Forum Replies Created
- Qlds007 wrote:Good if i am still here at aged 100 i will have been a PI.com member for nearly 62 years.
My typing must be a bit slower and i might dribble a little more on the keyboard but looking forward to it.
Cheers
Yours in Finance
I see an opportunity here Richard…..
A little pay back on the kids after years of early morning feeds, sleepless nights, changing dirty nappies and constantly picking up 'stuff' up off the floor!
Just got to start stocking up on adult size nappies….
Jack
red123nz wrote:In regards to using Super/ SMSF to buy property. it is not as straight forward as people would like it to be especially in the residential property side. So Be aware of what your getting into if your going down that path. Commercial property investment in SMSF is more plausible but still have to consider the opportunity cost of alternatives.Hope that helps!
Respectfully I have to disagree.
In relation to using Super/smsf as a strategy to purchase residential property through I think it is easier than many people think.
My wife and I have just established an smsf and subsequent entities to purchase and hold property. We completed our own DD on employing the strategy and then engaged professionals to help facilitate the process. As a result the entire process was extremely easy and we're just about to settle on our first property in the smsf.
We used a Queensland accountant who specializes in the process and were so impressed that he has won all our business and we live in NSW. Not to mention our MB who is a gun and also a Queenslander…thanks Richard!
To us the opportunity cost of leaving our retirement funds to be ravaged by the market and excessive fees paid to a fat cat fund manager was too great.
The process of taking responsibility of our own future and our own money is empowering whether that be in or outside of super.
Jack
I try keeping up with my 3 boys 5,3 and 2.
I put the toys away at least 10 times a day, and that's after I come home from work lol.
At least I know if I lost my job I'd be able to pick up employment as a butler somewhere.
You're onto something Rusty……..Reading the paper and coffee on Sunday is my 'me time' at the moment.
Jack
Interesting…..
Whitehaven coal, according to the media, have been increasingly bearish on coal pricing recently, Just goes to show doesn't it Tony what these mining companies say and what they end up doing can be completely the opposite.
Some discussion on once China completes the leadership transition growth may ramp back up to 8% first quarter 2013.
Bhp are in the process of increasing coking coal production significantly, Whitehaven ramping up in a weak market, Hancock coal, GVK, Aldani, Bandanna Energy similar…..Mmmmm me thinks things are looking up Tony!
Hi Rob,
I'm no expert mate but you are certainly not too old. There's been some great advice on this thread, besides those first time posters advertising their wares lol.
As already mentioned, educate yourself and develop a strategy that suits your goals then act. There are many fantastic sources of information that are available to you to develop your knowledge in all facets of investing to ultimately achieve financial freedom. Develop that unstoppable desire to achieve those goals and you are half way there!
Surround yourself with a team of independent specialists that support you along the way. There is no such thing as can't….you've just got to think differently to achieve the goal. Someone like Richard Taylor (see above) has an impressive track record and provides a professional independent financial service that will help you achieve your goals. I know this for a fact because he is on my team.
39 to old? Are you serious….I'm 39, wife and 3 kids!
Education, consolidate and manage your debt, focus, set your goals and stop at nothing to achieve them.
Plenty of people here Rob on the same journey willing to share mate.
Jack
Tony….I think this is a timely reminder that this is just part of the commodity cycle. One could be forgiven for accepting the negativity in the market place at the moment. However, just like property investing the best time to invest is at the bottom of the cycle.
These companies are now moving into the next phase of this huge structural change in our economy…..high capacity and demand for our resources. Companies are moving to become more price competitive and more production driven. Quantities are going to increase to meet Asian demand and eventually global demand when this recession has sorted itself out.
Meantime BHP are looking to double coking coal production
http://www.smh.com.au/business/bhp-poised-to-double-coking-coal-capacity-20121030-28gej.html
It's an interesting development.
Over the last couple of days I'm sure I read in the AFR or The Australian mining for uranium was still a long way off but it may promote exploration…….
Thanks Josh,
Always interesting to hear your perspective and I appreciate the answer to my questions.
You make four valid points that certainly contribute to the environment in the Bowen Basin at present.
I'd add that there is also a lot of uncertainty in the market place. People are fearful of the outcome in Europe and also the States although there are some encouraging signs coming out of America. The media are certainly leveraging off the pessimism and I have no doubt this plays a significant role in confidence.
