Share on Facebook Share on Twitter Share on Reddit + - Pop quiz: What is the IQ of the average specufestor? By Houses and Holes in Australian Propertyat 12:21 pm on April 21, 2017 | 90 comments You tell me. Share on Facebook Share on Twitter Share on Reddit + - YOU MAY ALSO BE INTERESTED IN Falling home ownership creates ageing time bombBy Leith van Onselen The Grattan Institute's Australia's sub-prime mortgage rate resetThe rarely useful Elizabeth Knight put her fingerAuction clearances retrace some moreCoreLogic released its auction report yesterday,Where's Australia's overarching housing policy? Cross-posted from The Conversation: Does Comments reusachtige April 21, 2017 at 12:25 pm IQ? LOLOLOL!!! Such a high-brow question. No one cares. It’s looks that count! Houses and HolesMEMBER April 21, 2017 at 12:26 pm Not size of portfolio? LabrynthMEMBER April 21, 2017 at 12:36 pm Its how you use the protfolio… DennisMEMBER April 21, 2017 at 7:33 pm Lab, It’s only men who say it’s how you use it, women go for size! GavinMEMBER April 21, 2017 at 1:32 pm Nathan Brich around 1m mark says: “I do feel like we’re living in a communist society”. hahahahahaha is that you Reusa on the video? reusachtige April 21, 2017 at 2:36 pm It all started with “thou shalt not kill”. It’s been a slippery slope of deprivation of freedom ever since. BrettMEMBER April 21, 2017 at 12:26 pm Whatever it is, I believe it halves every 7 years. footsore April 21, 2017 at 12:27 pm Zing. BentoMEMBER April 21, 2017 at 12:28 pm This guy is a mortgage broker dressed up as a property investor. He “helps” people into debt to buy properties that will destroy their personal finances whilst he milks the commissions until they blow up. A grade A effwit that will be the poster child for the bust. I can’t wait to see him lynched by A Current Affair and disgruntled clients who were promised “financial freedom” when all they got was a huge unpayable pile of debt. footsore April 21, 2017 at 12:35 pm The editing reminds me of when Homer was misrepresented by ‘Rock Bottom’. https://youtu.be/qEGFaOeUm2A fishbulbMEMBER April 21, 2017 at 1:13 pm Easily one of the best episodes that one. blacktwin997MEMBER April 21, 2017 at 2:01 pm Yes, it’s no wonder they didn’t have a clock or window in the background of that clip. I’m suspecting they edited out his periodic over-excited open mouthed breathing interludes. Not that i can really point the finger, on occasion i do enjoy open mouthed breathing myself. Just not within the framework of publically-accessible financial advice. [email protected] April 21, 2017 at 12:36 pm He is also a buyers agent so he earns commissions for “buying” houses plus commissions for legal transfers and accounting services. I believe ASIC had a look at him too! 8millMEMBER April 21, 2017 at 4:49 pm From top to bottom, seminars, buyers agent, mortgage business, plus little disclosure Sht has Scott Morrison got a son! DavidMEMBER April 21, 2017 at 12:36 pm Now I’ve watched that, it will probably start showing up property stuff in my youtube suggestions. I’ve been bamboozled! Bullion BaronMEMBER April 21, 2017 at 12:37 pm You’re seriously going to question his IQ? This guy makes hundreds of thousands per year from his property portfolio and is sitting on millions in equity, the vast majority of it acquired while this site has been pushing the bubble mantra for 7 years. He may not excel at an IQ test, but he is not stupid. Mr Walker April 21, 2017 at 12:42 pm Whilst I kind of agree with you, it’s worth noting in a bull market even a hapless investor can look clever. Bullion BaronMEMBER April 21, 2017 at 12:48 pm A Sydney property investor who happens to own one or a few properties and benefits from an upswing in prices could be a hapless investor made to look clever in a bull market. This guy has been out there actively building his wealth, coordinating renovations (including gutting/gutted houses), subdividing, building new, creating businesses around his expertise, etc. Questioning his intelligence is for those with tall poppy syndrome. [email protected] April 21, 2017 at 12:55 pm Yes Walker, that’s why they say; when bellhops and cabdrivers start giving you investment advice, get the hell out of the market! JulianMEMBER April 21, 2017 at 4:45 pm He’s a risk-taker (and perhaps