Forum Replies Created
Simon,
You’ve raised a pretty good point about the impact such installations would have on our coastline.If they are offshore, I feel their impact could be no greater on the environment than the many oil rigs currently installed around our continent (North-West Shelf etc.)
As for onshore installations, I am sure the impact will be nowhere near as drastic as the possibility of rising sea levels that have been predicted over the next 50, 100 years etc…
Age doesn’t negate effort – you can never be too young or too old.
Well said Bryce,
I have done a bit of my own research on the viability of wind as an alternate source of energy, however, I feel that hydro-power generated by turbines installed across narrow coastal channels could provide a much more regular supply – the tide will flow as long as the Earth spins and the moon remains in orbit around us.
A broad spread of alternatives from the renewable sector, coupled with further developments in technology will help to cement their commercial viability.
I too have my own opinions on nuclear power, which I will leave until I have done my own further research into the subject.
Spanky.
Age doesn’t negate effort – you can never be too young or too old.
Gamay,
You have obviously not checked out the wind-hydrogen website before making the comment that “Wind farms only generate 30-40% of the time and the wind tends to stop blowing when you need it most”…They have developed and patented technology to assist in balancing energy supply despite peaks and troughs in wind. i.e. excess electricity produced during stronger winds is used to separate water into hydrogen and oxygen, the hydrogen stored under pressure to be burned later (when wind is not strong enough to keep up with demand).
I know it is not the be-all and end-all, but it is certainly showing promising signs in trials.
Spanky
Age doesn’t negate effort – you can never be too young or too old.
Noddies, I’m glad there’s someone out there who feels the same way as I do – and more to the point, has the evidence and knowledge to back it up. You’ve summarised my thoughts to a tee!
Mathew, your point about temperature rises in the days after 9/11 are interesting – was it a worldwide trend? Does anybody know what the long-term effects might be?
Has anybody checked out http://www.wind-hydrogen.com? It’s section on their patented hydrogen technology is interesting and I still honestly believe what you backed up Noddies – that technology and mass production of renewable energy infrastructure will bring prices down. This may be unfeasible in the short-term for solar cells, but energy from wind is certainly possible – and the input costs are much lower than a coal station once set up, as you don’t have to pay for wind! And probably will never have to…
Age doesn’t negate effort – you can never be too young or too old.
Here is a thought that could support the concept of global warming:
“There is no such thing as cold, it is merely a lack of heat”
Someone once told me this and I dismissed it as stupid, probably because I didn’t understand what they were saying, but it makes sense to me now.
Heat can very easily be created as we go about our daily business – when we’re cooking, when our car burns fuel, when we boil the jug etc.
A state of being cold, however, cannot be “created” from nothing – refrigerators and air conditioners are simply heat-exchange systems, so they become cold on the inside by moving the heat outside – that is why the back of your fridge feels hot.
Put simply, you can produce heat but you can’t “produce” cold, only extract heat and move it elsewhere.
Spanky
Age doesn’t negate effort – you can never be too young or too old.
Ah Ha!!!
This is just what I wanted – a few people with different views on the topic!
Frank – I’ll be the first to admit that I don’t know everything about global warming, my first point was (and still is) merely a gut feeling I suppose. Correct me if I’m wrong, but it is now a widely known fact that carbon emissions deplete ozone particles in the atmosphere. NASA recently published photos of the hole in the Earth’s ozone layer, which has expanded to record levels. Whether this has contributed to global warming or not, surely it has or will cause an imbalance that has some sort of effect on the planet as an ecosystem.
Secondly, my own observations tell me that something is changing – I first moved to Wagga Wagga in 1998, and the winter here was cold and wet. In 1999, I distinctly remember it raining constantly for about 4 or 5 weeks – we had 2 dry days in that time.
Since then, the winters have generally become warmer and drier – I could count on one hand the number of wet days we had this winter, only one of them bought substantial rain, albeit for about an hour or so.
While we may have an abundance of coal, remember it is not just Australia who uses it – we probably sell a vast majority of this overseas, and I think (as with many other things in society), as technology improves, the cost of installing, maintaining and operating renewable power stations is going to fall – the question is, when? In 5, 10, 15 years? In our lifetime at all? In our children’s lifetime?
Which brings me to address your point Mat – I knew solar cells were expensive, I just didn’t realise they were that expensive… I studied them in Physics when I was at school, mainly how they work. In my studies I found there are other ways to harness the Sun’s energy – there is a solar station in the States (California from memory) that uses very long parabolic mirrors that focus the sun’s rays on a pipe containing some sort of oil. It snakes itself through the desert for a number of kilometres, the thermal energy propelling the oil through the pipes until it reaches the station, at which point the heat is harnessed to produce electricity, and the cold oil simply returns to the beginning of the system… More than one way to skin a cat.
