Article ‘Getting Into Line’ by Graeme Fowler

Article ‘Getting Into Line’ by Graeme Fowler written in 2004.
 
Disclaimer: Nothing is this article is meant to constitute financial advice of any kind, and is the opinion of the author only. Seek professional advice before making any financial decision.
 
“Get into a line that you will find to be a deep personal interest, something that you really enjoy spending 12 - 15 hours a day working at, and the rest of the time thinking about.” Earl Nightingale.
 
Above is one of the quotes I have used in my book. I think for the people starting out in real estate, in business, or any profession for that matter, it’s important to really understand this quote. Too many people are looking for a quick fix, or the one answer or idea that is going to be the secret to making them rich. While this can happen, it is rare and your chances of winning Lotto may be a better bet.
 
Think of it this way: – let’s say you’re...
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Building a Solid Foundation in Real Estate PART 1 by Graeme Fowler

Disclaimer: Nothing is this article is meant to constitute financial advice of any kind, and is the opinion of the author only. Seek professional advice before making any financial decision.
 
Building a Solid Foundation in Real Estate (2010).
 
With a large number of well known property investors in NZ going bankrupt, this may be a good time to take a look at your own property portfolio or investment strategies. Many of these investors were also promoters and charged thousands of dollars (at times tens of thousands) to mentor the unwary or naive beginning investor, and often charged for their investing seminars and related materials.
 
If they were so successful and could teach others how to invest and some even tell investors which way the market was going to go (up or down and by how much!) by using various indicators, why have most of these so called experts gone bankrupt themselves - or very close to it? A few of them in my opinion were always out...
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Article ‘What’s the Property Market Doing, and Should it Really Matter?’ by Graeme Fowler

Article ‘What’s the Property Market Doing, and Should it Really Matter?’ by Graeme Fowler written in March 2005.
 
Disclaimer: Nothing is this article is meant to constitute financial advice of any kind, and is the opinion of the author only. Seek professional advice before making any financial decision.
 
Perhaps the most common question I get asked as a property investor is ‘what do you think the market is going to do?’ I will usually answer with something like ‘I have no idea what will happen, and I really don’t care.’ A couple of months ago I was invited along to a free two hour seminar put on by one of the major banks on property investment. The guy that was speaking had one property himself which he was now selling as he thought it was a good time to sell. The rest of the time was spent going through a whole range of meaningless graphs, charts, facts and figures explaining to us all what he thought might...
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Article ‘Tempted by a Booming Market’? by Graeme Fowler

Disclaimer: Nothing is this article is meant to constitute financial advice of any kind, and is the opinion of the author only. Seek professional advice before making any financial decision.
 
Article ‘Tempted by a Booming Market’? by Graeme Fowler written in 2004.
A few days ago, a man walked into my office wanting to talk about investing in New Zealand Real Estate. Apparently, he had just visited one of the real estate companies in town, and they had suggested he come and talk to me for some investment advice. This is how the conversation went:
 
Investor: I was told you might be able to help me with some projections.
 
Graeme: Okay, what sort of projections are you after?
 
Investor: On real estate prices over the next five years.
 
Graeme: I’m not sure what you mean by projections, can you explain please?
 
Investor: Well, I have a group of investors that have some money to invest, and we want to buy some...
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How To Have More Luck With Your Property Investing. by Graeme Fowler

Disclaimer: Nothing is this article is meant to constitute financial advice of any kind, and is the opinion of the author only. Seek professional advice before making any financial decision.
 
People will often say to me, you were lucky that you got in at a good time when you started your investing, you couldn’t do that now. Or, it was lucky you found some good agents to help you find properties when you started, there’s too much competition from other investors now.
 
Roger Hamilton uses a word analogy with the word ‘Luck’, mostly with operating a business and comparing it to a game of soccer (football).
 
I’ve used it below in a similar way to show you how it works if you are a property investor and want to become luckier!
 
