The moral of the story - do your do diligence !
What I wrote earlier has now been confirmed by insider knowledge. The latest Block would have been a loss maker as a reno project. Thanks to the channels arbitrary approach to reserve prices settings the contestants where sensationally rewarded by discounting the reserve price and disguising the real costs of the project. Jon Giian from Knowledge Source in Ivanhoe (Mel) has an interesting article on that.. Its all winners this time. The channel made money from sensational TV, the contestants made money thanks to the channels give away and the buyers probably got a good deal as well considering the costs. Just don't be deceived into thinking that reno is that easy and any fool can make 100's of thousands in just a few weeks. The last Block has also caused a stir. The contestants did sensationally bad and the buyers did not do well either. I don't know how well the channel did. I suggest once again a sensational and unpredictable outcome is good TV, but pushed to the extreme its ultimately not reality. Interesting that the buyers got hurt as well because they may have not been doing their due diligence and been aware that Coles hat put in a planning application for a new car park with heaps of apartments on top.
The moral of the story - do your do diligence !
Dymphna is doing another 1 Day Seminar National Tour offering training on Property Growth an Cash flow. You will get excellent information there, but be prepared for a sales pitch for a very enticing course with excellent material and a boot camp. From what I can say by meeting her students the course is worth its money and Dymphna is genuine in desiring to teach and mentor her students. But she is also a very professional and skilled marketer and you will feel that not buying the course may have a high opportunity cost.
What I can say is that what holds people back is confidence and drive. The course is right for you if you have the cash and are prepared to learn a lot and work hard to move out of the pack. 75 % of investors buy only one property (Source Real Estate Investar). If the answer is I'll do whatever it takes then spending $5000 on learning strategies and getting coaching may be the best investment ever. If you can't deal with a lot of info and action then starting with a cheaper program may be the way to go. But there is another problem and that is opportunity cost. By not buying into a rather complex learning curve and/or applying it you may start out wrong and waste a lot of money and limit future opportunities.
For those less determined. Go to to a free seminar, get free reports and watch videos here. You can choose to go for free or get the VIP package for $197.-
MELBOURNE Sunday August 19thHilton on the Park 192 Wellington Parade
MELBOURNE Tuesday August 21stCrown Conference Centre 8 Whiteman St
TOWNSVILLE Thursday August ??
BRISBANE Saturday August 25th
GOLD COAST Sunday August 26th
PERTH Saturday September 1st
ADELAIDE Thursday September 6th
PARRAMATTA Saturday September 8th
SYDNEY Sunday September 9th
SYDNEY Tuesday September 11th
NEWCASTLE Wednesday September 12th
Check it out yourself
If you consider Real Estate Investment in Australia or New Zealand then you will probably share my excitement about this free and unbiased online investors resource library on the internet. And if you just buy your own home anywhere in the world this site is still very relevant . Pure information, no vested interests towards selling property ! Why ? The originators sell memberships to license search engine tools and have no interest in selling property. Read more at . . .
Real Estate Investment Information Australia.
With the Block auction results fresh on our minds and with the knowledge that some decent many can be made, albeit nowhere near as much as it appeared to be on TV, what is the next step for those ready to give it a go ?
Bob Anderson's approach to development is unique and as a seminar speaker he has joined the world of Australian Real Estate Gurus. At the same time his credibility in the industry remains high.
Last weekend I went to one of Dymphna Boholts Real estate seminars and met Bob Anderson, a Property Development Guru from Queensland. He did share a wealth of knowledge and made a very good impression on me, so I did a bit more research about his reputation and it is excellent. His has contributed to the June 2012 edition of Your Investment Property Magazine.
What makes Bob unique is that he is a wholesale property developer and investor and he coaches others to do the same. The advantage of developing town houses for a strategy mix of sell and hold (in part) is very effective and rather unique.
He has done one billion dollars worth of projects and has continually between $60 million and $100 million worth of projects in development.
And he is mentoring other developers at the same time and has written
a book about property development with Luke Anderson. He was featured in Australian Property Investor Magazine (API) as their resident property
development expert. The most successful API article ever published was the 2007 ‘Small Development Guide’.
