A recent article in Brisbane’s Courier Mail – Price Growth Is Strong Near Railway Lines - identifies that properties near train stations have grown in value faster than those in other areas. This article prompts me to write that “It’s Not What (You Buy) But Where”!
I’m guessing you want the best results from your investment efforts; if so read on.
When describing what they’re looking for, people generally tell me the type of property they’re after. Some say they want a ‘house and land’ type investment, others a townhouse in a certain area etc. I disagree! People don’t really want a specific property type in a specific area; they want an outcome, a result!
You will see people stand up and say they “love” property. I don’t “love” property; I love having choices. The choice as to whether I work or not today, the choice of taking a holiday, spending more time with my family, perusing other interests and importantly the choice of having any necessary medical treatment all without the concern as to whether I have the money or not – showing my age now 
For me to have such choices, I need the money, and property seems to be the best way to get it with the lowest level of risk.
I want the best possible result achievable for me. That means I really don’t care where the property is or what type of property I buy; the question I ask is, “Will this give me my desired outcome”?
After 10 years of investing and with a varied portfolio of houses, townhouses and units, I now believe that it’s not the land that goes up in value it’s the position – regardless of whether it’s a unit with very little land or a house with lots of land content. When I look at my portfolio and ask myself, “Should I have bought that one,” and there are a couple that I would not buy if I had my time over again.
No Property Disasters… So Far
Don’t get me wrong, I have not had any property “disasters” – not yet anyway , but hindsight offers me insight and analysis that I didn’t have at the time. I have a lovely four bedroom house in a Stockland estate, halfway between Brisbane and the Gold Coast. I am sure long-term it will do well, but in hindsight I realise it is too far out from the infrastructure, and I would have done better at the time to buy elsewhere, even if, to get close to the “bullseye” of infrastructure, it had to be a unit or townhouse with less land content. I could have at the time secured a two bedroom unit 100 meters from a train station for less money – which I now believe would have been a better investment. The infrastructure will come I am sure, but until then I am to some extent just “marking time” with my property value.
I have a townhouse that I bought at a “really good price” in an outer Brisbane suburb. Again, with the benefit of hindsight, I believe it was too far out for a townhouse (at the time), and it will take time for the infrastructure to develop in the area. The price was good but price alone does not make for a good investment!
I have another house that I bought second-hand. This property has been a maintenance nightmare – not “set ‘n’ forget… for busy people”™ as Nick teaches. Ten years on, having learned from mine and others experiences, my preference today is definitely for new property. Not only do I get the best depreciation (tax benefits) but the building and all appliances are covered by warranties. New property is also more attractive to good quality tenants.
While I have been very successful as an investor, and today have choices that ten years ago I could only have dreamed possible, I realise for no additional effort (in fact less), I could have done better.
Houses tend to be built in areas further from the “bullseye”. Houses that are close to transport hubs, shops, cafés, hospitals, employment and so on are normally very old, very expensive and best suited to developers. The holding costs associated with such properties are prohibitive to the average person, the tenants are often less desirable and these properties are probably best suited to developers as sites for future apartments and/or townhouses. These properties are ideal, but for a totally different investment strategy. With poor cash flow outcomes, higher risk and specialised skills required; definitely not a “set ‘n’ forget… for busy people“™ strategy and nothing that I would entertain. Yes, there are exceptions to any rule. Well positioned houses in areas about to experience expansion will do well; but again – it’s all about position!
Support From Competent And Ethical People
While the luxury of support from competent and ethical people is rare in this industry; that’s exactly what mrd offers. Nick has uniquely positioned this business in the market place. Unique in the range of services offered and unique in that they are offered to you complimentary and without obligation (and that seriously is unique).
If you have never been exposed to what we call a Personalised Retirement Options Plan (PROP) and experienced the power of mrd‘s “Retire On Your Equity” (ROYE) software to chart a workable plan forward for you; I recommend you ask today. The word has obviously got out in recent weeks and months as (literally) hundreds of people have taken (or are taking) up this offer.
Personalised Retirement Options Plan (PROP)
While we will not offer you financial advice, we are happy to share our experiences, strategies and why we do what we do in an online meeting (i.e. over the internet).
We call this meeting a “Personalised Retirement Options Plan” (PROP) and offer it to you without cost or obligation.
