Forum Replies Created
Remember that in Steve’s book, his point is about cashflow, not just the cheapest purchase price. Make sure you do your research to try and understand why the prices are so inexpensive. A cheap turkey leaves a bad taste in your mouth.
What a fantastic game to be at. 60% yellow, 40% white supporters. Flatley is a true unsung hero. What a pity I have to spend my working day with 75% of the office from the UK.
Thanks for the tip! There you go… the link was there all this time and I didn’t use it. Kinda like “Forum Rules”, really.
Diclem,
I prolly have missed something, but I suspect the “Sadie” thing is as in “Sadie the Cleaning Ladie” and the link with certain (Danish?) cleaning products…
In partial answer to #2, most pest inspector reports I’ve have an all care, no responsibility clause in saying that they’ve checked out everything they can see but didn’t move furniture, look in roof, lift carpet etc.
Probably a good question for a good broker to answer!
In my experience, the banks only care about the principle (not principle minus redraw) – ie the higher of the two amounts. The argument I get is that becuase I can withdraw the redraw at any time they need to consider their worst case.
Perhaps if it was refinanced and you “spent” the redraw amount they may consider the lower of the two.
I have a two-minute philosophy that I would like someone to challenge, if you want to that is!
I’m not an economist, and certainly do not spend days pondering the movements of the financial markets and all the things that drive interest rates.
So, assuming that I don’t know any better than an economist who sets rates for a bank, why would I not believe that they would know better the appropriate interest rate averaged over, say, five years – and have set it that way. In short, why would I think I can beat the banks?
Possible cases against? There are different drivers for fixed and variable rates? So I can lock in a set payment figure for five years? Any others?
To give me choice – one day.
Unlike many people, I don’t hate work and the idea of telling my boss where do go doesn’t do anything for me.
I invest so that one day I can pick and choose what I want to spend time in / what business to be in, and not have $$$s as a primary consideration.
In the meantime, I get a lot of satisfaction from playing the game – trying to feel like that I’m doing things smarter (even if I’m not!). I’m a big believer in “perception is reality”.
I have an overweight tenant on workers comp who has a genetically modified cabbage patch and doesn’t look both ways before crossing.
Anyone have the number for A Current Affair? [
]My two current IPs are literally at opposite corners of the nation. See the archives for the types of questions to ask and then find a good solicitor / inspectors / agent etc.
From a distance, quality of these services is more important than a few $$$ savings in price.
I’ve had my turn in this game about 10 years ago.
They will insist it’s not “pyramid selling” and it’s not. They will insist it’s legal – and it is.
But the business model can ONLY work by getting more people to sign up. Most people go straight to friends and family and put pressure on them. The companies know this and play on it. This is an uncomfortable situation at best.
There are some side benefits in being with motivated people and all the emphasis on motivation can help well beyond the bounds of the MLM environment.
But at the end of the day, you need to be a salesperson. You’re selling a business. You need to be a networker. You need to be assertive. And simply, not everyone is like that.
For me it’s all about the numbers. I bought my two current IPs on the basis of a few GIF images and on the basis of the various inspection reports. One place is a 2150km away, the other is 1370km away. But the $ numbers stacked up. I keep in touch with the agents and inspect no less than annually. Seems to be working so far… My current mentor? The spreadsheet.
Like most people, I’m just getting my pre-approvals and finance in order so that I can go should something arise.
Lack of supply is my principal reason for hanging back.
In the business world, there’s plenty of money around for opportunities >$10MM right now. This is where the main game is at. Just make the numbers stack up.
I agree – there’s much, much less around now than there was two years ago.
I have a place in LST which has done well in the last 12 months (along with most other things), but the numbers certainly would not stack up if I was buying today.
This, combined with the usual risks of Tassie have lead me to look elsewhere.
The usual arguments for TAS are concerned with population growth – which as a state has been slightly negative in recent years (though improving).
But the West Coast is a different story to Launceston and Hobart. Once you start to head south, it gets pretty deserted. I distinctly remember thinking as I drove through Zeehan (and Queenstown) that you must have to have grown up here to live there. Nothing that wrong with the place – some of the countryside is very beautiful. Just quiet, quiet, quiet. Not really the level of activity of a town I’d consider investing in.
Thanks, Lyrical. As I thought, I was getting caught in definitions as used on this forum. I understand the maths well and I guess that means my IPs are “neg geared but pos cash flow”. As the nett result is pos cash flow I consider the tax arragement to achieve it (incl. neg gearing) part of the means to an end (ie I have pos cash flow IPs, not pos cash flow AND neg geared IPs).
Anyway, it’s all words in the end.
Speaking of which, it was actually Margaret Lomas’ books that got me in this game. Of course, it’s getting harder and harder to find places that meet the criteria she describes. Still, that’s part of the game.
Thanks, “Schoolie”. Actually, my question was not about positive gearing but positive cashflow.
I may be getting caught up in definitions and terms here, but if you are genuinely negatively geared, this cannot turn into positive cashflow unless the govt rebates more than 100% of your loss – which doesn’t seem to happen too much.
Otherwise, any loss you make to be negatively geared is still a loss (just a smaller one) after tax.
Shaunwalker – how do you have neg gearing AND positive cashflow at the same time?
]
