Forum Replies Created
Hi leoau,
The only way that you can get yourself out of the proverbial is by working very, very hard. It sounds to me that the seriousness of the dilemma youre in hasn’t sunk in given that you are considering the easy option of bankruptcy. So by virtue of the fact that you are trawling this forum, you are obviously interested in creating wealth for yourself. Don’t take the easy option. Fight `tooth & nail’ to beat the defaults and make some plans for the future.
Eric
Don’t get me wrong, those two have done well to get where they are (I too also thought they were living on the edge a little, but hey they have $1.2mil in equity!!!!) but with a little determination and a booming property market, this aint hard to do. They should now be cranking it up now (maybe a spot of commercial, small development etc.) Well done to them!
Hi Dev
Whereabouts is/are your ppty in tassie???
Eric
Wayne, just noticed your post with no replies. Suggest getting in touch with mortgage broker who can present to many more options than that of one useless bank. Good luck.
Eric
You’ve probably copped a fair ear bashing already about this Chrismaz, but gees…..12 month settlement????? Talk about being railroaded! Wow, there sure is something missing in this situation. I hope youre able to swing it back in your favour.
Eric
And you know there is people out there that try to beat the message home that living beyond your financial limits is not a good way to go. Unfortunately major behaviourial change is required. However, sometimes when `trying to keep up with the Jonees’ is more cool making big decisions about future financial planning just seems too hard and unfashionable.
And frankly I think we haven’t even seen the worst of it. I’m not a doomsdayer really, however the levels of consumerism in our lives today is unprecedented. I don’t think the outlook is good for the so called gen x’s or y’s when they reach retirement age and they find that they dont have enough super to sustain their lifestyle after retirement or that the Govt of the day only provides a pension that is bearly above the poverty line. This is a big big problem and only one that can be rectified by making prudent and timely investment decisions now. Obviously this can only be done by living within the bounds of our financial limits. Yes sounds boring but hell, I’d prefer to live a fulfilling, happy life with my family in my twlight years rather than worrying about how I am going to survive….
Eric
Jenny, I also can’t believe how a majority of my `friends’ and even family think they are so secure financially driving around in their flashy cars, or watching their big plasma tv’s etc.etc. It is such a falsehood and what makes it worst is they are oblivious to the financial trouble they are in.
I know I’m proally engaging in some chest beating here but my wife and I feel so relieved that we are not part of the credit card debt problem (we don’t have any!!!). We also don’t have any other debts whatsoever apart from the mortgages on our ppor and growing number of ip’s!
Eric
Agree with Rick here. Finding +cf properties is rarely dished out to you these days. You certainly need to look for it or use creative ways to make an investment cf+. There are several ways to increase rental yields for instance that has a positive effect on cf.
Eric
With my $10k in savings, I’d be getting in touch with a mortgage broker to see what my borrowing capacity was. If nothing else, this will give me an idea about what sort of properties I could afford to buy now or how much more I would need to save to buy a property in the near future. If I weren’t able to buy something now, I’d be making sure that the $10k was being invested in a managed fund of some description with regular, automatic deposits into it from my day to day account. This is what I would do if I were 22y.o.[jealous]
Eric
Cata, even though you have a vested interest in the subject of the topic, I am happy to debate my point and stick by my original post.
I’m not saying that one should not consider it, but it seems to me that Mukta is in some dilemma about which way to go. I am reasonably certain that alot of us out there in the big wide world of property investment retain ownership under our own names as it is the quickest and most cost effective. I highly doubt that for someone with a couple of properties would need to deliberate about what structure they need to go with. Its the same when someone starts a small business. In most cases it is undertaken as a sole-trader situation. Once the business grows (and is starting to make money etc.) then incorporating is probably the next step.
I just felt that delaying a decision to buy a property (particular when Mukta is `busting’ to do it) because she couldn’t see a professional about structure till October is nonsense!
Maybe youre complicating things for yourself??? It must be a very BIG deal that you need to be worrying about structures etc.etc.etc…..Its good that you are treading carefully, but I doubt that you need to wait till October before buying a property. My first port of call would be a good mortgage broker (talk to friends, I believe there are some good ones on these forums also).
If were talking about a basic residential property, and youre really `busting’ to buy, buy it. I don’t think you need to really concern yourself with trusts etc. unless you have a large portfolio.
Eric
Whilst it sounds well intentioned, I doubt that you could be so methodical and precise with a time budget as you could with your financial budget. I mean, life in itself is so unpredictable and with most of us here fairly and squarely trapped on the 9 to 5 cycle, realistically what time is left to budget?? You come home, eat, play with the kids (or with whatever else…) for a while and then go to bed only to do the whole thing again the next day. What works for me is a prioritised task list (I keep two; one for personal, one for business). Every Saturday morning I set aside time to review our household budget, pay bills, check that tenants have been paying their rent into our bank account, and generally see how we are progressing. A bit of weekly health check if you like.
Put it this way. If someone is really motivated to invest (be it property, shares etc. etc.) they will make the time. If someone says that they don’t have the time, I suspect that their reason/s has more to do with reluctance than lack of time.
Eric
Piling up properties and wealth for the sake of it is nonsense!!! If its part of a long-term investment strategy, one would evaluate it on a regular basis and as it has been suggested above dispose of poorly performing assets, hold others or move into entirely different asset classes as necessary. I love to buy and invest in property as much as the next person, but its done as part of an overall investment strategy. And its definitely not one that in the short-term alters my lifestyle!
Eric
this is the exact situation faced by a family member now. A real dilemma apparently coz their right into city life but are reluctant to hock themselves to the eyeballs in debt. he would rather die than live in twoheadsville apparently! So i then told him to rent (he’s now living rent free with the future outlaws….). Rent is dead money i’m told. So like youre story hoick, i told him to have the discussion with his fiancee rather than with me. My wife and I decided a few years ago to live a minimalist life which meant buying in a twoheadsville type of area, ensuring that we weren’t in over our heads. The equity we had built up in the property allowed us to start investing this year with another on the way soon. Your option 1 sounds feasible to me. Does your partner think so?
Eric
so i take then foundation that your ip’s are p&i geared?
wise words john!
Theres alot to be said about casing out an area that you intend to live in before buying [light].
its great that youve made the decision to invest in property. I for one love the thrill of finding and then trying to seal a deal. i guess for a lot of us, it is this feeling which keeps us always on the look out for good investments and watching our portfolio grow. unless you know an accountant or lawyer/conveyancer to join your `team’ this i suspect will be a process of trial and error. I’ve managed to assemble and surround myself with a great bunch of people who all actively try to help me to achieve my goals. I do the same for them. Good luck, hope you achieve all that you set to do.
Eric
thats an excellent proposition dazzling! in fact one that i was professing to a very close friend on the weekend who too also wanted to get into property investment. alas, he is still running around in the latest holden, wearing expensive clothes, dining out most nights etc. youre right that it takes more than paying the debts off to get ones head into the property investment gear! Eric
turf the `friend’ out!
