• Login:
Welcome, Register Here
follow PropertyTalk on facebook follow PropertyTalk on twitter Newsletter follow PropertyTalk on LinkedIn follow PropertyTalk on facebook
Page 1 of 2 1 2 LastLast
Results 1 to 10 of 17
  1. #1

    Default Chris gray on YouTube

    https://youtu.be/bEuN-ee9xXs


    Anyone seen this clip? Pretty long but he has some pretty cool notions of accepting low yields over long term. The example of the two house scheme (around the 18th minute) was quite interesting I thought.
    Thoughts if you've seen it?
    Last edited by donna; 13-07-2015 at 10:20 AM.

  2. #2
    Join Date
    Mar 2014
    Posts
    362

    Default

    Quote Originally Posted by Bingo85 View Post
    https://youtu.be/bEuN-ee9xXs


    Anyone seen this clip? Pretty long but he has some pretty cool notions of accepting low yields over long term. The example of the two house scheme (around the 18th minute) was quite interesting I thought.
    Thoughts if you've seen it?
    Borrowing on a first property to service a second?

    Any nz mortgage brokers think this is possible here?

    Don't think so. Depending on salary you might buy one or two low yielding auckland properties before cashflow limits are hit. As opposed to an Orion type approach where yields allow continued buying and very large portfolio's to be built up.


    Chris Gray would fail on servicing requirements in NZ buying neg geared and not having income to cover interest expenses, no bank in their right mind would accept borrowing each year against a first property to cover costs of a second, on the assumption that capital growth would keep fueling the working capital requirements (mortgage brokers please correct me if I'm wrong)

  3. #3
    Join Date
    Sep 2013
    Location
    Auckland
    Posts
    3,885

    Default

    21minute onwards.

    Basically Chris is saying use revolving credit (equity) to pay for the negative cashflow, then bank on the capital gains. Overtime, wait for the rent to catch up.

    That's pretty bold, that's assuming property prices will keep going up, just as it does long term in the past 50+ years.

  4. #4
    Join Date
    Apr 2004
    Location
    Auckland
    Posts
    1,910

    Default

    Haven't seen so many spruikers this time around.
    Still licking their wounds from going bust such a short while ago I guess.

    Russian roulette any one?
    The three most harmful addictions are heroin, carbohydrates and a monthly salary - Fred Wilson.

  5. #5

    Default

    he did seem a bit overly confident in everything working out fine in the long run( I definitely don't like the sound of 2% yields!!!) he made me think that if you had three equally valued properties that were all cashflow neutral after all expenses (I/o mortgages) and they doubled every ten years in value, you would then be able to sell one of said properties after 20 years to knock off all the debt and still own two outright.
    I imagine that theory may already be out there though.

  6. #6

    Default

    Quote Originally Posted by Gary Lin View Post
    21minute onwards.

    Basically Chris is saying use revolving credit (equity) to pay for the negative cashflow, then bank on the capital gains. Overtime, wait for the rent to catch up.

    That's pretty bold, that's assuming property prices will keep going up, just as it does long term in the past 50+ years.
    Is this method of using revolving credit to pay for negatively geared property the same method promoted by Michael Yardney from Metropole?
    I attended a seminar several years ago presented by Michael (didn't act on it unfortunately) and from memory he outlined a method whereby a large revolving credit facility was used to offset negatively geared properties. The long term plan being the capital gains will cover the cost of any overdraft facility.

  7. #7
    Join Date
    Sep 2013
    Location
    Auckland
    Posts
    3,885

    Default

    Quote Originally Posted by CosmoKramer View Post
    Is this method of using revolving credit to pay for negatively geared property the same method promoted by Michael Yardney from Metropole?
    I attended a seminar several years ago presented by Michael (didn't act on it unfortunately) and from memory he outlined a method whereby a large revolving credit facility was used to offset negatively geared properties. The long term plan being the capital gains will cover the cost of any overdraft facility.
    I haven't heard MY speak, but if the property market there is all negative yielding, then there is only one strategy to buy property, which is negative gearing.

  8. #8

    Default

    And Govt are changing tax laws to make that less of an attractive option.

    Budget 2015: Buy-to-let tax break to be cut

    http://www.bbc.co.uk/news/business-33447991

  9. #9
    Join Date
    Aug 2009
    Location
    Auckland
    Posts
    1,080

    Default

    I do find his strategy far too risky in my opinion. However, if you are on a high income and a stable job then maybe worth it.

  10. #10
    Join Date
    Sep 2013
    Location
    Auckland
    Posts
    3,885

    Default

    Quote Originally Posted by BigDreamer View Post
    I do find his strategy far too risky in my opinion. However, if you are on a high income and a stable job then maybe worth it.
    To be fair, I think that kind of strategy is probably the only option in major centres like Sydney and Melbourne.

    But then these guys are selling their knowledge/service for $$$ *shrug*


 

Thread Information

Users Browsing this Thread

There are currently 1 users browsing this thread. (0 members and 1 guests)

Similar Threads

  1. How to embed youtube videos??
    By Shane D in forum Videos
    Replies: 4
    Last Post: 02-09-2013, 04:27 PM
  2. YouTube comes to PropertyTalk
    By sarahk in forum Forum Help Guides
    Replies: 7
    Last Post: 16-02-2013, 05:13 AM
  3. Chris Gray hasn't gone broke - yet
    By Bob Kane in forum General (NZ)
    Replies: 22
    Last Post: 26-10-2011, 10:02 PM
  4. Weird youtube clip
    By whitt in forum Coffee Lounge
    Replies: 12
    Last Post: 25-03-2010, 10:28 AM
  5. Video Converters - From Cannon to youtube
    By Niall in forum General (NZ)
    Replies: 6
    Last Post: 22-07-2009, 12:22 PM
  6. Youtube New Zealand channels launched
    By Julian Grainger in forum Property Investment (NZ)
    Replies: 2
    Last Post: 25-10-2007, 11:44 AM

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •