Financial Planning Property Academy

redwing

redwing

I saw in the latest issue of YIP a blurb about Rental Reality caught my eye having read about it on SS before, amongst a lot of other thought provoking posts by Steve Navra

The blurb was tied to a company called the Financial Planning Property Academy

i.e

Rental Reality™ - A New Paradigm in the Real Estate Industry

Step 1
• Ascertain the Market Yield in the area: Median Rental ÷ Median Selling Price

Step 2
• Ascertain the True Value of the property: Actual Rental ÷ Average moving median market yield This constitutes the real value of a property.
Click to expand...

There's also additional information on Heatmaps & LOE that have been posted here before also, if you are interested
 
redwing said:
I saw in the latest issue of YIP a blurb about Rental Reality caught my eye having read about it on SS before, amongst a lot of other thought provoking posts by Steve Navra
Click to expand...

Well spotted.

It looks like him - see his LinkedIn profile. http://au.linkedin.com/pub/steve-navra/1/23/b51

Although unlikely, there's a small chance of it being a namesake as there's another profile here:

http://au.linkedin.com/pub/steve-navra/b/19b/13a?trk=pub-pbmap

The blurb was tied to a company called the Financial Planning Property Academy
Click to expand...

This choice of name raises some questions.

The FPPA acronym (in big letters on their website) is just one letter different from the industry body for financial planners (FPA) and potentially easily confused. The real FPA is a professional or industry association as opposed to being a business selling financial services.

The other thing that's weird is that that the top of their website http://fppa.com.au/ says they're the Financial Planning Property Association. If you're starting out it's hard enough to get would-be customers to recall one name, let alone two!

Using easily mistaken names is a common tactic of dodgy colleges who wish to confuse and rip off students by adopting similar names and branding to reputable and established universities.

Then there's the spruiker outfits that call themselves 'clubs', when they're actually cunning businesses that distort language to attract suckers. The word 'association' is similar, with its wholesome implications of volunteerism, mutual help and non-profit.

So there's two alarm bells ringing right now.

Some may think that there's nothing in a name, but to me confusing people before taking their money does not appear the best way to do business or (re)build trust. What sounds a cute idea over coffee might not cut it in the real world.
 
Hi Redwing, Sim and others,

Yes I am associated with the Financial Planning Property Academy and my wife is one of the company officers.

Please note that the FPPA offers education and training only .
There are no products for sale, nor any financial advice given, it is 100% education only.


The Academy specifically chose the name FPPA because it's mandate is to train Financial Planners, Accountants, Mortgage Brokers and other professionals about the specifics of property and to achieve their 'Certificate of Registration' in Real Estate, so that they can advise their clients about property. (Most of these professionals do not have any formal RE training.) see: www.fppa.com.au

The Academy also runs Property educational lectures and workshops for the clients of these professionals and for the members of the public who wish to attend.
Property Heatmaps™ - Property Timing & Rental Reality™ - Real Property Valuation, are part of the education syllabus.

Once again, there is no product sale involved and I am doing what I enjoy most - purely educating people to be accurate with their property due diligence.


Kind regards,
Steve Navra
 
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The valuation method outlined in Redwing's post is very similar to the dividend growth model in finance. Interesting way of valuing a property but I thought it will be safe to assume that rent will grow thus be accounted for in the calculation which it currently isn't.
 
Joel said:
The valuation method outlined in Redwing's post is very similar to the dividend growth model in finance. Interesting way of valuing a property but I thought it will be safe to assume that rent will grow thus be accounted for in the calculation which it currently isn't.
Click to expand...

Hi Joel,

Yes you are quite correct that the calculation is similar to the 'dividend growth model in finance'

Rental growth is included and is reflected in the calculation by way of the difference reflected between the Moving Median Yield (MMY) of the post code and the actual (new rent) reflected for the property.





The two important points to consider are:
  1. A property will achieve a certain rent based on the attributes of that property.
  2. A post code will achieve a certain yield based on the attributes of that post code.
The value then is acsertained by the actual rent the property can achieve (what rent the market will actually pay for that particular property) and compared to the moving median yield of that post code. (The actual strength or desirability of the post code.)

The method has proven to be very accurate over the past 25 years and properties purchased within these parameters have achieved an average capital growth per year in excess of 9%; which compares very favourably with Australian city averages over the same time period.

Kind regards,

Steve
 
PT_Bear said:
Another perspective to this questions is, given that Donald Trump went from a billionaire to broke, would you listen to his advice today?
Click to expand...
Peter Spann is another one with a failed business behind him.

This was well before the current one btw
 
Never met Steve or invested with him or know anyone that has. So the guy has gone bankrupt. Well hopefully he has learnt a few things along the way which he can then use to train others.

Remember as well bankruptcy may have been taken to get rid of some nasty creditors who want assets which are wisely held in trust through other entities. Personal bankruptcy means very little in these sort of cases.

Aka Keddies lawyers where the directors have all gone personally bankrupt and yet the wifes hold millions of dollars in assets. To be honest these sort of people are the ones you want advice from. They know the tips and tricks because they have been through things.

