YIP Investor of the Year 2012

exactly,

 

great post as usual.

I would like to make a suggestion to you, Redom, to start a topic of financial education re risk mitigation. Given the fact that there are lots of young and energetic investors on this forum and lots of newbies trying to learn and absorb, it is beneficial to get your good knowledge and insight to help us. what do you reckon?

 

Hi all,
Just came across this thread today. A lot of good points well made among the comments in relation to API mag. We do have a policy of sending final proofs to our case studies to check the figures and make sure they're happy with the text before publishing, but there could be cases where items get omitted and we aren't able to pick them up. I like the idea of doing "Where are they now stories" but it's often hard to find people who will talk about things going bad. PM me anytime if you want to provide comments/suggestions.

 

I am assuming you are from YIP.

To find someone these days is not all that difficult, I have found that they are still married together and can provide you further details via PM.

Yes to get someone to talk about things going bad is difficult you would need to remunerate them, otherwise what is in it for them? Much easier to get someone who is still successful to talk and who has continued being successful.

If you were unable to remunerate them in cash then you will have to get creative, perhaps put an add in the magazine for Kate's new business (even full page) as it technically doesn't cost you $$$. Phrasing it around helping others and see if they are open to helping others who might be in the same or similar positions as them. You could try and give them a subscription to YIP but if their interest is no longer there it is worthless.

 

He's from API, big will

 

Ah, never seen them post before.

Thanks @D.T.

 

I think i did something like this on SS - 'Finance risk while growing a portfolio' : Finance risk while growing a large portfolio - Somersoft Property Investment Forums

I'll update it and move it over to PC for this community soon - it needs some refreshing with some of the APRA changes and the increased risk factor of it happening in light of all of these changes.

The day after i posted, AMP announced that they'd stop taking actual repayments on OFI debt. That was the first major move that begun the whole 'APRA changes'.

 

No worries Big Will. Offer is always open for suggestions. Would really like to make sure we appeal to the Property Chat community at API - it seems like a core of really knowledgable investors.

 

Just interested to know with your name do you know what a daisycutter is?..

 

This will give everyone a perspective on what happened to Moranbah.

Job cuts, housing slump spell end to town's boom times

 

Yep. I'm in a band called The Daisycutters. While I wasn't in the group when it was named, they went to some sort of military dictionary and discovered that, at the time, a Daisycutter is the largest non-nuclear explosive device known to man.
It was a power-pop trio so seemed appropriate to for the music genre.

 

Maybe I watch to much cricket, there is a different meaning for Daisy cutter there.

 

Probably the same definition we used in rugby I'd say – a low kick from memory

 

The nomenclature for the New Kids on the Block, MOAB and FOAB, isn't as interesting!

When I first read API and YIP a few years ago, I did some detective work (searched Facebook) and found and emailed a good few (8-10) of the featured investors asking for general advice but nobody ever got back to me. Maybe it was a good thing!

 

When mining town boomed, the figures looked cool and mining town investors did the right thing based on NUMBERS only, ON THE ASSUMPTION the boom will never end on the back of never ending China economy. The problem is with the assumptions. With one economy town, you you have be really clever and insightful about that singular economy., eg coal, gas, cattle etc. Basically you have to be an extra ordinary macro economist in those areas.

To draw some lessons,
We are also assuming low interest rate will stay for a long time. But what if ....

 

Good name for a band,thanks..

 

some investors have done well in mining towns and still hold stock.

For example at the peak of mining boom - properties in Karratha/South Hedland WA the median house price hit $1M and rental returns for houses were I think around $1600+ per week dependent on product. If you purchased at peak then you were paying close to $1M or more dependent on product. This is where you lose your shirt, due to timing.

However, for those who purchased at the beginning on the mining boom in Karratha/South Hedland perhaps paid $300K for similar product, these investors have done very well regardless, because even though there have been 25% falls in values and rents the income is cash flow positive and the value of the property will still be higher than purchase price.
The lesson here is don't buy at peak or close to peak.

MTR

 

Im confused, $300k to build plus land valued at $600k,

depends on what the land is worth

also , for $90k less is irrelevant for the most part, apples and oranges

 

Spend 300k (guessing 100k land + 200k house or 150/150k or 200k land 100k build), get a bank value which is 600k.

 

Well, Marius Kloppers (ex BHPB CEO) did say this mining superboom would last 'stronger for longer'.