Forum Replies Created
I would put it all on red…[biggrin]
Seriously now, investment is for the bold, the brave, the astute, the lateral thinker.
Returns like those can only come with a higher than average risk. Of course you can put it all in ING over the phone for a healthy 5.25% per year or $525 per year minus tax about $300… or use for deposit for an IP worth $80k in some small town that in 5 years time may be worth 120k . . . or may be worth 60k.When facing risk you must consider what the implications if you loose such sum. If losing it will signify a major set back or consequences you cannot reverse, like emotional with your wife or similar, well, you be the judge.
Otherwise, it may be worth the risk…you will never never know if you never never go.May God prosper you always.[biggrin]
MarcAs for the “all is lost cruel world, pass me the poison chalice” type of people, hold your horses.
There are two factors to keep in mind.
If the world bosses, (the one that pull the strings and make the Bushes and Blairs wave and blare) want an environmental crisis for their own obscure purposes, no amount of reasoning or voting will change that. The ‘bosses’ own whoever comes to so called power anyway. Its just a matter of waiting what their real purpose is. Do not stress out, nothing you or me can do.If on the other hand this so called crisis is just a trump card for the people in power to “save the world” with sweeping changes and renewable energy sources magically turning up at our door step. (Another term in office assured)… then, there is nothing to worry, the media dogs have done their job spreading wild panic (good dog, here is a bone) the strung up puppets done their share of waiving to the masses… who will talk important discourses and nod gravely with the assurance that the use of bad fuel and the coming of good fuel is a fact accomplished. Ah, another generation can exist in the assurance the good governments will look after them . . .
May God prosper you always.[biggrin]
MarcThe oil price boom produces a crisis in the food industry because we use some oil as anti-caking agent for NPK fertilizers??????
Would be like saying that it will produce a crisis in the hotel industry because the complimentary shampoo sachets the Hotels put in the toilets are made from plastic that needs oil for its production [blink]Higher oil prices will make other products that are now discarded or suppressed suddenly feasible and such additives can be replaced with other oils almost immediately. IF your father was in Europe during WW2 ask him how they got by with hardly any fuel, and he will tell you how far the ingenuity of man can go.
The challenges with high prices of oil are clearly in the fuel and plastic industry, and agriculture is a high consumer of both.
We have the technology to turn garbage into oil and gas and some plants already operating, we can turn vegetable oil into diesel in our own backyard with zero technology, we can mass-produce electric cars any time we actually decided to do so, we already produce electricity from wind and sun, soon to be added waves and convection towers. Why are not all this things taken up seriously by governments around the world to provide us with an energy crisis soft landing? Furthermore, why is so much technology been suppressed or allowed to be suppressed by private interests?
The response depends on which information you prefer to believe, and how far are you prepared to challenge your preconceived ideas on how the world is run, by whom and for what ultimate purpose.
May be this oil crisis is “the crisis we had to have!”[cigar]
May God prosper you always.[biggrin]
Marchttp://thewest.com.au/20040529/news/general/tw-news-general-home-sto125751.html
May God prosper you always.[biggrin]
MarcAgree with the above comments.
You can buy a sealant for grout that is supposed to make it water tight, (yea right), you can change the grout, or you can strip the shower recess, strip the water membrane down to the compressed fibrocement and start again.(Tank? Green plaster? I suppose are the name given in Queensland to the above.)Alternatively, you can go the cheaper option of installing a self-contained plastic shower recess.
From the descritpion of “getting showered” though I assume a big leak that tells me more of a plumbing problem than a small grouting leak. Could be a broken/cracked pipe (constant leak) or a leaking shower tap packing, if the leak occurs when you open the shower.I had to do this job in one IP and found that the leek had damaged the timber frame. The wall became springy giving way under relatively small pressure. The building insurance will cover damage to the building by hidden leaks, but will not cover the cost of stripping tiles and re-tiling (what’s new?). Remember to check the wall adjacent to the shower since the water may have damaged the plaster on the other side, the skirting boards, the carpet, flooring joists or bearers. All the structural damage is covered, also carpet skirting boards, plaster and paint. Not the tiles though.
