Forum Replies Created
- Jpcashflow wrote:
And i was glad to provide free shipping advice to you too lol.
Went well for the most part. A bit of drama with certs at the end and a pain dealing with Customs, Bio security and customs agents.
Jpcashflow wrote:I'm heading to the USA in April to do a few things there too.Glad to see you unloaded the business.. good timing I think.
What do you have in mind for the States?
Paul B. wrote:I will have to discuss with the bank the ins and outs of LOC v Standard loan.
A bit like arranging security of the chicken coop with the local fox. I can never understand why anyone would want to arrange finance with some incompetent numb nut bank employee who rarely even understands the products they sell let alone advise how it should be employed to structure an investment portfolio.
The biggest impediment and leading cause of investment failure is seeking advice from incompetent finance advisors who are primarily interested only in furthering their own agenda or that of their employer.
For God's sake man do yourself a favor and engage the services of one of the expert brokers here with extensive knowledge and skill in property investment.
Try the above SS
Here's an example of how an agent forwards your rental payments. If you are paid monthly and a day later your mortgage interest payment is taken the following day you basically get zip for your trouble. If however you are paid weekly and your Offset accrues interest daily and compounds it monthly then: (as an example)
300/wk less 1300/mth @ 6.5%pa
the cumulative interest saved is a massive $35.78… staggering
So wether or not your reimbursed weekly, fortnightly or monthly I wouldn't especially sweat it.
You can use the SS to add income and other ingoing payments and then use the exit column for your expenses. Lotsa ways you can play with this. Because an OS a/c reduces expenses the amount saved will be eroded by losses in tax deductibility. So you will need to reduce your savings by your marginal tax rate to get a more accurate idea of the overall benefit.
Personally I tend not to sweat the small stuff but doing the exercise at least once gives you a better understanding of the magnitude these strategies actually encompass. It's part of those skills you can develop that allow you to do off the top of your head calcs which in turn enable you to filter opportunities faster and in greater quantity.
ryan mclean wrote:– Why does the reserve bank change interest rates?
To control the price of debt. This slows or speeds up the creation of debt. Think property. The cheaper the price of debt (mortgages) the more people can afford them, the greater the demand for houses and the greater the pressure on prices (inflation).
Quote:– What local and global activities affect their decision to change interest rates?The cost of currencies or the exchange rate. Think imported goods and services. CB's may lower the cost of money to encourage demand and create downward pressure on supply which usually increases the price therefore reducing deflation. The opposite works for inflation.
Interest rates affect the return on capital so foreign investment (govt/corporate bonds) may purchase your currency (for local investment) and create demand for that currency thereby pushing up its relative value.
Quote:– Is there any correlation between inflation and interest rates?Interest rates are used as a tool to manage the inflation/deflation rate. NOTE: inflation is defined as an increase in the money supply not the price of goods. That usually falls under the CPI (consumer price inflation). There are many types of inflation.
For a more complete answer try reading this (AU is the same)
http://www.rbnz.govt.nz/monetary_policy/about_monetary_policy/0072140.html
yellina wrote:This current fear that the Chinese might buy all our property is nothing but xenophobia
A conclusion that uniformed people sometimes draw but completely inaccurate. I would take the time to explain it to you but i fear it will simply go in one ear and out the other.
Benny wrote:Can you see that the FIRB laws should perhaps be reviewed and/or re-drafted?
FIRB are your typical toothless govt org. Their primary role is to to validate large commercial activity not penny ante RE purchases from the odd foreigner or three.
yellina wrote:1000 sales is not close to one Saturday Auction sales in Australia. We shouldnt worry much about Chinese buyers. They are actually bringing money into our country.
Hari you're academic ability belies your lack of understanding in RE markets and economics in general
Quote:Do you think it is good or bad they are investing in Australia.Bad. If you don't understand how CB printing pushes capiatal flows across borders distorting markets then you need to revisit economics 101.
A very interesting read…
It is clear that the NSA has the digital keys to break Bitcoin any time it wants. If and when Bitcoin finally crashes, look for the NSA to be the “man behind the curtain.”
He's leveraged to the gills with circumspect valuations. Darryls in that very dangerous phase where he's waiting for equity growth to reduce leverage to a point that is sustainable long term. His $200k earner is gross TO and will in the main be consumed by servicing.
It's the most adverse risk profile you can have as a PI. The market moves against you in even a small way and you can be gone faster than a speeding bullet.
This stuff isn't rocket science. Most people are risk averse but when you're risking OPM things take on a different perspective.
Believe me there's nothing new in finance. This kind of stuff gets newbies all excited like it's some kind of secrete revelation.
Wall Street developed complex derivatives that only a few autistic savants can understand on a good day for the same reason. Baffle 'em with BS and they think you're a genius.