hard worker) who sees the world through a simplistic prism and who happens to have gotten very lucky because things kept swinging his way. It’s a fine line between such a person and a bankrupt. In my experience and observation, few successful people in business have the self-awareness and wisdom to acknowledge the luck that brought them success (of course, they’re quick enough to blame the bad luck that nearly brought them unstuck those couple of times, but the upside somehow seems to be entirely a result of their exceptional brilliance). All the gutting and renovating and subdividing and building in the world won’t help you if the market’s falling. Houses and HolesMEMBER April 21, 2017 at 12:57 pm Always have to rain on the parade don’t you, Property Baron? What fun you must be at a party. Bullion BaronMEMBER April 21, 2017 at 1:07 pm I’m no Corey Worthington, but probably more fun to be around than the guy who writes doomsday articles about the Australian economy for a living 😀 jimboMEMBER April 21, 2017 at 1:30 pm Yet you still pay to read it? A true man of your convictions BB. Bullion BaronMEMBER April 21, 2017 at 2:01 pm I negatively gear the cost of my subscription, so the tax payer foots part of the bill jimbo 😉 I think there is some great content here. Certainly enough that I get my $200pa worth. That doesn’t mean I have to agree with it all. Jake GittesMEMBER April 21, 2017 at 1:12 pm “the government are doing these things to make it harder for people to get ahead”. He is not stupid. He is a fortunate cretin. With so much govt assistance for specufestors there is no insight, or planning, he has the entire state apparatus and finance industry backing him. [email protected] April 21, 2017 at 1:57 pm If his clients go to jails for defrauding creditors in bankruptcy proceedings, there will be plenty of “getting a head”. NudgeMEMBER April 21, 2017 at 1:59 pm “…… he has the entire state apparatus and finance industry backing him”. You’d be surprised how many builders & building suppliers who don’t look deep enough to understand that little detail properly. simpeltonMEMBER April 21, 2017 at 2:06 pm haha…..making money and IQ are mutually exclusive. I dont the guy on this video but from what he says about a free market etc, he clearly doesn’t know what he’s talking about. marked64 April 21, 2017 at 12:38 pm “Most trusted source of property advice in the country” [email protected] April 21, 2017 at 12:45 pm He keeps repeating “he owns 200 properties” with 70% or so “equitymate”, yet his name is not on the YOUNG 200 LIST….. because “he opted out of it” http://www.afr.com/leadership/brw-lists/brw-young-rich-2016-20161026-gsb62m marked64 April 21, 2017 at 1:34 pm Really? For a guy who would benefit from the publicity it would generate for his business and isn’t shy about media appearances to promote himself, he opted out? CornflakesMEMBER April 21, 2017 at 12:48 pm The IQ goes lower with every rate cut. But there are suckers who hang off every word of people like this. If only I wasn’t a (mostly) honest person….. Also how is banking regulation Communism? The world’s going bloody nuts if that is the case. swizzy April 21, 2017 at 1:08 pm Depressing stuff. On the flipside, “Bright Yellow Happiness” is getting good reviews: https://www.amazon.com.au/Bright-Yellow-Happiness-Fulfilment-Financial-ebook/dp/B01BL10QAU [email protected] April 21, 2017 at 1:10 pm What this bloke is preaching works for all bull markets, wether stocks, cattle or rare coins. Wait till mother nature eventually takes its course! It won’t be a pretty sight, I tell you. reusachtige April 21, 2017 at 2:44 pm LOLOLOL!!! Freaks like you have been around these parts for years and they have all learned, without exception because they no longer make dumb comments like this, to realize what an embarrassment to oneself comments like yours are! You epitomize the loser who comes and goes from these parts. You’ll give up eventually, and feel so ashamed of your loss! That’s when you’ll realize you were actually the dumb one who had delusions of being the smart guy when all you were capable of was counting trains! Find me a rich train counter… LOLOLOL!!! Leaner April 22, 2017 at 2:43 pm How about this app’s creator? https://itunes.apple.com/us/app/train-counter/id564463386%3Fmt%3D8 : ) Sydney April 21, 2017 at 1:16 pm What is the IQ of the average specufestor? Who gives a flying F what their IQ is, seriously this social bias that a high IQ is desirable is a big part of Australia’s problem. When I was a lad being Handy with your fists was considered far sexier than IQ, but we’ve fixed that problem with anti-bullying legislation, what is IQ anyway? Smart people could see what was happening to Aussie RE and voted with their hands, feet, brains and bank balances to be part of the game. News flash: The Aussie RE game is rigged, anyone that lacks the intelligence to see this has no business suggesting Specufestors have low IQ’s AndrewMEMBER April 21, 2017 at 3:14 pm +1 DominicMEMBER April 23, 2017 at 2:52 am To suggest property speculators understand that the game is rigged and act accordingly is quite a stretch ( perhaps a handful do, but no more). What they understand is that it is currently a way to increased wealth without breaking sweat. Sadly, what they don’t understand is the true risks, but they will do soon enough. stop the stoats April 21, 2017 at 1:17 pm He names his company after his favourite KFC burger? proofreadersMEMBER April 21, 2017 at 1:23 pm Surely, this guy has to be a son of reusa – just get a load of his good looks? Daylight RobberyMEMBER April 21, 2017 at 1:27 pm So us bears have been continually outsmarted financially by a bunch of low-IQ dullards for many years? Now I’m even more depressed. 🙁 Ronin8317MEMBER April 21, 2017 at 1:35 pm The guy in the video doesn’t have a low IQ : the people who believes the guy in the video however.. swizzy April 21, 2017 at 3:16 pm You have a point, this act maybe intentional. There was an article on Slashdot written awhile ago about how spammers and fishers intentionally put in grammatical errors in spam, not because it fools the spam filters but because they found it gave better responses. coolhandluke April 21, 2017 at 1:35 pm He’s not dumb, he’s appealing to the duckheads who fall for the words: -commusim -free market We all know that the housing market is everything that he says it isn’t. David April 22, 2017 at 8:15 pm Someone should point him to the Phillip Soos article from last year. If he got all the way through and read all the links I think his head would explode. I usually find the terms like “unearned income” [email protected] Ninad April 21, 2017 at 1:40 pm There is a major confirmation bias when you are invested in property. Several of my friends who own property never click on pessimistic bubble news. They might be looking at these videos, who knows. 2big2failMEMBER April 21, 2017 at 1:42 pm Lots of people with high IQs failed to read the RE market in Sydney/Melbourne over the years. Back in 2004, the Economist magazine declared a RE bubble in Australia and predicted a 30%+ correction.. we all know what happened since then.. While I am no fan of this guy, I can bet you people who took his advice made much more money than people who listened to the high IQ people who’ve been predicting a correction for the past 15 years. In fact, it’s not IQ that determines RE investment success (and probably this guy is the proof), it’s being able to correctly see trends.. Did people with high IQ see the impact of the unprecedented Chinese wealth creation on the Australian RE market? No. Did people with high IQ predict how far our government will go to keep the Ponzi going? No. In Australia, people with low IQ (but high street smarts) and an abundance of luck are the ones that made money in RE (until now that is, until you sell, it’s all on paper). reusachtige April 21, 2017 at 2:50 pm Exactly. The truth is that people with high IQ are more likely to be losers!!! They can’t relate to reality, they live in the Star Trek universe and masturbate a lot more than normal people. Gerald April 21, 2017 at 3:34 pm spoken true. swizzy April 21, 2017 at 4:49 pm Give this guy an editorial! “He’s objectionable, he’s despicable, but he’s making me fiflthy rich.” tanmedia April 21, 2017 at 3:49 pm Nathan Birch predicts and calculates the impact of capital flows from China and govt policy on house prices? If you’re taking the proverbial pis, I get your point. swizzy April 21, 2017 at 4:42 pm He predicted in 2015 that house prices in Brisbane would go up: http://www.news.com.au/finance/real-estate/buying/dont-buy-into-housing-bubble-bullst-says-property-tycoon-nathan-birch/news-story/96a221df4fb5910b0b0118f5ac7a20f6 And, they went down in 2016. Right now this video is sour grapes, the banks are cutting off his mortgage broker company, it’s a bit on the nose methinks. Owen April 21, 2017 at 4:48 pm It’s also a morality thing. When it comes to survival and money most Australians have the morality of a sewer rat. We just didn’t know how low they would go. We don’t even know what’s going to happen in the event of a crash, another bail out, the leftists are frothing at the mouth to throw hundreds of billions at pretty much anything because they are a bunch of brainwashed double speaking idiots, and the right like to pretend they are frugal but will do much the same. Could kick the can along for another 10 years or for good. ComingMEMBER April 21, 2017 at 1:49 pm This post shows the very blinkered thinking of the owners and members of this site The problem is that you are all: -too smart and arrogant/proud to follow the crowd (which is often advantageous) -not quite smart enough to fully appreciate the fundamental changes in labour/money mechanics/politics that has occurred over the last 20 years So you have ended up unfortunately in no-man’s land, trying desperately to be contrarian to show your superiority to the (admittedly unsophisticated) general populace, but ending up looking foolish -The money supply will continue to expand by whatever means necessary -There is no natural regression to mean. This is not a natural system, it is purely artificial -Perhaps the tide will turn due to political pressure or behind-closed-doors machinations, but that is not a foregone conclusion -Reading the mood of the general populace, and the intentions of the elites, is all that matters fitzroyMEMBER April 21, 2017 at 2:07 pm I suppose you would say if he sold now his IQ would be Mensa level! With the shimmering brilliance that only hindsight can give, the MB tips can be inconsistent. However we all have to live our lives going forward, and the MB heart is always in the right place. MB has tended to put too much weight on statistics that they do know, and not enough on the absence of statistics that they don’t know, but one can take that into account in the prognostications given. That too is only visible in the brilliance of hindsight. You were correct in looking at property purchase in the light of alternative investment, especially taking into account the tax consequences of the same, but as with any investment, timing may be crucial. ComingMEMBER April 21, 2017 at 2:49 pm They do have their hearts in the right place (I think) But its not a question of being inconsistent: they have been consistently wrong on this for what 8 years? At what point will there be any self-reflection? Any possible consideration that they might have been wrong? And yet they still have the hide to mock other people for their investment decisions? It isn’t helpful, interesting or funny. Its embarrassing reusachtige April 21, 2017 at 3:02 pm Like, no offence, but… Dude in the video is the smart one, he will go on to grow his property empire and enjoy more relations in one evening than most of you will ever experience in a life time (unless you pay for it but youse would never “lower yourselves” to that just to finally get a root, that’s part of your problem). arescarti42MEMBER April 21, 2017 at 1:58 pm The worrying thing to me is not IQ, it’s the general lack of financial literacy in this country. I recall reading (I think the DFA surveys?) about the number of people with IO loans who didn’t know their payments would increase once the IO period finishes, or who thought that LMI would cover them in the event they couldn’t make payments, or don’t even understand the difference between paying interest and paying principle. I’ve spoken to a couple of people who seemed mind blown when i showed them that they’d probably pay close to the same in interest to the bank as they would paying back the principle on their loan over its life. I’m convinced the average Australian basically takes the industry at their word when they say that you can’t lose on bricks and mortar, and then just hopes for the best. David April 21, 2017 at 2:01 pm More importantly, he’s not as good looking as reusachtige assured me property investors were. 