Forum Replies Created
Wayne,
The only reason they backed off from further rioting was the Prez promised he’d look at upping the wage later on down the track…whatever that means.
The mullahs and local sheiks will kick in again if the promise doesn’t come thru. Heading back over to the nightmare next week…really looking forward to it.
Everyone in Australia…if all you need to put up with is $ 1.40 petrol, life is extremely good !! When bullets start whistling past your head, high petrol prices very quickly become irrelevant.
Anyway….back to the type of car you drive….what does everyone think about the collection so far….is anyone close to a Roller / Jag / Bentley ??? That is, the price of a car is small beer.
Cheers,
Darryl Moore
“No point having a cake if you can’t eat it.”
I sometimes laugh when these really clever investors try it on against the ATO and their auditors. The worst is when they go posing around to other investors about how they ‘got away with it’ and it’s easy if you know a few ‘tricks’.
Most of the ATO auditors are extremely cluey and know every trick in the book. They are not a court of law where they need to prove something against you…the burden is reversed…if you want the claim you’ve made approved, you need to prove to them it is legit. When they are crawling up your fundamental orifice with a fine tooth comb, being really sneaky and tricky, very quickly turns into what it really is….foolish to the nth degree.
I don’t think any investor swaggers out of an audit thinking the auditors are a pushover.
The auditors use words like “reasonable”, “plausible”, “verify”, “confirm”, “correlate”, “check”, “cross referenced”. Dodgy investors tricks and scams never cut the mustard in this environment.
Having never been audited, I’m not speaking from first hand, but having a chat with investors who have been, they were absolutely gob smacked at the truckload of data and info that the ATO knew about them. There’s not much they don’t know about your very personal and financial lives. When they ask you questions, apparently they always know the answers…they are just testing to see whether you tell them the truth or not.
Cheers,
Darryl Moore
“No point having a cake if you can’t eat it.”
Dazzling, where can I get one of your crystal balls?Sorry Jan, they are all accounted for…like all good married men who invest, one belongs to the wife and the other one belongs to the bank manager.
Cheers,
Darryl Moore
“No point having a cake if you can’t eat it.”
Which other country you in Dazz? Petrol here in Japan is about $1.40-$1.50I live and work in Yemen….not much fun at all.
The unelected President just put fuel up from 35c to 45c a litre. Riots in the streets. 11 people dead in the first day. Anyone with white skin was not very popular that day. We didn’t go home that day. Tanks and army on every street corner….not much fun. Fuel price is all relative I suppose. When you only get paid $ 1.80 per day, that’s a big jump. But then, it’s better than walking beside the goats, which is the next option down the line.
Cheers,
Darryl Moore
“No point having a cake if you can’t eat it.”
Hiya Dr X,
As I said previously…one can argue and carry on all day over terminology. As such, there is no right and wrong answer.
Use whatever criteria you feel comfortable and happy with. You shouldn’t / wouldn’t be comparing or competing with any other investor so it doesn’t really matter whether you are right or they are wrong or whatever….
It’s a roughy guide…use it as you will. I think the cats that Dr Thomas has been studying and gathering data on, the family home and irrelevantly small items like cars pale into insignificance to their overall net worth, so whether they include them or not is quite irrelevant.
It’s only when you have bugger all in the way of investments, that things like family homes and cars become a big part of the scene.
eg; Mr Business Owner has 60 MM in income producing assets. His house is worth 3 MM and his posho swanko cars are worth 150K. In the grand scheme of things who cares if the house and cars are included….small beer. If the house and car is all he has, then yes, they become relevant.
Cheers,
Darryl Moore
“No point having a cake if you can’t eat it.”
This issue is very high on our priority list for our PPoR as the wife is a little peeved at having to get out and open it up all the time when we come home late at night when it’s either freezing or pouring down with rain.
Frankly, I can’t see what the big deal is ?? I mean, she grew up on a farm and is used to having to jump out and open up the farm gates.
$500 bucks…we’ve been quoted way more than that, will have to call around for more quotes me thinks.
Cheers,
Darryl Moore
“No point having a cake if you can’t eat it.”
Have a search on the subject…plenty of material for you to review.
If you believe they offer good quality properties, then you should be well satisfied.
Cheers,
Darryl Moore
“No point having a cake if you can’t eat it.”
Holy snapping duck manure C2…that’s awesome.
I live in 2 countries as well and all I’ve got access to is one bog standard sedan. Hmmm, better see the boss for anothery, just like the othery.