I have had many dealings with Jim "Big Jim" Byrnes http://www.thepowerindex.com.au/power-move/big-jim-byrnes-back-in-business/20110929470 and I can tell you the things this guy knows is amazing. How because he has been through many things. Criminal proceedings, bankruptcy, ASIC actions, you name it. His clients have benefited greatly from his knowledge.

Anyway just my 2c worth.
 
I have no issue with people going bankrupt and then making it all back again. What I do however have an issue with is HOW the money was made and then (possibly) remade.

In Steve Navra's case his money was largely made by giving advice on investing, then collecting a fee for implementing that advice for his clients, via Navra Financial Services pty ltd (in liquidation).

It appears to me that the very advice, based on his Living off equity strategy is now the cornerstone of his 'education' business. I know many, many, people who are now significantly financially worse off from following Steve Navra's advice and question if anything has been learned by his bankruptcy, why is the same 'living on equity' drum still being beaten?

CW
 
chai walla said:
... question if anything has been learned by his bankruptcy, why is the same 'living on equity' drum still being beaten?
Click to expand...

My understanding is that Steve's bankruptcy had nothing to do with "living on equity".

The primary factor was the Great Southern investment loans, which turned out to be a great big pyramid scheme and caught out a lot of people who were basically mislead by the directors of that company. Steve invested in these products alongside his clients - when the house of cards fell down, he was left with debts he couldn't repay.

Secondary factors would be pending legal challenges brought by several disgruntled clients who were unhappy with the advice given.

I'm not defending the investment strategies used by NFS - just pointing out the circumstances surrounding the bankruptcy.
 
Sim said:
Secondary factors would be pending legal challenges brought by several disgruntled clients who were unhappy with the advice given.
Click to expand...

Sim,

Not to quibble about primary or secondary factors, it is however it the “Living on equity” advice that resulted in the legal challenges!

CW
 
chai walla said:
Not to quibble about primary or secondary factors, it is however it the “Living on equity” advice that resulted in the legal challenges!
Click to expand...

I don't think that's necessarily the case - I'm not sure if any of the affected clients were actually "living on equity" as opposed to just being too highly leveraged. I don't know the personal details of the people involved, so I can't comment either way.

My point is that "living on equity" was only one of many strategies suggested by Steve for some of his clients and not something that was mandated. Not everyone was doing it - indeed I don't personally know any of Steve's clients who actually tried it.

I don't think it's accurate to assert that all of the client who lost a lot of money (or indeed all of it) were living on equity, when I'm sure a good deal of them were simply just too highly leveraged when the bottom fell out of the market (and were subsequently re-leveraged into multiple other products which failed to perform, thus compounding the problem).

Like I said - I don't actually know the personal details, so this is just speculation - as is any assertion that "living on equity" was the culprit in all cases.
 
PT_Bear said:
Another perspective to this questions is, given that Donald Trump went from a billionaire to broke, would you listen to his advice today?
Click to expand...

I see the point you're trying to make but don't think you could lump this guy (or Peter Spann) into the same company as Donald Trump. In Oz perhaps Frank Lowy could be compared but not Steve Navra.
 
jaK said:
I see the point you're trying to make but don't think you could lump this guy (or Peter Spann) into the same company as Donald Trump. In Oz perhaps Frank Lowy could be compared but not Steve Navra.
Click to expand...

So is it just the number of zeros on the end that matter?
 
Sim,

I also don’t know of any one who was actually ‘living on equity’ as we, and everyone else we know, where ‘on our way’ (or so we thought) to living on equity. But it was certainly the implementation of the ‘living on equity’ advice that resulted in our and many others massive financial losses.

CW
 
jaK said:
I see the point you're trying to make but don't think you could lump this guy (or Peter Spann) into the same company as Donald Trump. In Oz perhaps Frank Lowy could be compared but not Steve Navra.
Click to expand...

I certainly wouldn't employ everything Steve says and I agree that he's not Donald Trump, but I'm probably more willing to listen to Steve than most people. He's certainly made some mistakes and I'm inclined to outright disagree with some of his ideas, but he's also got a lot of experience that's worth hearing about.
 
coastymike said:
Never met Steve or invested with him or know anyone that has. So the guy has gone bankrupt. Well hopefully he has learnt a few things along the way which he can then use to train others.

Aka Keddies lawyers where the directors have all gone personally bankrupt and yet the wifes hold millions of dollars in assets. To be honest these sort of people are the ones you want advice from. They know the tips and tricks because they have been through things.

I have had many dealings with Jim "Big Jim" Byrnes http://www.thepowerindex.com.au/power-move/big-jim-byrnes-back-in-business/20110929470 and I can tell you the things this guy knows is amazing. How because he has been through many things. Criminal proceedings, bankruptcy, ASIC actions, you name it. His clients have benefited greatly from his knowledge.
Click to expand...

In 2006 ASIC found that Byrnes' management of four failed companies "demonstrated incompetence, a lack of commercial morality and a disregard for his statutory duties as a director".

Big Jim has also been called a "standover thug" by a judge and found guilty of drink-driving, dangerous driving, negligent driving, speeding, driving while uninsured and driving an unregistered vehicle.

The former used car salesman also spent 17 months in prison during the 1980s for heroin supply and malicious wounding.
Click to expand...

Charming, just the kind of guy I will want to take advice from... NOT!

CW
 
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