Hi all,

Rental yield is a vital number no doubt, I also consider capital growth and tax benifits to be of equal weight in considering any property.
Its almost an expanded formula that gives me a indication of a properties true worth.
There is more to it than the 11sec rule in my experience, and ignoring a property on such a basic calculation could be something i regret later.

Cheers

Hi Vinny,

Check out towns like Esperence as well. Properties above the 26 parrallel have up to four times the insurance premium due to cyclones etc.

Hamish[]

Hi again,
I guess i should just give the example of driving down the road and comming to a T section, you turn left believing it to be the road to take.That is what the book reckons. Problem is that you get down the road a bit it becomes a dead end. Now this is were our nature kicks in. We turn around and retrace our steps back to the T section and take a different route. Thats what you do right? nothing wrong with that. The path is well worn.
What do you do when you get to the next T section? If you were determined to learn from your mistakes you wouldn’t turn left again and your initial reaction would be to do the opposite, even though the cicumstances are completely different.You could end up heading in the wrong direction, but thats not initially obvious because again the path is well worn.

That is why we follow even when we cant see someone in front, we can follow their road its so much easier than buiding a new one.

How many people when faced with a dead end continue on for better or worse?, how many turn back?

I don’ t know what i ate for lunch but its turned me into some candle burning, cross legged swami!!!

Have fun guys[]

Hi all,

Being a broadacre farmer(still) who has diversified into retail and other off farm investments as a direct result of commodity prices durig the 90’s i can see how easy nature can be compared with our material world.
Humans as a group believe that we are a vastly superior race, but the longer i am involved in retail the stronger my feelings become that we are not superior in many ways at all. our similarities to a herd of cattle or a mob of sheep continues to amaze me.
We as a race are reluctant to lead and so eager to follow, even if our leader has gone mad (eg Hitler).
We can learn alot from nature as we are so reliant on it. Life in business be it investment or other relies on cycles, without cycles their would be no regeneration or strength gained or for that matter reproduction.
The more we try to distance ourselves from nature the closer we force ourselves to it.

If you believe that you don’t follow others why are you here reading this message, because you want to know how others have done it, follow to an extent their path to success. There is nothing wrong with admitting this, I have.
It just reinforces how much force nature has over us, even when we are not thinking about it.

Enjoy the rest of day, night(cycle) []

Hi all,
I asked my accountant the same question last week, he stated that an individual trust was the best option in the initial period. He did however state that a company structured trust gives continuity in that individual trust accounts become untidy if and when the appointed benificeries either die or move on.

Hi all,

Interesting that steve made the decision to sell his high end.

I canremember reading in one of my books that there are only two reasons to sell any asset.
Firstly you are offered an obscene amount of money to sell well over valuation and secondly when you urgently have to reduce some debt.

I would rather be in the first position, steve and dave were smart enoughto realize that you don’t have to hold all assets for ever[]

Definition of KNOWLEDGE:
Realising that you have made the same mistake before.[]
and
“If you spend too long looking in the rear vision mirror one day you will run off the road and hit a tree” early 21st century investor. [][]