The fuel thing is a real issue it seems for purchasing another car, although I see new car sales still going thru the roof here in Oz unabated by the recent price hikes….they are predicting Oz purchasers will crack the million mark for annual sales for the first time ever ??
Might have a look at getting a little motorbike…great for me scouting opportunities. I’ve had them before and as long as you don’t get hit they are great. Scooters seem to be all the rage, getting up to 105 mpg economy, and with the wife able to ride one on her car licence alone, it could be the go….although my fellow ex-Harley riding mates might pop around and insert it where the sun don’t shine…[blink]
Cheers,
Darryl Moore
“No point having a cake if you can’t eat it.”
I was under the impression “net worth” is simply total assets minus total liabilities.
Your nest egg is then net worth – all of those things than don’t produce an income. The stats boys reckon quite a few of us have a negative nest egg….cool !!! It doesn’t take into account capital appreciating but non-income producing assets like paintings, gold, coins, rugs, vacant land, spec shares etc etc but you get my drift.
Terminology aside…you can argue the toss all day over terms…the important thing is that you are being mentally and physically challenged in what you do and that it is interesting.
Dr Stanley Thomas reckons a crude but usually accurate formula is
net worth ‘should be’ = 0.112 * your age in years * your annual gross salary.
Don’t ask where the 0.112 factor comes from….5 years ago he reckoned it was 0.1 and has since refined it up to 0.112.
So, if you are 50 and are on 70K, your net worth ‘should be’ 392K. He reckons if your net worth is double this expected figure or more, 784K or more, you are an accumulator of wealth. If your net worth is half this expected figure or more, 196K or more, you are spendthrift destined to go nowhere.
That is…if you think you’re wealthy for your age and income, use a factor of 0.224. If you think you’re average, use 0.112. If you know cash pours through your fingers, use 0.056.
He gets this from studying really loaded individuals and reckons the two most outstanding determinants to wealth are age and income. There’s more of course to go into the melting pot that ultimately dictates what you are ‘worth’ in a monetary sense, but those are the big two.
Cheers,
Darryl Moore
“No point having a cake if you can’t eat it.”
To counteract some of the “Which Bank” bashing, I think they do a great job. Service, rates, attention to detail, jumping at my request, always dealing with the same one person etc etc…
In terms of business partners, they are my closest allies, and if I pay the interest bill on time they leave me alone to continue on investing. Yes it’s mostly all their way, but then when financing 106% deals, it’s also mostly all their money and therefore I don’t have a problem with the way they are.
Dealing with half bred incompetent wet behind the ears juniors who don’t appreciate your business and treat you like a numpty and are too scared witless to even give you their full name are pretty average to deal with. Thankfully that doesn’t happen any more to us, but it appears a few people are still subjected to that nonsense.
Good to hear the 3rd Duplicate title turned up Redwing.
Cheers,
Dazzling
“No point having a cake if you can’t eat it.”
I keep all my hints and tips in my diary, with an explanation and story around the subject matter.
Hopefully when the girls ask me how we managed to construct our portfolio in the years to come or when they are adults themselves, they’ll be able to have a jolly good read. Human memory is a terribly holey and biased thing.
Cheers,
Dazzling
“No point having a cake if you can’t eat it.”
It depends on what you are trying to achieve with the investment. Most people’s goals don’t get any more refined than just “Oh, I just want to make heaps and heaps of money.”
Offices are OK with me, but I may have different goals to you.
The two examples you’ve put up look very so so, with no land component to speak of, and a really poor nett yield.
You’ve asked how they compare with ‘houses’, but you haven’t proposed any for comparison ?? What exactly are you comparing the offices to ??
Cheers,
Dazzling
“No point having a cake if you can’t eat it.”
Onya Gatsby….no longer the anointed court jester as previously alluded to. [biggrin]
Now can you please explain what on Earth you’re meant to do as Mod ?? The whole thing has me completely baffled.
Cheers,
Dazzling
“No point having a cake if you can’t eat it.”
Hi Toni,
My thoughts are leave the high powered trusts for when your portfolio warrant it.
You’ll incur a whole bunch of set up costs and duty costs transferring the asset, along with a headache of signing a bunch of documents so the lender has proper securitisation against the title in the new legal ownership structure.
Who were you thinking of being the trustee for the trust ?? Person or corporation. If person, has it really achieved what you want….if corporation, who will be the directors and are you happy to incur the extra costs of that as well ??