At a property option seminar I attended I was attracted to the concept of starting in real estate with little money down. The presenter sells a home study course and membership program. It is hard to get stats on success, but I expect that less than 10% of the students succeed. I usually check likes and subscribers on social media. Comments on youtube are enabled - that is good ! I have talked to two Knowledge staff members and they like options. Maybe its because there is not much money required nor any high risks to take. You invest your fee and your time and must skill up in talking to people. Essentially you do what real estate agents do, that is win clients and sell deals.
The oral delivery always had 2 parts. First the dream selling component. We may object to the style but still get mesmerized based on our own dreams for success. Just watch mentalist "Derren Browns episode fear and faith about the wonder drug RUMYODIN (your mind) on youtube. It shows the power of belief. The second component of the presentation explains the basics of "Property Options" very well. Without the hype Property Options is a legitimate and respectable strategy. Watch Harry Charalambous's videos.
3 day event outline
Day 1 Cashflow strategies. Make money from property on a regular basis without ever settling on it. Clever ways of using Options to produce anywhere from $10,000 to $74,000 over a 5 month period.
Day 2 Automatic Acquisition Plan that outlines how to use property for a comfortable retirement.
Day 3 Property Options. Real estate - residential, commercial, industrial, aged care and professional and how to find deals that are profitable.
Answers I sought
(1) What are options ?
(2) What does it take to succeed ?
(3) Is options right for me ?
(4) Which program should I use ?
(1) What are options ?
Property options are about being a middle man that looks for development opportunities and then matches sellers with buyers (developers / builders). In its simplest way this would mean google for a big back yard, find the owner online or knock at his door, lure him with a great sales price, get an option agreement signed, pay $500 and promise to do a Feaso / DA and find a buyer.
(2) What does it take to succeed ?
Research / find 100+ opportunities, secure (buy) the option to 1 by selling a dream as well as yourself (confidence / competence), then sell the option with or without DA (to Mark or anybody else). You will need to find the money for (a) the option, (b) the contract work unless it's supplied and (c) optional a DA unless you sell without. Skill set: Good training / Knowledge / Networking / Commitment / Skill / Power of persuation
(3) Is options right for me ?
In the words of Arnold Schwartzenegger
"If I listened to everyone who said NO I'd still be in the Austrian Alps yodelling".
Your call - Do your due diligence (DD) and take your time !
(4) Which program should I use ?
Your call ! Youtube searches show Mark has a strong presence in the Australian market with fresh content and a sizeable audience. His comment box is enabled without requiring moderation, which is a plus. Unfortunately only a few comments have been posted. Another possible unique advantage is that working with Massland means you can opt for profit share, with the advantage that you don't need to take risks.
Here is a video I like and I am surprised that there are not more comments for this video - Just 7 comments and 8 likes. 190 videos and 8429 views for this one after 1 year is pretty good I recon. Does 190 videos means 190 or more successful students ? Check out Mark's channel here. To keep the blog balanced I re-post Michaels input about Mark Roltons courses in the Student Input Section - I am glad to see positive evaluations for balance.
Always do your due diligence. Stage presenters often employ strong sales psychology and you will need to know yourself and decide whether his program really suits you. I am not aware of him being a columnist in a property magazine or being featured, so it may be hard to find solid information. Other wealth gurus like Dymphna Boholt who I respect give Mark credibility by association. Pricing is likely an issue for the masses, but not for well funded go-getters . Some players that wish to learn to master options may preferably opt to start in a syndicate or peer network.
If you still want to get involved in options, then try to hook up with a student or form a group. Check your budget and determine affordability. Those on tight budgets may buy second hand videos on ebay to get started. The presenter only accepts JV's for proposals with certain minimum Land sizes. If you find a smaller project he will refuse finance, but maybe somebody else may be happy to do a JV with you.
REQUEST FOR MORE FEEDBACK FROM STUDENTS
What will it take for students to be successful in options ?
Are you a student then I would love to hear from you.
MICHAELS POST (+)
I'll give you some non revealing figures based on one of the properties. Strike price of 1.2 million. The owners preferred to walk away from the deal with 3 properties (1 primary and 2 investments) which made it work better for both of us. Mark teaches in very infinite detail how to negotiate based on needs both through his courses and his dvd set which I got as a part of his Conclave course. DA we estimate around 150K so I am doing it as a JV with Mark as this being one of our first deals we don't have that much liquid cash available. My development skills are new - I started doing relocatable home renovations a year ago, found Mark's courses only a few months ago and never looked back. We took it to a higher level than most but Mark normally recommends to stay in your job until you double your yearly income. I had already left my job in search of more entrepreneurial stuff such as this, so I jumped in head first once I finished the bevvy of courses that I signed up for with him.
