Forum Replies Created
Feb is fine by me. But early Feb Felicity is away (11th of Feb she goes to NZ) and late Feb (27th) I’ll be away.
Perhaps late Jan or early, early Feb (or do you think thats to early?).
Also I have some free (commercial) web space available too.
As to where to meet?… I’m very flexible (and will travel).
In terms of stepping on toes, the VFA has done a pretty decent job (and Rick and Michael should be proud of what they have achieved), but I think because of the scale of what was required it was always going to be a very large task. I think a organisations based around State lines would be more useful in terms of know-how (each State really has their own tweaks & twists in regards to the UCCC), education, finding new members (because the VFA has held meetings in a variety of different States, continuity is hard to keep up, as well as getting new members to join) and in terms of lobbying state govs.
Rgds.
Lucifer_auDoing a wrap is a sophisticated strategy. And right now there seems to be an awful lot of pressure on wrapers. Just recently Consumer Affairs Victoria is taking a wraper to court (http://www.consumer.vic.gov.au/CA256F2B00231FE5/page/2004-November-Mortgage+Wrapper+Facing+Potential+Penalties+of+%243+Million?OpenDocument&1=75-2004~&2=11-November~&3=0-Mortgage+Wrapper+Facing+Potential+Penalties+of+%243+Million~)
The reason why I’m telling you this is because in my opinon many people have jumped on the band wagon and aren’t trying to create win/win deals, which in this business is paramount.
I suggest you pick up Steve’s wrap kit (http://propertyinvesting.com/resources/5.html) (it does seem sold out though) or pick up Rick Ottons or John Burleys material (I would suggest though that you wait for Steve’s to come up again and use the time to learn off this and other forums).
Rgds.
Lucifer_auTip:
Always put a get out of jail clause in your contracts.Tip:
Always keep learning.Tip:
Find a niche/strategy that is succesful and then repeat.Rgds.
Lucifer_auA child should be learning about money from day 1? Why because most people work all their lives for it, why shouldn’t they know about it and decide wether they want to do the above.
Anyway Kiyosaki wrote 3 books on it and is doing quite a bit to increase fin. edu in schools:
>If You Want to Be Rich & Happy: Don’t Go to School?
This book is basically about the education systems failings. I read this and it had a profound impact on me (esp. since I was going through school). Thanks to this book I don’t need to work for money.>Rich Dad’s Rich Kid, Smart Kid
This is for parents, and gives ideas and examples that they can use to help their kids about money.>Rich Dad Poor Dad for Teens
I think Rich Dad Poor Dad is better, but worth a look esp. if you have young kids.He’s also got a free game site for kids:
http://www.richkidsmartkid.com/Also he has the egame (and board game) ‘cashflow for kids’. Schools can get the board/computer game for free (at http://www.richkidsmartkid.com)
Rgds.
Lucifer_auIf you can afford it and usually you can raise rents in a yr. or so to make it CF+, but of course it depends (the levels of rnetals, vacancy, etc).
Rgds.
Lucifer_auCheck out http://www.jaffasoft.com and click on the positive cashflow calc, it has the defaults as standard.
Vacancy Loss (%) – Usually 4 weeks
Insurance – Around $350, but can be as high as $450
Maintenance – Usually 5%
Rates – Between $500 to $1,500 for residential
Taxes – Depends, are you using a trust?, are you neg. gearing?, etc
Current stamp duty rate? – Depends on value and the State
Rental M’gmt Fees – Usually around 7% or 8%On average closing costs are roughly around 5% of the propertys value (this falls the higher value the property).
Rgds.
Lucifer_auOnly a few more – but the amount of paper work!!!!
Rgds.
Lucifer_auIt really depends… If I’m looking for Cap Gain – a fast growing area (property tends to trend long term, so a fast growing area this yr, will probably still be a fast growing are next yr., of course you have to beaware of booms, etc), where as with CF+ I’m looking at an area that has at leat two independant industries (so farming and fishing for example), and one that has a good level of ammenities and one that still shows growth of pop.
Rgds.
Lucifer_auOur distinct personality, The Prime Minister might be found in most of the thriving kingdoms of the time. You are a strategist who pursues the most efficient and logical path toward the realization of the goal that you perceive or visualize. You will often only associate with those people who can assist you in the implementation of your plan. Inept assistants may be immediately discarded as excess baggage. To do otherwise could be seen as inefficient and illogical. On the positive side, you can be rationally idealistic and analytically ideological. You can be a bold decision maker and risk taker who can move society ahead by years instead of minutes. On the negative side, you may be unmerciful, impatient, impetuous and impulsive. Interestingly, your preference is just as applicable in today’s corporate kingdoms.
