oc | Sunday 5th April

Young buyers – here is a guaranteed million dollars – no charge.

The Age. , James Buyer Advocates Young Homebuyer series is designed to take homebuyers through the entire homebuying process from the inside. The article series has become the biggest read online series of its type. It has been been published throughout Australia and internationally. It continues on from James Home Ratings – an industry standard in the assessment, valuing, and buying of Melbourne homes at auction, private, set sale or expressions of interest.

Summary of the many comments received from the public, the real estate industry and importantly young homebuyers

  • “The most brilliantly accurate homebuying insights I have read and I’m 76”
  • “Mal your articles are so simple, yet so spot on”
  • “Your and negotiation concepts make me look at things very differently”
  • “I’ve learnt a lot”

Today you will win a in , no strings attached, are you interested?

Why not?

Hi my name is Mal James and I bought my first home in 1985, since then I have bought over a thousand properties for young, middle aged and older homebuyers. It’s been a wonderful journey so far, and it is a journey I am still learning every day on.

Over the next two months in James Masterclass (www.james.net.au), in Domain and The Weekly Review, you will see as a young person first entering the property market, how you can make decisions that will put a million dollars into your pocket by doing nothing other than simply making a decision. A good one that is.

No you don’t need to pay me anything, there are no strings attached and anybody and everybody can do it if they so choose.

Today we talk about “the knowledge”; next week(s) its process – plan and do; week 4 is – what is a good and what is a bad home; week 5 and maybe 6 is Value, week 7 is Negotiation and week 8 is putting it all together.

Bored Already? Here is the first way to get a million dollars and its guaranteed.

Understand there are good homes and there are bad homes (for you).

Below are 3 of the many real life examples we will use in the coming weeks. 3 real people made 3 real decisions in the year 2000. 2000 was time of property spruikers, of “financial planning” and of some big “reputable” firms urging all to buy into Melbourne’s new ; the High Rise Apartment market. Many young buyers did so under the lure of no stamp duty, easy payments, depreciation schedules and promises of riches. Many of those people paid and are still paying a very high price for that one decision.

Young Apartment Buyer
In 2000 a young home buyer could have bought an apartment in Docklands at 15 Caravel Lane for $507,500 and resold it for $576,000 in 2014.

Young Inner Melbourne Buyer
Around 2000 you, as a young home buyer could have spent similar money on a family home in Celia Street $493,000 and sold again in 2014 for $1,500,000.

Young Outer Melbourne Buyer
Around 2000 you could have spent a lot less money on a home and still got some in Barrington Drive Pakenham ($134,000 around 2000 and resold for $285,000 around 2014).

All above stats are from the Valuer General.

Buying a home is a big decision. It covers one of your most basic needs – shelter. Wisdom Number one is that there is good shelter and there is bad shelter.

Good shelter makes you feel happy and safe. Good shelter gives you good emotional outcomes. It also provides good financial outcomes. Good shelter makes you money, and it costs you less. It gives you greater freedoms in your life, in the form of lower mortgages, more free money, and more free time.

Some people buy good shelters and have good lives and some people buy bad shelters and end up struggling. Why does it work out like that? Why do some people end up cruising through life with little or no mortgage, holidays galore and living in a beautiful home, while others struggle, even if they both started with the same opportunities?

One reason relates to the decisions they make regarding the shelter they buy. Wisdom Number two is about decisions. We all make good decisions and bad decisions.

The Knowledge: So there are good homes and bad homes and basically when you are young you begin on your homebuying journey by making good or bad decisions.

Just as those people in Caravel Lane, Celia Street and Barrington Drive did. A good decision at Celia Street Glen Iris put a million dollars into the family’s pocket and gave them a home they could bring a family up in without moving – but more on that later. And its actually a lot more than a million dollar difference between them and the Caravel Lane family, if the Caravel Lane people today decided to take on a mortgage and buy in Celia Street Glen Iris (also more on that later).

This revelation is actually good news – you don’t need an inheritance and you don’t need to be great at business – you just need to make good decisions to get into a good home.

Good homes are like good health. You get there by not buying Big Macs, you get there by buying Healthy Natural products.

In this case a Big Mac home could be an apartment (and not all are bad by the way) or it could be a two-storey oversized, badly positioned home in the outer, outer burbs of Melbourne. It’s the kind of property buying decision that is quick and easy and makes you feel good for a short time afterwards. But long term it’s not likely to help you reach the kinds of financial outcomes that result in a happy life.

On the other hand, a healthy natural home is more likely to be recycled, may be harder to find, is in an upcoming suburb, like Glen Iris was in 2000 and is a little hard to get used to at first, but over the years will you feel better and better financially and emotionally.

You may be thinking, but I can’t afford to live in an inner suburb – I’ve got no money!

That may be true now, but if you really want the money to be able to afford to live in an inner suburb, what you need first is Intent and you need a Plan. So Wisdom Number Three is that you really need to want this, and you need a plan that will actually get you what you want.

If you can find your real intent and a good plan then the money will come and along the way you will have some fun – you will travel, stuff up a few relationships, get some jobs, lose some jobs, maybe marry and have kids, possibly divorce, have a mid life crisis and so on. But all through this, if your intent is right and you follow roughly a reasonable plan, accepting some missteps along the way, then you will be living in a house you love, you will be living in all the money you need, you will be living.

Next week we will talk about the James Value Process – how you go about planning and looking for the right home for you. If you’re thinking that putting together a plan and a process is all too hard, and that you can get by on intuition and energy – imagine if that was the thinking of the bloke you see to do your tax or the woman who is your doctor. No thinking, no proven way to success – just winging it.

How about a plan that consists of three sentences that you don’t need to write it down – and it works every time?  And a process that is just four words?  We have bought over a thousand homes using both and its bullet-proof. See you next week as we start to get into the nitty-gritties of buying well while you are young – buying so well that your first two homes will set you up for the rest of your life.

Some Left Field Reading

The Millionaire Next Door – Thomas J. Stanley, William D. Danko

Thich Nhat Hahn – Any books on Mindfulness

Your Money or Your Life – Vicki Robin Joe Dominguez


More in The Age, Weekly Review, James Buyer Advocates Young Homebuyer series

Article One: Good Home and Bad Homes – Simply your decision. Glen Iris gain a $million – Southbank lose a $million CLICK HERE

Article Two: Clarity Plan – PPP’s – get the best out of now  CLICK HERE

Article Three: Futureproof your plan FFF’s and put a $million into your pocket – CLICK HERE

Article Four: Due Diligence. Boring but very profitable. Great hourly rate work – CLICK HERE

Article Five: Value Concepts that can work for you – CLICK HERE

Article Six: Practical Valuing – CLICK HERE

Article Seven: Negotiation at the Pointy End – CLICK HERE

Article Eight: Walking the Walk – CLICK HERE


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