Hundred thousand dollars into a four and a half million dollar property portfolio they’ve done it all from the dining room of their home on the New South Wales central coast of things so where’s this one this one’s in Newcastle we purchased that three years ago we peaches that I think for did a little work on it we hadst valued recently for just over soit’s done very well for you yes it has this one the first little ones I bough tit’s a simple formula borrow money buy property rented out and then sell at profit and they’re very good.
At it repurchased it for to succeed exterior and sold it for three years later it was horrific Lee ugly how did you choose tum not an emotion no no we don’t overbuy ownership it’s a house that we probably never live in ah this one thesis how you ride a housing boom cuss how about when we started not only did went see the places that we were buying because we saw them on the internet we actually borrowed one hundred and five percent using that the equal we had in our house to fund that aside revaluing.
The ones and borrowing against those and borrowing against those Property Valuation Melbourne exactly right so how many houses have you bought and sold in all that time well up yeah about that we started looks like monopoly figures it only when you think back on D wow how we ever even do that but you couldn’t have done it without negative gearing huh you’re surprised more people don’t do it I am well there is that they don’t they don’t do it but I don’t think they know how too it to put it simply negative gearing’s a clever way of reducing your tax bills if you have an investment property and it’s losing money you can claim that loss as a tax deduction against everything else you earn other countries do it too but.
Done a video on fools gold and I think it ties it is because if the suburb was a paddock two years ago and then it gets subdivided and turned into a housing estate you can skew the numbers and make them look very very healthy so yeah whenever we have look at a property we back test the property performance for as far back awe can possibly go every sales history on that property we look at and it gives us confidence.
As a buying indicator units previous performance yeah so the challenge with some of these is they’re talking about two or three years worth of data to give them that confidence with its course oh and what else do your do the field research to assess tieback testing of that day which you’re looking at see where they’ve been renovated because in some cases some of those numbers could also adjust that so you know you should never you know by just off the back testing that’s the skill of the the BA the buyer’s agent who’s going out.
There and it’s potentially the skill Property Valuations Perth of you know an investor who wants to do it themselves who’s going in and having a look at that property and saying okay it’s year sold it’s definitely had some refurbish butane how much or how often has it refurbishment and what percentages of that growth is to do with the improvements of the asset now that.
The reality is the law of averages said there’s got to be high numbers and they’ve gotta be low numbers so there’s going to be some suburbs in Melbourne that have probably only done four.
Sell you would have could triple your money properties went from to a million that means those people have made six hundred thousand to maybe a hundred in equity now when you go to a bank and you draw equity and you draw our cash from your bank account I’ve never heard banker ask me Conrad is this did you work hard for your money is this the money that you worked really hard forge’s explaining.
That you’re taking up to two lazy equity money isn’t that isn’t it interesting that it ask me that all they do is how much would you like would you like one hundred dollar bills or fifty dollar bills is very interesting no one of asking is this equity like this money that you work for cash is cash it’ll do you work hard or whether they can t really easy and that’s the biggest thing about property investing-it doesn’t need to be hard people just make it hard leverage definition of leverage is the use of various.
Financial instruments or borrow capital such as margin to increase the potential return on investment and that’s what the games all about about leveraging other people’s money in an ethical property now here’s the wealth distribution table from Gemini from the world wealth report and it’s a very interesting thing because if you look at the wealth distribution how much people own in this world combined if you look at the ideal situation the top % the rich either would control probably around thirty percent of wealth and in the middle.
class would ideally control majority of everything Melbourne Property Valuers and then you’ve got the bottom twenty percent having a little bit of assets behind them and this is what what the ideal scenario is now what people think being a pessimist by nature we say well it’s kind of worse than that the reach the top twenty percent control you know let’s say sixty percent the middle class control.
Terms of efficiency cost effective as but also enforcement costs are very expensive to enforce and others are doing those are real cause and so we contemplate doing little experiment to see you know we tried this policy here and that policy there and then see how it goes and which ones are easy to enforce that could help you design programs in other places to reduce enforcement projects.
I would say we probably haven’t and part of the reasons because they’re completely voluntary so we’re not other than the formation of carbon market we’re not really relying on a policy regulatory framework one of the things that we are leaking out we have a large project in Indonesia that’s looking at sort of practical implications of how you would do a red project though you know in Indonesia has really high deforestation rates if you were to actually do large-scale projects and try to get carbon credits.
For avoiding that deforestation what does that mean anything in that context were thinking very seriously about enforcement because so much of a lot of that deforestation is ready so how do you how do you address that you know there are fifty years of sort of forest conservation that hasn’t been able to solve that problem but yeah we’re thinking about in that context I think to the extent that we’ve stayed in the voluntary market range we haven’t thought about enforcement but it is a really good PowerPoint don’t actually.
I can’t speak at all about the Philippines other than in the context of a larger initiative that we’re working on so I’ll speak a little bit I used to work for the Conservancy’s Asia-pacific group as well as for the state department was posted in Asia so that’s what you’re referring to you so just as an example.
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You will with have to slant trouble to place on bulky matters out of your primordial living to the brought and nobody. no matter those problems a few people yet pick out to have the emotional impact in iciness. professional movers must be hired because they’re specialized in dealing with swing climate situations, specially iciness.
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