This months Property Investment Magazine

[eri]

There is a tide in the affairs of men

Which, taken at the flood, leads on to fortune;

Omitted, all the voyage of their life.

Is bound in shallows and in miseries.

[kapitibeanman]

Just be wearing your togs when the tide goes out.

[donna]

flyernzl- just so it's clear to all here - I was quoting 'Dean' from the article - I personally did not say 'buy a property a year'.

cheers,

Donna

[Commercial Dan]

"The unexpected downturn" ??

Please!! Did they think property was going to increase at double digit prices forever?

And these people were montoring others?

These guys did in fact think that property would go up forever...one of those guys mentioned on this site that I was a scaremonger when I said the market was ready for a drop with many so called 'property gurus' going under....hmmmm

[Wayne]

Dean may not have meant to literally buy a property a year but rather take it slow an don't get carrid away. Don't get ahead of yourself.

[Commercial Dan]

He learned a good lesson there...so did his followers, never listen to a self-proclaimed 'man of god', this happened in the 70s with Securitibank, a so called 'man of god' lost everyone's money in the largest ever property collapse in NZ's history.

[Keys]

There was a thread here, sorry-not good at searching, where some professed that you could live on the equity increase of your portfolio by borrowing it. Your equity would be increasing each year anyway so you would never go broke.

[spaceman]

^That was Micheal Yardney's line I think.....Sounds good in theory, after all your equity is increasing every year....... But like so many things easier to say than do.

Cheers
spaceman

[mrsaneperson]

There's much more to the word "bankrupt " than ones own personal financial failings. There's the untold misery created for others who were owed money by the bankrupt that are too often forgotten in many untold stories.Why punishment for these sorts of crimes is not higher is a blight on the justice system. Seeing Rod Petrovic on the news a few days ago, it seems obvious he doesn't have a glimmer of conscience for the 1000's of people who he lied too & were burned. And this is his 3rd time kaput!!! A recidivist.

Not all bankrupts & financial scandal mongers have their infamy posted on the cover of a magazine.
Other cats like Matthew Ridge whose property development company M3 went into liquidation & caused misery for many, seem to sail well below the radar due to his "media darling" status.

[eri]

everyone builds a little bit of "slack" into their system to protect themselves

bankruptees?

feed on that

[Keys]

everyone builds a little bit of "slack" into their system to protect themselves

I disagree. I had no slack for several years when I started. Negative equity and close to insolvency for a few years during my first downturn as well.

[freezinhot]

never listen to a self-proclaimed 'man of god

Really CD, never is a mighty long time!! What is so wrong about following someone who has a certain valued based belief! There are so many reasons not to follow smooth talking snake oil salesman, but really, a man of God! I would rather follow someone who has a valued base belief than other so called "Property Experts". Dean may have made mistakes along the way, but his skill as a motivator and educator remain in tact. He actually owns up to his own short comings in the article. I personally have taken a lot of good advice from him. Basically if it was not for deans advice I probably would have done nothing. And we all know what nothing gets you in return.

I am not saying that everything that Dean says should be followed like sheep, but take what you need to from his advice, after all, he acquired 50 rental properties at one stage, how many people can you name that can do 10? He said so himself if he had stuck to his knitting he could have retired on what he built.

Food for thought people!!

FH

[eri]

i think the point CD was making

was not against people of belief

but those who advertise and use that belief

as an advertising tool

as to having 50 properties, so what

if you can't hold on to them you end up with nothing

napoleon and hitler

both had LARGE amounts of russian land holdings

for a couple of summers when the going was good

but stuffing into their mouths

without taking time to swallow

led to both of them choking badly

[Commercial Dan]

Spot on Eri, exactly what I meant, that poor guy was probably caught up in that Fiji mess

i think the point CD was making

was not against people of belief

but those who advertise and use that belief

as an advertising tool

as to having 50 properties, so what

if you can't hold on to them you end up with nothing

napoleon and hitler

both had LARGE amounts of russian land holdings

for a couple of summers when the going was good

but stuffing into their mouths

without taking time to swallow

led to both of them choking badly

[Grads]

When times are good it is easy to grow a property portfolio esp. when banks are giving away money.. The real test is hanging onto your porfolio when times are bad. That will put the test as to how well your original buying rules play out. ( The saying that banks give you an umbrella when its sunny & take it away when its raining is quite accurate - this gives you a good perspective on their influence on property investment).
I read the article on Dean, he really had a lot of reasons as to why he failed - not alot of personal ownership or responsibility though, except saying that his ego got in the way...
Personally I'm still amazing with the demise of the likes of K. Trass.. I have books of his in my library.. The real test is sustainablity through a number of property cycles..
Cheers