Forum Replies Created
I don’t think anyone will buy St George, for a couple of reasons. The main one is that there shares are more relativly more expensive compared to other banks (they might not be actually more expensive, but when you take into account size and assets yes there shares are higher over the banks). Also NAB and CBA are out of action for a while (com bank because of colonial and NAB because they sold their shares to show mum & dad investors – we’ve made XX amount this yr!). I reckon a good fit for St George would be ANZ or CitiBank. ANZ because there culd be lots of costs savings and they have similar cultures and CitiBank because they have bought other banks with large no. of branches and St George could use their $$$ to be even more competitive.
Of course this dosne’t answer the question, but hay – it’s fun to think about stuff like this.
Rgds.
Lucifer_auI don’t think any bank would call in a performing loan. Why wuld they?? Already they repackage the said mortgages and sell them to investors and other financial institutions. Now why would they call in these loans?
Because if they did they would have to pay out funds to compensate these investors (technically they might not have to, but why would people invest in a particular bank’s mortgaged securities if the bank called loans in, investors would think the bank was nuts, since no other bank would be doing it).
I guess with commercial properties it’s different because the risks are different (everyone needs a home, even during a recession, but business can close up or move somewhere cheaper).
Rgds.
Lucifer_auThe problem with this type of financing is not the return on investment, but the return of the investment.
I’ve seen many deals where the only security was a raw piece of land, and the bank had a first mortgage on it. As a creditor you can only expect cents on the dollar if the deal goes bust (and with the slowing property market it could be sooner rather than latter).
Yes there are excellent deals ot there, but there are also extremly risky deals out there. So do your due diligence.
Also you may have to lump up large amounts of money which has it’s own downside (as you can’t spend it on better investments if they crop up).Rgds.
Lucifer_auI agree with Derek! Go rent out first class hotel rooms (I’ve herd the preidential suite is the best and quite nice too).
You will lose $24,000 each yr. if you hang on to your holiday home. For every 1% interest rate rise you will be paying an additional $3,600. So if loans goto 8.5% by 205/6 (predicted by some analysts) you will pay $32,000, along with all the other property expenses.
If you stayed at a 5 star hotel (deluxe suite of coure) you could go up to 48 times (staying two days aweek) before you out of pocket to the money you are losing on your holiday home. Hell, stay in a 6 star hotel on the preidentail suite and you could go at least 24 times. Or go on a real fanncy holiday every year ($20K for that and relax in a hotel once every six weeks!).
Also I don’t understand why you are paying thye top marginal tax rate if you own the company?
If you own the company you shouldn’t be paying any more than 30%, at all. Saying that though it really is not too difficult to get it much lower than this…Of course if you are an employee then I can understand why, as the Gov. gives hardly any tax breaks to employees.
Rgds.
Lucifer_auThese people seem to be mortgage and insurance brokers and they have software which can advise you about which bank accounts/insurance/loans are ‘best’.
In the DIY section it says:
“The program automatically processes implementing any product change or even a change of bank or lender. When the program produces the reports and documentation, you only need to mail them to the address provided and the bank or lender will be in touch to fulfill your request.”Brokerage by stealth??? Who knows…
It only talks about debt/bank products so I’m guessing they don’t recommend shares or bonds or that type of thing…
While they sound good, I’m reluctant to hand over my financial future to a black box…Rgds.
Lucifer_auHeres how the situation works, if your tennant contracts emphizema they make a claim aginst the manufacturers. There are special funds set up to pay this liability (one particular fund has recently been in the news for not havingenough asses to cover long term liabilities (10-15 yrs out). They do not claim aginst you unless you have ripped up and told them it is safe (and don’t worry about the dust!).
From memory there are paints which have a stong bonding agent, I would suggest acouple of coats of those (I don’t actually own any asbestos houses, but it’s what I would do.
I also would do what your son suggests.
In the end it comes down to a duty of care – did you take all resonable steps to ensure that the asbestos fibers become lose. All that means is just have to have a good think about it and take any steps to minimise damage.
Rgds.
Lucifer_au“Mel, isn’t Dolf American? What point is it learning the American methods unless investing their? They do things very differently.”
He also owns alot of property in NZ and also in Australia. In fact he runs a development company in NZ (http://www.propertyventures.co.nz/).
Wraps and LOs orignally came from the US as do most innovative loan products. Felicity is right most stuff that can be done in the US can be done in Australia, all it needs is some simple tweaking or modification.
Rgds.
Lucifer_auO’h a nice prize… How about a cure for cancer and AIDS?
