Originally posted by Greg F:
There you go again Michael, ANOTHER HOLIDAY!!! Last time we linked, you were off on a 2nd honeymoon. What’s this holiday in honour of?

Greg,

He he… Actually, the Africa trip was the “planned” second honeymoon, sailing in the Whitsundays over Christmas was just a repeat of the activity which was the first…[Read more]

Guys,

I posted an answer to this in another similar thread, but will do so briefly again here. My understanding is that they are fundamentally different and it isn’t just a question of semantics.

Once you realise that negative gearing (NG) can give you positive cash flow (PCF) then it all becomes clear…

Basically, negative gearing means that…[Read more]

Giddo,

I have to agree with Shaztaz and say get Peter Spanns $10M in 10 years. Particularly if your into development. His methodology is that you buy good CG potential property based on the area and gives good advice on how to select the area. He then says spot the bargain property in that area where you can add value through a reno relatively…[Read more]

Scott,

I agree that there should be very little risk of a wrap company going belly up. As you know well, they make their profit on spread as well as any potential CG if the wrappee defaults.

If their making a positive spread then how can they fold? Unless they are spending it elsewhere on riskier ventures and thereby come undone. Once a wrap…[Read more]

Spanky,

I think you’re on to something here. I for one, was originally going to post a word of caution about investing at the peak of the market, but I don’t think that’s what you’re talking about. Regardless of the total market picture there is always individual properties that represent good buying. It sounds like you are making an informed…[Read more]

Jaffasoft,

Sounds interesting! I own 40 acres of Rural Residential land just out of Bundaberg and would be very interested in chewing the fat over what options I have to develop it.

Unfortunately, I’m based in Sydney so won’t be able to come along. But maybe we can exchange PMs or start a thread on all things Bundaberg.

I’m off for 5 weeks…[Read more]

Phil,

Welcome back! I know what you mean, and I’m quietly confident I’m on the right path and it looks very lucrative at the moment… [biggrin]

neo25x5, I agree bad debt is a big problem, and agree that easy access to credit is a large contributor to this. Unfortunately, we can’t change the system so I reckon we need to work on individual…[Read more]

Ah, the tyranny of distance! Sydney is just a tad too far to drive for an afternoon’s cash flow. Never played it myself but hear good things.

Enjoy!
Michael.

Originally posted by aussierogue:
Having an opinion and stating that opinion has nothing to do with tolerence

If I dont like the death penalty that doesnt mean im intolerant of executioners………

AussieRogue,

Good point, particularly about tolerating the executioners if not the death penalty. I’m always flumoxed when I hear about the…[Read more]

Willem,

They’re included! [biggrin]

We lefties don’t necessarily appreciate the divisive and destructive activities of the right, but as we’re all-inclusive we believe they too should be protected from themselves.

As a leftie, I am concerned with the wellbeing of all humanity. This seems to be in complete contrast with the views of the far…[Read more]

Originally posted by aussierogue:
please – rent money is dead money. this is just one of those stupid terms designed to push someones vested interest. the only reason you dont hear ‘interest on mortgages is dead money’ is because landlords dont have a combined voice…

Aussierogue,

Here here!

I decided to buy my PPOR, but only when I realised…[Read more]

Originally posted by destined_for_millions:
Interesting point vtxdevo…

I’m 19 and in the process of buying my first PPOR. I also have a car loan. I have calculated for myself how much i believe i can afford to pay off of a home loan while saving a deposit for an IP. Any house over that amount i wouldn’t even bother looking at. Living with…[Read more]

neo25x5

Nice post! But to discount the market when investing is a mistake in my opinion. You can still find good buys in the current cycle, but they’re a lot harder to find than a few years back. And with prices falling, they’re only getting better. A prudent investment at the moment would be to invest in a fixed return investment and wait…[Read more]

vtxdevo,

Its not mensa. Basically, live within your means and invest the rest. If living within your means results in you not having a $20,000 car then so be it. If it also means renting instead of buying a house then so be it. Once you’ve saved/invested enough to buy the house, then do so. Only when you own the house and have some other IPs…[Read more]

MrVip,

The horse’s name is Friday… The lack of an “a” in front of Friday made it a proper noun, a name and not a reference to the day of the week. See, a basic understanding of grammar does help every now and again!

BTW, yep talk to a broker, they know the ins and outs of getting the best deal possible for you.

Cheers,
Michael.

Originally posted by Scremin:
Hey resiwealth! I am a SHE not a HE!!!

Someone said something about why 1976 is the cut off for generation x, well I don’t know why. I was born in 1978 and was always under teh belief that Generation X went throught to 1980.

I’m actually not sure I even believe in Generation Y… The generation after me (My…[Read more]

Redwing,

Only the obvious one: Drop the price on P1 to get the sale. If noone is willing to pay $200K for it then its not worth $200K. The market sets the price, not the vendor. Vendors just put up their opening bid.

Bridging finance is a killer, maybe selling at a lower price will even save him money if it gets him a quicker sale.

Cheers,
Michael.

Guys,

I used to do a paper run that took me 4 hours and paid $3.50. That was my whole day’s work as a kid and I did it for about 6 months to try and earn some money.

I then moved up to the lofty heights of McDonalds on about $2 an hour. This was a big deal to me! And before you all say you think I’m old, I’m only 34 and this was maybe 20…[Read more]

Alistair,

Yes its possible to make money at any point in the cycle. Its just that you won’t make much, if any, for a few years.

e.g. You buy a +ve CF house for $50K and rent it out for $150 a week. Sounds great hey, and there’s still heaps of these out there! So in simple terms you put $10K down to secure and pay $50 a week in interest on the…[Read more]

Samual,

OK, a lot of questions so here goes:

1. Earning less income to try and save on your tax bracket is a no brainer. Earn as much as you can, period. The numbers on this one are simple, there is no net benefit from being in the lower bracket as its a sliding scale.

2. There’s a lot of posts on “which book”. I agree with Shaz that Peter…[Read more]