I am happy to motivate and inspire anyone who is serious about finding out what goes on at his courses - I'll even give out my mobile number so you can hear the sincerity. I'm that confident in his products and services. The only variable is the people on the other end of the screen and your ability to stick it out until that one deal comes along.
Profit on cost I would share but I think it is more information that you really need. Fact of the matter is that I'll be walking away with a couple of million dollars with no money down (because Massland bear all costs in this particular JV) which means I can find these deals again and use my then masses of money to fund them myself.
A practitioners groups experiences
reprinted from the comment section on this website
There have been a lot of comments posted about Mark Rolton, so I thought I'd add in mine. I never physically attended Mark's Course other than his free seminar, however I got together with a few people I met from another Property course and decided to give it a shot. Two of these people did Marks course and thought his method was good. I payed $1000 for the information from one of members, and the five of us set up a company and decided to give the options business a try.
Our group met about once a week and we all came out from the meeting with properties to search for and potential sellers to be contacted. To cut a long story short, we did the options business for about 2 years without success. The main issue we found was that people are conditioned to get their money straight away. Once we presented our options offer to the seller (at least to the ones that were interested) they eventually were either talked out of it through friends and family, or from expereinced property solicitors.
After a few knock backs of securing possible deals I got disillusioned about making money through call options. I asked myself is this way of making money really viable, and will succsess really come. If succsess did come through options it would take alot of time for very little money in return.
I eventually sold my shares off to the other company members as they didn't want to change their approach in making money from property. They wanted to continue doing options which I thought was a lose situation for us. I heard not long after I left the company that the rest of the members lost interest in options and started doing small splitter blocks.
The point I want to make here is that Call options are really a suckers deal for the seller, and anyone who has prime development property who signs a call option deed would have to be really stupid. Now I can say this because I've put into practice what Mark has taught, and its not as easy or rosy as he puts it.
People who have good development land aren't stupid, and if they don't know enough information about something they'll seek professional advise. And that's were people who partake in Mark's strategy come undone, because important questions get asked about the guarantee of a sale, and how much deposit will be paid.
Each to their own I say, but just be careful, do your DD and always go with your instinct, if it sounds shabby, or if the salesmen seems like he is not laying all the cards on the table, then walk away!
Dymphna Boholt is back in Melbourne this weekend. I am on my way to the city. This is high quality info for free. New Guest Speaker "Kevin Doodney" I'll write more later. Here are a few great links meanwhile
LAND MARKETING http://landmktqld.ljhooker.com.au/
KEVIN DOODNEY http://www.futurehousingtaskforce.com.au/index.php
DYMPHNA BOHOLT http://live.iloverealestate.tv/
Dymphna Boholts reputation has been brought in question years ago by Neil Jenman - see his somewhat dated article on
But I believe Jenman may be a bit harsh. He certainly takes issue with real estate spruikers on his website - see below.
It is good to have his voice of warning for balance. I found it difficult to find recent press articles about Dymphna Boholt, but her somewhat dated website has a swag of articles listed. Searching for Dymphna Boholt Scam yielded a recent article from Crikey but it is a bit thin on facts. Youtubes Dymphna Boholt Scam is not much good cause it was created by the promoters and got about 10 000 views with little substance in content or comments. InvestEd another source is not much richer. Here is Dymphna's more recent I love realestate website. Any further help with additional and recent independent articles that contain hard facts or real life stories from Dymphna's students who have paid a few thousand dollars to buy the home study / mentoring course will be much appreciated. Check out pre 2007 press articles here:
Australia is the lucky country. Home ownership (owner occupied) has been sitting around 70 % for decades. See stats here. Have you considered to invest in property while renting as a means of counteracting the Housing affordability crisis. The math could work out for you. Learn more on this site.