May God prosper you always.[biggrin]
MarcWell, lawyers usually know jack about Centrelink’s rules or worst, are convinced that they do. I would ask a FISO in Centrelink first.
This person inherited a property but has not moved into it, so it is not an exempted asset and should have reduced his pension already providing he declared it.
He can move in it, he can rent it, he can sell it and buy another one, or sell it and keep or spend the money.
Selling it by conventional means or by vendor finance will not make any difference. If he keeps it he has an asset minus the $30,000.
If he sells it for a lump sum, he has the value $X-$30,000 = $Y Is this enough to buy something for him? Would he buy something or rather stay in Dep. Housing place?
If he sells it by vendor finance, he still has an asset that is worth X-$30,000 and will receive from you the repayment in instalments. These installments will reduce the amount of asset from the house but will become a separate asset in the form of money in the bank.If this money will be regarded by the vendor as income, and go in the form of everyday expenses, the person will have a source of income from the repayments for as long as it takes you to repay the loan. It will mean higher rent, and a reduced pension that will very slowly and progressively go up again as you pay and he spends the money.
It is hard to say which one will be a win-win situation without knowing the protagonists.
To move in, or to sell by conventional means would be my advice for the pensioner since it will free him from the debt, and make the asset exempted from the test. Yet he may think he has won the lotto by living in subsidised accommodation and does not want the responsibility of a property and its related expenses. If that is the case, he will perhaps see the money from the sale as a problem and tend to go for an “asset minimisation exercise” clearly not in his favour in the end.
A vendor finance will give him a better life style (if he goes the way of spending it), for a limited but rather long time. He will still have a reduced pension and an increased government rent.
Yet the above will feel like he is squandering the parent’s home.Of course he has other resources like selling it and purchasing a complying annuity that would be also excempted, but this products are heavily biased in the bank’s favour and usualy are not very popular with pensioners.
Furthermore, the pensioner may see you as trying to profit from the situation, even when it is not true, the friends at the pub will probably convince him of that.
Hard call. May be someone else sees it different?
My God prosper you always.[biggrin]
MarcI must agree.
A friends wife called me for advise because hubby had stopped making repayments.When approached by the bank, he requested an additional advance equivalent to the interest to be paid for one year, and convert the loan to interst only, this after several months of zero payments….in order to have another year free of repayments…. I say would you do it?
May God prosper you always.[biggrin]
MarcYou must love Richard, no two ways around it.
He has always a solution to offer.
Good on you Richard, certainly a quick renovation is worth a couple of hundreds in airfair and some money spent in renting some of the tools.I will have to fly 1000k to a block of flats that needs one of thouse Mite 10 kit double carport. My RE agent cannot find one builder that has the time to put it up. I found one that quoted $1500 to send two apprendice to erect it for me as a favour. And that is LABOUR ONLY>
Some favour!
May God prosper you always.[biggrin]
MarcMelbar, I think it is rude to assume the world is against you and react with aggression… and once your obvious mistake is explained to lack the courage to apologise.
As for not reading, the only way one can assume I am talking about Mrs Scremin rather then the author of the book who featured in the show in question … is by not reading my post at all/
Or perhaps another way is to wear really dark sun glasses whilst reading it.May God prosper you always.[biggrin]
MarcNRG, you are making a few mistaken assumptions.
When one sells with vendor finance, the vendor who remains the owner until he receives the total amount agreed upon does the financing.
He is selling you a house in instalments in stead as in one lump sum as it is usually done.If the owner has a mortgage, the bank may be informed but does not necessarily change the mortgage agreement. If he does not, then it is a private agreement.
