Forum Replies Created
- KeyStrategies wrote:hbbehrendorff wrote:Played the 50,000 a year scenario
ended up with 2,366,695 nett
11% average gain per year
its hard to find property that yield over 6% thats what makes it hard
Yes its a challenge I played again on $50k ended up with $2.579 mil but only 9%
interestingHow does that work ? how can you end up with more money with a lower % hmm
I played the game pretty cautious, I didn't take a lot of risk, I always had a bit of cash sitting around.
I bought more property when interest rates where low and paid of chunks of debt as interest rates increased, instead of purchasing more property
The majority of my property was Units, 1 & 2 bedders.. I think i only had 1 house.
Funnily enough, It was that 1 house that had the worst returns and cost me a lot of money, sucking up all my cash flow.
I chose all my property on yields and largely ignored the CG, trying to play it the cash flow positive route
The clock is broken !
No idea on the price of the land, The owner is the builder who built it.
He is absolutely going to make a fortune of these units.
I worked on these units for over a month.
Barry is building 4 more on the front part of the block.
How much does he want ?
I know they roughly cost him 250k each to build.
simple wrote:Thinking out loud on ROI in Brisbane, Townhouse in Wynnum. Assuming cash purchase:
Value $350K
Rent $400
ROI: 6% (less agent fees, rates, body corporate fees, depreciation, down time), be actually close to 3%Trouble free deposit in the bank (say Ubank) is 6.51%
Buy some Silver: 80% last 12 months
Buy some Gold: 20% last 12 monthsGive you an idea where is the next up-cycle have started…
Yes, my silver has given me great returns… I just wish I had stacked the boat 10 years ago when you could get the stuff for 4 bucko's an ounce
I was only making $10/hr hour back then, Though I could have bought 2.5 ounces for every hour of work I done.
Now I earn $40/hr and I can only purchase a bit over 1 ounce for an hours work.
You could have easily secured yourself a 10% dividend with Telstra shares earlier this year, I think they where trading @ less then $2.70 at some point, What a bargain.
If I where you I would put 25,000 into Silver/Gold and put it in a safe
Then i would take the rest and buy a undervalued nice and fairly new 2br apartment close to CBD which has a minimum of 8%+ yield before adding your 225k deposit.
I believe property at the lower price range such as cheap units are a better alternative in the current Melbourne environment as these propertys will generally have a higher yield and being cheaper they will be affected less by falling property prices.
You could leverage yourself much higher then this and buy many property's, But leverage is a double edged sword and can work against you, you are somewhat safer imo by being much less leveraged while your still uneducated. Personally I don't really believe in massive leverage.
Then I would wait for the Melbourne housing market while it continues to deflate.
While this is happening I would take 6 months to educated myself on building wealth/property investing, Books are much better value, You can get a lot of books for $300. Many seminars are more expensive then this…
Some good books:
Anything by Robert Kiyosaki, Start with Rich Dad, Poor Dad
Money Secrets of the Rich: Learn the 7 Secrets to Financial Freedom John BurleySteve Mcknights books are fairly good reads.
The richest man in Babylon
Education is more important then anything, You need to educate yourself if you wish to prosper
But that's just my opinion, And others on this site might have a totally different view.
wisepearl wrote:p.s. on that note, anyone got any tips or templates for writing scope of work for painters?This is an exert from the Qld BSA site
Scope of work
1) Apply paint or other substance for protective, decorative or technical purposes, including colour matching.
2) Apply texture coatings.
3) Apply wall paper.
4) Prepare surfaces for application of paint or other protective, decorative or technical materials.
5) Incidental work of another classTechnical qualifications
Any 1 of the following—
a. successful completion of either of the following courses—
(i) an apprenticeship in painting and decorating;
(ii) Certificate III in Painting and Decorating CPC30608;
b. successful completion of a course the authority considers is at least equivalent to a course mentioned in paragraph a.;
c. a recognition certificate as a qualified painter and decorator;
d. a qualification or statement of attainment of required competency issued by an approved authority for the class of licence.Managerial qualifications
An approved managerial qualification.Experience requirements
Two years experience, which includes experience gained during an apprenticeship or other training, in—
a. the scope of work for the class; or
b. other work, if the authority considers experience in the other work is at least equivalent to experience in the scope of work for
the class.well technically they are supposed to supply materials otherwise they are just your employees
Tradies don't really like you supplying materials, Because they get there materials at a great discount and part of there profit is in the difference between there price and RRP
You might find that if you supply the materials then they might probably charge you more for labor then they otherwise would, I would anyway.