Its Tuesday 21 Feb 2012 4.45 pm and I am in my car during rush hour listening to 3AW's drive in Melbourne. The topic is selling your property on twitter. It was an attention grabber, but it really worked with me. The guy interviewed on radio was a digital media wizard and he created a highly successful digital media ad campaign to sell his home. Learn more at Zero agent property sale with social media
I recommend http://iloverealestate.tv/. I have never bought anything from Dymphna Boholt however, but if you can cope with strong sales tactics and want high quality content, then I recommend her website and free seminars. I have come very close to buying however and if I had been able to go halfs with somebody then I would probably have come on board. So if you are a bit younger and can get together with a few mates, then you sure can amortize a $4000 home study kit with coaching included. Here is the site: http://iloverealestate.tv/
I have a friend with a home in rural Victoria (Glenmaggie) and his real estate agent did not manage to sell his home so far. What can be done to increase his success ?
Is diy selling a viable option ? - The answer is yes !
I have noticed that many already do that in rural areas. You can knock off $10k of the price of your property and you can personally manage and fine tune your campaign and outperform your agent.
His job may be to sell 50 properties and half of them might be slow going properties and he may be the only agent in town
So, how would you go about a ~ $500 diy home sales campaign ?
Check out the following go between agents to learn more ...
http://australia.trovit.com/ (This is a search engine)
Click here to see what can be done to feature a property with animoto for just a few dollars in just a few minutes. I have uploaded this slide show to youtube. Unfortunately I am still waiting for the house's interior pic's, so that's what kills the slideshow at the moment. Another challenge is to get the estate agents to create a hyperlink to my youtube url in their description of the property. LJ Hooker told me they can't. They may have an interface or editor that filters out html code, who knows. S
It is still only a minority that does diy property selling. And this is for a number of good reasons. Nevertheless trends are changing and discounts are becoming more available as well and this applies for both selling and buying.
The viewpoint that the agent will get a superior sales outcome well worth the $10 000 or more he charges is wide spread. Other reasons to prefer agent sales are the vendors time constraints, a dislike for complexity by seller and buyer, low trust levels for both vendor and buyer, vendors learning curve, risks due to lack of expereince and limitations in exposure, especially off line. The agent has a "show room", a local presence and a client data base. He can redirect some traffic he gets from his other properties in the area.
Internet exposure has been rather limited as well in the past, because only smaller boutique companies have offered such an opportunity. But this has changed recently. For example Domain, which claims 3.4 million property seekers per month (23 May 2011) grants access to owner sellers. They charge about $ 500 for one month of advertizing (or less dependent on suburb).
Some people have started to use ebay, youtube and facebook to sell their properties. This is not a bad idea for a complimentary campaign.
The same holds true for a personal website. As a matter of fact, this is exactly what I doing right now. Why ? Cause my friend's property is in a remote area and it is quiet and very relaxed out there. Not much competition or interest up there. So I will give him a hand with creating a better remote campaign. You can check out my property sales website below. I have created it with weebly for free. My slideshow was made with animoto (small cost) and my pictures where edited with picnik within flickr (free). http://heyfield-lake-glenmaggie-cummins.weebly.com
This is an information site and I welcome feedback, discussion, opinion as I learn as I go. Walter, Melbourne, 23 may 2011.
The Business Spectator has an interesting article that raises concerns about stagflation in the Australian Housing Market. Quote:
"More importantly, it's a view that is not without precedent. Between 2004 and 2009, Sydney home prices remained relatively flat, meaning that prices fell in both inflation-adjusted and income-adjusted terms."
Apparently this concern is becoming more widespread and in my opinion it is a valid concern. But it will not kill my interest in real estate. I am of the opinion that a moderate increase (somewhere between CPI and income growth) of say 3..4% is still attractive if I can achieve a rental return of 5% or more and a long term capital growth of 5% or more as well. Please click here or on picture to read the full article.
I have searched for pricing info about NRAS properties and found that NRAS remains a niche market (50 000 properties over 5 years) that can attract premium pricing. Hence caution is necessary in picking the right property. There is a risk that you run into challenges with the bank. At least one bank does not even lend to you You may only get a 70 % LVR instead of the usual 80 %
Click here to view an interesting discussion link.
Check out the latest quarterly report (March 2011) from REIV !
Plot a graph of your suburb in Melbourne !
REIV releases median prices for March quarter 2011 The Melbourne median house price for the March quarter is $565,000, according to the latest results from the REIV. This represents a six per cent reduction from the revised December quarter median of $601,000.
