Forum Replies Created
Just lock the post, nothing is being added of any real value, rather it seems their is simply more squabbling.
Rgds.
Lucifer_auMJT is probably correct to a large degree. ABS might go off boundries while RP might go off postcode. Also RP might be a bit more bullish in how they figure population changes.
Also there has been a large migration to QLD from Sydney, etc so that may play a large part.
Of course this is simply my opinon.
Rgds.
Lucifer_auYou need to consult a lawyer who specialioses in property for this one.
With a wrap you can still qualify for FHOG. In which case property stays in your name untill the last payment.
Rgds.
Lucifer_auYou have to live in it for a period of 6 months to qualify for the FHOG.
(Your brother was right, but now the laws have changed).
Rgds.
Lucifer_auRoseberry is, well an interesting place….
In my mind their are quite a few negatives:
~50% of the people are unemployed
~Houses are trashed by tennants (too often, compared to other places -see unemployment).
~The house isn’t really massivly positive geared.
~Zero Cap Gains for foreseeable future (it’s already had it’s high growth rate).
~Very low growth rates (this is really the only time it has increased in value, mainly due to people from Syd & Melbourne desperate to buy).
~One industry town (mining, well I don’t count unemployment an industry[wink2], (in itself this increases the risk)).
~No local RE (it can be difficult to manage a property when you don’t have an agent on the ground and live in another state, and in my opinon it’s not that easy to get too).For me there are better places to invest.
Rgds.
Lucifer_auYou can positive gear – even in Sydney!
You just have to do it differently, through wraps and Lease Options. Check out the Getting Creative forum – https://www.propertyinvesting.com/forum/forum/28.html
The important thing to remember is why you’re investing. Are you investing for the cash flow? (which case Wraps, L/Os) or for the asset? (houses out past the black stump).
Rgds.
Lucifer_au“here is quite a bit of work involved to keep the data up to date.”
Buy the local newspaper and look at rentals – quite easy.
Or go to the web site and find the nearest suburb:
http://www.realestate.com.au/cgi-bin/rsearch?a=bhp&t=renRgds.
Lucifer_auFantastic post bwiemers!
Your on your way already!
Rgds.
Lucifer_au“Are you prepared to pay for good quality information or are you content to rely upon freebies prepared by junior punters?”
I hardly think Home Price Guide is prepared by junior punters.
And as for RP Data:“The size of X is approximately 16 km². It has 13 parks covering nearly 17% of the total area. There are 4 schools and 2 childcare centres located in X. The population of X in 1996 was 13,217 people. By 2001 the population was 14,363 showing a population growth of 9% in the area during that time. The predominant age group in X is 20 – 29 years. Households in X are primarily couples without children and are likely to be repaying over $2000.00 per month on mortgage repayments.
In general, people in X work in a professional occupation. In 1996, 39% of the homes in X were owner-occupied compared with 40% in 2001. Currently the median sale price of houses in the area is $1,170,000.”
I hardly think that is amateur…
It also contains household structure, household income, etc, etc.
Rgds.
Lucifer_auUmmm… No. With a trust you pay 15%.
Rgds.
Lucifer_auWith commercial property, you usually can only borrow 70% from the bank, so you have to stump up large deposits (round 30%).
If your looking for a secure tennant then you should probably buy something close to the city as it’s easier to get another tennant if they move out.
Mortgage application fees might be higher because banks may have to spend more time on these applications (assesor, then try to gague the demand the building has in it’s present locaton, etc).
Rgds.
Lucifer_auNow back to the topic at hand…. (these posts seem to jump around a bit![tongue][wink2]
Charging high prices for seminars is just greed – as simple as that. If a presenter ran a seminar over two days, charged $200 per person and attracted 100 people, he would gross $20,000. Do that only six times a year and it’s a good yearly return. You get the gist. Now what’s wrong with that? Isn’t that being very well paid for your knowledge? But oh no, that’s not good enough for the spruikers when they can milk the public to the tune of thousands, rather than hundreds. Give me one solid reason why they charge thousands, because to date on this website we haven’t yet heard one.
