How many of you are retired??
My guess is none! Prove me wrong
How many of you are retired??
My guess is none! Prove me wrong
Are you Tails?
Im working towards it!If you do the sums on these properties yes ill need to buy about 70 to give up work! but these are not the best returning properties ive found just the best located , with the most stable incomes.
PLEASE fell free to DOCUMENT (i want proof, as do you) a
better way
]Scott
“Aim for the stars and you’ll shoot the top of the telegraph pole. Aim for the top of the telegraph pole and you’ll shoot yourself in the foot!”
-anonMy company owns one investment property, returning 132k p/a indexed to CPI, I have just refinanced my house and now the company owns the investment property out right for which me and my wife are the sole directors. I plan to pay my house of in the next 3 years, and buy an investmentment property thru the company to take full advantage of tax advantages. I am 42 i have work for my self since i left telecom (telstra) in 1977, i have a fully franked income of 48k per year as well as my wife, so we can do what we like when we like with a garanteed income for life, O by the way scott please dont call me a goose again as you are breaking the rules of the forum isnt that right Steve
You will find a few people could retire, but hy would someone want to retire when they are making so much money?
Hello Paul,
I am not retired, but after joining this forum less than 2 mths ago, I have since bought 2 I.P. houses, and one block of 4 units in Victoria, all returning 10%+.
This is only a starting poing, however, these alone mean that I could work 2 days less a week if I chose to. Who would want to retire when Steve is teaching us all such great investment strategies??
After all, it’s up to us to make it happen, or in your case NOT HAPPEN!!
Re your earlier post: – Do you always buy the chepest clothes, or do you sometimes pay a bit extra for QUALITY or STYLE???? I really believe that you get what you pay for. I do not fel that Steve’s seminars are overpriced and I have happily made a smart investment decision to pay for his seminar in May. I didn’t have to even think about it for long, I have got the two for one earlybird deal and feel that I (we) will receive GREAT VALUE FOR OUR SMALL INVESTMENT!!! If you do not feel that Steve is a great mentor, why are you a member of the forum?
There are too many negative people out there, who just sit on their backsides and complain all day.
SMILE [
] AND BE HAPPY – LIFE IS TOO SHORT TO BE ANGRY.Regards,
Del
How many of you are retired??
My guess is none! Prove me wrongWhat is the purpose of this question?
My assumption is that you intend to highlight the fact that nobody on this forum has retired yet as a result of building up a cashflow positive investment portfolio with the aim of supporting your position that this is all a ‘sham’ as you put it.
If that is indeed your purpose, I think its a little naive to judge the success or lack-there-of based on how many people are retired. I would wager that a great many of the users on this forum are a long way away from ‘retiring’ just yet. Many are just starting out on the journey to financial freedom, while others here are starting to become ‘veterans’ of the game . One thing they all seem to have in common (except perhaps you) is the desire to learn and the ability to keep an open mind.
My company owns one investment property, returning 132k p/a indexed to CPI, I have just refinanced my house and now the company owns the investment property out right for which me and my wife are the sole directors. I plan to pay my house of in the next 3 years, and buy an investmentment property thru the company to take full advantage of tax advantages.Your company, of which you and your wife are the sole directors, owns a single investment property that returns $132,000 income each year. From that you and your wife take a combined income of $84,000. This is all quite impressive by anyones standards. Rather than spend so much time pointing out why Steve’s approach is not a sound one, you could instead enlighten everyone as to how you came across this goldmind of a property, how you formed your company structure for tax purposes, how much cash you had to put down for this one property etc. Things that could help to educate the rest of us?
Regards,
Brett []“Even if you’re on the right track you’ll get run over if you just sit there.”
Well, thanks to the wrap properties I’ve established, I no longer need to work. They give me the cashflow that our buy and hold properties didn’t (negative gearing – small positive cashflow after tax deductions).
So I guess that means I’ve “retired” to be a full time investor and mum.
Next step is to “retire” hubby, at this stage by the end of this year.
I haven’t done Steve’s seminar, but I certainly agree with many of his positive cashflow concepts.Keep smiling
FelicityHey Tails Wasnt 1977 the era when Telecom were handing out massive redundancies to get rid of there dead wood? I put it to you that any fool can make money when given a lump sum roughly 3 times there annual wage. Now it is your turn to come clean Andy.