Location.
In the game of football, you may think someone like Christian Ronaldo or Lionel Messi is lucky in the way the ball is passed to them, and all they have to do is kick it past the...
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There’s no Such Thing As a Property Cycle by Graeme Fowler

Disclaimer: Nothing is this article is meant to constitute financial advice of any kind, and is the opinion of the author only. Seek professional advice before making any financial decision.
 
Booms, busts, bottoms of a property cycle, tops of a property cycle, peaks, troughs, recoveries, property clocks, you’ve no doubt heard them all before.
 
Are they important to know?
 
Do you need to understand what they mean?
 
Will they help you make a decision if you want to buy, or sell a property?
 
Where in the property cycle should I buy?
 
Where in the property cycle should I sell?
 
How do I know what the ‘time’ is on the property clock?
 
Why are people so obsessed with all this jargon; needing to understanding it and always trying so hard to work out where in this hypothetical ‘cycle’ we are?
 
I think a lot of it comes from fear. Fear of the unknown, fear of making a...
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The Best Question I Can Remember Being Asked by an Investor by Graeme Fowler

Disclaimer: Nothing is this article is meant to constitute financial advice of any kind, and is the opinion of the author only. Seek professional advice before making any financial decision.
 
Question...... Because it seems like such a fine balancing act between expanding the portfolio versus paying down debt, I am keen to understand your view on the following: If you were to start all over again, would you allocate any extra funds left over at Year End (say, over five years) towards deposits for the next property purchases, or would you use it to pay down principal? And if used for paying down debt, would there be a certain LVR% that you might target before you start expanding again? I think your cash-flow strategy aligns closely with my values and goals, so I'm interested to see how quickly a sensible portfolio could grow.
........................................................................
Answer ......
Out of all the questions anyone has ever asked me in the...
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What Does Cashflow Positive Mean? by Graeme Fowler

What Does Cashflow Positive Mean? by Graeme Fowler (2015)

Disclaimer: Nothing is this article is meant to constitute financial advice of any kind, and is the opinion of the author only. Seek professional advice before making any financial decision.
 
I will often ask at seminars or meeting up with other investors – what are some of your rules for investing?
 
Most will say that one of their rules is to ‘only buy cashflow positive properties’.
I will say – ‘well, what does that mean’?
 
They will often look at me as if to think I’ve never heard of the saying ‘cashflow positive’ before. So, they say ‘well it has to make money’!
 
I say – ‘ok so let’s say I buy a house for $200,000 with no mortgage and it rents for $50 a week, is that cashflow positive?’
 
They say ‘no it’s not’.
 
And I say ‘well it actually...
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Property Values by Graeme Fowler

Disclaimer: Nothing is this article is meant to constitute financial advice of any kind, and is the opinion of the author only. Seek professional advice before making any financial decision.
 
There are many different ways people use to determine what they think a property may be worth.
 
Here are some of them below:-
 
Purchase Price
 
RV, CV or GV
 
E-Value
 
Registered Valuation
 
Market Value
 
Looking at each of them, we can understand a little better what each is used for.
 
1) Purchase Price – this is the price you pay for a property when buying, and it may actually be worth more, or less, than what you are paying for it.
Sometimes you may be in a multi-offer situation where you end up paying more than you originally intended to, or because you really like the property. Other times, it may be in need of work, or the owner wants to sell it quickly, so you may buy it for less than what it...
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Getting Started in Property Investment by Graeme Fowler (2015)

Disclaimer: Nothing is this article is meant to constitute financial advice of any kind, and is the opinion of the author only. Seek professional advice before making any financial decision.
 
It’s now over 25 years ago that I got started in property investing, and I knew virtually nothing about property – except that I wanted to get rich from it!
 
I ended up losing about $40,000 on my first property, but luckily I did learn a lot from it.
I made many mistakes along the way and it was really no wonder as I was pretty clueless when it came to all things regarding property investing.
 
Back then, there wasn’t a lot of information around, so it was more of a trial and error thing for me for a few years. There wasn’t anyone I knew who I could ask about property or get their opinion about something, and virtually nothing written by NZers on the subject.
 
I remember a friend of mine inviting me to go see an older guy who...
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