Lies, damn lies and statistics 13/05/13

No one really knows who actually coined this phrase, but Mark Twain was the man who made it famous. The truth of this statement is that statistics on their own don’t lie, however the essence of the statement is that anyone can interpret the statistics at hand to prove their case. Or more importantly misinterpretation of statistical data can lead to a false understanding of the situation. Huge statements full of vague accusations and do...

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First home owners Grants – Do they work? 30/04/13

There is talk in Victoria at the moment that we will be seeing a $10,000 first home owners grant and a reduction in stamp duty for first home buyers. I’m not going to mince words here either folks, it’s about bloody time! I just read an article Robert Larocca of REIV fame just posted about this very subject. The basis of what he had to say revolved around a tax on the group that could least afford it being unfair. When you think about i...

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What happens when the price is not right? 22/04/13

I came across an interesting scenario on the weekend while I was out attending auctions that had to do with the suggested purchase price of a home and the actual vendor’s reserve. It wasn’t a straight forward case of underquoting, but if it walks like a duck and it quacks like a duck….. Allow me to explain. It was a beautiful 3 bedroom home in the Northern suburbs of Melbourne that we attended on Saturday with friends who were looking...

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The blame game. 07/04/13

I’m back out again on weekends “sharpening the saw” as Mr Stephen Covey of “7 habits” fame would call it. When I’m not out with clients on a weekend looking to snap up a bargain for them, I tend to hang out at auctions on a Saturday to get a dose of reality.’ I check the places out, do a little due diligence, figure what I would pay for them and then watch the auction go. I even predict where I see things finishing on my twitt...

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Want to win at auction? 26/03/13

“How do I win at auction” is a question I get asked a fair bit, even considering what I do is buy real estate for people for a living. Apparently there is a perception in the general public that buyer’s agents have an innate ability to somehow crush the competition at auction and snap up a bargain. Well guys, sorry to disappoint, but there is no magic bullet here. There are a few tips that work more times than not though. Strategy com...

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The markets changing look for the signs. 14/03/13

It’s early march 2013 and the sun is still shining in Melbourne. It’s been a while since the end of the world as we knew it, or the global financial crisis as everyone else called it, and in the property game it appears that things are starting to look up. We see a lot of things printed about the state of the property sector in Melbourne and in fact around Australia, and for the most part the doom and gloom content tends to get the head...

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Renovating for cash, the four keys. 15/10/12

One of the most common strategies for making a quick dollar or adding instant equity to a property is to do a renovation. It makes sense to freshen the place up and make it way more presentable for a future purchaser or tenant. There are a few issues with this type of property strategy though and it can come unstuck pretty quickly. A lot of times prospective millionaires find that by the end of the renovation they have over capitalised or unde...

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I saw the sign… 08/10/12

Do you realise it’s been about 5 years since the GFC came along and smashed world economies and destroyed bank accounts, decimating share portfolios and property prices along the way like some rampant Godzilla type monster? The fact is though, it wasn’t as if we didn’t see this coming. The GFC , not Godzilla. The signs were there yet we chose to ignore them. I’m just as guilty as the next guy here and even though things were progress...

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The Four Key Property Variables. 02/10/12

Why is it that all anyone ever focuses on is price? Sure it tends to be one component that drives the ultimate decisions we make when buying property, however it’s not really a relevant factor unless it’s brought in to perspective. Let me demonstrate. If I offered you a property for sale and told you the property purchase price was $1 million dollars, for most of us it would probably be a stretch. It would have to be a super property to ge...

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The difference between positively geared and negatively geared investment properties: 27/09/12

Those thinking about investing in property as a way of accruing wealth, have two strategies at their disposal. Generally, it is best to have a combination of the two in order to create a balanced portfolio, and to avoid problems of serviceability with financial institutions. Positively geared properties are those properties whose rental yield exceeds mortgage repayments and thus, puts money into your pocket. The term ‘cash flow positive' ...

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