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Profile: Investors of the Year 2012 - Kate and Matt Moloney

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Your Investment Property | 04 Apr 2013, 12:00 AM Agree 0
Australia’s Investors of the Year reveal how no one took them seriously when they started, how they’re retiring aged 24 and why they have a knack for making a killing out of property
  • Royn Atkins | 04 Apr 2013, 02:12 PM Agree 0
    What a great story! It goes o show what can be achieved if we have a goal set and follow our passion. Very pleased for Matt and Kate, enjoy your well earned trip in business class. Hope there is a follow up to the story as you continue to move forward.
    • Mr E | 07 Dec 2015, 06:21 PM Agree 0
      Press the 'read full article' button...

      Pretty much a disaster story!
  • Steve Keen | 07 Dec 2015, 04:04 PM Agree 0
    Any chance of that follow up story?
  • Dee | 03 Feb 2016, 10:29 PM Agree 0
    I'm guessing the downturn in mining regions has not been too kind to this portfolio.

    Has there been any further story regarding this couple??? I feel for them
  • Caveat Emptor | 10 Feb 2016, 10:12 AM
    Deleted by moderator
  • Observer | 22 Feb 2016, 10:35 PM Agree 0
    She just appeared on 60 minutes 21st Feb 2016. Currently owe $5.8 million, portfolio only worth around $2.6 million. She's probably going to lose the family home as well. It's a big contrast from what she's saying now, to when this article was written. Her 2012 self "spotted an opportunity..." has now turned to blaming the banks for lending her money she can't now repay. I'm sorry but at the time banks lent you money because you COULD repay it. The decision making Kate had conveniently didn't factor in what the worst case scenario would be. She's basically gambling and speculating on a volatile asset and with great gains comes great risks. She got burned and is now pointing the finger at the banks. Her only fault is her own greed.

    At least she's young enough to start over after declaring bankruptcy.
  • Multifocus | 23 Feb 2016, 12:18 PM Agree 0
    On Sunday evening Channel 9 aired a story on 60 minutes about irresponsible bank lending. Looking at the details of the investigations quite a few points reported simply don’t add up.

    Story 1. Investor buys 10 properties in Moranbah.
    An extract of the story: "A 24 year old on ordinary income manages to borrow $6.1 million from an unnamed bank to invest in property".
    What is wrong with this statement?

    No lender will lend someone on “ordinary” income that much money. To borrow $6.1 million she would have to earn in excess of $1 million a year!
    Assuming she borrowed 80%, she would have to come up with about $1.3 million of deposit or equity. At 90% she would need about $700K minimum. For an “ordinary” earner, this does not add up.
    Also, mortgage insurers get very nervous when people borrow too much over 80%. Today they would start getting nervous over $1.0 - $1.2 million. In the past it was a bit more generous but still there is no way that she easily could borrow more than 80% unless she used a complex web of lenders who self-insure. Very hard to do.

    The whole venture goes wrong as she bought 10 properties in the same mining town (clearly greed set in) and the market collapsed. She then blames the bank, but since we don’t know how she obtained that much money – not enough information was given - it is hard to have an opinion about the lender.
    Overall this story just does not add up. Something is missing or someone is lying….

    Story2: Renowned investment expert Jonathan Tepper predicts property crash by 30%-50%.
    Firstly, I never heard of him. Secondly, why does Channel 9 need to produce an American “expert” to analyse our market.
    Don’t we have any Australian experts?
    What about REAL experts like Tim Lawless (RP Data) or Craig James (Commsec)?
    Jeremy Grantham (another American) made the same dire predictions during the GFC and we have not heard from him since.

    Story 3: Simone and Shane James borrowed $2.3 million to buy apartments in mining towns. It went sour.
    This story is more believable than Story 1. Number are more realistic. The big mistake they made was to invest all their eggs in one mining basket. Are banks to be blamed for this?

    I’d love your opinion about this!

    Philippe Brach, CEO, Multifocus
  • Maddie | 23 Feb 2016, 01:56 PM Agree 0
    @Multifocus: ["Overall this story just does not add up. Something is missing or someone is lying…"]

    Or Ms. Baloney (opps I mean Moloney) paid big bucks to persuasive PR person to promote her book and the mainstream media lapped it up!
  • Diane | 27 Feb 2016, 10:44 PM Agree 0
    Mr Brach, Tim Lawless was one of the REAL property experts who awarded Kate Maloney and her husband investor of the year in 2012, so maybe we do need some American 'experts' who are a bit more clear eyed about what can go wrong.

    Also clearly she didn't borrow all that money at once, she borrowed, revalued and borrowed more based on rental income. Everybody's doing it, it seems. I have to say, your comments appear quite disingenuous for someone who appears to be in the field. So without googling you, I'm just going to assume you have a vested interest in the overall property market remaining strong.
  • Ash Oz | 12 Apr 2016, 11:43 PM Agree 0
    Yes don't know who was supporting and guiding them. They should have made sure they were diversified in different areas and type of investments not just all mining towns.
  • DaveCooper | 14 Apr 2016, 02:26 PM Agree 0
    Hi Everyone,

    I am new here in this forum.
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