While this would not be a feasible option to place on the roofs of businesses, Blind Freddy could work out that this sort of infrastructure could be set up somewhere across our wide brown land. I know there are many farmers out there trying to sell massive farms because alas, there is too much sunlight!
I’m definitely no expert – it’s just food for thought
Age doesn’t negate effort – you can never be too young or too old.
Thanks so much!
Wasn’t sure if it was possible at all – will speak with my solicitor and REA about it.
I personally will be moving out of the block to lease out the unit I currently own, hopefully in the next 6 months or so, so the change of address issue will occur naturally and the rent I earn will further assist in obtaining finance.
Thanks again – feel free to add any further advice if I’ve missed something or similar experiences.
Age doesn’t negate effort – you can never be too young or too old.
Hmmm…
The more I think about it, the more I like the offer idea too – especially if I can get it at the price it is worth in its current state.If I could use its current state as an excuse to put in a very low offer, I could spend about $20k on it to increase its value by about $60k and then lease it (TO GOOD TENANTS) for a rate that would probably be CF +ive, or break even at worst.
If at all possible, I’d rather the occupants (whether they do or don’t own it) didn’t know it was me who was offering to buy the unit…
Any ideas on that???
Thanks heaps!
Age doesn’t negate effort – you can never be too young or too old.
Ah ha!
Thanks for that, just wasn’t sure whether it was worth holding off, or if it wouldn’t matter if I fixed up the few odds and ends now.As for another idea of mine, what are the tax implications for significant cosmetic improvements? Currently, all the walls are exposed brick and I think a significant amount of value could be added if this was changed with some plasterboard. If I did this betweeen tenants, say, in 12 months time, could it be deductible, or am I better off starting the job ASAP before any price increases in materials?
Thanks again!!! This site rocks!
Age doesn’t negate effort – you can never be too young or too old.
Finally got time to actually call a rep from my super fund today! This is how I understand it at the moment:
The account itself is only a couple of years old, so the opening balance at the beginning of the last financial year was just over $2,000. My contributions for the last financial year were a little over $4,500. I’ve been taxed 15% on the contributions plus the account earnings for the year and a salary secrifice mishap one month that was supposed to be a personal contribution – I’ll talk to my employer about that.
I have then been charged insurance costs and member fees of a little more than $130, making my account look as though it has returned a loss, I’m assuming because the balance on the account is relatively low… If someone could clarify this, that would be great!
Basically, if I earn 15.5% again and make the same contributions, then I’ll gain a return on the total value of the account, yet only pay 15% tax on the new contributions plus earnings. Hopefully the earnings will then be enough to far outweigh the insurance and management costs.
Again – it would be great if an accountant or super professional could clarify any of this for us – I’m glad someone else on the site is interested in this topic too!
Cheers,
SpankyAge doesn’t negate effort – you can never be too young or too old.
Thanks heaps guys – you’ve clarified a hell of a lot for me – exactly what I was looking for.
That link was great Terry – austlii is a great website if you know what you’re looking for.
Cheers
Age doesn’t negate effort – you can never be too young or too old.
If you’re going to read a book that will give you a very simple, yet effective explanation of the basics of wealth creation, you can’t go past “The Richest Man In Babylon” by George S. Clason.
The Rich Dad, Poor Dad series is excellent, but I would personally recommend The Richest Man In Babylon as a starting point. It will give you the initial motivation to stop spending money as fast as you earn it.
Age doesn’t negate effort – you can never be too young or too old.
Hey there,
The questions you are asking are the $64,000 questions asked by all start-out investors.In regards to them, I personally recommend:
1) Reign in your spending – for someone your age, you are earning fairly good money, so don’t let it “burn a hole in your pocket”. If you are going to buy your first property, you are going to have to get used to making regular payments, so I suggest you set up a savings account and have a set amount direct debited into this every week/fortnight/month. If you’ve already done this, increase the amount you are paying into it. Look at it as “training” for the main event. It is worthwhile saving as much as you can before purchasing as it is less you will have to borrow and pay interest on.
2) See a mortgage broker – many brokers provide free consultation and will save you visiting all the banks themselves. If they get you a loan they earn money from commission from the bank and can often secure you a better deal than the banks will offer themselves. They’ll also give you an indication of how much you can borrow. There are some very helpful ones who contribute to this site.
3) Research properties in your local area to begin with – buying property in an area in which you are not familiar with can be much more dangerous when you are just starting out. Read the local real estate guides, speak to agents, speak to council reps in regard to local conditions, zoning etc. (I know an area in NSW that has a major salinity problem that has caught out many investors, where salt has risen from the soil and physically “eaten” the mortar between the bricks. It is a local problem that could easily have been avoided by these “investors” if they had simply spent 10 minutes with a council representative.)
