Forum Replies Created
Hey Wealth;
I knew (actually I hoped) my brain wasn't that frazzled from all the alcohol.
I googled golf rules and found this:"How Many Clubs are Allowed to be Carried in the Golf Bag?
Fourteen clubs are the maximum allowed in one player's bag. Any number below 14 is fine, but more than 14 is not.Also, those 14 clubs cannot be changed during the course of one round. You must finish with the 14 you started with. (There are some exceptions in the case of a club breaking.)
However, if you begin with fewer than 14, you may add clubs during a round as long as no delay is caused and as long as the club(s) added are not borrowed from another player.
The penalty for exceeding the 14-club rule in match play is a loss of hole for each hole played in violation of the rule, up to two holes lost.
In stroke play the penalty is two strokes for each hole played in violation of the rules, with a maximum of four strokes."
Your husband was ripped off.
I knew you were just playin' Wealth.
I remember Woosie's episode vaguely. I'm not sure that the decision was correct though; from my distant memory it is only a penalty up to 4 strokes for the extra club.
Let me know what the rule says.
Hey Xen,
Kids; now there's an expense.
Latest report was $290k per child to raise them.
Does that include private of Govt schools? Designer clothes or K-mart specials? What about if they live at home until they're 30?
I have one, and I love him, but that's enough.xyzzy wrote:1998 MERCEDES BENZ A160 with 260k on itAnd if someone offered me $8k for it I would apply the three point test ….
Are they over 18
Are they mentally competent
Do they have the cash!A true story …..
My brother was born in December and one December we went to his house for a birthday party where he showed us his new Mercedes Benz and I asked him how much it cost and he modestly said $ 3000 a month.
My birthday is in January and during lunch I quietly mentioned that I too had bought a new Mercedes for my birthday and after lunch showed the family my new Benz that I had paid $ 3000 CASH for. Admittedly it was 20 years old and going back into the house my mother whispered to me "ponce value for the dollar I know who has won"
Was that just the repayment?
Apparently the REAL cost of owning a car is nearly double the monthly payment.
Maybe not in this case, but allow another $1k p/m?ffc1883_1996 wrote:Hey Marc, from where can one get their hands on this software?We are Destiny Finance clients and use theirs. It's amazing.
I think the Somersoft one is pretty good too, but I don't know if it has loan split capabilities?
Go Pies.Wash your mouth out with soap Xen.
Actually; I agree.
Although, we still retain a fund each as a "don't care" savings account for retirement as we have been in it for ever and it's worth keeping. Minimum contributions.Our position;
me – no income
wife – $90kEtty,
Ride the winners; cut the losers as they say.
I see three winners there.
Use the equity and don't sell.
If you are confident that you have bought good properties, they won't go back in value (especially not back lower than you've paid).
Keep them, they will continue to grow in value, and go out and buy another the same as the last 3.
Trust your (very good) judgement.Wealth,
The guy who disqualified your husband doesn't know the rules or they both don't.
If you find a club and put it in your bag, you can declare that club not in play and there is no penalty. You can actually start the round with 15 clubs and declare one "dead" and still carry it without penalty, as long as you don't use it.
If you know the rules you can't be bluffed by those who don't. Bit like Property Investing really.
Mind you, I would happily cop a disq for a free Ping Putter – small sacrifice.I was bragging to crashy (during yet another of our arguments) last week how I shot 70 (2 under) with a triple on 16; yesterday I shot an 80 with 3 shanks.
Ahh, golf!
Teeing off tomorrow at 9.00am.
Black tees.I lost a ball in the bushes on the 5th hole yesterday. Went in to look for it, found mine and 5 more.
500% return in 2 mins.I have the same loan as Terry.
Portfloio L.O.C with St.G. Interest rate is 7.47%. Not as cheap as a standard loan, but very flexible as Terry says, and as it's a tax deductible interest, the difference between this loan and the standard loans is not that much at the end of the day. I like it.
He's right; you can add as many sub-accounts as you like, and you pay either a monthly fee for each one ($14) or you can pay a once per year up front fee which is less.
Some people elect to simply bundle all their investment debt into one sub-account, but you need to have good records (or software) to split it up come tax time. Or, have a different sub-account for each investment (share portfolio, property, business etc).
We have one account for the day-to-day use where all income (earned and rental) goes in. All expenses are paid out of this.
The interest on the investment loan is also paid out of this account via automatic transfer every month.We also have one sub-account for the investment debt and use software that can spilt the interest between the various properties for tax time.
Two sub-accounts; two statements. Easy.
This account structure is important as you don't want to mix up the investment debt (which is tax deductible), with the day-to-day account which is not tax deductible.
Based on the figures you have provided (need more) my guess is that both I.P's are neg cashflowed, but I.P no.2 is probably closer to pos cashflow than I.P no.1.
If the properties qualify (built after 1987), and you haven't already done so, you should get Depreciation Schedules done for both properties straight away. This is a tax deductible expense and will pay for themselves in the first year's tax return. The D.S will save you many thousands of dollars in income tax over the years.
This may tip property no.2 over into pos cashflow after tax, and maybe create a neutral cashflow over both properties.