Overall, the “trust thing” is a good idea, but like anything probably horses for courses. I believe it to be a tool that belongs in a large kitbag. I mean, syndications, private super funds and other high powered tools are also a good idea, but not appropriate if you are buying a $ 70K bedsit…if you know what I mean.
Cheers,
Dazzling
“No point having a cake if you can’t eat it.”
they offer ‘legitamacy’ to the deal because there is a perception that the agent knows best.You’ve got to be kidding !! People aged 18 or over with not a jot of property or finance knowledge / experience, gain recognised qualifications by doing a course sitting on their bums in a classroom for a few weeks, go and buy a $ 300 suit and spend $ 60 on business cards….and suddenly they are experts and add legitimacy to a deal ??
You really must get out more.
Cheers,
Dazzling
“No point having a cake if you can’t eat it.”
Looking into my crystal ball, I’ll bet you a dollar it’s Eagles vs Sydney…sans that bald cloth ears up the front for Sydney who’d rather be in a boxing ring than play footy.
Go the Eagles !!!
Cheers,
Dazzling
“No point having a cake if you can’t eat it.”
Carlin,
No I don’t mean that, but I do insist on a direct debit form to be signed. If the tenants don’t bank with the same institution as me, they cop the intra bank fee imposed if any.
A bank guarantee is just a lump of money deposited with the Landlord as a ‘monetary buffer’, just in case they go off the rails.
Most Residential Tenancy Acts only allow the Landlord to charge 2 weeks rent in advance and 4 weeks security bond, and maybe up to $ 100 extra for a dog.
I insist on the following ;
1. 4 weeks rent in advance
2. 4 weeks bond
3. 8 weeks bank guarantee
4. Direct debit form signedIf they whinge and moan they can’t afford the 16 weeks cash in advance, then I’m not interested in dealing with them. No point financially dealing with people of no financial substance.
This doesn’t apply to residential situations, because as I said before the tribunals and RTA have completed knackered the Landlord. Play that game if you want…good luck.
As was so elegantly quoted in a parallel thread on what Landlord’s can do to extract money out of recalcitrant tenants who refuse to pay you what they owe, even after chasing them thru the courts…the answer is stiff cheese…nothing…Landlord eats the cost. What a fantastic recourse. Other people on this forum believe this to be a scratchy record, so I’ll put my headphones on now and listen to my music by myself. [biggrin]
Good luck in your residential endeavours.
Cheers,
Dazzling
“No point having a cake if you can’t eat it.”
When buying, I’d never do it myself…way too much to check.
When selling…not a problem…if the bank cheque for the full amount isn’t in your hot little hand…simply don’t settle.
I’ve settled two properties from the seller’s point of view by myself, but would never contemplate doing it from the buyers standpoint…way too many things to check.
Good luck.
Cheers,
Dazzling
“No point having a cake if you can’t eat it.”
The wife has asthma and carpets are a absolute no-no. In the past, we would be forced to only look at houses to live in (own or rent) that had floorboards. It was the determining factor…other aspects fell by the wayside and the compromise factor “make do” came out. As long as it had floorboards the property was on the ‘go list’.
I imagine anyone else who is dust sensitive or allergic to all of the crud that carpets gather…no matter how much vacuuming and cleaning you do, or if they suffer from any form of lung ailment….floorboards will be an advantage.
Cheers,
Dazzling
“No point having a cake if you can’t eat it.”
Finding a good property manager can definitely be more difficult, costly and time consuming than finding a good tenant.
It’s the same as saying all your mechanical troubles can be fixed by finding a good mechanic, all your legal troubles solved by finding a good lawyer and all of your plumbing problems sorted by finding a good plumber.
Fantastic advice, until you start wading through the dross of service providers and you soon come to the realisation that they are all not equal.
We left the tenant sorting task to three of the most reputable agencies in Perth 8 years ago. All three PM’s were woeful. Lip service was great, pamphlets were great and the suits were nice and pressed and sparkly. All three picked c*ap tenants who cost us oodles. Owners are fully at risk, not the PM’s. When the going got tough, all three dumped it straight back in our laps (not enough cash and too many headaches for them to worry about).
Carlin – what’s the solution to your dilemna ?? Keep the trouble in your lap – don’t palm it off to PM’s at great expense. When the going get’s tough, it’ll up back in your lap anyway.
If it’s residential, insist on a bank guarantee from the tenant….that’ll sort the men from the boys. (You can’t ask for a bigger bond as your hands are tied).
Good luck…it definitely isn’t easy.
Cheers,
Dazzling
“No point having a cake if you can’t eat it.”