🙁 StevenMEMBER April 21, 2017 at 2:03 pm The banks will bleed this guy dry by the time their done. NudgeMEMBER April 21, 2017 at 2:06 pm You don’t need an high IQ to know not to piss into the wind. Being as adroit as a weather vane in picking the correct changes is the trick…… Good luck with that. Duke_WellingtonMEMBER April 21, 2017 at 2:21 pm Boys get in here : https://www.youtube.com/watch?list=PLuyrNbaITzhlhuNUGU6kArzTxQUsD1Eyp&v=xhWi86fRA-0 ahahahahahahahahhahahaa footsore April 21, 2017 at 2:47 pm Holy cow. I thought that this type of stuff was just urban legend. Simon April 21, 2017 at 6:19 pm That actually really creeped me out. I was kind of expecting to hear Matt Damon’s narration cut in at the end. “It sounded all too familiar; almost like a replay of ‘Heavens Gate’ in its promise of eternal life on the passing asteroid of property wealth, never realising they were all marching merrily behind the pied piper of property fortune, to then have their lives taken from them as the Australian housing market went in to free fall…” marked64 April 21, 2017 at 2:34 pm He predicts interest rate movements too! HnH – rates to zero, a man after your own heart! https://www.youtube.com/watch?v=C56fqQkbYag wait, does he have silver thongs on his wall? [email protected] April 21, 2017 at 2:42 pm Amazing how ballooning markets turn every monkey into an investment genius. Let’s wait and see what happens when the tide goes out……..he…he…he…he…he…he…Another thing should bother his clients; If he’s such an expert in property investing, why does he pass on all those brilliant bargains to other people and NOT keep them for himself? I remember many shonksters flogging horse picking software on gambling websites. REALLY!!!!!???? You’d think they’d be keeping such valuable secrets to themselves, ah? RutherfordMEMBER April 21, 2017 at 2:52 pm The truth that hurts so much here is that this guy’s IQ speaks for itself, yet he’s been more right on housing than MB for the last 7 years. MichaelMEMBER April 21, 2017 at 3:06 pm Nathan Birch isn’t exactly the sharpest tool in the shed. I have to wonder why he isn’t in the Bahamas himself right now? I suspect the amount of money he “claims” to have made is far from reality. It is clear he has half a brain, as he has setup a business to try to earn some money. If he was smart however, he would be de-leveraging on the quiet, and if he was really smart, he would be selling his properties to his dumb clients. Anyway, to give you an idea on how this guy thinks, I know someone who knows him. Nathan wanted to buy a new car (a Nissan GTR) and to afford the lease payments, he just increased his rents by $5 per week. All debt funded! [email protected] April 21, 2017 at 3:58 pm Right on the money, MIchael! I would be also leaving Australia after I flogged the lot to avoid getting sued when the shite hits the fan blades. Now that’s smart, ah? UptownFunk April 21, 2017 at 3:29 pm Q : What is the IQ of the average specufestor? A: Twice that of the average MB subscriber/blogger Result: 100% correct. Owen April 21, 2017 at 3:38 pm Real Aussies are specufestors. Remember that this Anzac Day. They died so you could get a block of units on tick and fill them with students. [email protected] April 21, 2017 at 4:04 pm Wanna see smart? How about the management of “Enron, the smartest guys in the room”? https://www.youtube.com/watch?v=-w6duQhWuVk ricsvtrMEMBER April 21, 2017 at 4:25 pm . TailorTrashMEMBER April 21, 2017 at 4:35 pm Reminds me of another Nathan ………..Tinkler ………what ever happened to him ? lignjeMEMBER April 21, 2017 at 4:38 pm They have the right IQ, which is good enough. One image I do wish to be able to find is that of an old mate who says it’s tough paying three mortgages on one salary. His IQ is bang on. footsore April 21, 2017 at 4:40 pm Isaac Newton was definitely a genius and he lost a fortune on a stock bubble. IQ doesn’t seem to come into play if greed is on the field. swizzy April 21, 2017 at 4:56 pm “Whatever goes up must come down”. Actually, the thing with Isaac Newton was that he was an egotistical fool. Jake GittesMEMBER April 21, 2017 at 7:47 pm Add Irving Fisher, quite brilliant but convinced of ‘this time it’s different’, and it was: he