Forum Replies Created
I agree with you about hydrogen versus electric.
Electric sounds a lot more feasible. The petrolheads won’t like the lack of power, but I wouldn’t miss it.Its already happening in some of the smaller arab countries. Oman is using the last of the oil revenue to create a giant intl shipping port modeled on Rotterdam.
United Arab Emirates are pushing the tourism angle. Seen all their ads for Dubai on TV recently.
I believe one of the big problems with hydrogen is its hard to store and leaks through most metals and its bulky. Fuel cells have a long way to go yet.
Even if they had the technology now, it would take a lot of years and investment to get us changed over as well as some more immediate action from the politicians. They hate to give out bad news, especially aound election years. We will probably be in big doo doo long before that happens.Lots of money will now be pointed at energy development.
Hydrogen will be an important one, but it takes another source of energy to create hydrogen, traditionally NG, another fossil fuel, so its cost is high and its energy value is a lot less than oil.Oil will be around for many many years, but at a high cost, maybe above the reach of the average Joe. Aeroplanes don’t run on anything but oil (kerosene). I can imagine air travel costs will become prohibitive to the average Joe also.
Shipping and transport also only run on oil, seen any hydrogen trucks lately? That will affect everything, and as each years passes, the oil supply gets less, and the world population gets bigger.It doesn’t look that rosey to me. In fact its down right mind boggling.
I had a similar situation. Gorgeous 1/2 acre block with very small workmans cottage, only 1br, but in good order and in upmarket area. I only got $150 per week renting it, so I turned it into short term boutique accommodation. Now getting $490 minimum per week with about 65% occupancy. I’ve had good capital gains since 1999, its a keeper.
Does your cottage have character?
Not everybodies cup of tea of course.Happy thinking[thumbsupanim]
Originally posted by aussierogue:and the wise ones of us that do try and see longer term we tend to ridicule them as drop outs, hippies, alternatives, mystics, intellectuals etc.
we all need to take responsibility for the world and the forst step is to accept that we already have more than enuf to keep us happy and stop being rabbid consumers… (is rabbid a word?)
I think so[blink]…. something to do with having rabies[biggrin]
Hi Ablaz,
Yes, this is a very serious problem. One, I think, that a lot of people (including politicians) have not got their heads around, and yes, it is depressing at first. I would say a lot of people discard the information into the “too hard” box.Best you can do, now that you have knowledge and know the serious ramifications is to factor it in to your daily decisions and long term plans. You can almost start to see it happening around you as the price of oil soars 300% from what is was in 98. Theres a long way to go to reach the highs of the seventies in relative terms, where oil reached US$60. That knocked the NZ property market into a long decline, where properties devalued 10% per year for quite a stretch.
During the Iran-Iraq war (late 70’s)another oil crisis hit, and property reacted the same way, but not such a long stretch. So the ramifications of declining oil supply and higher oil prices has a very definite affect on the property market (here in NZ anyway).
If you are still keen on investing in property, I’d sit back, save your money, maybe invest in something like alternative energies (sure to be a growth area) and jump into PI later.
If you want to discuss the issue try http://www.oilcrash.com
They have links to some excellent discussion forums, that cover most aspects, including investment and self preparation.And if you get past the depressed stage, and get onto the angry stage, write to your MP or Government representative and ask them how they are preparing to meet the challenge on your behalf. Some of the answers I’ve received would be quite amusing if it wasn’t so serious.
All the best
FernPersonal public liability (in NZ) is normally covered by your regular house contents insurance.
I found that out when my 50kg BullMastiff ran out the gate chasing a cat across the road into an oncoming car. The dog was fine, the car was written off. My contents insurance covered the lot.
I set up my own website for a business over three years ago. I pay about NZD$140 per year all up. They give you tools to design your own website, but they are quite basic. Later, once I learnt the ropes I wrote my own stuff and uploaded it using CuteFTP.
The hard part was not so much the design and getting the site up and running, but getting it out there on the big search engines where it will be seen.
I got my first IP in 1981 when I was 19 yrs old.
I’m now 41, all freehold, and I haven’t needed to work for about 5 years, I just look after the IP’s and the kids and keep out of debt (for the moment anyway). I’m not too fussed with expensive holidays away, I’ve travelled so much over the years, its nice just to grab a local beachhouse for a week. I really enjoy just being able to be at home with my family and menagerie of animals, tending the gardens and keeping things simple. My ultimate goal was to be out of the ratrace.My next home project is getting a wind turbine installed. Did I say simple?[rolleyesanim]
I live about 300 metres from a major faultline.
They recommend a 20 metre setback when building on a fault.Its just part of life here, we had two local shakes over the weekend. I’d be more worried about aussie fires than kiwi earthquakes.
Originally posted by PurpleKiss:Interesting, the last line, if housing prices do fall quickly then the RBA can cut interest rates. I guess that’s our silver lining.
PKI can’t see them cutting interest rates when the inflationary affects of oil at US$40 per barrel (and still rising) coupled with the falling AUD$ puts the pressure on.
