Forum Replies Created
Hi Jason,
If you’re going to teach o/s, then go to Japan first and get in with one of the more establish companies that have schools in other countries. Don’t go to Korea first until you know the ropes of sorting out visas and contracts. Nearly 90% of the teachers in Korea get rip off in their first 1-2 years. The pay and living conditions are better in Japan and living costs aren’t really that much more expensive if you’re carefull and budget well. It’s not that hard to send about 2K back home every month to pay off your IP’s if you try. In regards to not needing a teaching degree that’s true but if you’ve got one do a quick TESOL/CELTA/IELTS course and you can make big bucks.
C2
“Is it true the more you owe the more you grow until the bank steps in?”Hi Mel,
Sorry for the late reply. I’m also intertested in the buy and hold aspects of IP’s. I have good serviceability and equity but lack the time to find IP’s except through internet searches and a couple of REA’s that keep me posted. I’m trying to work out a good way to get a few more IP’s before the interest rates go up tooo high and the equity drops as prices go down. With the buy and hold strategy I will just wait until the equity comes back up again in the next cycle. I like Westans example of 100K debt borrow 180K pay back 80K and have 80K available for redraw. My situation would be more like Debt 10K equity 220K. With Westans idea, would it be viable to put some money from the redraw into existing IP’s to increase their +cash flow whilst picking up a few more IP’s?
C2
“Is it true the more you owe the more you grow until the bank steps in?”There will most likely be some tax changes but not in the way you expect. When labor changed the rules in regards to negative gearing they didn’t think it out carefully enough.
There is definitely a push at the moment for changes by the ATO, but what measures. The govt wants to increase purchasing power of FHO’s ,but doesn’t want to give this to investors. The ATO wants to decrease the tax reductions made by investors and obtain more revenue from investors,.
What MAY occur this time is a change in stamp duty. FHO may be totally exempt and investors will be charge extra per investment, say 5% and this will increase to a max of 20% on each investment. For example if the original stamp duty is $1000 then this is increase by 5% if you have 2 IP’s then 10% so on until a max of 20% on every new IP. This increases affordability for FHO’s and also gives the Govt the lost revenue by hitting the pockets of investors.
C2
“Is it true the more you owe the more you grow until the bank steps in?”Hi Mel,
While we’re jumping between hypothetical and reality what would you do if you had 180K in LOC from equity and a positive serviceability of 2K a month. What type of investments would you look at? Higher deposits on a few 4-5 to make strong +cash flow or smaller deposits on many 6~8 to make average cash flows. Everything is bought on a hold and not sell basis?
C2
“Is it true the more you owe the more you grow until the bank steps in?”Hi Riffraff,
What Mel is doing now makes good sense. If you do your LOC now your equity may substantial be higher than it would be in say 6-12 months. This is only if the bull market as some people are suggesting has come to and end and prices stay the same or drop. Interest rates will most likely rise more but who knows when.
Mel, now that you are effectively cashed up do you think it is better now to buy or wait a few months? Are you going to try and beat the next rate rise or does this not concern you so much?
C2
“Is it true the more you owe the more you grow until the bank steps in?”Hi Kay Henry,
Want to step out on a limb and tell us what percentage do you think would care and wouldn’t? BTW did you follow your parents lead or did you rebel?
I’ve been thinking about that book ‘The Millionaire Mind’. If what he writes is correct, then how many investors on this forum are thinking about creating wealth for their children and their grand children? Is all your hard work and effort going to be for nothing or are your children and grand children going to be different?
C2
“Is it true the more you owe the more you grow until the bank steps in?”Hi Craig,
I’m a former St.Johns instructor and it’s not tooo bad and can be quite rewarding. Sometimes there are Tooo many rules, regs, red tape and politics. Depending on your level of commitment you can do the ambulance rounds as well. But make sure you don’t mind blood and have a strong stomach.
If you work with animals stay away from shelters for dogs and cats unless you don’t mind that they put the animals down after a while.
C2
“Is it true the more you owe the more you grow until the bank steps in?”Hi Sunshine,
Sorry, in which way may you miss the boat alltogether [altogether]? I still don’t see why waiting means you may miss out. If you mean not being able to have children there are other alternatives outside IVF. In regards to travelling around with your child backpacking through Europe. I plan on doing that in OZ after I have my investments sorted out in the next few years. I’m leaving it rather late in your eyes, but I like the idea of being able to spend everyday for the next 20 years travelling with my future children and not just a few months travelling.
I’ve mentioned previously that I haven’t read the book and I’m trying to get hold of it. What I do know is that the writers of books always have a purpose and so do people doing research. It would be difficult to sell a book to poor people about making millions if you espouse the theory that you have to be rich to make money. Research stats can easily be manipulated to suit the research.
Kay Henry,
I think you’ve got it in a nut shell with your comment about what your child would learn if they heard about the 30K profit, but in reality how many investors out there would really care about the pensioner. Then again should it matter whether it’s a pensioner, bankruptee or developer? Don’t they all deserve a fair price?
C2
“Is it true the more you owe the more you grow until the bank steps in?”Hi Mel & Erika,
When I first started reading this post I thought how can you just ring up the bank and say you want 3 loans at this price. I have enough problems just doing 1 at a time. I didn’t twig until I read your posts that someone was having a lend of us, just before I was about to reply.
