Real Wealth Australia

16 Replies

Hi All.

I'm curious as to whether anyone has heard of this group and what you've heard/experienced.

They seem to have an interesting model, and I am thinking of signing up.  They are offering a 24 month education and mentoring program with the aim of getting 10 properties in 10 years.  The offer includes unlimited access to coaches, supply of resources and tools and introduction to their experts including property managers, solicitors, financial advisors etc.  

It sounds great.  But it's not cheap, as you'd expect if they're genuine.  So before I commit that kind of money I'm curious if other people have heard of them...?

Cheers,

Helen

10 properties in 10 years is a very modest goal.  Especially with no other criteria such as profitability, cash flow, discount from market value, etc.  If this is the only goal it must be very basic education.  Like the kind you get from reading a basic introduction to real estate text book.  

Originally posted by @Don Konipol :

10 properties in 10 years is a very modest goal.  Especially with no other criteria such as profitability, cash flow, discount from market value, etc.  If this is the only goal it must be very basic education.  Like the kind you get from reading a basic introduction to real estate text book.  

 Hi Don.  Thanks for responding.  To me, 10 houses in 10 years is mind blowing.  But then how cheap housing in the US is also mind blowing to me.  This is one aim, another is to be earning $100K p.a. in passive income by the end of that period.  The strategy takes our ability to negative gear into account but also balances with positive cashflow.  Since I'm working full time, negative gearing and reducing my tax burden makes sense.  I already do this with my home in Melbourne to a degree.

Frankly, I'm stuck on where to start, how to start, how to find the right people to be on my team, what I can do with the equity and cashflow that I currently have, and how not to hamstring myself from being able to build the next deal.  These guys promise they can help with that.  I find the offering appealing, particularly since their model is investing in Australia. But since I know of no one who has used them (and I don't really know anyone personally who is successfully investing here) I'm a bit hesitant.  I'm naturally cautious by nature but I don't want to be impulsive in this because I do find it appealing and regret it later.  

Cheers, Helen

Originally posted by @Jay Hinrichs :

@Helen Rolls  ask the question on the AUssie version of BP  IE  propertyinvesting.com

or somersoft.. both of those are Aussie sites like BP that's were you want to get your info

Thanks Jay. I was trying to remember what they were called. I signed up a few weeks ago, and then I don't seem to be getting any emails from them, I forgot what they were called.  They are called propertychat now. There is a thread on there, but it's not very helpful... Although, there's no haters on it.  The site is not nearly as user friendly as BP.  Trawling through forums is a pain, I'd rather follow forums and set alerts like I can on here.

@Helen Rolls , PLEASE don't join this group (or any other guru course). They want you to have "skin in THEIR game", rather than the "skin" that is scraped off by buying PROPERTY!!!

And PLEASE, don't buy into the "negative gearing" (ie. losing money) RUBBISH!

I can hear the conversation now: "We have this property over here that would generate positive cash flow from day one, but you don't want that one, because you would have to pay taxes on your profit. Buy this one over here instead, because even though you are out of pocket hundreds of dollars every fortnight, you get to claim those losses against your tax return, so that your actual taxable income will be lower"! Really? You want to throw away say $7k per year so that your tax bill will be $3k lower?...

And this at a time when no-one in Australia (or elsewhere) can promise any appreciation on any property.

You are asking the right questions, and being "stuck on where to start" is not a sin. But being lured onto the rocks by the enchanting voices of the Sirens is! 

All the best...

Originally posted by @Jay Hinrichs :

@Helen Rolls   ask the question on the AUssie version of BP  IE  propertyinvesting.com

or somersoft.. both of those are Aussie sites like BP that's were you want to get your info

Somersoft doesn't exist anymore :(

Does anyone know what other new forum everyone went to after Somersoft shut down?