Get several quotes so you know your not being ripped off and remember that the cheapest price doesn't mean anything.
A lot of the time a extremely cheap price either means they have no work, they are dodgy or both.
I would definitely ask around who has the best reputation for quality, Its quite common that you would have to wait for a good tradesman as apposed to a bad tradesman being readily available.
haha That's gold
Basically every real estate agent I know are totally full of BS and will tell you any lie to try and make a sale, While at the same time pretending to be your best mate trying to help you.
A few other common lines i've heard are things like
"Now is a great time to buy, you'd better be quick, Because this place is going to TAKE OFF!"
"This place is so awesomely great and good value for money, Id buy it myself"…. (But I'm trying to sell it to you anyway)
"You had better get moving because I've had heaps of other people look through this place and they are putting offers in" (But no body has actually viewed the property yet)
Over a 25 years loan you would pay $44,747.00 Interest on a 40,000 loan at 7% which is 111% interest
Over a 5 year loan you would pay $9,706.80 Interest on a 40,000 loan at 9% which is 24.2 % Interest
On the case of whether it is a good idea to own your own car. Leasing/Financing a car is stupid
Even if your paying 48% tax, Leasing is still stupid, Any accountant that tells you borrowing OPM to purchase a depreciating asset that will loose half its value within 3-4 years is smart because of tax concessions isnt worth talking to because they have no idea.
My last car I bought is worth 10k, I payed $3750 cash for it because the owner couldn't afford to get a road worthy or afford to fix it (he didnt know what was wrong with it)
I fixed it myself, It needed new coil packs which cost about $500, When I done the REVS check on the car I found out he payed 24k for it 3 years prior
I will use and abuse the car for many years and then sell it, probably not even making a loss
Not loosing money on cars or constantly making payments on one allows me much greater cash flow to purchase more assets
I know many people who make good money but are very poor men because they would be embarrassed to drive anything other then a new car on lease
I absolutely LOVE how when houses don't keep selling for all time high's and people sit and wonder how and why it is possible, Then they start blaming anything from the stock market to poor confidence because of the "GFC" to the easter bunny or the falling of gaddafi regime… or maybe its just the cold weather ???
Never do they turn to the biggest factor in any purchasable commodity = price
Hell, they can't even spruik the market up enough to sell the houses on the block anymore !
Some person above mentioned something about… "where do the people move too" , "insert propaganda about housing shortage here"
We currently have a historic low number of people per dwelling in Australia, Remember we don't actually need a 250sqm house for every 0.5 population
That means as people figure out that housing in a rip off right now, They will move in with other people and supply's will continue to increase
LOL $250 per sqm I would get another quote
I wouldn't pay 3 grand for that amount of work
Terryw wrote:Would you sell an option to purchase the pack?bahah
Would you like to sell an option to purchase your option ?
Can you give me some reasons or evidence why we are NOT in a property bubble that needs to pop ? to me the overwhelming evidence only shows that we are in fact in the biggest property bubble of all time
Can you show me evidence that in fact housing is also historically affordable today ?
a "crash" is 20% fall or more
a "correction" would be less then 20%
Played the 50,000 a year scenario
ended up with 2,366,695 nett
11% average gain per year
its hard to find property that yield over 6% thats what makes it hard
I live in Emerald and I work in blackwater sometimes and know the area well.
I know people who live in blackwater that have been trying to sell there house for years, it seems to be a place that is a little difficult to liquidate.
You should generally find that the returns will be better in blackwater then they are in emerald, Though IMO I would not invest in blackwater because its to risky.
Have you been to blackwater ? its a hole, no one would live there for the atmosphere, there are few shops, the pubs are drives, the pizza place makes some of the worst pizza in australia and its just a red rocked dessert dive with crappy old houses.
I know the guy who owns one of the service stations there and he is closing it because he has not been able to get any employees for over 5 years !!!
Basically everyone in the town works in the mines or in some way that directly gives services to the mine.
Now, you don't need the mine to close, you just need coal demand to soften or the price to fall a bit and jobs will be lost and vacancy's will over night be very high.
I know many people personally who work in the mines and they all would prefer to live in Emerald, even though there is a 76km drive.
Emerald is a regional hub and has more then just mining going for it, There is massive industry in emerald, agriculture and the town is much much nicer, There is a huge big shopping centre being built here right now that will have stores such as harvey norman a new big wollies, ect
The newly renovated Irish pub is really nice too, they spent 3.8mill on the renno and imo its one of the best pub/clubs in qld, it rivals places down at the coast.