Hi Kay Henry,
I was thinking about a post today trying to remember who it was that wrote there wouldn’t be a rate rise until after the election. Now I know who’s it was. At the time of reading I was hoping you were right. I guess we can’t win all the time.
Now a message for still_in_school, if your trying to have fun then so be it. BUT remember that it is not that difficult to trace where computer messages originate from. How do you think they locate where virus originate from. Now lets just hope you weren’t silly enough to be using a computer from home.
C2
“Is it true the more you owe the more you grow until the bank steps in?”Hi Brent,
Are you talking about the auctions that happened in the last few weeks (2nd and 3rd week of Oct)? Did you notice who the buyers were of the majority of the properties, and what property group they belong too. This may explain why the prices were unrealistically high?
C2
“Is it true the more you owe the more you grow until the bank steps in?”Hi Mel,
It’s his and he’s not happy. The funniest part of all this was watching him tell his wife about what happened.
C2
“Is it true the more you owe the more you grow until the bank steps in?”Thanks Mel,
You have answered it in gemeral. Now, what would happen if after a few tax penalties had compounded and you still hadn’t paid. How would they go about getting their money, if your assests are tied up in a trust.C2
“Is it true the more you owe the more you grow until the bank steps in?”Hi Westan,
What I meant is that if the deal adds up good then go for it and if it’s bad then forget it. You don’t always have to search for the absolute best deal to get to finacial freedom.
C2
“Is it true the more you owe the more you grow until the bank steps in?”Hi All,
Auctions like REA’s have good points and bad. I have a pretty good rapport with a few REA’s in my area and the auctions I went to all sold within 10% of the price I was told.
If you want to see a strange auction system then go to Japan. It’s more like a tender. They tell you the reserve price and then you put your offer in an envelope and the highest bidder wins. You don’t know what other people are bidding and have to accept the final result. If you are bidding on multiple properties you need a different envelope for each one. A friend of mine recently mixed up his envelopes put a bid in of nearly 100K over the reserve price. When he realised his mistake (which was only about 2 minutes after handing over the envelope and 10 mins before the auction actually starts) he asked for the envelope back. Guess what the law states? Once the envelope is exchange there is no return even if it’s before the auction time starts and is only returned after the auction finishes.
C2
“Is it true the more you owe the more you grow until the bank steps in?”Hi Mel,
Was that the first post or the second reworded post. It had to do with trust and security and making it look as if there is no value for anyone to sue you. I wanted to know if this included the Tax man? You originally answered the question as if I meant the Tax man and security, not the Tax man and being sued.Fudge,
Sorry for crashing in on your thread.
C2
“Is it true the more you owe the more you grow until the bank steps in?”Hi Doogs,
It sounds more like an excellent deal than a good one. Is there any FBT on this? Does the car have to be new to do this or can it be done on any vehicle. I’ve never leased a vehicle so don’t know the ins and outs. IF I can get a new vehicle for only $900 a year above basic expenses then I want to know more.C2
“Is it true the more you owe the more you grow until the bank steps in?”Hi Muppet and Mel,
I was Nearly one of the forumites to whom you referred to. I was reading Fudges thread like I do of many and I think I went from the beginning of page 1 and then skipped to the end of page 3 and missed page 2 entirely. I do this many times when reading threads to see what the subject is and how far it has progressed. It wasn’t until later when I checked did I see the message about rentmasters. I’m not defending the action of forumites who don’t read carefully, but I do understand that there are a lot of posts and it would take a long time to read them all. I generally read the posts from more experienced forumites and skip the rest for when I’m not busy (which isn’t very often).BTW Mel did you see my reply about the Tax query on another thread? I had my questions in the wrong order which put the Tax question in the wrong perspective.
C2
“Is it true the more you owe the more you grow until the bank steps in?”Hi Peter,
I haven’t read The Millionaire Next Door. The stats about the US millionaires is interesting. If you take wealthy parents with 2-3 siblings and then you divide the wealth by the siblings this is substantially less than the parents. Also I think you will find that most children from wealthy parents don’t try to emulate what their parents did and are happier off with less wealth.
It would be interesting to look at a reversal of this situation and see how many children from bankrupt parents became bankrupt themselves. I believe that the current trend of solvency is increasing and more people are becoming bankrupt.
BTW Future$ when is the big day?
C2
“Is it true the more you owe the more you grow until the bank steps in?”Hi ALL,
In any form of investing the numbers are always important. Especially the ins and outs.
Numbers are not my forte. Sometimes it appears that people are getting hooked up on always looking for the best yield, the best COCR, and the best tax deductions. There’s always someone who can suggest a better way to do something. How about using the good deal bad deal factor and relaxing a bit. It may not get you to your ultimate goal as quick but you will still get there.C2
“Is it true the more you owe the more you grow until the bank steps in?”Hi Doogs,
Only $5300 per year. So after three years you’re 15K out of pocket. If you spent 5K on a vehicle and used the other 10K on property how much further would you be in front. Then again I’ve got 6 cars and 2 m/bikes (all paid by cash) and I’m about to buy another car so I’ll stop here. AND yes they all have a particular purpose and use.
C2
“Is it true the more you owe the more you grow until the bank steps in?”
