Hi Daniel and roodog,

To further elaborate….the tenant has spent 140K since moving in, renovating our property, and has transformed our sheds, and built 2 extra, over the past few months into a vibrant recycling station, where they bring 10,000 cubic metres per month of other people’s rubbish onto our property (in big skip bins, not the putrid…[Read more]

G’day QL,

Bought a crappy bunch of old rusty sheds on a decent block of land, and these are the figures for the deal.

Capital

Purchased for 780K
Total Acquisition Costs were 40K
Borrowed from the bank 820K (105.1%)

Income

Loan Costs 59K p.a. (fixed for 5 years)
Total Outgoings 11K p.a. (paid by tenants)
Rent first year is 80K p.a.…[Read more]

Delboy,

Seriously, if 30% of 215K (amounting to 64K) is too much money for you to tie up in a commercial property deal, then I believe you are playing the wrong game. I’d suggest finding another hobby.

Elkam,

A going concern is when you buy premises that have a sitting tenant and are operating it as a going concern. NO GST is payable by the…[Read more]

Being a former accountant……….It is part of the game I suppose just be aware and accept this is a cost.

Part of the game hey ?? Just accept it hey ??

I’d hazard a guess that mspartal has posted their question because something doesn’t quite sit right and they don’t want to accept it. That internal feeling mspartal is talking to you…[Read more]

Thankfully I’m not a financial adviser, but I reckon a qualified FA might answer your varied questions like this :

1. How old is your father ??
2. What are his overall plans / intentions for the property ??
3. When was the property purchased ??
4. How old are you and your brother – any other siblings and ages thereof ??
5. Tell me about the…[Read more]

Perth naturally lags the East Coast.

OK Simon, I’ll take the bait on that one.

I’m not convinced about all this cycle waffle, but if it is true, then by it’s very nature, how does one tell that we over here in Perth are following the East Coast, that is Sydney….the centre of the Universe, and the ripple effect from action central…[Read more]

Hey…. what’s the go Chief ??

I ask one simple question and get put on the backburner….Yeah yeah, I “will” get back to you later he says.

Then, much later, Mr Coconuts asks 4 or 5 questions and he gets 5 or 6 quick detailed replies….with a free one thrown in for good measure. [eh]

Oh well….sitting here twiddling those thumbs….I’m sure…[Read more]

Only buy properties where the tenant is legally forced to do it all for you.

I suppose it comes down to the person doing the job.

Agreed terryw, unfortunately, when you walk into the offices of these people, ……and the same goes for PM’s, mechanics, lawyers, doctors, plumbers etc etc etc, unfortunately they don’t have a sign plastered across their forehead saying ;

“Yes indeed, I’m one of those bad practitioners that…[Read more]

Originally posted by foundation:
A fair question Dazzling. Perhaps I should have given more thought to that question before I posted, but that was never my aim. You see, I’m the kind of kid who would rather pull apart the toy and find out how it works… then once satisfied, leave it in pieces.

OK, so what exactly is the aim ??

You are trying…[Read more]

Hey F,

You know I am a pretty big fan of yours when it comes to analysing “stuff” and getting hold of all sorts of quirky data.

But I gotta say, some of your high level macro economic theory is really interesting and all, but I simply cannot possibly see a way where I can personally benefit from reading it ?? It reminds me of listening to Paul…[Read more]

The problem is, I’m not sure such a creature exists in WA any longer. Perth seems certainly out of the question.

Hiya K C Miller,

I suppose it depends by what you exactly define as a “creature”. Steve’s stock that he describes in his book were a while back now and not quite relevant today.

If you mean like a 36K house renting for say $ 100…[Read more]

a flutter of the eylids and a sweep of the hair often does wonders when negotiating with male tradespeople/real estate agents/bank manager etc etc – and sometimes also doing the “dumb blonde” thing at the same time

Agreed. I am extremely concious of this when dealing / negotiating with women, and make it a particular point to be extra tough…[Read more]

Thanks for freely offering my personal time Amanda….I’m sure the wife and kids who I hardly ever see would be impressed to know more time was taken from them…..[hmmm]

Unfortunately I am a “Minty” myself to a grumpy old bugger who avails his time begrudgingly, but worth every minute.

It would seem strange to be a minty and a mentor all at…[Read more]

Gives a whole new meaning to the phrase “Coming into money” ??? [eh]

Last thing you want is having to much money for a pension but having to rely on the govt for health care.

Exactly right. I am sure that the vast majority of people at retirement age right now find themselves in this predicament. A titch wealthier than people struggling on the pension only, but unable to break away entirely from the DSS, hence…[Read more]

It’s a pretty relaxed atmosphere and good value.

No strict agenda / format but pleasant atmosphere conducive to chatting.

I’ve been to one or two, and enjoyed myself. Far better than what’s on the idiot box on a Wednesday night.

Plus, it’s just around the corner from one of my IP’s, so I always take the opportunity to zip on by and have a…[Read more]

Speaking of cycles, there is also those little world events that have periodically happened that have a smidge of influence.

I think they were in ;

1914-1918
1939-1945
1965-1973 ??
1990-1991

Obviously no-one in their right mind would want to see it ever eventuate, but if your cycle theory is right I reckon it’s just about time for another big…[Read more]

I normally just blow the remnants up in the air and have a bit of a laugh.

Then I just reach down in the bathtub, grab a whole handful of more bubbles and start the process all over again. Kids love it !!!

As for tactics, it’s like a bloomin’ commando session in there once all of us get in on the action.

The only downside is the when the wife…[Read more]

Well described Simon. That’s pretty much it in a nutshell.