Forum Replies Created
You may find you get more interest if you post an approximate location!
Keep smiling
Felicity
I think GST went wrong when they started making exceptions. It should have been a flat tax on everything, that would have eliminated most of the subsequent confusion and headaches for business.
Maybe up front we saved paying GST on certain items, but I think we’ve probably paid for it in the long run anyway with increased business costs being passed on to the consumer.Keep smiling
FelicityEvery contract I do is drawn up by my solicitor.
2 reasons for that – one is that I know every contract is legal for my state and completely up to date.
Second one is that when my buyers go to get independent legal advice, their solicitor is much happier when they see my solicitor’s name.
It doesn’t cost a lot in the bigger picture, and it’s worth every cent.Keep smiling
FelicityOriginally posted by mopsyblossom:Saw the show, was not impressed at all , in any shape or form.
First of all, wrapping alone is not sustainable & it can be risky and hardwork, that is why they are trying to cash up with seminars, his “kits” and product information was ameuterish at best. The properties that he was “upselling” or “wrapping” were in a terrible state & almost inhabitable. Wrapping to an unfortuneate person who can’t get bank finance at the end of the 1 – 2 yr period,then evicting them and re wrapping to another unfortuneate…well, I am sure there is a “word” for that!
He sure did spend a fortune on “reinventing” himself……..to do seminars……..hmmmm… maybe he wasn’t believable in the first place.
One thing though, for the 1/2 hr or so that I wasted watching him confirmed to me that any show boat pony will jump on the “property riches” road to further themself. hopefully any prospective seminar attendees will do DD before they hand over their cash.
His wrap kits started at $1000. 12 months ago and because he had “tremendous” volume, he put the price up to $3,000.00. is this guy a …… or what?I have a number of concerns with your post.
Firstly, that “wrapping is not sustainable” so therefore Rick and Steve have had to move on to seminars and books to make money.
Well, I know plenty of wrappers making very good money out of wraps and not a seminar in sight. Seems pretty sustainable to me.
It was unfortunate that the programme focussed on one particular house that was a mess, having heard Rick speak before this is hardly the normal house he sells! Personally I wouldn’t take on something like that, but that’s why he’s making a lot more money than I am.
And your comments about evicting people who can’t refinance after 1 or 2 years and rewrapping the house – where did that come from? It certainly wasn’t in the Reality Bites show, and legally you just can’t do that unless they have defaulted. In a well run wrap business all buyers have a legal contract to buy the house, you can’t just chuck them out because they can’t refinance. Even when they’ve defaulted it’s not always that easy to end the contract.
Personally I found the journey interesting, and thought it quite funny that there were a number of times when Rick himself was obviously quite uncomfortable with the attempts to transform him into a seminar guru. I’m glad that despite all the effort put into that side of things, the real Rick shines through – bad jokes and all.Keep smiling
FelicityQuote:Originally posted by Celivia:Oh didn’t he say that, Felicity, I thought that after he had been to all these seminars of other gurus, that he made a conclusion out of what he learned and said something like: (Not his excact words of course but from what I remember).
“OK I have learned that the Guru’s I thought had the best strength and information did not sell as many products/did not get as much applause as the Guru’s I thought had little substance.
SO I thought by myself: Here’s what you do, this is which steps you take:
More people want to buy your product if you don’t really tell them much”.May be I’m wrong and misunderstood, that’s possible, but I really thought he meant that he wanted to apply these steps to his own seminars.
But it can be my misinterpretation, of course.I can go back and check the tape for the exact words, but yes, that’s the conclusion Rick drew – which then led him to try and work out how to give people as much information as possible (his goal) but at the same time entertain them enough, because that’s what seems to work.
In essence, trying to achieve the best of both worlds.
I think he does a pretty good job of it myself! My brain always reels for hours if not days after I hear Rick talk, before I can finally absorb all the information he imparts.Keep smiling
FelicityOriginally posted by Celivia:Would there be something wrong with a guy who wants to be associated with a toilet plunger?[dunny]
I thought this was hysterical – there’s Rick, trying to be his goofy self and talking about toilet plungers, and his advisers are having cardiacs and trying ever so nicely to tell him not to do it!!
Did you hear him say: When they (meaning the hopeful people coming to his seminar) come to my seminar I’ll give him as little information as possible. THat way I can sell more materials (meaning crappack uuuhhm I mean wrappack)?[baaa]
Ummm Celivia, he never said that. In fact he was talking about a property guru seminar in the USA, and he couldn’t work out why it was that the people that gave lots of information in a simple way sold so much less than those who wowed the crowd and told them nothing. It didn’t make sense to him.