If this is the case, then I would not sell either I.P, rather, keep paying the minimum monthly interest on their loan/s.
Then plow as much cash into reducing the PPoR loan as you can afford to decrease that non-tax deductible debt.At this point in time you have 3 properties all increasing in value and increasing your wealth and equity for future investing. Congratulations!
I know the non-tax deductible interest on the PPoR is a pain, but at least you have 3 properties, while most of the planet have, at best; one.
If you can improve the cashflow through the above, and you can service your PPoR loan comfortably, then continue on as before and work on getting your financial position solid enough to buy again.
Your loan structure can have a big effect on your ability to cut down your debt too. Speak to one of our esteemed Mortgage Brokers on this site (hopefully they will put in a post for you) to evaluate your structure and see how it can be improved (if it is needed).
One final option would be to move out of the PPoR, make it an I.P (we have done this), and rent somewhere nice for yourself. You would have to run all the numbers to see, but you may find that to do this will end up providing you with further tax deductions as all the holding costs of the PPoR suddenly become tax deductible when it becomes an I.P, and your rent on the place you move into would no doubt be cheaper than paying off your own PPoR, as you don't have to pay any rates or building insurance on the place you rent. All those costs associated with your PPoR become tax deductible when you turn it into an I.P.
You would also automatically have 3 I.P's, and you may find you will have extra cash to plow back into the loans after doing this.
Most people won't do this option due to the emotional attachment to the PPoR. They also think of renting as money down the drain; it's a necessary cost of living. Cable tv is money down the drain; and they still put bloody ads on the channels. Sorry; I digress.
If you can get past that mental barrier, you are really on your way, and you can always move back in down the track. In fact, if you move back in before 6 years as an I.P elapses, your PPoR will not be liable for cap gains tax if you ever decide to sell (but why would you?). That's a good deal.
I have had 4 PPoR's, working on no.5 – just another house. I've loved them all, but have no trouble moving on; especially if the next one is better than the last. (it's the actual moving that I hate).
Here's a very quick calculation on a couple of numbers to help assess the likely cashflow:
1. purchase costs are 6% over and above purchase price. eg: $200k property; costs are around $12k. $212k total.
2. allow 20% of the rent to be eaten up by all costs (includes 1 month vacancy per year). eg: $300 p/w rent will nett you after all expenses around $240 p/w. (disclaimer; good luck getting this rental yield in a Capital City).
3. didvide your loan interest by 52 weeks, subtract that from your nett rent.
4. The result is your cashflow per week.eg:
Property cost = $212k (including costs).
20% cash deposit + purchase costs = $52k.
Loan amount = $150k @ 7.5% interest only
Total interest and bank fees = $11,250 (round up to $12,000 for safety)
Divided by 52 weeks = $230.00 p/wMinus Nett rent = $240 p/w ($300 – 20%)
Cashflow = pos $10 p/wIf you are borrowing the entire amount, and round up the interest/fees cost to $16k (from $15,900) to buy the property the cashflow would be neg $67.69 p/w. Roughly; neg $65 p/w.
You can offset this figure to a degree with good "on-paper" deductions if the property was built after 1987, or has had a recent renovation and there are receipts for the costs of the reno. A qualified Quantity Surveyor can assess all the on-paper deductions for you.
The above figures are a worst-case scenario usually, and ensures you will not get a nasty surprise.
Qlds007 wrote:MarcWe currently hold under our Company First Home Owners Group Pty Ltd 184 properties in Qld which have been sold under Vendor terms.
Over the 10 years we have offered Vendor Finance here in Qld only 1 client has handed in her keys and we have agreed to sell the property (Currently under Contract in Rockhampton) and give her $30,000 of the increased equity over the last 7 years.
Whilst we have probably had another 3 or 4 who have defaulted and then sold to payout the loan no client has been repossessed by me or my 2 partners.
It is all about communication and we are lucky enough to have 2 employees who do nothing else but regularly correspond with our clients.
Thanks Richard,
like most people, I don't know much about wraps. I can appreciate the benefits, and the dangers, and it's good to hear about the brighter side of the story.There are numerous strategies for investing with "no money down", but these are probably a bit dangerous given that you have kids and not much spare income. If it goes wrong it could be disastrous.
I assume you are interested in property because you are on this site, and there are many books you can read that will give you the "nuts and bolts" of how to start. Some are available in libraries, others (most) you have to buy.
There is also this forum and the Somersoft forum as well to gain valuable info and help, so yo don't need to outlay thousands to get the info you need to get started.
Read all the Margaret Lomas books, Noel Whittaker, Jan Somers, Peter Spann, Steve McNight's (later) books for nuts and bolts.
For inspiration read Rob Kiyosaki's "Rich Dad" series, The Richest Man in Babylon, Think and Grow Rich.
For money management read John Burley's "Money Secrets of the Rich (the seven money steps)".These will keep you going for about a year while you save for a deposit and look for ways to free up more funds for saving/investing. Think about the things that are wants, and what are needs. Once you can distingush between the two and make the commitment to only buy needs it will get easier to find more funds. I won't kid you; it is very hard; especially with kids who are only interested in "wants".
