Forum Replies Created
well done WA and NT
if it wasn’t for these guys we’d be in a reccession
keep digging.
harryhi deddrad
remember the old saying “if it sounds to good to be true, it usually is”
300 million people live in the USA and they carn’t find a woodduck there.
with such fantasic returns, why aren’t amercians investing, or are they just dumb.
don’t answer that one
somethings wrong?harry
hi caston
“At the same time I think commercial rents are slavery.”
as a CP owner i hope an attitude like that doesn’t catch on, otherwise there’ll be nobody to rent our CP’s
wrapping CP’s?
look, there are 2 types of businesses, those that are doing well and those that are struggling.
now obviously you don’t want to wrap with a business that won’t be around in 6 months…do you.
dealing with a successful business is the key…
most success businesses need a partner…..
so my business , and many businesses like mine have a great partner…the BANK.
so what have you got to offer that the bank doesn’t?
better interest rates? NO
allow me to go OD when needed? NO
provide a line of credit? NO
have global investment advisors? NO
etc, etc, etc? NO NO NO
so why, as a businessman would i deal with you?
a good business needs to build a relationship with their bank.
(its a lovely feeling knowing that i can ring the bank asking for 250k for equipment and having the paperwork arrive the next day to sign .No questions. Anything above that has to step up the next level of authority. so it takes another day.)so why’s renting a problem?
my rent represents 3% of my turnover.
most businesses want to put their cash into P&E or products. thats where the money is, not some building chewing up cash.
and eventually when the profits start flowing nicely then’s the time to start looking at buying a CP.
all within structures such as trusts, SMSF etc etc
and the best part, you spend more money on accountants and solictors.
so would i wrap with you?
maybe on the dance floor
but definitely not in business
but good luck with idea
to me, it sounds like petty cash and a lot of headaches.harry
hi vyvyen
unique properties (dream properties) don’t have a problem selling.
just ask the guys that own mansions over looking sydney harbour.
they just keep compounding
and the one great thing about those properties, if its your PPOR, is NO TAX
compound growth, no CGT
must be heaven
if someone offered me 200k less than i asked, i would be insulted, and so would you.
six months down the path , it might be a different story.
just another thing, unless your retiring soon, using any of your super for a PPOR is going down a dangerous path.BB’s are nice
harry
hi penguinchick
easy
demolish queenslander
put up a 3 story office complex, giving you 1710 sq m building.
rent it out for $20/ sq ft
giving you $342,000 a year
then find someone who wants 5% return on their money….that will $6.8 mill
pay back what you own
after that sit back and enjoy
harryHi simmi
had a look at the property on realestate.com
its a lovely green
but you know what put me off….
asbestos
thats right ASBESTOS
roof and walls
my mate just past away after renovating his asbestos cover holiday house.
and looking at the units next door to your investment….would you have to completely enclose the building to stop asbestos dust????
sounds expensive….
but what the heck…
300k sounds like a bargain.
maybe there’s a reason why its a bargain?
harryHi roofarmer
i think it might be cheaper to buy his CD for only $550
that way you can keep listening to it over and over and over ….
till it sinks in
just my thoughts
harryyes learn and share
there is steve who’s retire rich
but my gut feeling is that it wasn’t from property.
if you sell a million books and make $1 from each, how much do you make???
lots
your rich.
much easier than worrying about fly wire screens (about $10 at bunnings) that seem to be such a concern in the other forum, or some tennant not paying rent…
Now wheres my pen…..
i feel a book coming onharry
hi caston
i carn’t quite work out your logic
what sort of business would get involved in a wrap????
have you got examples??
harryHi azmiahmad
Do you think hanging out for another 12 months is wise?
afterall, over 12,000 apartments have been completed in Auckland’s cbd PLUS another 7,000 under construction.
To may investor’s in a small boat to survive.
“Rental guarantee” …don’t you just love it.
Its guaranteed all right….you paid for it
IT’s built into the price when you bought it.
It real price is probably only 160k
Good luck
let us know how you go….
like to see if the theory “You’ll make money in property” works for youharry
Hey paul
that’s nothing
i arrived to work one morning and there was a tilt slab 3 feet from my window covering it completely.
all i saw was concrete straight up
but thats progress for you
a happy developer
and more important than disgrunted tennants
look
after a while you won’t even notice itAussieLad
now thats a great deal
your about to purchase a CP for about $169,000 and your getting back $500/week, $26,000 a year…..15% return??????
