aussie,

It’s usually older properties that are CF+. Try finding an 80k new house with 160 bucks rent a week. If you can do that, then buy it. I don’t see any new houses around that are CF+, but if you do- then I’d say go for it

kay henry

dev,

I’m not a fan of the doorknocking approach- I reckon it just leads to disappointment- I’ve never met anyone who got a job in 2005 by walking business door to business door- sorry, crest- perhaps your experience is different. Same with just contacting one of the job broker companies- waste of time, in my opinion. when I say these approaches are a wAste of time, I mean that I believe they are the least effective ways to gain positions.

dev, try:

mycareer.com.au
careerone.com.au
seek.com.au
cracker.com.au (free community ads, so lots of companies and orgs put their ads online there)

kay henry

voig,

I reckon keep the toys that make you happy, keep paying down the debts for them- that’ll keep you disciplined; and keep doing the savings that make you keep your feet on the ground.

Sell off the toys when and if you have to- if it all becomes overwhelming. 25k debt is not an extraordinary amount- it’s really about the cost of an average small car- nothing to really wreck yourselves over.

It’s obvious that the toys you have bought are diminishing in value as you use them, but what price fun? if you’re still saving for appreciating assets, you may as well enjoy time in the interim.

And don’t kill me, all you misers- not all of us want to spend every cent on appreciating assets and have no fun [specs]

kay henry

redwing,

Thanks for the link- how do you find such stuff- it’s gold! [cap]

In Australia, one can’t use the term “University” unless it’s accredited. I always cringe when I see spruikers overseas call their seminars “Universities”. I also cringe when I see gurus here call their courses “Masters” courses. Graduation from any old thing is too easy these days- pay your cash and you get a Masters over a weekend- ugh.

Keep finding and posting your gems, redwing!

kay henry

Actually, pete, I think that many property investors are VERY anti-education- as in formal education. Many people in property forums adopt the Kiyosaki line that formal education is a waste of time- Jamie McIntyre has even made a video about it. If Kiyosaki had his way, children would only attend pre-school to sell each other counting blocks.

Formal education is not something to bew stressed about- it’s something to be excited about- it’s learning, and hopefully, learning about something one loves.

I don’t know anyone who is completely passive- not Steve McKnight- pretty much not anyone, in their earnings. If people create some piece of intellectual property and live off royalties, or whatever, then that is a passive lifestyle, but I could imagine it would be boring to do very little with one’s skills and talents. If people are skilled with their minds or hands, then I htink one can use those things- not just to make money- but to get other satisfaction in the world.

kay henry

Chris (nice topic btw) and Eric

I hear what you’re saying, but there’s an alternative view. I think one can not have investments and live pretty well, or one can have investments and live pretty poorly, with the plan of living well in say, 10, 15 or 20 years. I think it’s a balance. In my workplace, about half the staff have investment properties, and the other half do not. It’s generally the half that do not who go on overseas holidays and have weekends away- whenever they feel like it- and pay with cash! They live in nice apartments, eat the best foods, and buy expensive clothes- again, whenever they feel like it. The half that have investment properties may be more forward thinking, but all moneys go towards their investments- it’s all about opportunity cost, I suppose. But giving away one’s youth to have a decent middle-age is not the only thing to do in life. God help us if there is a significant property crash in 10-15 years- we’ll be worse off than the ones who lived it up when young.

I think if investors live poor for too many years, it has a real effect on who we are as people. We become the “investing poor” (as opposed to the “working poor”). I’m not sure that’s the goal of investing- well, certainly not my goal.

I know there’s good debt and bad debt etc… but a lot of the property investors I know are living pretty poor- and this topic and many others reflect that.

Think about it- when was the last time we went out and bought a few CD’s without feeling guilty? Or a few hundred bucks worth of clothes- just because we felt like it? When did we last just up and go overseas? Living a working life – without investing- might not be forward thinking, but the people I know who work and have disposable income, have great lives. I am not sure that whoever has the most debt when they die wins. Our portfolios might win if we put every last cent of that tax return back into it, but we could also spend it on ourselves and retire a year later.

It’s all about opportunity cost- that holiday we have now will have lots of memories- but if investing is one big grind, give me the holiday any day.

kay henry

For Aussies thinking of investing in NZ, or wondering about the current market, there’s a good article by Terry Ryder in this month’s (July’s) Australian Property Investing magazine.

kay henry

gafama- just a note on what you’ve said about never selling, a la:

“Firstly – I try to never sell for a couple of reasons. Every time you sell you deplete your asset base by
1. The costs of the sale (i.e. agent’s commissions, legals, etc)
2. The stamp duty to buy back into the market.
3. Any CGT or other taxes.”
________________

I think one neds to look at a bigger picture, and the sums. For example, I sold a place in November 2003, bought a place for the same price in a different location that had a much greater yield, in better condition, and the market in the place I sold in has now reduced by about 10%-20% if selling today. I think “buy in gloom and sell in boom” still has merit (although prices probably peaked in about may 2003).

After paying CGT, selling costs, new purchasing costs etc, I was still way ahead, and I see my new investment that replaced the older investment as a much better choice.

It’s a furphy to think that all sales will deplete ones wealth. In fact, if you buy at the right time and sell at hte right time, you can very much increase your net wealth.

kay henry

Here’s a great article…

http://www.thinkfn.com/artigo.php?id=107

If it walks like a ponzi, and quacks like a ponzi…

http://www.ssb.state.tx.us/press/pr6-6-05.html
______________

05-60 Is ‘PIPS’ (People in Profit System) a Pie in the Sky?

Thursday 17 March 2005

In recent weeks, the Australian Securities and Investments Commission (ASIC) has received inquiries and complaints about promotions for a wealth creation scheme called PIPS or People in Profit System.

PIPS website asserts that members can design their own individual wealth creation plan. As an example, it is represented that returns of at least 2% every trading day can be earned from one particular ‘wealth creation’ option. That’s more than 14,000% each year if compounded daily over 252 trading days. At that rate, if you put in $1,000, you would have $21,601,632 in just two years.

‘Not surprisingly, PIPS has already received several nominations for ASIC’s 2005 ‘Pie in the sky’ awards,’ ASIC’s Executive Director of Consumer Protection, Mr Greg Tanzer said.

Apparently based offshore, PIPS is promoted over the internet and in face to face meetings arranged by local agents.

Information received by ASIC suggests that PIPS has recently become active in Australia.

‘As result of public inquiries and complaints, ASIC has already begun inquiries into this scheme, and we invite anyone who has information about its Australian promoters to come forward and assist us. Just email us at [email protected] or call 1300 300 630,’ Mr Tanzer said.

‘If you want to invest money, deal with licensed Australian financial services businesses. That way, you have far more protection if anything goes wrong.’

SOURCE: http://www.asic.gov.au

kay henry

sparky- if you go to ato.gov.au you will find all the tax rates for this year, last year, and future years. Just go to the “individual” page for the rates and specific amounts.

Remember, you only pay te % tax on amounts earned over certain $$- not on all of it. Just go the the ATO site and it will explain.

Keep all your receipts for everything.

kay henry