Start with a severe look at the budget and list EVERY expense for the week/month. If you want to email me with this list when it's done I would be happy to help you trim off the fat.
This is critical as with your track record and no savings, it will be very hard to get any finance. Not only that, but as property investor you need to be in very good control of your finances and spending habits.
You may be to access some of the more "fringe" loans such as No or Lo Doc, A.R.M etc, but these are expensive and leave you very exposed with lots of debt. Not recommended in your current financial position.
Depends on your focus.
Recession or not, we don't buy take-away coffees (one coffee in the morning with breakfast, and thermos while out on the road on the road-trips; about 15c per cup) and we recycle our empty water bottles with the water out of those big self-serve machines at the supermarket for 35c per gallon (about 8c per litre).
My wife and I are on the same page thankfully. We have a nice lifestyle, but do it as cheaply as we possibly can.
It's a bit time consuming, and you feel like a tight-arse, but then we think of it as every cent we save on those two items (I can give you about 100 more) means more money free for travel and property investing.Well,
as I said; I'm used to you and you don't worry me – just disappoint me.
I've found my long lost love – golf.
see ya.crashy wrote:the problem here L.A is that you think your comments are constructive. They arent. You make sweeping statements that are just not true, not only that, but you cannot back up your own comments with fact yet expect everyone else to.
I don't know that my comments are constructive or destructive. I would hope they are informative. People ask for opinions and I give mine, based on what I know. I never profess to be an expert. If we all waited until we were experts on a subject then no-one would post. I don't expect people to back up their comments unless they make a contrary comment or a personal attack on me. So far I've heard that I'm wrong, I'm a fool, and that there are various ways to avoid risk, anyone can say that. But no-one was forthcoming with detail; just a name of a stategy. That pisses me off.I would define a "smart-arse" as someone who is opinionated and gives the impression they are knowledgeable but in fact is inexperienced and uneducated on the subject. They also tend to criticize things they dont understand. Now which of us qualifies?
"a smart-arse (British, very informal, American, very informal)someone who is always trying to seem more clever than everyone else in a way that is annoying."You are definitely more experienced on the subject of shares, but rather than help and educate others, you belittle them with smart-arse responses such as "rubbish" and no explanation why it's rubbish. This is your style, and I am used to it; it doesn't bother me, but it would be good if you apply your expertise in a way that others might enjoy reading and get some benefit from.
Your arguments are filled with bias. The only valid response to bias is to expose it as such. Rebuttle is secondary. Its almost impossible to fully explain everything you queried to someone with no equities knowledge. In fact, it took me 200 pages in a course to do it. This is a property forum remember.
I noticed you didn't post until some idiot like me did first, then you attacked me. That's ok, but how about getting a post about what your beliefs are, based on your experience, and as someone who has lots, back it up. I am happy to be told I'm wrong, but don't treat me with disrespect.My expertise is property, no denying that. But my opinion still stands; companies can fold up and disappear. That is a real risk; it has happened a gazillion times and lots of very smart people have lost everything. Is it a slight chance? – of course; maybe very slim. Doesn't mean I'm wrong.
Instead of assuming an uneducated knob like me couldn't understand equities and not bother with them, give them a chance to learn, and let them make the decision to try and learn or not, rather than making that decision for them. You are basically saying that we are not good enough to learn what you know.
Yes, it's a property forum. So why don't the moderators delete all mention of shares, or muscle cars, or who's had a kid lately?I've had enough of this; I'm off to play golf.
Did I tell you I had a 2 under par – 70, with a triple bogey on the 16th hole last week? Hit my second shot "fat" into the creek in front of the green.
It wasn't a choke either; I lipped out for another birdie on the 17th, and birdied the last hole.
I was on fire. I'm thinking by this stage; touring pro.
Then I watched Tiger on the PGA and thought; who am I kidding?So Foundation,
based on your posts before mine, does this mean you are not buying any property, or selling what you've got, or holding on, or buying more, liquidating and putting it into cash (everyone seems to be doing that). What about shares and/or businesses?
What are you doing, man?Mind you; I tend to half agree with you; I think there will be a slowing down of sorts, but as I've posted previously, housing is a life necessity, so I think that there will be pockets of good news scattered everywhere amongst the predicted downturns.
My big concern with statistics is that they can encompass all housing, including the dramatic declines in the speculative end and the top end of the market, and these sorts of movements can skew the results, while the middle-ground where 90% of the population sits, buying as mom and pop families, plods along, going up a few per cent every year because at the end of the day, they need a roof and they will pay.
With the consumer debt levels showing little signs of decreasing, and with the latest rate rise (and more to come this year apparently) together with the looming tightening of credit due to what's happened over here in the USA, I think the ability to get finance and affordability will take another hit. Maybe full blown by mid next year. This will really affect the first home buyers and the average family the most.
This could mean that the current mini-surge might end, and the surge we are experiencing seems to be more the established housing market and the higher-end where people are more cashed up and have a healthier financial position. This is a small percentage of the population as a whole.
I think the slow down will be generally across the board, but more the middle and lower end of the price range. Good times for cashed up investors to buy properties cheaper I expect.