Apart from that, there is really very little that I would want.. Perhaps another article from Steve McKnight <hint, hint>… Or perhaps a free audio from Steve!!!! Well me can always hope!
Rgds.
Lucifer_auI spent a while talking with a US investor and the yields that they can get (and are considered avarage is amazing!). It will certainly be a mrket I will be looking at in 2/3/4 yrs. (along with NZ and perhaps even Canada and the UK).
Rgds.
Lucifer_auiamborediambored
“This is an average. Has Kerry Packer got a degree? For those who don’t know, he is the richest man in Australia and started by delivering newspapers.”Unfortunately not everyone can inherit a publishing empire started by his father (and by the way Kerry Packer wasn’t the first in line to manage the empire – Clyde Packer was, but he didn’t have an interest in running it or even being in Australia – of course his sons are in PBL and went to US universities). Or have their family invest in their business (Bill Gates father who helped seed MS was actually a very succesful IP lawyer and Bill Gates did go to Uni he just dropped out, Warren Buffet who runs Berkshire Hathaway has a masters degree and actually leanred how to invest from one of his professors -Ben Graham. Also many on the ‘Rich List’ by Forbes are Princes from Saudi Arabia that have university degrees. How about Sam Walton the guy who started Walmart (his offspring take up 3 places in Forbes Rich List and while he was alive he was the 2nd richest man after Bill Gates) had a university degree.
I’m not saying that just because you might or might not go to Uni you will become a billionaire. All I’m saying is that on average (and since that is probably the only thing we can base this on) the people with Uni degrees can earn more money than someone without a degree. Also when you go to Uni you get to meet up with some incredible smart people (whom do you think Bill gates hired when he start up MS???).
Rgds.
Lucifer_auOriginally posted by iamborediambored:Originally posted by miracle:by going to Uni, in the end,you will be earning a lot more money, than not going to UNI. Making your investment portfolio increase with ease.
Rubbish!!! I earn a lot more than most of my mates and didn’t need any qualification whatsoever. Uni teaches you the theory. Life teaches you the practical. How does going to uni increase your portfolio?
For those that don’t think having a uni degree means squat take a look at the income of people with uni degrees vrs people who don’t. The ones with a uni degree have a higher avarage wage. In fact when you take the mean income it’s even higher. So in fact having a degree will more than likly mean you will recieve higher wages than someone who didn’t go to uni.
Originally posted by iamborediambored:
Also, I have never heard a more incorrect statement then lenders love lending money to uni students because they see a big pay-off. How do they service a debt if they are studying full-time???Since you have never tried to get a loan while at uni – May I ask you what backs up your thinking? Because while at uni I was very easily able to get a mortgage for an IP. O’h and though uni might be considered ‘full time’ it isn’t difficult to have a part time job (hell, some studnets manage to clock up 40hrs at a job every week).
Look banks like to see a story that is succesful. So they see, here is a student with a part time job going to uni, when he leaves he will have a higher income (on avarage) than someone witout a degree. Usually people with degrees (like Doctors, etc) like buying big ticket items and big houses for themselves, which means more money for banks like us. That is why they don’t mind lending money to students (where as joe blow avarage would!) and why they do not like lending to people on a pension.
While of course they don’t lend on the idea, if your fundamentals (income, job, etc) are good they will lend you the money.
Rgds.
Lucifer_auThis is a property investing forum, and so unless Steve has just released a book “13,0000 profitable trades in 3.5yrs” O’m guessing he won’t mind me talking about other forums.
One excellent forum on trading oprions is Dr Van Tharps Trading Forum – http://mastermindforum.com/phorum/list.php?f=9
Dr Van Tharp is not a traderas such (though he does have a very large ‘retirement’ account that he trades) but he teaches what it takes to be succesful. In fact he is the only non trader to be interviewed in “Stock Market Wizards” by Jack D Schwagger which apparently to other people I’ve talked too is pretty impressive. He has some excellent ideas on how to create excellent returns trading.
I might suggest that perhaps finding another market might be better for a number of reasons – 1. You have the best brains in the business trading currencies, so your competing aginst that; 2. he currency market is very volitile, hughley so. make sure you can really handel the ups and downs!; 3. You will probably need toi trade large amounts (I’m not sue if you are willing to use leverage by using options, so I’m sssuming your not using options); 4. Currency markets are affected by everythign and anything, you will have to keep your pulse on everything if you want to make lare profits as a change in consumer sentement or inventories or even a simple statement can change a currncies value massivly.