Lake Maraboon is the second largest lake in Qld, apparently the largest man made lake in australia and bigger then sydney harbour
fWord wrote:Just to add on, in comparison to our current Medicare (for people that is) system, the 'Medicare for Pets' system is more fair. With Medicare at the moment, regardless of how often we use the public medical system, we are forced to pay a percentage of our salary as Medicare Levy. Worse still are those who leech the system by not working, hence not paying tax or Medicare Levy, and yet take advantage of the system by going to the doctor every other week.I haven't seen the doctor in over two years, and yet I've had to pay my Medicare Levy accordingly. At least with 'Medicare for Pets', it's entirely up to the owner to decide. For example, they may take the risk that their pet may be problem-free in its younger years and register for the scheme only when their dog or cat becomes middle-aged at 7 years old. This is not particularly wise of course, but you get the picture.
With pet insurance, most companies wouldn't even insure your pet once its had its 10th birthday. With 'Medicare for Pets', you could register your pet at say, 16 years old when it's dying from renal failure and all the expensive treatment starts. 'Medicare for Pets' does not check for 'pre-existing conditions', in this sense.
The drawback of this is that people could take advantage of this system by intentionally not registering their animals when they're younger, which is unfortunately the time they're likely to cause the most damage when allowed to roam, more likely to fight, get lost and stolen. So to combat this, we could likewise have a lifetime health cover loading once animals are registered past a certain age. This age would differ between species because of their differing life expectancies. The same penalty currently applies for people when they don't get health insurance after they turn 31.
Can't then things stay as they are ? if you want pet insurance, then you buy it from a private company…
But if you don't want it then that's just your choice to make and therefore you won't receive any benefits of that cover..
Should the government now control house insurance since we had floods and penalize people who don't want to insure there house ?
fWord wrote:hbbehrendorff wrote:The whole part where you talk about a compulsory "animal ownership" tax where all animals are "microchip ed" and a database of all animals are stored by the empire for the greater benevolence. All hail chairwoman gillard (may her footprints reduce carbon for all eternity)And so I presume you are an armchair expert and an absolute genius. What is your counter-proposal? I am not proclaiming to know-it-all, but by George I've worked in this business for long enough to see where some of the problems are, problems that the celebrity vets have failed to raise to the public!
By the way, if you actually read things properly, it would be noted that I didn't mention such registration is compulsory. In my post in fact, there is a specific mention of what the consequences would be if people did not register their animals. They simply would have to pay full price. They don't get fined or thrown in jail or be forced to relinquish their animals.
Although having said that, IMO, if people can't even be responsible enough to register their animals or microchip their animals (which is required by law by most councils these days), then they have more thinking to do regarding pet ownership.
Of course, it is a stretch for the government to even implement something like this. However the whole purpose of the thread was to bring in ideas. If nobody ever suggested something like this, do you believe there is any chance ever of anything being done?
Bottom line is this: get involved, or get out of here.
Why does everything have to be regulated and controlled by a government body ????
that only results in less efficiency and more cost for the services which where ment to be improved in the first placeNo matter which way you flip it, at the end of the day, private enterprise will always run cheaper and more efficient then something regulated and controlled by big government
Just think about it for a minute
What happened to the price of phone calls when telstra was privatized ?
What happened to fuel when "fuel watch" or what ever it was formed ?
What happened to house prices when Rudd introduced the 14k FHBG with the purpose of improving housing affordability ?
What happened to the price of installing insulation in your roof when the batts scheme was introduced ?
How about our health care system for humans ? How would you rate that ? its a total shambles
Im actually an advocate to partly or fully privatizing the health care system to improve our health care and reduce its cost
Im not having a personal go at you, But you have to realize that anything government gets its hands on, it wrecks, and state wide health care for animals would be no different
More government and more control just means more administration, less efficiency and more cost to everyone. big government is not the solution to all the problems in our lives and imo this is not progress.
thats just my take.
fWord wrote:hbbehrendorff wrote:Is there anything the government wouldn't control in your utopia world ?That is socialist/communism propagana talk at its worst
Man, you sound angry. What statements exactly are you referring to?
The whole part where you talk about a compulsory "animal ownership" tax where all animals are "microchip ed" and a database of all animals are stored by the empire for the greater benevolence. All hail chairwoman gillard (may her footprints reduce carbon for all eternity)
ps: All civilians caught owning contraband or animal paraphernalia will be prosecuted to the full extend of the law for crimes of environmental terrorism and inciting hatred towards our green mother earth.