Hey Paul
Instead of asking idiotic questions that have no immediate relevance you might want to do some research into structuring.
From the info given you have your investment property paid of but your still carrying a personal non deductable mortgage. Loosing heaps to the tax man.
“i have a fully franked income of 48k per year as well as my wife, so we can do what we like when we like with a garanteed income for life”
How is this garanteed? Ever heard of vacancies and with a large investesment that vacancy could be 1-2 years and require some serious upgrading within 10 years.
Cheers
Well Paul, I must say I’m with the others that want to learn of your success formula.I suspect hedgie may be right when he suggests you had a winfall in 1977 ? Now be honest, did you get to where you are by “true grit” or did you get a “leg up” old boy. Do you have some wisdom for us or are you the ” Great Aussie Knocker “. I suspect you may be able to enlighten us ?
MJK
Well Tails, Seems i was wrong about the payout from telecom. I have been doing some calcs on what you have told us and they work out like this .You started your company in 1977 it is now 2003, that is 26 years. You are 42years old .26 from42 is 16. So leaving telstra at 16 you would not have got a craker, unless u started at age 6. So what is the real truth.? Did you leave school @ 16 &start your company straight away ? in that case you would be the true legend that you claim you are,but what of telstra,was it just a figment of your imagination.As u can see the Questions are endless ,but u are obviously just a liar so who could be bothered . Bye. ANDY
Mr hedge, I dont know why i am telling you this but here goes. I left school at the age of 14 after getting a traineeship with telecom, i completed the traineeship, and was asked by a family friend if i would like to take on a run down caravan park in a management role, with an option to buy the lease in two years time. I took the option and built the figures up to triple the amount as when i had taken the park over. In three years i had gone from being total broke to having sold the lease for 100k. I then found myself another caravan park along with my new wife. This time we bought the lease and the freehold which cost 150k, three years later with alot of blood sweat and tears we sold for 300k. Took 6 months off and bought a motel 650k ran it for 3 years and sold the lease for 350k with rental income of just over 100k p/a. Semi retired at age 32. Revalued and used equity to buy another motel (freehold only) for 850k with rental income of 125k. All was good, we owned assets worth over 2.5 million dollars along with the bank(2 motels and a house on the water)with income of over 100k p/a untill the leasee of the second motel went bankrupt. We had to sell our dream house, for a hugly reduced amount in order to keep afloat and go down and run the motel. We ran that for three years and built the figures up and sold it on. We then bought a house and paid that off so we could still get a tax deduction on the money we owed on the first motel. But only last year we disided that we didnt want to have any problems with loans. so we paid the motel off and are still paying of our house. The motel is worth 1.7 million with no debt, we have a house worth around 300k with 100k paid off, I am earning 48k per year as is my wife, Rent went up 4k last year to 132k, we own a moterhome for which, we travel to the sun every winter, I do not want for anything nor do my family. If worse came to worse we could go into run the motel with no debt and make a fortune, but we are happy to do nothing for a while longer. Un like retail,factories, motels are never vacant (none that i have ever seen), the leasee has a stake in the premises and its in their best interest to maintain the property. Un like residential properties, we go to the property 2 time a year, and as long the rent is in my account by the second of each month, i have no problems. All you guys are talking about retiring, do you think you will ever be able to be relaxed with the problems of 70 properties to worry about? Now ziz instead of making idiotic statements get your facts together first ok, ZIZ i would love to here where you are up to in your plan to retire! As for you Mr hedge please dont call me a liar, If you could can you please post where you are up to aswell in you retirement plan, No answer and i will assume you are a long way off.
Paul,
Now you have contributed in a helpful way! I congratulate you on your achievements and encourage more positive input from you.
MJK
OK Paul,
Now that’s what these forums are about. Let’s hear a little more about your strategies etc. There are a thousand different ways of doing things and it looks like you have been through a few of them.
Essykay
Hi Paul
It was great to finally read a post from you that wasnt either sarcastic, degrading, agressive, nasty or condescending!!!
I think you are a man with a huge amount of life experience and as such will have a lot to share with so many people…. but you have to stop posting in a manner that rubs EVERYONE up the wrong way!!! your content is being lost to constant “mine is better than yours” banter.