Latest available FIRB report;
Foreign Investment Review Board Annual Report 2011-2012
Main points
- In 2011‑12, 10,703 proposals received foreign investment approval, compared with 10,293 in 2010‑11 (the sectoral breakdown below excludes 81 reorganisations).
- The real estate sector recorded 10,118 approvals, compared with 9,771 approvals in 2010‑11.
- Other sectors also had an increase in approvals with 504 approvals in 2011‑12, compared with 448 approvals in 2010‑11.
- Approvals in 2011‑12 were given for $170.7 billion of proposed investment. This represented a 3.4 per cent decrease on the $176.7 billion in proposed investment approved in 2010-11.
- In real estate, approved proposed investment was $59.1 billion in 2011‑12, compared with $41.5 billion in 2010‑11. The increase is attributable to proposed investment in commercial real estate, which increased from $20.6 billion in 2010‑11 to $39.4 billion in 2011‑12. Proposed investment in residential real estate decreased slightly, from $20.9 billion in 2010‑11 to $19.7 billion in 2011‑12.
- In other sectors, approved proposed investment in 2011‑12 was $111.6 billion, a decrease of 17.5 per cent compared with the $135.2 billion approved in 2010‑11.
- In 2011‑12, 13 proposals were rejected (compared with 43 in 2010‑11). All of these related to real estate purchases.
- The real estate sector was the largest destination by value, with approvals in 2011‑12 of $59.1 billion. In 2011‑12, the other major sectors were: mineral exploration and development, with approved proposed investment of $51.7 billion; and manufacturing, with approved proposed investment of $29.5 billion.
- The United States ($36.6 billion) was again the largest source country for approved proposed investment in 2011‑12. Other major source countries of approved proposed investment in 2011‑12 were the United Kingdom ($20.3 billion), China ($16.2 billion), Japan ($13.9 billion) and Canada ($8.9 billion).
- On 24 October 2012, the Deputy Prime Minister and Treasurer announced the appointment of Mr Michael D’Ascenzo AO to the Board. His five-year term will commence from 2 January 2013.
Anecdotal reports suggest that RE purchases out of China are increasing not only in AU but globally. The speculation is that as China's financial system exhibits increasing signs of instability those who are able to and have channels to shift capital across borders are doing so in increasing numbers. Chinese leaders are looking to minimise this type of capital outflow but their reach has it's limitations and isn't as easy as simply giving executive orders. Corruption is endemic and considerably more difficult to control than most westerners understand.
To get an idea how Chinese money is flowing into RE markets you need to also consider other international markets. A couple of recent examples that are generating problems for those markets.
Vancouver’s Skyrocketing Housing Prices: Are Mainland Chinese Investors To Blame?
- Citing data from Landcor Data Corp., the South China Morning Post reported that in 2010, among purchases of luxury homes and properties in Vancouver’s West Side district, as well as the satellite city of Richmond, an overwhelming majority (74 percent) involved buyers with mainland Chinese surnames.
Top 10 U.S. cities for Chinese homebuyers
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Where are they buying?
New York and Los Angeles top the list of U.S. cities they are most interested in, according to Juwai.com, a website where Chinese buyers browse global real estate listings.
More surprisingly, Philadelphia and Detroit come in at No. 3 and No. 4.
China's Colonization Of London Hits Ludicrous Speed, And Now: It's Detroit's Turn
- "We expect the pool of investors from China targeting London to grow significantly in the coming years. They will consider everything from urban regeneration sites through to trophy assets,"
Chinese Buyers Sway Australia Property Market
Citigroup Economists Find Correlation Between Chinese Immigration, Real-Estate Prices
- Mr. Simeon, who has sold close to A$30 million worth of homes to Chinese buyers in the past few months alone, has to work in bulk to meet demand from wealthy clients. "I'm putting them on a bus and taking them around and then trying to find out their price ranges," he said.
Chinese new wave rocks property market
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Mellor estimates 17,000 apartments will be built in inner Melbourne during the next three years – with many of the projects undertaken by Asian developers.
"It's an accident waiting to happen," says Mellor of the inner-Melbourne apartment market.
I'm not a big fan of MSM reports but where there's smoke there's fire as they say.
engelorumora wrote:It definitely looks like its taking off.
Early days yet and it's currently taking a beating. While I wouldn't right it off the problem is in converting FIAT to BC and back again. The authorities can control that and do. While some (govts) are in favor of BC others aren't.
For me it's a speculative day trading paradigm at the moment.
Hari, govt stats are in the main years out of date and their accuracy is questionable at the best of times. In terms of RE data and who's buy what there are no really definitive numbers only estimates. Forget FIRB data… it's rubbish. They're an admin org not a policing org. The Chinese have more back channels to invest/buy RE than you can poke a stick at.
RE agencies and large property developers are and have developed significant marketing and sales strategies around asian investors. The big guys maintain sales offices overseas for this purpose.