Originally posted by Aceyducey:I liked the comment:
Whether we are heading for a crash at the bottom of the property cliff or a gentle levelling out of the market, the figures show the current boom cannot last beyond the middle of the year.And who made that rule
It should state that it’s an opinion, not a fact.
Cheers,
Aceyducey
Yeah, its an opinion based on common sense!
Article on the US property market FYI (it is related).
Best not to be part-smart[wink].http://www.gold-eagle.com/editorials_04/maund050804.html
The Looming Property Crash
by Clive Maundsnip
<<In watching the US property bubble expand to its final unsustainable extreme over the past year or so, I have felt rather like that old guy in the rocking chair in those Jack Daniels whisky ads, who whiles away the time while the whisky matures reading the newspaper. After about 15 years he slowly rises from his chair and shouts “Jed – get the wagon!” The moment has arrived.>>Snip
<<Appropriate action for you would probably be to pay down debt to ensure that if, in the coming recession/depression, you get kicked out of your job, you won’t also end up being booted out of your home. On the other hand, if you have additional discretionary property, such as a second and maybe a third house, I believe you would be very wise to take of advantage of the fabulous, insane prices currently on offer and cash in, in the knowledge that you can buy back a similar property for perhaps half the price, maybe less, in a few years. Property speculators in particular would be very wise to cash in their chips now, in my opinion. Homeowners who are undecided about a potential move, perhaps due to having neighbours like the Osbournes, would probably do well to rent for a while and then move in to buy a really nice place after prices have plunged.>>The rot has already set in a good many states, where State budgets are under severe pressure, unemployment is rising and property prices are falling, or about to fall as prices stick, buyers evaporate and a forest of “for sale” boards appears.
The crash in US markets and in particular the US property market will, of course, have global repercussions. Two countries that will be particularly badly affected will be Australia and the UK. Speculation in property in Australia has been rampant driving prices to giddy heights, but at least you get something for your money there. The same is not true of Britain, which seems to specialize in what I call “rabbit hutch” housing – unimaginative, poorly constructed, overpriced boxes. Don’t get me wrong – there are nice houses in Britain, just be prepared to pay a huge sum if you want one.>>
My opinion: For every loss there is a win
Very true, and with all the winning thats been going on over the last three years, there is going to be one hell of a correction.[biggrin]
As a sole trader, I can employ 100 people, have 50 cars, 70 computers and claim them all.
I can send them all to that conference in Hawaii.So I have no idea what you are referring to.
Its all tax deductible.I can run seven different business, all as big as the above under different trading names, and still be a sole trader, not a limited liability company. I can buy insurance to cover my liability.
definition of Crash:
3. crash, collapse — a sudden large decline of business or the prices of stocks (especially one that causes additional failures)
Originally posted by Misty1:wowie! thanx lucifer,what a reply! U r oviously someone in the know! I need 2 absorb & act. cheers[confused2]
Hi Misty, Did you read my post?
Be careful what advice you take.Regards,
Originally posted by wayneL:
. We’ve probably eaten up enough housing inflation to last us another 15 years, all with cheap credit.[biggrin].
Could be a very long cycle coming[wink]
As to whether there will be a crash. Hard to tell, yeah, depending on what the feds do, but I can’t see there being any growth to speak, of, and I’ll bet house prices don’t keep up with inflation for a long while.What really causes a crash?
Mainly I’d say people hurting is the main cause.
So the big worry here is overall credit levels, not just housing sales/prices. People are going mad on credit and using equity for things other than investment and the overall picture is looking balloon like worldwide. Then inflation comes.
If it doesn’t pop, then it’ll just deflate slowly like those left over party balloons and lie on the floor in the corner for a decade. (Recession?/Stagnation? Wheres that crystal ball[wacko])Its either now or next month.
The longer they leave it, the bigger the shock at the other end IMHO.Originally posted by Lucifer_au:But the real value of companies is how they are treated in terms of expenses:
Indvidual: Earn->Tax->Spend
Comapny: Earn->Spend->TaxAn employee is taxed before they spend a dime of their own money (automatic payroll deduction), but a company can spend as much as it wants (on business expenses) and then is taxed on what is left over. Now in the course of the business you have to do certain things to make money. Such as fill the car up with petrol, buy a new computer, pay mobile, internet and phone bills (so PM/tenants can contact you), subscription to magazines, buy newspapers and books (furthering your education), buying corporate gifts, taking other investors outto lunch, etc. As you can imagine, your expenses could get quite high and that is where you make the biggest savings of your tax. In fact some people deduct everything they can, so in the end they pay 0% in tax.
Don’t Australian shareholder employees pay provisional tax exactly the same as individual sole traders do?
A Sole Trader can claim the same expenses as a company as far as I know.
Companies have many advantages but do have higher compliance costs than sole traders. A sole trader in a parallel business with a company will make a slightly higher before tax profit because of this.
Operating under a company makes no difference to whether a client lunch is tax deductible or not[blink]
If you are paying tax, smile – You made a profit – If you are paying heaps of tax, smile harder, you made a BIG profit[thumbsupanim]