lost everything. And JM Keynes who also made some bad trades. Churchill also lost his pile in 1929, which is why he had to write and then win the Nobel prize. swizzy April 21, 2017 at 6:23 pm Him telling specufestors to avoid communication with tenants because they’ll ask to fix things: https://youtu.be/InwEzSru61U You just can’t make this up. [email protected] April 21, 2017 at 6:33 pm You’re right on the money, Swizzy. Why would you look after your tenants? It’s a lot better to have a vacant property for 3 – 6 months. That’s how you save money????? billygoatMEMBER April 21, 2017 at 7:50 pm Wow priceless. I hope something bad happens to him soon! [email protected] April 22, 2017 at 7:17 am Well Billy, If you want any guidance as to what normally happens to people who are “true believers” do a Google search on other spruikers like Storm Financial, Henry Kaye and many others I’ve already forgotten; https://en.wikipedia.org/wiki/Storm_Financial Also check out ASIC’s website MONEYSMART https://www.moneysmart.gov.au/scams/companies-you-should-not-deal-with Unfortunately there are operators who appeal to a certain niche in the market that approaches investment without questioning, like a religion. No referencing, research, self education or cynicism. I.E., they basically want to believe the dream……similar to marriage! Bullion BaronMEMBER April 21, 2017 at 11:51 pm He comes across as an arse in that video, but his message was not ‘avoid communication’ but rather use a property manager and don’t bring your ego/expensive toys when negotiating to buy a property. Pretty good advice in my view. It’s a good idea to keep a property in good repair, even make substantial improvements where cost effective to do so (e.g. increase in rent if appropriate), but some tenants can be unreasonably demanding. swizzy April 22, 2017 at 1:24 am He says you should pretend to be a handyman, fix things without a plumbing license and lie to tenants and say you aren’t the landlord. Can’t be made up. Anyway, he’s coming across as an arse intentionally, because that’s the kind of people he wants to attract. By far the worse place to bring your ego is to spruikers like this guy, because they are very good at manipulating peoples ego’s. swizzy April 22, 2017 at 1:42 am Correction: He says he never looks at the properties until after purchase and that you should pretend to be a handyman, fix things without a plumbing license, check out the house you purchased and lie to tenants and say you aren’t the landlord. He’s a buyer’s advocate. This can’t be made up. [email protected] April 22, 2017 at 7:23 am That’s absolutely correct Baron, If that was his intention! Hooksey April 22, 2017 at 7:52 am TT. I recall the article in the local QLD paper about Nathan Tinkler. He was photographed walking up the stairs of the stadium at the Newcastle Knights game ( the team he owned at the time). All the items of clothing he was wearing were from Lowes and cost a total of $200 ( inc. the shoes). This supposedly showed that he was a “man of the people” A few weeks later there was a photo of a group of people standing around the smouldering wreck of a new Ferrari that had been stolen from NTs a few days earlier. He said that he had been meaning to upgrade his security at his new house but hadn’t done so yet. The contrast between the two articles was extreme! brian560MEMBER April 22, 2017 at 12:32 pm What do you expect of property speculators. They are being rational. We are experiencing the consequences of low interest rates, nrgative gearing tax concessions, Self Managed Super Funds being allowed to buy property as investments, interest only repayment loans, being taxed on money in the bank, sharemarket volatility undepinned by surging demand caused by high migration. Put it all together and property is the only game in town.You’d have to be stupid to put your money anywhere else. [email protected] April 22, 2017 at 2:53 pm What about Perth, Darwin, Brisbane, North QLD and hundreds of mining towns? Why aren’t all of the above helping them, ah? Maybe, just maybe, this is all about expectations of ever rising prices in Melbourne and Sydney. What about Vancouver, Canada? It had all of the above and the market fell. Eventually all follies come to an end and it won’t be a pretty sight! TRUST ME!