4) Go for it!!!
From another 21 year old.
Age doesn’t negate effort – you can never be too young or too old.
In NSW, you will get a $7,000 grant and stamp duty concessions – stamp duty is normally zero for a FPPR, however I think you may still have to pay some SD if the property is over a certain value. Probably not something you will have to worry about if you are looking at buying a dump.
To get the FHOG you must move into the property within the first 12 months of ownership, and then live in it for a continual six month period. If you are looking at spending 6 months doing the place up, you could organise to have all your mail and bills sent to the property until you can actually live in it, meaning you will have something to show you were living at the address longer than you actually were…
I know a few people who have done/doing this, but be careful because they will do more thorough checks from time to time…
All the best,
SpankyAge doesn’t negate effort – you can never be too young or too old.
Thankyou both for your speedy replies.
Jay, sorry my reasons were not so obvious. I currently have no intention to sell the property in the forseeable future, so CGT is no issue. By using it as an IP, my council rates, strata levies etc. become tax deductible. Also, if it is owned by a private company of mine, should I go bankrupt (this is certainly not a goal of mine, but I’d rather be prepared for anything than to have to deal with it should it happen) the companies assets cannot be used to pay my personal debts. The property would also become a capital base for the growth of the company.
I know this is very basic and sketchy, please fill in any gaps for me or correct me if I’m wrong, after all I’m here to learn.
Cata – a good point about living near your professional advisers – how did you find your accountant??? Also, I know very little about trusts – where can I find out more info??
Thanks again,
SpankyAge doesn’t negate effort – you can never be too young or too old.
Originally posted by Michael Whyte:Regardless of the total market picture there is always individual properties that represent good buying.
Michael, I think you have hit the nail on the head!!!
Age doesn’t negate effort – you can never be too young or too old.
Another thing that enforces my point, especially on a more personal level to me, is the number of people I speak to who say “I wish I did what you are doing when I was 19”. Now, these people vary greatly in age so even though they wish they did it at 19, there must be some of them who were 19 when the market was not an ideal place for buyers, especially not for beginners.
While I am fine with people being critical of my perspective, I would like you to first consider these few questions, especially if you have been investing in property for more than 20 years:
1) Do you wish you began investing in property at age 19?
2) If yes, what was the market doing back then? Was it an absolutely ideal marketplace to buy in at the time? Were interest rates really low? Were prices very attractive for the era? I bet you are thinking “No” to most of these questions, BUT, if you compare prices then to prices now, you would say “YES, it was an ideal time to buy when I was 19. I wish I bloody did it then!!!”
Age doesn’t negate effort – you can never be too young or too old.
As I understand, ANZ already does this. I’m not sure about any of the other major banks, however.
Age doesn’t negate effort – you can never be too young or too old.
Let me give you some more information on myself:
-I live in a relatively large regional city.
-Yes, I am young
-No I am not gambling – I was just using a “general” scenario, as that seems to be what everyone likes and can understand. Just like those generalisations I have been critical of.
-No, MasterREL, I do not want to buy your house for a peak price, as I have already found one considerably below its current market value.The regional city I live in has certainly felt the recent property boom, however, not to the extremes of the capital cities, and anyone who knows what they are talking about will tell you the same of most other inland cities. So, if there is a serious crash in property prices, I feel any capital loss on the property I am looking at will be cushioned not only by its geographical location, but also by the fact that I am buying well below its current value as the vendor is seeking a sale as quickly as possible. It is a strata unit for $135k – there is another one for sale in the same block for $155k. The more expensive one is closer to the main road running past it, it has less privacy as a result, while the cheaper of the two is the very back unit and has security screens, a new kitchen and a new bathroom (installed within the last 6 months). I have spoken to the Strata Manager (who is independent of the selling agent) and there is nothing structurally wrong with either unit, nor do they plan on raising a special levy in the foreseeable future. Of all 9 units (spread out over a large area, all at ground level), 7 are owner-occupied, so as you can imagine, the place is fairly tidy. It is on the main route between the CBD and the local university, so moving in myself and renting out the 2nd BR for a decent proportion of my mortgage repayments at this time of year (uni going back) won’t be difficult. Now try telling me that it’s not a good time to buy any property at all.
Age doesn’t negate effort – you can never be too young or too old.
If you are mates with a builder or two (very handy) they will probably do it for nothing more than a slab of their favourite ale.[thumbsupanim]
Age doesn’t negate effort – you can never be too young or too old.