Rgds.
Lucifer_auPerhaps it would be better to put more effort into State branches and have the federal branch more to do with lobbying the Fed. Gov.
I think State branches would help more as it would be easier for members to meet up and also the State branches could lobby each of the State Govs. directly (kind of like Real Estate Institute of Australia (REIA) that lobbys the Fed Gov, while REINSW lobbys the NSW Gov.).
Rgds.
Lucifer_audotechin I am not saying you cannot get an extra $120. I’m just saying it’s best to get to a position where both sides win. For example if you can get the $7K FHOG from the new buyer it provides some profit, also if you add an extra $20K on the sales price (you must be resonable on this though), you have made a further $13K ($20K End Price – $7K Deposit = $13K).
In my view see this as mainly a way to get out from a bad position as well as a valuble learning experience. Once you’ve done one you will find it alot easier to do more, so don’t worry too much about maximinsing your profit, just make sure you make one and it’s a win-win deal.
Rgds.
Lucifer_auPre-Nups don’t really work.
First of they only last for a maximum of 10yrs.
Secondly (and the real problem with them) is that they don’t have any flaxibility for change of cirumstances, so if you buy a whole heap of houses then it is basically outdated.
Lastly the family court can completely ignore what is written in a prenup (though they usually don’t, they look at it as a kind of base).Also if you have children or your spouse disposes of any assets during said period then a prenup is basically torn up.
Of course the short the term of the marriage the higher chance that the pre-nup will stand in court (I guess that explains why celebs get married and divorced in less than a yr!)
Rgds.
Lucifer_auI think way too much can be read into this Julian2. Basically all their IPs were positive cashflow, so in they were ahead.
In terms of nett worth (assett value minus debt) I think it’s a bogus figure. Mainly because it is very subjective, can change daily and in fact dosen’t tell you very much.
For example say you own a building that costs $1Mil (resi) and provides a profit of say $2K per week. The Gov. takes away all the benefits of neg. gearing and the property market crashes. Your $1Mil building falls to a value of $840K, and say you had a bank loan for $900K. Whats changed? Well the property has fallen $160K and my net worth is -$60K. But apart from that – Nothing. I’m still getting $2K per week, I haven’t been affected by the Gov. changes and I’m still paying the bank loans off, but my ‘net worth’ is now -$60K. BIG DEAL!!!! At worst the bank might call the loan (but if I’m still paying there is a 99% chance they won’t (unless it’s the NAB – beware!!!)).
Say the Gov. realises whats it’s done and decide to convert everything back to normal, but they realise that they must make it more attractive to investors (they have to entice them back) so they provide higher depreciation right offs.
Now my building might of jumped to $1.1Mil. Whats happened? Well my net worth has gone from -$60K to $200K, but I still make my $2K per week, and so in reality nothing has changed (I can’t borrow any more because the bank requires 80%LVR for any redraw).
If you have a large portfolio of stocks in almost becomes totally meaningless, because of the price changes everyday (many people were telling people about their ‘net worth’ during the dot.com boom, yet I wonder what their ‘net worth’ was after the dot.bomb?).
Thats why net worth is in my mind such a bogus figure.
Rgds.
Lucifer_auIn the US their is something called a like kind exchange or a 1031 exchange, basically you can sell your property and then upgrade to a larger property.
In Australia it dosen’t apply (at all!).
Rgds.
Lucifer_auJust a note, I know Westpac apparently dislike 2nd mortgages!!! They’ve apparently called a few loans in. I don’t know if it was disclosed or not.
Rgds.
Lucifer_auIn terms of investing being a RE agent (or lawyer, etc) dosen’t really help, mainly because with being a RE agent you are selling properties not investing in properties. The only exception is if you are being a RE agent in an area you invest in (you have more opportunities to find deals).
I would recommend you do a variety of courses, and find the a strategy/niche that you are like.
Rgds.
Lucifer_auI would speak to an accountant who knows about trusts if I were you.
Rgds.
Lucifer_auKnowing of Michael Gruber I also follow Pelican’s lead in saying he has done fine service to the VFA and wrapers in general.
VFA has seemed to disappear.. I too wonder what has happened.
Rgds.
Lucifer_auKill the credit card debt and use those extra payments as savings. That will make your investing much easier!
Rgds.
Lucifer_au