Some banks do get involved in vendor finance agreements when the purchase and vendor finance is done simultaneously, aka wrap. (Not to be confused with rap), yet the title remains in the name of the mortgagee.
As for the million-dollar question, what happens to your pensioner who wants to sell his house to you, using vendor finance?
First, you must tell me if this is the pensioners IP or PPOR.
If it is the pensioners IP and such asset has already been assessed and recorded, and the value is up to date, this is what happens:
The value of the asset will slowly decrease in Centrelink’s records as you pay it off. As for the income side of things, an assessment must be made to establish if interest is being charged and therefore income is generated. In addition, the money you repay will in itself become and asset and is subject to the deeming interest rate, regardless of the interest it generates in reality.
The above situation may in itself be a trigger for trouble because most pensioners’ assets are badly undervalued; (IP in Sydney for 150,000 not uncommon) so any change will trigger a new valuation by the AVO and therefore lower the pension received automatically, unrelated to the transaction but grandfather may not see it that way.
Second scenario, the house is the person’s own home, he will sell to you and go to live with his daughter.
In this case, the house occupied by the pensioner is an exempted asset. As soon as the pensioner moves out of the house, he/she becomes a homeowner that lives away from home. The hose will become an asset in his entirety, since the title is still on his name.
If the wrap is done legally and it is a clear case of vendor finance, Centrelink will consider it a sale but the unpaid portion of the home remains the pensioner’s asset, and the money coming in is also subject to the deeming interest rate. In the above scenario, the whole value initially and gradually less as you repay will become a NEW asset and will most likely reduce the pension substantially or cancel it altogether, if the value is over 414k for single person or 581k for married. This higher rate applies to “non home owner” and the process of vendor finance must be explained and documented or lower rates (in my view incorrect) for homeowner will apply.
Remember that if the house is say worth 300k and you repay in 5 years 100k, that does not mean the asset will necessarily reduce from 300 to 200, since the money paid goes into a bank account and becomes an income producing asset, unless grandpa loses it all in the TAB.As you can see the impact on the pension if the pensioner sells his house is huge yet if it is an IP the change may not be great or none at all.
In case you feel tempted to bend the rules and tell Centrelink that grandpa lives at home with you when he really moved out, be careful.
Such schemes are relatively easy to uncover and remember that any amount overpaid must be repaid, amounts over $5000 will not only attract fines but also persecution and criminal records will apply. If intent to defraud the Commonwealth can be proven, criminal convictions apply even with lower amounts in the order of $1000.I have an IP in Sydney that is brick veneer, no asbestos, but has a detached brick garage that has an asbestos roof.
The tenants have been living in that property from before I bought it some 10 years now, always been good tenants.
The RE agent went for a recent inspection and sent a (once again) new PM. This chick noted on the checklist “Asbestos roofing is dangerous, needs replacing”.
Needles to say that I was on the phone with the owner the next day blasting him about what qualifications has this girl to establish that the roof is dangerous and to give the tenant a paper containing such statement.
They recovered the checklist but I am still uneasy about the whole thing.
Will probably replace the garage roof since it is not a big deal of money, but will in fact endanger the tenants by replacing it not by living it there.May God prosper you always.[biggrin]
MarcI am with Terry on this one.
Demolition costs can vary greately depending on material, location, council regulations etcI spoke to an old timer not long ago who has an IP built in concrete and that has plenty of Asbestos lining and asbestos roofing. The cost of demolition is close to 50,000 for the cost of disposal of asbestos and the fact that the council will not allow the use of big machinery for demolition and it must be done by hand.
Of coure there are also houses who will make a neat profit to the demolition mob.May God prosper you always.[biggrin]
MarcThe answer is in your question
“…. They gave you strategies you applied… “The most effective Guru is the one that finds the way into you head and makes you apply a properly thought strategy.
The best strategy in the world is worthless if you do not put it in practice. Even a half-cooked one applied from the heart will have great effect.
