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  • Profile photo of kengw002kengw002
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    @kengw002
    Join Date: 2018
    Post Count: 14
    September 10, 2018 - 12:05 pm

    cheers Terryw

    Profile photo of kengw002kengw002
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    @kengw002
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    September 9, 2018 - 6:14 am
    Terryw wrote:

    $200k is that pretax or post tax? That is a lot of money either way, probably 8 times the pension amount. Do you really need this much as the less you need the quicker it will be. Also consider that there may be plenty of ways to make it more tax effective.

    I want to be much much richer than the pention rate :-P & yeah I agree, i’m definitely going to be learning all the tricks to make this strategy executed way quicker and more tax effective as I go through each stage of the process i’m sure. I’m sure i’ll be tempted to become an active investor and do some cash flow positive deals or quick profit deals along the way to pay down debt.

    Terryw wrote:

    5.5% may be a high figure to assume for dividends. I would use 4%
    Growth for property and shares might be higher

    I was thinking here, that if I sold it all at the end, and had it in shares or cash rate or whatever I did with it (keep it as rent cash flows etc) that I would be aiming to get a least a 5.5% return on my assets in 2048. Maybe 4% as you suggest is more realistic, i’d like to get some more opinions on this to see what we all think.

    • This reply was modified 6 years, 2 months ago by Profile photo of kengw002 kengw002.
    Profile photo of kengw002kengw002
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    @kengw002
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    September 9, 2018 - 6:01 am

    thanks Benny in answer to one of your points

    Benny wrote:

    5. You’ve calculated this as though you are not paying down any debt on each property. Very conservative, or were you looking at neutrally geared (or -ve geared) properties?

    version 2 i’m thinking i’ll work out the cash flow side of things. I just put IO debt for each of them for this scenario to start with. but I do believe these IP’s will become cash flow positive after 5-7 years of which I would pay the debt down with the cash flow, was my initial thinking, but i’m sure i’ll find better ways.

    I was thinking this is a great way to see the worst case scenario to start with to achieve my goal if I applied basically no strategy other than to buy and hold and cover debt

    Profile photo of kengw002kengw002
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    @kengw002
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    September 7, 2018 - 9:54 pm

    exactly yeah, I dont think this is the kinda deal i’m looking at doing, but i’ve got my options open for learning about all kinds of deals at this point before I decide what my moves are!

    Which directions do you think I should be looking to learn about next?

    Where is money being made short/long term at the present time? What is most commonly being done at the moment would you say?

    cheers Grant

    • This reply was modified 6 years, 2 months ago by Profile photo of kengw002 kengw002.
    Profile photo of kengw002kengw002
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    @kengw002
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    September 7, 2018 - 9:36 pm

    Thanks Benny some good points to look at, I had not heard of sinking funds. this is the kind of thing I was keen to learn of when positing this, I appreciate it!

    Profile photo of kengw002kengw002
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    @kengw002
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    September 7, 2018 - 11:54 am

    This is not a deal i’m actually looking at doing, but keen to learn more about the strategy in general so thanks for your comments.

    Profile photo of kengw002kengw002
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    @kengw002
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    September 5, 2018 - 12:14 pm

    So opportunity costs are high then.

    This is why I’m here.

    I was thinking that if you did the deal and it paid the loan off and you added no personal money in, whatever you end up with at the end is bonus money for no outlay whatsoever.

    Maybe the risks is just not worth it

    Or like you said – opportunity cost of not being able to do a better deal with is high

    Thanks and

    All opinions are welcome

    Cheers

    Profile photo of kengw002kengw002
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    @kengw002
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    September 5, 2018 - 8:19 am

    Hi Tom

    did you end up doing this deal?

    And how is it fairing?

    I’ve just read over the whole thread, i’m left hanging ha ha

    cheers

    • This reply was modified 6 years, 2 months ago by Profile photo of kengw002 kengw002.
    Profile photo of kengw002kengw002
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    @kengw002
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    September 3, 2018 - 8:12 am

    Hey Bon, you mentioned that you now are looking at being an active investor with passive income as your strategy.

    can you shed some more light on this direction for me, who you learnt this direction from? why that works better for you now, what it entails etc?

    I’m trying to shortcut my learnings and understand the game as quick as possible so I can pick the direction I need to go in and not end up down a bunch of rabbit holes.

    Thanks in advance for your help, and appreciate as much detail as you have time to give.

    cheers Grant

    • This reply was modified 6 years, 2 months ago by Profile photo of kengw002 kengw002.
    Profile photo of kengw002kengw002
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    August 30, 2018 - 2:05 pm

    Good for you, thanks a lot for your thoughts!

    Profile photo of kengw002kengw002
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    @kengw002
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    August 30, 2018 - 11:20 am

    Congrats that’s going ok then I assume your happy with that?. I was thinking greenvale (if its the melbourne greenvale we are talking about I assume) has quite a lot of land around it on the north west side, as opposed to having built up property all around it.

    so do you think its going ok due to them are releasing land quite slowly there and keeping demand above supply?

    or any other reasons perhaps?

    would you go with opencorp again? as earlier I noticed you perhaps werent quite so sure of them after the purchase due to being more educated.

    But now has your opinion changed now the results are a bit more solid?

    I’m in a similar position now, that you were in prior to purchasing with Opencorp and i’ve been speaking with them considering using them.

    cheers for your thoughts

    • This reply was modified 6 years, 2 months ago by Profile photo of kengw002 kengw002.
    • This reply was modified 6 years, 2 months ago by Profile photo of kengw002 kengw002.
    • This reply was modified 6 years, 2 months ago by Profile photo of kengw002 kengw002.
    Profile photo of kengw002kengw002
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    @kengw002
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    Post Count: 14
    August 30, 2018 - 10:51 am

    Hi Bon, how does your property seem to be fairing that you bought with OpenCorp now?

    Are you seeing any capital growth now since you started renting it out?

    cheers for your help

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