Wow now thats good for these times…..
there’s a lotta people out there getting 2 -5 %
how did you do it????ah ashb23, you missed the point.
As far as my business goes would you rather have $20k (business income) or $300(rental income) A WEEK going thru your account?
Same amount of outlay…completely different results.
A good business is a great vechicle to creating wealth easier.
Do you thing Steve makes more money out of rental properties or selling a MILLION books on property investment?
Or what about John Ilhan “crazy john” started selling mobile phones in a little shop in Coburg…now the richest guy under 40 in australia.
Or Eddy Groves, 38 years old worth 170 million, continues to dominate the child-care industry with his company ABC Learning Centres. Grove’s other business interests include milk distribution. His company, Quantum Food, is the largest distributor of Pauls milk in Queensland. He is also owner of the Brisbane Bullets basketball team.
But i can see that you are focused on property.
stick with…..
your bound you eventually make moneyharry
Hi pipelinebender
2 k and property investment…forget it.
think outside the box?
I agree
30 years ago at 22, i bought my first IP 15K, interest only loan.
3 years on i sold it for 20k, and after subtracting costs it worked out i made 2k.
my thoughts about the property investment game….. “its a mugs game”.
i took that 2k and bought a business that was going down.
first couple of years where hard work..very hard work 24/7
its growth was fantastic, but to much growth was causing problems as well.
TAXES far to high (third year in a personal tax bill 120k)in todays money over 250k
that created an urgent requirement to understand what “profit and loss” and “balance sheets” and “tax planning” was?
26 years down the track…was it worth it?
That business is still operating today, it employees 6 people most of who are on a profit share bases.
The business has been a great vehicle to building wealth (both in IP’s and personal income)
So what’s my first IP worth on todays market..350k
the business…1m
and if i had kept the IP, what would i have made over 30 years of income 140*52*30…220k
over 26 years the business profit 10m
i didn’t retire by 30, nor 40 (private education and an expensive wife made sure of that)
but at 50, i am semi retired, and have a very comfortable passive income.
Now i have time, and cash, to explore IP investments.looking outside the box?
worked for me
might not for you.harry
No need to be nervous…….unless your heavily geared.
Emjoy is right
“I always remind myself that years ago there were many who thought that property investing was a very bad idea and now say, if only we’d bought back then!”
BUT, if you go back just a few months before that, when property prices where out of control, the repercussions of that was enormous.
Mortgagee auctions all over the place.
Now that’s the time to invest…no competition.
And we did……2 properties…cash
So how much did they drop?
For example one property was…
Purchased 13 years ago $1.2 mil
sold at mortgagee auction 360k
(By the way…under the theory “property just keeps going UP” ….they also lost their home)
value today after 13 years $1.5 mil
Would you be upset if 13 years ago you had bought a property for 1.2 and today its worth 1.5?
Whats 1.2 worth in todays money?
Paid far to much in the first place, but eventually the price came back.
It always does……
How patient are you?
How wealthy are you?
Market corrections are an inevitable part of the property market.
There are always winners and losers.
its all to do with timing.
How’s your timing?
I don’t know what’s going to happen…..
but just in case, one property has been sold.
Cashed up again …..lets enjoy the ride.
hbhi
so what if the market corrects itself?
real wages, over the last 10 years, up 14% according to howard,
house prices up 100%.
what do you expect?
another 100% increase in property values, over the next 10 years?
Get real.
the only way is if wages go up 100%….i don’t think so…
not under howards IR agreements.
its the market at work….
12 years ago when the market corrected itself, some people won…some lost….some lost a lot.
having live thru 2 recession, all i can say is they happen without warning……
then nobody, not “even your mother” wants to buy real estate.
times are interesting…if your cashed up
harryhi pipelinebuilder
retiring at 30 , won’t you be bored?
and how much passive income do you think you’ll need to live this lifestyle?
I had the same ambition retiring at 30.
now nearly 55, i think i’ve just about made it.
good luck
harrysorry for my ignorance as i am only new to this, but what is the 10 property idea?
and how does it work for retires?
harryhi interesting subject area…
having just spend 2 years on an tax audit with the ato and spending $30,000 in accountant fees cleaning up and complying with the ato rules on super, the only advice i can give u is stay away from it….the penalities are too great
harry