REIV CEO Enzo Raimondo said, “it is evident that the current residential market in Melbourne and Victoria has entered into a different phase of lower transaction numbers and reduced price growth. This is due mainly to affordability constraints, affected by the seven rate rises since December 2009 and particularly following the November interest rate increase. It must also be noted that most years the median price does reduce in the March quarter due to the lower activity in January.
“These results show that prices in most suburbs in Melbourne have plateaued and this will be welcome news for buyers looking to buy this year.
“Melbourne remains the second-least-affordable city in which to buy a home and buyers are being more cautious, as highlighted by the overall number of transactions falling by 18 per cent compared to this quarter last year. There are also about 37 per cent fewer first home buyers active in the market than this time last year.
Extracted from REIV. Read more at their link below:
The "first home owners scheme" has been dubbed "the first home vendors scheme". Nevertheless if you did not have the deposit and have entered the game early enough and secured your first home owners grant you will still be happy about your capital gains.
How does NRAS shape up ? Is this another government scheme that benefits the landlord investor more than the tenant ? Let's have a look.
Who is the biggest winner ?
You guessed right, its once again the property owner.
There are however some downsides for the investor. Government schemes always add complexity to a project and they curtail the freedom of ownership to a degree. This results in some restrictions due to compliance requirements and consequently attracts additional costs for the builder and the buyer. Plus I have a suspicion that the builder and marketing agent may also dip in a little and hike the price. Add higher fees for rental managers , auditors and tax accountants to the cost of ownership and the picture should be complete . Overall NRAS properties in most instances appear to be a good proposition. But you should always do your owns sums and then run them by your financial adviser. Don't rely on advertized figures alone, they are groomed to maximize sales.
Another alternative is the defense ministry housing scheme. I believe NRAS pays better and is saver. What if the armed forces close a base. I would not want to run such a risk.
So, how much does an NRAS property return ? Have a look at the attached email and then do your own homework. Check out what none NRAS properties sell for in your target market and make sure you understand all purchasing and holding costs.
The table below was emailed to me by Graham Shiels in February 2011. Here are his details:
Property Queensland Pty Ltd &
NRAS Queensland Pty Ltd
68 Carlock Promenade
Karalee QLD 4306
Phone: 0417 725 168
Fax: 07 3294 8636
Consider as Self Managed Super Fund (SMSF) early in life !
After having build up sufficient equity (about 60k) with a first investment property the next move could be to set up a SMSF and acquire more property through a SMSF trust.
Young people usually shy away from advanced Super Strategies, cause old age is far away and the money is not accessible for donkeys years.
Furthermore SMSF is usually discouraged until somewhere midlife when the fund has reached at least $200k. Why ? Because of the high setup and maintenance costs that financial advisers charge and because of the complexity of self managing such a versatile fund.
However costs should no longer be a show stopper. As soon as you have enough equity (either by natural asset price growth or due to increased sweat equity) you should look into such a great instrument, where you can enjoy the best of both worlds. Click on esuperfund to learn more.
As a matter of fact if you join before 15 April 2011 its all free for 2 years. Otherwise it's just free to set up and then 699.- pa * (all subject to change). Here is a quote from esuperfund.
ESUPERFUND currently has a free setup fee and a fixed annual fee of $699. This equates to an annual running cost of 0.35% on a $200,000 super benefit. Not many Retail Funds can claim that. Using the marketplace norm of 1% per annum as an acceptable fee ratio would imply you could setup a SMSF with ESUPERFUND with as little as $60,000.
Why is a SMSF property so good ?
A: You pay no capital gains tax.
I was just reading "Feeding the housing bubble monster" in the business spectator.
To read it click here. And for another interesting article to keep a balanced opinion click here.
Here are my conclusions:
Correction at the high end -quite likely and possibly severe.
Correction at the low end - rather unlikely and if so then only marginal.
For me the question is at what point will most people loose their desire to own property and exit the market ? Where is the pain threshold ? In my opinion property remains attractive even with a worst case long term growth of zero in real terms. Why ? Because the asset returns 4..8% cash flow and its value keeps up with inflation. On a 500k property a CPI of 3% would translate to 15kpa asset price rise pa. Hence I would still invest into low end property, even now in 2011.
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