>Because you can make hundreds of thousands of dollars? Or you can retire quicker if you had some expert help? (if you want proof, simply look at Steve McKnights MAP program).
Why do we, the public, fork out ludicrous amounts to attend seminars? Because we are also greedy. We think the presenter is going to lead us to the holy grail of wealth. It is human nature. Why expend energy if there is a quick and easy way? There is no quick and easy way. It doesn’t exist. That is a realisation we must all come to before we can make progress from being naive fools.
>Greed is simply a human emotion, nothing more, nothing less. In fact I see greed as good, because I’m looking for these property deals not because I like having to paint and repair them in the future, but because I like their cashflow, and I want more of it -therefore I must be greedy!
Many of us are naive and easily conned, often very late in life. Some of us never get any smarter. Don’t worry I’ve been there and had to learn the hard way myself. Hopefully, I’ve gained some enlightenment along the way to be better prepared for the future.
>Perhaps with some good education people wouldn’t of bought two tired, deposit bond inner city units for the tax benefits – I know of two ‘spruikers’ who tell people not to negative gear (one even makes you yell it out).
As for people being naïve and conned – you can either learn from your own pain (experience) or someone else’s (education & knowledge). I know which one I would rather lean from, even if it cost me a little extra.
Rgds.
Lucifer_auYes, $350 for 15 minutes appears way overpaid.
>What happens if she could teach you to swing like Tiger Woods, wouldn’t people be interested in that? What happens if she could provide a way to save thousands with your super? Is she now massively overpaid? What happens if she provide that knowledge which also allowed you not too rely on the Government for a further 5 years into retirement as well? I think the whole of society just might suggest that she is not overpaid. And really who decides if someone is overpaid? If some one could increase efficiency and reduce costs, shouldn’t they be highly paid?
However, if your wife is in the business of saving lives then what price can you put on that? As Kay said there are many overpaid people in the world – sportsmen, actors and so on. I believe workers who are dealing with saving people’s lives should be some of the highest paid, but unfortunately that rarely appears to be the case – firefighters, surgeons, nurses, etc.
>Well what jobs should have the highest paid? Farmers provide food, and feed millions, shouldn’t they be the highest paid? The military and police protect us and our property (they also lock criminals up) shouldn’t they be really highly paid? Garbage collectors provide a very important service and without them disease and death would sky rocket – so shouldn’t they be the highest paid? What about coal miners and power plant workers? They save millions everyday ((see how easy it is for hospital to run without power), and thanks to lighting streets, providing power to traffic lights, etc, etc), now they should be the highest paid of all! In fact doctors might only save one or two lives per week, where as farmers are saving millions of peoples lives per week, so Doctors should get paid very little and farmers very highly…
Why would a presenter not be satisfied with grossing $300,000 per year, say? 99% of the population would kill for a return like that. Once you take care of living expenses and can afford to buy luxuries, travel and so on, why is there a need to keep making more and more?
>Why isn’t Donald Trump satisfied with owning one building in New York?
Why are sports men and women not satisfied with wining one medal?
Why don’t musicians retire after one of their records goes platinum?To me there is some sort of threshhold where beyond that you don’t really need the money. For example if I had $1 million net, I know that I could make that grow for the rest of my life in a sustainable manner, without needing to create an empire of hundreds of millions of dollars. An income of $50,000 to $100,000 per year would do me just fine because I know that could achieve everything I want with some to spare.
>Great for you, but that’s rather limited and in a way selfish, because if you could create a million dollars per year, couldn’t you give back more and more?
I want to be financially independent through investment, but it doesn’t have to be to the point where I want more and more – just sustainable so I can take care of my needs and help others.
>Help others in a limited way. Myself, I would rather have huge amounts of money, for example I would love to buy hundreds of acres of old growth forest, and place it under trust for future generations. That’s what Steve Irvin is doing. He uses the profits to buy up land that holds endangered species and plants – under your method he would buy very little, but under his plan – he just might save a couple of endangered species.