As these appointments are over the internet it doesn’t matter where you live. Of course if you prefer and it is convenient you can come to our office; but for many the privacy of their own home works best.
NB: A PROP is not aimed at those planning to retire soon. If you are nearing retirement without having already worked a plan it may be too late for you; sorry.
Our complimentary, no obligation offer is for those who still have time to avoid ending up broke.
- Are you working?
- Do you have equity in an existing property (yours or someone else’s) and/or a cash deposit?
- Are you serious about taking charge of your tomorrow by doing something today?
If so, let us powerfully demonstrate (using our proprietary ROYE software) how possible it is for you to build your own workable plan.
We understand that your desire to explore possibilities and options is because you want to learn… and we will never interpret that as a license to sell; that’s our promise!
- Yes please; I would like to speak with an mrd Property Mentor to determine if I qualify for a complimentary, no obligation PROP >>>here
- Detailed explanation of what a PROP is >>>here
- We will need to assess your borrowing capacity before we can do a PROP. Completing this online (secure and encrypted) can be done >>>here
Happy Investing,
Nick Lockhart
mrd Customer Care Program… because investing is personal
Brisbane’s Courier Mail Article
Reader Comments
What a load of crap… You get depreciation allowances because properties depreciate!!! It is the land that goes up in value (its not the land size that counts, it’s the land value). You flog new properties because that is how you get paid. Legally you get paid by the seller and can only under the legislation work for the seller. Yet you pretend you help buyers. I’d live to see you explain this to the ACCC and your clients. You are welcome to email me with your explanation…..I won’t hold my breath waiting though.
Hi Michael
No need to “hold your breath” I am happy to answer questions. I am not sure exactly what your questions are but I will try.
Just so you know where I am “coming from” I started investing in property in 1999. In 2006 I stopped working with 13 properties worth around $4.5 mil., living on the equity growth.
For the past couple of years I have been working part time with Nick sharing my experiences with clients but my wife and I still live primarily on our investment property equity. I have friends who have done better than we have and some who have been slower in accumulation. Its different for everybody.
1. “You get depreciation allowances because properties depreciate!!!” – Are you suggesting that property overall does not go up in value? That is certainly not my experience or I would not have been able to ”retire” in 2006. I am not sure what depreciation I claimed last year but a couple of years ago it was $47,000 for the year and that of course is a “non cash” deduction. A deduction that cost me no money as my portfolio gained value.. Many of my properties have doubled in value to date, one has actually trebled but it is not a “straight line graph” of course..
2. “its not the land size that counts, it’s the land value.” I agree entirely and if you read back through the articles we print you would see that we believe it’s the position that determines capital growth. That’s why some of my units and townhouses have outperformed some of my houses. They are in better positions.
3. “You flog new properties because that is how you get paid.” Every business has to have a income to survive and we are perfectly transparent in that regard.. MRD operates commercially as a real estate agent. We charge nothing for the education we provide. We do however list some resales (second hand property) when we find the right stock.
4. “Legally you get paid by the seller and can only under the legislation work for the seller.” Certainly the law requires agents act for the vendor. However are you saying that means we cannot assist the purchaser in any way??
You are suggesting because we are real estate agents we cannot share our experiences (and mistakes) with clients? Things that will assist them in becoming more successful in property investment?
I am confident the ACCC would have no issue with what we are doing. In fact if you see the free DVD that we distribute you would have seen Nick Lockhart introduced by one of the chief trainers for the REIQ, who is also a consultant to the Office of Fair Trading. You should listen to what he said and I will happily arrange for a DVD to be sent to you if you wish.
5. “Yet you pretend you help buyers”- I am sure there are many of our clients who would tell you how we have assisted them. There is no “pretend” about it.
Let’s just step back and look at this from a purely commercial (business) point of view for a moment. When we show people the right way to do this they generally invest in a property, they see the results , the growth, and that enables them to buy again and so on. Many of our sales are to repeat purchasers. Some have 5 or 6 now.
If they their first property does not perform they will not buy number 2, 3 etc so while we don’t have a “crystal ball” and cannot guarantee future results it is obviously in our best commercial interest to ensure their first property works for them. Our clients success ensures our success – win, win.
If you have any other specific questions I am happy to assist where I can.