Thanks

Originally posted by @Engelo Rumora :
Originally posted by @Jay Hinrichs:

@Helen Rolls  ask the question on the AUssie version of BP  IE  propertyinvesting.com

or somersoft.. both of those are Aussie sites like BP that's were you want to get your info

Somersoft doesn't exist anymore :(

Does anyone know what other new forum everyone went to after Somersoft shut down?

Thanks

Hi Engelo. The new site is propertychat.com
Originally posted by @Helen Rolls :
Originally posted by @Engelo Rumora:
Originally posted by @Jay Hinrichs:

@Helen Rolls  ask the question on the AUssie version of BP  IE  propertyinvesting.com

or somersoft.. both of those are Aussie sites like BP that's were you want to get your info

Somersoft doesn't exist anymore :(

Does anyone know what other new forum everyone went to after Somersoft shut down?

Thanks

Hi Engelo. The new site is propertychat.com

 Thanks Helen

:)

Originally posted by @Brent Coombs :

@Helen Rolls, PLEASE don't join this group (or any other guru course). They want you to have "skin in THEIR game", rather than the "skin" that is scraped off by buying PROPERTY!!!

And PLEASE, don't buy into the "negative gearing" (ie. losing money) RUBBISH!

I can hear the conversation now: "We have this property over here that would generate positive cash flow from day one, but you don't want that one, because you would have to pay taxes on your profit. Buy this one over here instead, because even though you are out of pocket hundreds of dollars every fortnight, you get to claim those losses against your tax return, so that your actual taxable income will be lower"! Really? You want to throw away say $7k per year so that your tax bill will be $3k lower?...

And this at a time when no-one in Australia (or elsewhere) can promise any appreciation on any property.

You are asking the right questions, and being "stuck on where to start" is not a sin. But being lured onto the rocks by the enchanting voices of the Sirens is! 

All the best...

 Hi Brent.

Thanks for your input.  What is your experience with negative gearing?  I have found it quite useful for offsetting my HECS debt which I acquired before I realised that paying up front was much more effective.  Essentially painting a wall of my house will offset my remaining tax debt and some capital gains from some shares I sold this year.  Either I can spend $2K on the HECS this year or paint the wall (which desperately needs it), pay for that and offset the HECS.

Frankly, I'm not interested in negative gearing but there is something to be said for a history of house values consistently doubling over a 10 year period in this country in the major cities.  My home in Melbourne tripled in that time and has stagnated somewhat over the last five or so.  It would help if I did something with the front yard...

Over the last 10 years I have looked for experts, financial advisors, mortgage brokers... I've either been burned and/or disappointed.  I will keep plugging away.

Cheers, Helen

Hi Helen,

I've found this website.

http://www.myfuturesolutions.com.au/what-we-do/

I put an inquiry and they were very enthusiastic and called me up, saying they had issue sending the complimentary pdf file that I was suppose to get. So they say the would book me an information session free (value about $300 or $400).

But they are after for someone who has immediate cash to shell out... Per BP there are creative financing to use OPM so I told him I don't have money yet. His tone change...

@Anyone, feel free to provide your feedback with this company...

Cheers,

Joey

@Helen Rolls , I'm from Melbourne, so I've been familiar with all the "negative gearing" hype that has been bandied around for years. I must admit that the first reason I say it's rubbish is because I've never had an income that warrants asking an accountant about methods of tax minimization. This article from a few years ago sums up my understanding fairly well:- 

http://www.domain.com.au/news/the-positives-of-liv...

I can understand why you want to work your way through the mire of issues. 

Enter: the Gurus, all full of promises to help you navigate through all of the traps (for a nifty ongoing fee of course)! Believe me, all their packaged products will be presented with a wow factor (so long as your dollars keep flowing to THEM)!

As to their "balances with positive cashflow" claim, what's the bet that at least one of their products gives better than mortgage rate returns, so that if you buy THAT product as well as their other needfully negatively-geared (read: over-priced) property, you are hardly out of pocket at all! (Cynical much?)...

