Forum Replies Created
Why have you got over $ 20 K worth of prop. costs ?? Is the current Lessor paying for these ??
It seems by the figures the rent is grossly inflated to cover some of these costs. I’d be surprised if the units are being rented at the current market level. 28% is too high !! Would you sell at these yields – no one would.Keep checking for something awry – Due Diligence is a bugger to perform, but worth every minute.
Cheers,
Dazzling
“No point having a cake if you can’t eat it.”
Eric,
I’m assuming you knew of this predicament before you purchased the IP and hence have allowed a sum of money extra in your budgets to cover the extra costs that shall undoubtedly crop up ??
If so, were you able to palm these off to the tenant ??
Cheers,
Dazzling
“No point having a cake if you can’t eat it.”
The ATO is pretty clear about whether interest on borrowings is tax deductible or not.
You need to answer if the ‘intent’ of the loan is to fund the purchase of an asset that produces or is likely to produce a reasonable amount of taxable income in the future. If the answer is no, the interets on the loan is non-tax deductible, regardless if you are borrowing against IP’s or mixing the amount in with loans that are.
Cheers,
Dazzling
“No point having a cake if you can’t eat it.”
I’m interested in the Shopping centre that is being tarted up…are they selling it or just fluffing it up a bit to justify higher prices for consumers ??
What I’m not interested in are the extremely – CF headaches commonly referred to as houses and units in Mt Hawthorn.
Cheers,
Dazzling
“Go hard or go home”
Mini,
As stated before, the biggest advantage I can see from where I’m sitting right now is that you can ditch the 9-5 and take charge of your life as your own boss.
Like back in the Uni days – you succeed or fail based on your efforts and you push yourself – no-one there holding your hand or complaining if you don’t do something their way…self motivation goes through the roof when the profits go to yourself rather than your employer.
Commuting time is reduced – especially during peak hour traffic.
See way more of your family.
All of these are the cake for me.
The profits are the icing.
Best of all you get to eat your cake.
Cheers,
Dazzling
“Go hard or go home”
Mimi,
I got the wit in your post and very much enjoyed reading it. The lengthy tongue in cheek spiel about offshore co’s and trusts and lawyers etc was good also.
I am amazed with the amount of property work you seem to have on, you can afford the time to write such lengthy posts…not complaining mind you – enjoy reading them, just must be a drain on your time resources.
The topic of offshore co’s and trusts however, in general, does not frighten or scare me as we set up a company in some tin pot little island in the WI about 2 years ago for a very modest sum ($3K USD). Have never been there and really see no need to, but I’m told at high tide the country pretty much disappears for a few hours !!
We’ve had no grief about it, no intricate paperwork and certainly ne need / desire to consult with way over the top, high priced lawyers.
Humans are funny really when some are literally petrified at the thought of an action, where another is quite calm and blaise about the identical action. Different stages in life perhaps.
Cheers,
Dazzling
“Go hard or go home”
A : Just some comfy clothes, photo albums & a couple of big loaded up memory sticks. Get an acquaintance or family to send the rest in a 20ft container at a later stage.
Q : Which would you choose – living at home with your family and working in Oz for $X after tax, or work overseas on rotation and spend 200 days / yr away from your family for $3X ??
OK,
I didn’t answer the question…
Not – that is the answer.
Freedom 5,
Without a shadow of a doubt – far better to stay in her home, especially with 3 children, and get her mortgage under control and then on her way with passive income alternatives.
The uncertainties of moving make the whole thing a bit rubbery;
1. Is she sure she’ll get $ 220 p.w. for her place ??
2. Why is her family charging her $ 210 p.w. ??
3. This extra $ 70 p.w. is on top of what amount ??
4. How much is/are the father/s being forced to chip in ??In my mind point # 2 is the clincher….why would an extended family that wants to help their daughter and grandchildren in a supposed bind charge them rent that is the same as what their own prop can command ??
No – this whole thing revolves around grandparents accepting growing families back into their downsized homes….won’t work. All this number crunching about 6 years on…don’t think so…family dynamics overrides everything – it won’t happen.
Bottom line – struggle through and stay where she is.
Cheers,
Dazzling
“Go hard or go home”
Comm vs Res ??
No comparison, the former wins hands down.
Have a squiz at some of my earlier posts on this subject.
I can remember my wife’s uncle some years back…when we were gung-ho on houses saying
“When you’ve finished mucking around with those and wish to get serious, have a look at Commercial…”
I suppose that was his way of saying, get some capital and experience behind you. It was the tip of the iceberg for us.