To put it into perspective, the message at a seminar must coincide with our timing. In other words, we must be ready and let us face it, we are not ready most of the time.
I was at a R K seminar once, one at which he went over the top insisting we are immersed in opportunities and we must keep our eyes open for such opportunities that can come in many different and unsuspected forms. On the way out some guy handed me a booklet and I stopped to give it a quick read. I observed that the guy who was handing out what happened to be a very well written and helpful report on personal develpment could hardly give any away.
Almost all the seminar attendees would snob him with a dismissive gesture and some even called him names like parasite and other niceties.
How could anyone see opportunities with such a load of bias and aggression? People like that go to a seminar expecting the presenter to reinforce their own preconceived ideas and rather than being teachable dismisses the guru as a fraud if it does not fit into their rigid mould.
My preferred Guru is Randy Gage, but he is not necessarily “the best” for everyone. In fact, some hate him. Why? Because what he told me via his tapes and e-mails helped me, what he told others rocked their comfort zone and that was not what they wanted.
May God prosper you always.[biggrin]
MarcKay, I doubt that RK or anyone else, intend telling you work is bad.
What they are all telling you is that lineal income is changing hours for dollars, and such will not keep you out of trouble when no one wants to pay you for your time.
What all the speakers are telling us in chorus is, build residual income. Be it with RE, Shares, Networking, but do something that makes you money whilst you sleep through compounding your efforts.
What one must realise when going to these seminars is that knowing the above is not sufficient. You need the proper vehicle, the proper team of people or company or product to put it into practice. And there is when you are stuck and think baaa it’s all just to take my money, work is so great anyway.
May God prosper you always.[biggrin]
MarcOriginally posted by AusProp:this bashing of consumerism is all a bit ho-hum. The worlds biggest consumer economy, the US, is always sledged as being some greedy giant, yet it is the standard to which all nations aspire. We all want designer labels, flash cars, nice houses. If you want to be a hippy and carve wood branches in the bush go for it… the main stream will continue on and evolve the human species with it. Greed drives the search for cures to disease, increase food production etc. It is not perfect, but beats the medieval ages hands down. We need to accept this framework and work within it to achieve the best result individually. This extends to not blaming everyone but yourself if you wish to run up a $5000 mobile phone bill, lease a new car, go on a holiday or whatever.
Ah AusProp, BLAME is the name of the game.
Blaming is the survival mechanism used by 95% of the population, who sees the 5% that are successful as not worthy of it, but don’t want to work for success either, and rather prefer to blame someone for their lack of it.At international level, most problems are the USA fault, crime is the gun’s fault, my health is the doctors fault or the tobacco Co’s fault, my child’s education is the education minister’s fault…I tell you it is so much easier to live that way! The only problem is that it achieves lousy results.
May God prosper you always.[biggrin]
MarcIts alwasy good to read your valuable contributions rogue. Is this your normal state of mind?
May God prosper you always.[biggrin]
MarcOh come on Screming you made a mistake in thinking I refered to you and your post when I did not. You jumped the gun, admitt it and have a laugh at your own expense. It is very healty and helps with credibility.
Making comments on my signature is in poor taste, and I am sure you don’t even mean it.May God prosper you always.[biggrin]
MarcI see. It was too easy. I had the suspicion something was wrong.
Boy o boy am I glad I fired that accountant.May God prosper you always.[biggrin]
Marc200 meters may be on the far side for any ill health effects but in this case it is not about truth or fiction but about perception from the public.
I would follow the powerline and try to find houses that are in the same position of the one you are interested in and find out if they have any difficulty in renting it.
Not easy to find owners or RE willing to talk but clearly part of your very much needed due diligence.May God prosper you always.[biggrin]
MarcActualy this was imstructed to me by my ex accountant who I have since fired for unrelated matters.
The title is unchanged, only the loan is now on the higher earner’s name only.
I have yet to go to my new accountant with the mess.May God prosper you always.[biggrin]
Marc