>If your happy with a couple of hundred thousands per year, great. For me I want to do something that has an impact the world. And it’s very difficult to do that with a couple of thousand here and a couple of thousand there. Look at Bill Gates, he is helping eradicate the world of polio. I would rather he do that, than simply be satisfied with earning a $100K a year.
Rgds.
Lucifer_auAs an investor I look at problems like this from a different angle.
I look at the rate of return I can get Vs. the interest rate.
So for example if I could make 25%, and the interest rate was 16%, then I’m 9% ahead. Of course there are other factors that go into this, but thats how I look at it.
Of course you might not been in the same position.
I would suggest you get ‘Money Secrets of the Rich’ by J Burley. You can get it at most major bookshops. Look at his Debt Elimination Plan.
Hope this gives you a few thoughts & ideas.
Rgds.
Lucifer_au1. No CGT is payable at all because it is considered trading stock.
2. A wrap is where your loan wraps arounds the banks loan (very basic idea of it).
Go to the creatie section for more wrap Qs.
Rgds.
Lucifer_auWhen buying negativly geared properties put them in Unit Trusts – Not family/disc. trusts. You will have to do some fancy foot work to get out of this one, so do check out Chris Battne.
Rgds.
Lucifer_auI’m not a mortgage broker, but as I said before I cannot recommend them for anything.
1. Loan Products are substandard:
~Will not allow uncrossing of securities
~If any more IPs bought via NAB they have to be crossed with current securities.
~Only reduced interest rate if i pay a application fee
~Limited lending because have interest only loans
~Trusts req. mortgage debentures2. Banking
~ I’ve never had anything but grief with staff.
~ To bank a cash cheque I was told the fee was $5- unless I had an account with them (opened up a student account, deposited the cheque and closed it again – waisting everyones time – but hay them the rules).
~ High fees (except for one account).
~ They are the number 1 bank for being ‘Non Responders’.3. Service
~ Well they do have internet and phone banking…
~ And are fast (based on others experience).But overall – I cannot recommend them to anyone.
Except perhaps to large business, but then their forex desk was down for a long time (after the forex debacle).
Rgds.
Lucifer_au“He talks about a property in the book yielding around 15%. Show me properties yielding this much. No good saying they are out there if they are 1 in a 1000 – you’ll never find them no matter how good you are. How about a bit of reality?”
From what I know of the US market find a deal that can provide 10-12% is relativly easy to find (mid-west). Here it’s alot harder (thanks to negative gearing), but commercial does offer similar opportunities to find that level of return.
“you’ll never find them no matter how good you are.”
I have (even on residential!)…
“Personally, I find it distasteful when people attempt to offer me less than what I want…for what I have…that they want.” p224.”
I think the reason he is saying this is because a large amount of emphasis in a lot of material has been on putting low ball offers on property. He is saying that sometimes thats not the best way to go (he explains why with the potnetial upside, that the buyer seems to ignore).
“Just because Robert Kiyosaki is a “guru” doesn’t mean we can’t question his advice, writings and motives.”
I agree.
Rgds.
Lucifer_auIf you have a good team, you don’t need to physically inspect th house. But saying that it’s always a good idea to have a look at the area the property is in, etc.
Rgds.
Lucifer_auWell number one – congrats on getting your feet wet! There are many who never even invest, at least you have. All you have to do is take corrective action.
I would start by having a look at owner finacing as an option. This is where you sell your apprtment on Terms, so instead of getting one lump sum (from selling), you get payments that cover your mortgage and provide a proift (though with the deal it might just be to stop the bleeding).
Also I would highly suggest you get a copy of John Burleys book ‘Money Secrets of the Rich’. You can get it at any bookstore (if they don’t have it – order it in).
So here what I would do:
1. Buy the book (essential for your case)
2. Read it
3. Learn more about owner finacing (wraps, L/O’s, etc).Rgds.
Lucifer_au