So far, the (paid) supporters for negative gearing in Australia have largely "got away with it" because property prices around the capital cities have continued on a seemingly unstoppable rise since the flat market of the mid-nineties (remember "the recession that we had to have"?), which HAVE offset those cash losses. 

But personally, I'll look for POSITIVE cash flow, together with its payable marginal tax, EVERY time! And yes, there are Gurus that specialize in that too, who have "secret" knowledge about the up and coming hot spots, or methods of securing undervalued property, that they will educate you on, with ongoing mentoring too... (need I reiterate my thoughts about THOSE Gurus?)...

All the best with your quest. Now that you have found BP, you can continue to learn here, and share too. We look forward to reading of your progress. Cheers...

Originally posted by @Brent Coombs :

@Helen Rolls , I'm from Melbourne, so I've been familiar with all the "negative gearing" hype that has been bandied around for years. I must admit that the first reason I say it's rubbish is because I've never had an income that warrants asking an accountant about methods of tax minimization. This article from a few years ago sums up my understanding fairly well:- 

http://www.domain.com.au/news/the-positives-of-liv...

I can understand why you want to work your way through the mire of issues. 

Enter: the Gurus, all full of promises to help you navigate through all of the traps (for a nifty ongoing fee of course)! Believe me, all their packaged products will be presented with a wow factor (so long as your dollars keep flowing to THEM)!

As to their "balances with positive cashflow" claim, what's the bet that at least one of their products gives better than mortgage rate returns, so that if you buy THAT product as well as their other needfully negatively-geared (read: over-priced) property, you are hardly out of pocket at all! (Cynical much?)...

So far, the (paid) supporters for negative gearing in Australia have largely "got away with it" because property prices around the capital cities have continued on a seemingly unstoppable rise since the flat market of the mid-nineties (remember "the recession that we had to have"?), which HAVE offset those cash losses. 

But personally, I'll look for POSITIVE cash flow, together with its payable marginal tax, EVERY time! And yes, there are Gurus that specialize in that too, who have "secret" knowledge about the up and coming hot spots, or methods of securing undervalued property, that they will educate you on, with ongoing mentoring too... (need I reiterate my thoughts about THOSE Gurus?)...

All the best with your quest. Now that you have found BP, you can continue to learn here, and share too. We look forward to reading of your progress. Cheers...

 Negative gearing has been used as a tool to offset your taxable income. I used it when I was working as an engineer to drop me down a tax bracket. Who wants to pay 45% tax when you can pay 30% legally?

If you are in the highest tax bracket, talk to an accountant, but negative gearing is a good tool. It's pretty much given that investing in Australia will result in min cash flow the first few years. Especially if your in Melb or Sydney where the average home price is $500000, I'm sure you are not getting $5000/month in rents? So you will have to negative gear for a few years.

@Federico Gutierrez , my main point was, you can never save as much on your Tax as you have to LOSE in the first place in order for that "saving" to take place! Of course, if you are on the top marginal income Tax, your "savings" will be greater than for those on lower incomes, but never dollar for dollar. Therefore the ONLY reason to recommend negative gearing is the HOPE of capital appreciation that will occur in the future, which would compensate you for having less money to spend EVERY pay day than if you hadn't made the purchase! (Yes, I said HOPE, not guarantee)!

And yes, you and many others are "getting away with it" - SO FAR! And I can see that it is hardly much of a sacrifice for those on a $100k income to blow off $20k negative cash flow to "save" $9k off their Tax bill, so long as the property has long-term growth prospects. And I can also see that paying (tax deductible) Advisers to steer them into Tax Minimization Schemes will continue to be a thriving industry - right up to the moment when the merry-go-round stops!

My main point is: there should be no reason to add ANOTHER layer of Advisers (eg. Real Wealth Australia) for @Helen Rolls  to lose MORE money to!

Keep up the great posts and info. @Helen Rolls have you read Making Money Made Simple by Noel Whittaker? I am making my way through it now. How did you go with this decision? I would love to hear some feedback after the fact...?