What an awesome saying, filed away for future use .