I wish older men would enunciate themselves more clearly though…without all the bluff and semantics. They sometimes uncover diamonds for you, but unless you can recognise that tip of the wealth iceberg, you’ll sail straight past it.
Cheers,
Dazzling
“Go hard or go home”
Woodsman,
Yes there is. Mow / rake / prune / sweep / wash windows / vacuum / declutter / touch up paint…
That’ll do – you’ll be exhausted if you do half of that stuff…or significantly short of cash getting some poor sod in there to do it all for you….
Whoops…just re-read your post, it’s a newly completed RIP.
Ahhh, the joys of going senile.
Cheers,
Dazzling
“Go hard or go home”
Ratso,
I know you’ve said you wish to keep your IP’s separate from your family – but have you sat down with your successful “investing and developing” family members and had a chat with them regarding the specifics.
You’d be surprised how much knowledge gathers over the years within family members – once all the ‘personality issues’ have been stripped away.
Once you have their input, I’d suggest sitting down and mapping out your goals and aspirations. You didn’t indicate whether you were chasing CG or high yields or both ??
This decision will dictate what you buy and where.
Cheers,
Dazzling
“Go hard or go home”
Ausprop & Mini,
Tax implications and nett profit are not the only things to consider – in fact they may not be the over-riding factor at all – just have a chat to lots of farmers.
There is a lot of implied value to being your own boss and running your own show – regardless of the financial implications…once again farmers come to mind.
When you get some pedantic boss telling you when you can go to lunch, what to say, what not to say, taking ‘the glory’, stealing your ideas, talking down to you and belittling you in front of your peers etc….the run your own show option starts to look extremely attractive. Finances play 2nd fiddle. Obviously, if you are hocked to the eyeballs this option doesn’t even present itself.
Cheers,
Dazzling
“Go hard or go home”
Are we all sure that the options are purely restricted to only a house or a unit ??
I think Lister should broaden his scope somewhat and not restrict himself to just these two options.
My suggestion would be – none of the above.
I do however agree that the largest land component possible should produce – in the longer term – better growth prospects.
Cheers,
Dazzling
“Go hard or go home”
Foundation,
w.r.t. to question 2) Huh ??
Well I was wondering who was running “the show” over there ?? The “show” being – the largest property portfolio in the world by far.
How do they do it ?? Do they have property managers in each country…imagine their bulk discount on PM fees…who all report to one supremeo in a purple gown. Then what does he (no she’s in this property group) do with the info ??
I imagine they all get dressed up in their purple silk PJ’s, pop on their pointy party hats and sit around a big slab of polished oak with the ‘top dog’ up the end of the table in his white silk PJ’s and mull over their 200 Billion USD + portfolio…
I dunno – how do you think they manage it all ?? I’d imagine there’d be a lesson or two for all of us in that lot.
Maybe they are the ultimate masters in the “buy and hold” technique ??
C@34,
Mate – c’mon…a 3 or 4 line add describing the basic attributes of your IP as a hook to prospective tenants…surely people can do that to some degree. Holding people’s hand in a technical matter is one thing – but surely everyone could have a pretty good crack at this simple task themselves. You are denying people the opportunity to grow in confidence and knowledge.
Hihopes,
Wassup ?? Do you have a lease signed yet ??
Cheers,
Dazzling
“Go hard or go home”
Gamay,
Yes.
Cheers,
Dazzling
“Go hard or go home”
Roger,
When you say reasonable return – do you mean in terms of nett yield or capital gain – or both ??
What benchmarks have you set for yourself ??
Have you found IP’s that meet those benchmarks ??
Cheers,
Dazzling
“Go hard or go home”
Looks like I was 2 minutes too late…onya Simon.[biggrin]
Cheers,
Dazzling
“Go hard or go home”
Getting there,
I’ve perused quite a few posts on this forum, and have to admit yours takes the cake…
You’re very confident it’ll work ?? [blink]
You’re very mathematically minded ?? [blink]
It’s a little too complex to explain ?? [blink]
You only know the basics ?? [blink]
So you’ve actually seen the cheque !!!!! [blink]
It looks fullproof – what does that mean ?? [blink]
Worth 1 Billion in a few years ?? Why tell us ?? [blink]Seriously….are the Admin folk gonna step in here or what ?? [angry2]
Cheers,
Dazzling
“Go hard or go home”