McGrath's comments give you a peak at the real picture. He should know.
The problem with foriegn investment especially one with no real controls is that it will cook local markets eventually. Fed and State govt's couldn't care less and won't do anything tangible to stifle foreign investment. It helps fill the very depleted coffers. They will pay lip service but do nothing.
yellina wrote:- 2% of New purchases are only done by Chinese and Indian buyers.
- 80% of overseas purchases are from UK and USA
Few sales from Chinese and Indian buyers wont hurt the Market at this stage.
Tell it to John McGrath
Chinese Buy Sydney Homes at Unprecedented Rate, McGrath Says
As much as 80 percent of homes in parts of Sydney are being sold to Chinese buyers, John McGrath, chief executive officer of the company that recorded A$7 billion ($6.5 billion) of property sales in the year to June 30, said in an interview in Sydney yesterday. Record-low interest rates and the biggest influx of investors in almost a decade are also fueling prices.
Interesting. JA Group seems to be another bankster group.
"has the potential of turning the sector's profits from 1% to 10%" I'm assuming you're meaning GDP not profits??
Doesn't make sense to me. Why would you go head to head with a politically powerful lobby group for such an economically insignificant gain? Neutering groups like this is generally done with a subtle touch like changing small things first and generating momentum over time that eventually cripples the intended target. I can only assume it's part of this TPP agreement everyone's chasing but keeping secret. The TPP agenda is being run by corporates not sovereigns and the FTA component is simply a smoke screen for corporates to acquire more market control across borders.
it looks more and more like Abe is being manipulated on this particular subject but when have poly's not been manipulated by the corporate banksters.
Simple… they'll be imported…. like everything else I'm afraid.
Manufacturing is a race to the bottom as the consumer is impoverished and so it goes in a circle. In 1982 a F&P washing machine was NZ$950 and the average income was around $10-12k/yr. Now they're $450 and the average income is around $60k.
Work that deflationary pricing out.
DWolfe wrote:Oh, and don't pick me Freckle, It's been a long couple months. Dnearly Xmas….have a good one
zmagen wrote:if anyone made the mistake of thinking the "third arrow" was an empty promise, this should be a fine example of how they misunderstand Japanese mentality. It's all about doing things slowly – but ever so thoroughly – and cutting away where necessary, without flinching.
I don't think anyone thought Abe would not try and enact reform. The doubt comes over how successful any reform would or could be. Ag is the path of least resistance. The Ag sector has no real power and given small farmers are on average over 50 they may be willing to relinquish their hold especially with no willing sons to take over the reins.
Personably I'm not convinced it will make much difference if any at all. At less than 1% of GDP and fading fast how do you make this sector productive and globally competitive? NZ (& AU) is (are) one of the most advanced ag producers in the world yet I see lots of high productive land around major cities sitting idle. When I was a kid I worked on some of these local farms. More than 50% have gone. Many are lifestyle blocks.
Corporatising Japanese farming won't change the economic landscape enough that you'll notice. You get mass produced shelf life specific foods that lack nutritional profiles of their predecessors and less diversification (choice) of varieties. When I was a kid the orchard over the fence grew 10 – 15 different varieties. Lucky if you can find four on the shelves now and they taste like crap by comparison.
Corporatisation will see more mass production of select parts of the ag economy (low hanging fruit), lower employment needs due to efficiencies in mass production and less choice. NOTE: farmers markets are making a comeback in both NZ and AU due to lack of choice and poor quality (species grown for shelf life not taste and table).
As tariff protections are removed you will see imports rise and displace much of what is currently grown locally. This is somewhat of an annoyance in both NZ and AU as supermarket chains import at lower prices and to beat seasonal fluctuations. Indigenous production struggles to hold its ground against cheap imports even here. Japan hasn't got a hope in hell of competing. From an economic point of view Japan will simply pay someone else to grow their food.
One of the biggest down sides to this type of policy if introduced poorly is the destruction of small rural communities and local economies. When the AU govt tried to introduce water management controls to the Murray Darling system after the droughts there was hell to play. The initial policies where substantially modified as a result.
You're unlikely to see any benefit from these so called reforms for a decade or more. Too long to have any real affect on the economy.
Quote:Best of luck to Abe – as mentioned, I hope this painful but necessary move doesn't cost him his job, because he's the first person showing willingness to tackle this crucial issue since the post-WW2 US enforced reforms were put into place.Too small a part of the voting public to be a serious threat although it's early days in the reform process yet. I doubt the final outcome will bear little resemblance to the original if things get too tough.
Jpcashflow wrote:To say the least job losses vs job creation are know where near aligned, job losses are still overtaking job creation
Not only are we losing the quantity of jobs created but quality is also on the decline. Income growth per se is largely driven at the top end not in the middle and lower class jobs.