The fall in commodity prices into the second and third quarter also contribute to the situation. There is an argument that China has now hit the bottom registering 7.4% growth this quarter and now will strengthen which may see Iron ore and Coal both thermal and coking rise off the back of higher demand. There is also of course a leadership change in China and we may not know the true effects of any increased productivity in China until well into the first quarter of 2013.
However, on a slightly different note there is some encouraging signs coming out of the Galilee Basin.
Thankfully it looks Bhp and the unions have finally sorted things out so that's one issue out of the way.
Aviator77 wrote:Yes JT7 in amongst other investments. Still pretty happy with it also but like my privacy, ha ha.lol………
Yes, pseudonyms' are useful aren't they……….
Hi Josh,
Congratulations on your involvement in an article in the November 2012 edition of 'Your Investment Property' magazine. Well done the article was a great read.
In the scenario you take a 20 something investor and recommend purchasing a 2/1/1 OTP unit in Emerald, Queensland, as part of a long term strategy to make $1 million dollars. Subsequent purchases include a 4/2/2 in Mackay and then back to Emerald purchasing a 4/2/2.
In the example, and for the purchase of the first property, you use the strategy of a fully furnished unit in Emerald to attract a consistent rental of $675 a week.
Could you expand on your thoughts on the dynamics of the rental market in Emerald because at the present time my thoughts are that the rental market in Emerald has softened considerably. I would assume that in this current environment finding a tenant for a fully furnished product may be challenging. As I'm sure you are aware Gregory has closed and Ensham has reduced personal which has had an impact on the Emerald rental market. The vacancy rate has risen which has caused me to be very conservative with my rents to maintain a tenant. A number of PM's have also expressed the same.
Plainly you are in the business of marketing property in Emerald and Mackay, which you declare upfront, however I'd be very interested to hear your thoughts on the current situation in Emerald and where you think the market is headed from here?
Once again congratulations on the article.
Jack
Aviator77 wrote:Also found this link illustrating approvals within the Alpha region. This is the information that effects the short and long term viability of Emerald QLD as a place to invest. They cant house everyone required for these mines around Alpha within the campsites. Emerald will have at least 15% of these forecast workers living within the city for the next 33 years minimum.http://news.ninemsn.com.au/national/2012/10/17/17/22/eis-released-for-qld-coal-project
Hi Aviator77
Are you in the Emerald market?
Aviator77 wrote:The signs are looking better now out of China and with the share prices from BHP and RIO lifting substantially today, I think we are all optimistic about the potential economic stabilization currently forecast and intern increased spending by the miners in the Australian market. Great outcome for those central QLD mining areas re jobs, housing market etc!Really….
How about those 400 jobs at Ensham?
Hi Dubstep,
Hancocks Alpha Coal Project should start construction early 2013 and most likely start exporting 2015. It should really start ramping up now with the other projects coming on. There's so much talk about what China is doing but i think that India seems to be forgotten about. They are quietly moving in and securing the mines, rail and ports to support the insatiable need for energy to support urbanization and industrialization.
Alpha, Barcaldine, Emerald and Bowen markets will rise rapidly off the back of the immense investments in the Galilee Basin. it's an exciting time and those who have got in early will benefit significantly. Personally I think the Emerald market looks extremely promising as it will be the central hub to these Mega Mines.
Jack
Looks like the mine, rail and now port have been secured.
Perhaps an ideal time to be considering locking in at an attractive mid term rate 2-3 years.
Jack
Coking coal value expected to rise……
Perhaps we've hit the bottom and slowly on the way back up……..
http://www.indexmundi.com/commodities/?commodity=coal-australian
This recent lull in commodity prices is all part of the cycle.
There was bound to be a correction from the price heights achieved recently. When prices were high the big players threw money around like it was going out of fashion. Now commodity prices have come down the big companies are starting to tighten their belts and think responsibly about splashing their money around. I see Andrew Forrester has put a pad lock on the stationary cupboard and put a stop to free company bbqs.
Prices may have come off but volume will increase.
moxi10 wrote:I don't hold property there, but if I did I wouldn't sell it. Whyalla's story is not over yet.I agree Tony I'd just sit and hold. The Whyalla story is certainly not over yet……
JacM wrote:Ah Sir Richard you see I think differently. I am a numbers person. I won't be forfeiting the rent increase and calling that a xmas gift. A $10 rent rise equates to about $7500k more loan serviceability ($10*52/0.07). Spanned across 8 tenanancies that's about $60k more cashola I can borrow, just by doing the annual rent increase. I'm not in the business of giving xmas gifts worth $7500 to tenants….Hi Jacque…
That's sensational…love those numbers!
Jack
