Forum Replies Created
I’m watching the market, with no commitment to buy.
If I find a great deal, I’ll buy. Otherwise, I would not want to guess the bottom of the market.
Cheers,
CarLover.
Put your funds in a cash management trust.
Insurance is a bit like lottery.
Lots of people put in a small amount, a few get paid out more than they put in.
The funds feed a whole industry, including taxes. There are also generous upfront and traling commissions paid to the insurance brokers. I have heard of upfront commissions above 20% on insurance products. That’s why you see so many people pushing insurance products.
Obviously, less money is paid out than coming in. It’s cheaper on average to self-insure than to buy insurance.
The problem is the ‘What if’ scenario. Insurance salespeople are trained at playing up with your fears to manipulate our emotions. Insurance is suppose to buy you “Peace of mind”. What is the price of that?
The bottom line is ‘Can you comfortably live with the risk?’. For many small issues, it would be financially better to have a small reserve cash fund, that pays interest, rather than to throw away money on insurance. For larger liabilities, the decision is more difficult.
Personally, I have personally given up on medical insurance, as I worked out that I paid out much more than I got back, and I was not facing a huge risk anyway. On the other hand, I decided to get car comprehensive insurance, as I facing a significant risk that I could not cover from my own funds. I have recently looked at income protection insurance. I found it extremely expensive for the risk it covers. And it doesn’t cover my biggest risk, which is that I lose my job…
In the end, I can’t be protected from everything. There are an infinite amount of unpredictable events that can hit me. Trying to assess them accurately is enough to give me a headache. The more money I give away in insurance, the less I have available to build up my retirement fund.
I prefer to live with relatively little insurance.
Cheers,
CarLover.
I reckon I’m at 6, even though I would like to think I’m at 7 or 8.
As my knowledge improves, I expect to be more confortable operating at level 7 or 8.
Cheers,
CarLover
Yes it will affect your borrowing capacity.
Don’t take the higher limit unless you need it.
When assessing borrowing capacity, most lenders assume that you spend about 3% of your credit card limit in interest per year.
The bottom line is, a higher limit reduces your borrowing capacity.
CarLover.
I recently purchased a copy of Trust Magic and would recommend it. It gives you a good idea of the advantages of trust structures. Well worth the cost of the book.
CarLover.
I have written goals, that I review on a yearly basis.
I also use a spreadsheet that helps me define my plan to reach my goal.
CarLover.
Thanks to all of you who have provided feedback.
I’ll be extra careful when I check them out.
CarLover.
I know that’s only 5. There must be a sixth one but I can’t think of it at the moment.
CarLover.
Thanks for the post Redwing, that should be an interesting topic.
I’m still relatively junior in property investment. Anyway, here are the major things I wish I knew when I started.
1. Start with strategy. Work out what best fits your situation and personality: reno, + cash flow, cap growth, subdivisions, whatever works for you…
2. Educate yourself as much as you can before your first purchase: books, internet, forums, friends, mentors, …
3. Work out the right structure to hold your properties: trusts, your name, joint names, ….
4. Select an area to focus & get to know the market in that area very well.
5. Never rely on any agent related information. Check everything. Ask questions. Do your own independent research.
CarLover.
Monopoly, you are not alone in experiencing a change in others when the topic of investment property is mentioned.
I’ve noticed that, if I talk investment property with people at work who haven’t got one, many of them don’t want to hear about it.
I’m not sure what it is, whether they see me diferently or they feel regretful as they wish they had bought an investment property a long time ago, or they are not comfortable with the subject.
Whatever the reason, I find that it is easier to approach the subject cautiously, and only to go into details if others have investment properties or show an interest.
CarLover.
I went to an evening $60 seminar from Brad Sugars a few years ago. Brad was bragging about how he bought a business so cheap, at unfairly low prices. His mentality is clearly win/lose. His lack of ethics and worship of money made me sick. No way would I go to one of his seminars.
I believe that Brad started his career in marketing. He’s certainly been successful at marketing himself, but I doubt many of his graduates get the value they were expecting.
Why would want 1 billion dollars? With 2 millions, you can live comfortably and focus on what you really want to do.
I agree with others comments about IQ. When someone braggs about their IQ, it’s a warning signal that they think too highly of themselves and probably look down at others. An educated person theses day should know that theses IQ test fail to capture many important characteristics that makes a capable person.
CarLover.
On ABC a few weeks ago, there was a report on Brendan Nichols. From what was shown, he seemed to specialise on the spiritual side. His branching into wealth seminar must have been more recent.
CarLover.
Thanks for the reply Geronimo.
Do a search on google in real estate selling. There are a few do it yourself kits out there that can help you get started.
There also a few book on selling your house. They can be found in the major bookstores.
CarLover.
Thanks Steve for sharing your insights. I found this newsletter a very interesting read. It triggered a lot of thoughts and ideas.
The comments from the forum were quite interesting as well. I especially liked Gatsby comments on purpose.
Here are my few cents worth…
I would definitely put purpose first. Without a purpose and a goal, how can you have a plan? Like Gatsby, I question people’s purpose as having a nice house, a nice car, or “being financially independent”. The problem with this type of purpose is, once you have achieved it, then what? You may start getting bored and unfulfilled. I believe your purpose should be what you are really here to do, whatever that may be.
I had problems with the last ‘P’, passion. Like some others, I can’t get passionate about real estate. I can get interested, as it is a vehicle that help me reach my goal. But I can’t see myself keeping a lasting passion for it. As another forumite as suggested, maybe the last ‘P’ should be perseverance. That would fit better with what is needed to get going in the face of adversity and setbacks.
CarLover.
Like many others, I wish I had learned about investing, finances, and the many ways to make a living.
I agree with what Robert Kyiosaki says about the subject, that it is sad that so many people come out of school with only one thought: find a job. That included me a while ago.
I’m only starting on becoming less dependant on a job. I wish I had started a long time ago.
CarLover.
That seems incredibly cheap for one house and 5 flats. Is there a catch somewhere?
I’ve just watched the show that I taped earlier. I agree with others have said. There wasn’t much for the investor in there.
What I found interesting though is how Rick Otton explained that the most “successful” seminar presenters were the ones who entertained the most and taught the least.
CarLover.
The state government justification doesn’t make a lot of sense.
By taxing sellers, it will discourage quite a few people from selling their property. That is likely to reduce supply and push prices up.
In what way does removing the land tax free threshold is ‘fair?’
We have a state government that have miscalculated their budget, and came up with another tax to fix it up. They deserve to be voted out of office.
CarLover.