And having been to some of Rick’s presentations, the amount of information he shares is overwhelming. He even mentioned in the programme that the biggest challenge for him has been to keep the crowd entertained, but still provide heaps of information – the best of both worlds really.Keep smiling
FelicityI’m not so sure people will forget this by the next election.
Right now Joe Blow might be celebrating at this great new tax that hits the fat cat landlords and gives him a break.
But those extra investing costs will come out somewhere – and it will be in rents. Less investors, and the supply and demand equation changes to a shortage of rental properties.Keep smiling
FelicityMy favourite part was when Rick was in Las Vegas after the property guru convention. He looked totally confused – the guys with great presentation skills and very little information sold heaps, and the people who shared great information very simply sold a lot less.
It doesn’t make sense to me either!!Keep smiling
FelicityI always liked the statement “your income will never exceed your personal development”.
No idea where it came from!Keep smiling
FelicityHi aaron
I think as a wrapper you have an obligation to always maintain your loan at a level that means if the wrap buyer wants to pay you out, they can.
This is one situation where “quick turnover” wraps work well, as for the first 5 or more years of a loan not a lot gets paid off, so therefore the difference in loan balances will be maintained.Keep smiling
FelicityHi Risky
In Victoria I believe the legislation means that it’s actually illegal to cross collateralise a wrap property with any other property. So that may not work here.
It also means that you have to be careful with debenture mortgages if you’re using a company/trust structure, because that effective cross collateralises all the properties in your company/trust.Keep smiling
FelicityThe person I feel sorry for is the man who eventually wins the gold medal at Athens.
It will never be “his” medal – it will always be the medal he won because Thorpe wasn’t there – a very hollow victory indeed.Keep smiling
FelicityExcellent explanation Julia.
Keep smiling
FelicityThe whole point is that Thorpey isn’t a Joe Blow – and I’m sure there have been plenty of them who’ve made the same mistake along the way.
Ian Thorpe is the world record holder, world champion and Olympic champion, and hasn’t been beaten in this event since 1997.
He IS elite, so of course it’s different. It was almost hands down that he’d win. That’s a lot different to a hopeful contender.Keep smiling
FelicityMarty
Ask for it!
Offer a reasonable price for the house – you won’t get much positive response if you’re trying to get the house cheap as well.
Pick your areas – make offers in an area where there are a lot of homeowners with smaller mortgages, so they have equity to play with. Forget first home owner areas, for example.
Most importantly, walk away if you don’t get what you want.Keep smiling
FelicityTaz
As long as it takes to find finance… which can be a long time nowadays!! [hmm]Keep smiling
FelicityFlexible lender
[lmao]Keep smiling
FelicityThe ATO often has two sets of rules for the one “industry” or “activity”, depending on the level to which you are active.
For example, if you trade shares, then if you only do a few trades a year you will be classified as an investor, and your tax will be handled one way. If, however, you are more active, you can be classified as a trader, treated as a business, and the tax treatment is quite different. Your shares are classed as trading stock etc etc
It may well be that a similar situation arises with wraps. If someone does one a year, they may well be treated one way, and this CGT issue will be applied. If, however, they are doing a dozen using a company, they may be treated as a wraps business, the houses become trading stock, and the tax treatment may well be quite different.
It will be interesting to see how it all pans out. I’m waiting with bated breath for my accountant to return from holidays and explain it all to me and how it affects my situation! [eh]Keep smiling
FelicityRichmond, you’re looking in the wrong parts of Cranbourne!
It’s possible to buy very well for under $200k there.
Lynbrook is an incredibly overpriced new suburb, with lots of 2 storey 25 square mansions – and they are definitely over $300k.Keep smiling
FelicityIf there’s one difference I’ve noticed, it’s probably that 20+ years ago a lot of families could buy a (albeit cheap!) house on one income.
Nowadays it’s almost essential to have 2 incomes.
That’s only personal observation!
However I have also noticed the trend amongst first home buyers, in the sob stories in the newspapers, to want everything now. “we can’t possibly afford the $400k home in suburb x where we’ve grown up” they cry. Good, then do what we did and what a lot of our parents did, go buy something you can afford further out, and then further down the track you can trade up to the $400k home in suburb x.
Maybe I’m being a bit harsh, but I know the only reason we’re where we are now is because we went without early on, so that we weren’t choking on massive mortgage payments, and so could pay our house off quickly etc etc.
Self sacrifice isn’t always fun, but it’s often an effective tool to get what you want in life.
But that’s only my opinion!Keep smiling
Felicity