Please share more of your views with all of us as this is the whole idea of forums…. whether you agree or disagree with the particular views/strategies expressed reply/post in a positive thoughtful manner. You spend so much time and effort typing posts here so why not enjoy the experience…. soooo many of your post express either frustration or agrivation with other peoples views and opinions. sure express your views but leave the personal attacks out of it!!! at the end of the day you are wasting a lot of energy carrying on in this manner.
I like a lot of the content that you offer- as would most people that use this site – as it widens the knowledge horizon but frankly, judging by the retaliation you are constantly met with, your valuable input is constantly going by the wayside due to your overly passionate commitment to “YOUR way is the RIGHT way”. every one of us has our own “right way” and all you can ever hope to achieve on any forum is the simple exchange of information to educate people in ALL directions so that they know exactly what their options are!!!
So please only continue to post if you wish to get less personal and more informative/discussive.
Remember…. any forum should be a positive experience for all!!!
Cheers Mate, and believe me i havent said any of this to fire you up…. i simply like some of what you have to say and would love to read more but am quickly tiring of the above mentioned issues!
Regards,
Michael…*******************
“There will never be another now — I will make the most of today.
There will never be another me — I will make the most of myself.” — Robert H. Schuller
*******************Ziz are you going to answer??? Mr hedge are you here???? Remember me i am the one you think is a liar?? Maybe mr hedge will get online after he gets home from work. Hang in their mr hedge only 3 more years untill you can get the pension!
Paul
Excelent contribution and finally establishes some credibility and some relevance as to where your comming from and heading to.
Firstly why did I say it is an idiotic question. The focus of retirement is a personal thing. You may see retirement as driving your motorhome to the sun. Personally I see this as work as I would must rather walk on a plane fly to Cairns or whereever and then rent the appropriate vehicle for the type of exploration I want to do. Other people may see the whole concept of not working unacceptable not because they can’t afford not to work but their whole fabric is related to the work.
What I am getting at is horses for courses. So maybe the question should be more do you have the discretion to do what you want when you want.
I would still suggest that you need to think about your loan set up as you are paying non deductable interest on the $200k, unless your accountant is doing a swifty.
From what you have outlined and no doubt the issue with the bankruptcy you are debt adverse but you could have used debt effectively some 3-4 years ago to really jump your capital base.
In relation to vacancies, yes I see your point re the difference between motal type investments and other commercial investments but your preparedness to jump in and run the motel is exactly the same as a vacancy factor in the other type of investments. Don’t get me wrong, I think it is prudent that you have that view as this is the correct sort of contingency planning that any investor should do.
OK where am I at? Well I have a range of investments which in total generate an income before personal tax but after all expenses of $1.4mil. This is obviously sufficient to retire on but it actually takes quite some management to ensure that everything stays on an even keel.
We generally have holidays somewhere in Australia 3 times a year and an overseas hol 1 a year. We also visit Brisbane for weekends as we have friends up there. This year we are doing a month in Europe.
Having said all this I don’t consider myself retired as when I am in Sydney I work 4 days a week from 11:00 – about 15:00.
By the way my investments started slowly buying an investment property in an outlying suburb of Sydney -ve 2 years later I bought another still -ve but by then my capital base had grown by $150k (1987) I have been buying property ever since. W e also established a business in the early 90’s financed by the equity in the properties.
We work out our level of debt to ensure that we don’t have to much but also not to little. As if you don’t have sufficient when asset values are growing you are effectively sitting on your hands. With this strategy in place we gained $5.5mil in equity over the last 3 years.
Currently we have very little debt as I have not bought any property for the last 1 1/2 years this reflects some of my conservatism as I don’t see the value in the current market.
I hope this is relevant to your question Paul. In regard to your Motel you mention an income of $132k with you and your wife drawing $48k what happens to the other $36 or is the tax you are paying. What are the expenses that you still need to cover over and above the $132?? or are they all leasee expenses?
Cheers
Boy talk about a coincidensce last three posts hapening at the same time. As Mike says Paul just relax and take a breath.
Cheers
The only exspense we pay is public liability, accountant and other profesional help.
Ziz,
Could you tell us what the comfortable debt level you mentioned was ? Could you expand on your early days strategy ie. what you were able to achieve in say 10 years with property alone. It sounds like your early focus was on -ve geared property, but by the sounds of it the portfolio has become +ve today. How did this transition occur.
MJK
]
] AND BE HAPPY – LIFE IS TOO SHORT TO BE ANGRY.
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