Perhaps try out another market that you can ease into (like cotton or minerals, etc), rather than trying to trade currency – yeah it’s sexy, buy I would rather have less compertiton and make lots of $$$ and not be sexy.
Anyone else has any thoughts???
Rgds.
Lucier_auI haven’t read success stories, but I’ve got two points to make. First make sure you are talking about yield not C0CR (Cash On Cash Return).
And second, in the US you can actually find profitable properties and it’s not that hard! Okay it is hard in Califrnia and New York, but in many other cities it is not difficult. In my opinon the reason for this is the fact they do not have negative gearing. In Australia, every man and his dog have bought an IP and 95% are negative gearing. This cuts our returns down big time.Just food for thought.
Rgds.
Lucifer_auUnfortunately you have to be over 18 to sign an enforceable legal contract (so yes 18+).
That though doesn’t have to stop your progress. You will have to team up with someone who is over 18+. Grandparents (who have either been involved with real estate or business) can be useful in the fact that they can sign the documents and if they have enough equity qualify for any loans. Of course if they have not been entrepreneurial it will be a lot harder (and I would not peruse this option). The only reason why I suggested it is because they usually want to put family ahead. Parents can also be useful too (see above).
Another reason is to try and start to form a relationship with some who is entrepreneurial that your parents or you know. Offer to work for them for free (as Robert Kiyosaki did for his “Rich Dad”). This requires maturity though, and it is important that you treat them with total respect and honesty, esp. if you want them to help you. With them work out a deal that will benefit you both, and show them you have plans if the investment goes bad – this and respect is very important.
Lastly if you find great deals resell them to us private investors! This is a great way to make some quick cash! Or find a investor who will get the loan in their name (but you will have to provide at least 50% of the profit to them to make it worth while – so check out wrapping to get higher returns).
Hope this helps.
O’h and it’s Lucifer, Not Lucipher. Cheers.
Rgds.
Lucifer_auWhy not do both??? It’s not that hard…
Apparently a degree means it’s easier to raise money from private investors. Also Uni means you don’t have to work (full time) for a minimum of 3yrs.; you can get loans where you don’t have to pay any interest off until you have left uni and banks don’t mind lending to uni students – they see a big pay check comming up when you leave uni and get a full time job.
So go to uni and become a property investor.
Also it shouldn’t be that hard to get to uni if you enjoy business studies and economics (which are rather useful for investing).
Rgds.
Lucifer_auAll that graph shows is a 20yr bull market – I want to see what happened during a bear market.
Anyone know any good books/articles on the subject?
Rgds.
Lucifer_auThanks Pisces!
Rgds.
Lucife_auC0CR = Cash On Cash Return
To me COCR is everything (I only buy CF+ properties).
COCR tells how profitable an investment will be for example:
~You have a $100 in the bank, you get $5 in interest, so your COCR is 5%.
~You buy a CF+ property, you put $5,000 down ($2,500 deposit and $2,500 in closing costs).
You get rent and after you’ve paid your mortgage repayments and all other costs (vacancy, insurance, etc) you come out with a profit of $2,500. This means your C0CR will be 50%.So the formula for C0CR is:
Cash In Deal divided by Profit(Do not confuse C0CR with yield (in my first bank deposit example, you could say the investment has a 5% yield). Yield does not take into account if you have borrowed any money to buy the investment.
The formula for the Yield:
Income Generated from the investment (rent or interest) divided by the purchase priceSo if you went by yield alone, my first example gives you a yield of 5%, and my 2nd example (the RE one) gives you a yield of 5%. But as you can see one is way more profitable than the other!
I suggest you pick up some Robert Kiyosaki Books (Rich Dad, Poor Dad, etc), and then go onto Dolf De Roos (Real Estate Riches). They have provided a strong foundation for me, and have allowed me to achieve 40% Plus on my investments – Not bad for less than $25 for a book!!!
PM me whenever you want.
Rgds.
Lucifer_auYou can still find properties for as low as $50,000. With a 95% loan you only have to stump up $2,500 for a depsoit and closing costs of around $1,500.
Although it sounds alot, if you save (though have a bit of fun!) by the time you hit probably 16 you should have enough.
By the time you hit 23, you shouldn’t have problems reaching 6 more properties at least!
So keep learning all you can.
Rgds.
Lucifer_auTo me wrapping isn’t that hard, in fact it’s very simlar to buy and hold in practice. But I ask you – is it easier than working 50hrs a week? I know which one I would rather do.
Rgds.
Luicfer_au
