Replies Created | Forums | SuperTed | PropertyInvesting.com

Forum Replies Created

Viewing 20 posts - 161 through 180 (of 203 total)

« 1 … 5 6 7 8 9 10 11 »

SuperTed
Member
@superted
Join Date: 2003
Post Count: 205
May 9, 2004 - 11:09 am
Well when he starts full time work the market wouldve cooled some more, so things will prob fall into place for them.
I never seen a teacher do it tuff
SuperTed
Member
@superted
Join Date: 2003
Post Count: 205
May 6, 2004 - 5:58 am
His self promotion, one liners etc was done 40yrs ago by someone that could box.
But as long as Anthony thinks he is original, then let him keep thinking it….
SuperTed
Member
@superted
Join Date: 2003
Post Count: 205
May 2, 2004 - 9:26 pm
Originally posted by Monopoly:
Hi All,
Well the issue of operating strictly in the name of making money, or being more moralistic in one’s behaviour has raised a few eyebrows to say the least.
I believe we are all (most of us anyway) mature/smart enough to have figured out that the two (business and morals) are not exclusive to each other, and can operate independantly.
But seeing as it has caused some debate….let’s nut it out, here’s a hypo for you (to think about, so don’t go getting too steamed; it’s all in the name of fun).
Let me set the scene……
You’re at an auction for an IP that you are interested in purchasing; great location, nice little house, great potential etc etc etc., however there is opposition within…..a young couple (pregnant wife) with a toddler in a pram, and she’s hanging desparately onto hubby’s arm, pleading with him to “put in one more bid, please…”. You can see clearly that for every $1000 you raised the bid their facial expression reflected a painful cringe from both the man and his wife. You know that you can knock them out of the race with one swoop of say $5000 and put the end it all now……what do you do????
By the way, the scenario was real (for me)….I was in the exact position only a month ago.
Jo
And after they were outbid, did they climb into their brand new 5 series and drive off into the sunset
SuperTed
Member
@superted
Join Date: 2003
Post Count: 205
April 22, 2004 - 1:41 am
Originally posted by sizzling_duck:
Quote:
The real answer in this thread is that yourself and Russh, I believe classify the $35,000 in cash leftover from selling the land is worth more than the $50,000 in equity in the block as it has an associated liability.
LoL ……….Never said that!
And around we go
SuperTed
Member
@superted
Join Date: 2003
Post Count: 205
April 21, 2004 - 10:56 am
[/quote]
I guess you guys are the glass half empty types?
[/quote]
Quite the opposite actually (cant speek for the rest).
You seem transfixed on the “technical” definition for which you are CORRECT, are you an accountant?
The other method that most of us are on agreement is the most practical way to look at assets and liabilities for long term wealth.
But if you are happy your way so be it, dont let me change it in yr quest to accumulate unlimited -ve geared assets
SuperTed
Member
@superted
Join Date: 2003
Post Count: 205
April 21, 2004 - 12:23 am
Whens the next NSW state election? [cap]
SuperTed
Member
@superted
Join Date: 2003
Post Count: 205
April 21, 2004 - 12:02 am
Originally posted by sizzling_duck:
LOL….. yr non blinkered ideas have basically been covered by the people with blinkers on.
I would agree with Russ (which is Rich Dads definition) of what an asset and a liability are.
So someone suggested building a new building and then selling? Sorry, I didn’t read that anywhere. Or in fact subdividing and creating multiple rentals using the relocated house idea? Really? where did someone post that?
As for the definition of an asset or a liability it is basic bookkeeping. Not some book, even if relevant to some people, who has some differing version.
Asset (meaning): Accounting. The entries on a balance sheet showing all properties, both tangible and intangible, and claims against others that may be applied to cover the liabilities of a person or business. Assets can include cash, stock, inventories, property rights, and goodwill.
Liability (meaning): The financial obligations entered in the balance sheet of a business enterprise.
In the above case of a land with no income it is an Asset (Land) with an associated Liability (rates). This still has potential for growth (CG +ve), but not a very efficient method of making money.
Mmmm…thinking how much time to waste on this.
Definitions of Asset and Liability you are “technically” correct.
Unblinkered view is an asset makes money, liability loses money.
And yes your ideas have “basically” been covered by others.
Yawwwns
SuperTed
Member
@superted
Join Date: 2003
Post Count: 205
April 20, 2004 - 10:06 pm
Originally posted by sizzling_duck:
Originally posted by RussH:
Land is not an asset but a liability.If something costs you money and has no return then it isa liability.
Sell the land and invest the nmoney on a +cf property.
An asset is something that makes you money.i.e a cash flow + property.
Russ
An asset is anything you own, regardless of whether it makes you money or not. Your blinkers have shown to far this time RussH.
An example is cars are classed as an asset, they cost you money the run AND depreciates (in general), but they are still useful.
No information had been given on the area the land is in, the size of the block, whether in fact it could be sub-divided or an active rental market in place. Even the purchase price may have been helpful to know when looking at what is possible.
Several options would exist:
– sell the land if he has a mortgage to pay off. Put the cash to work on reducing the interest while preparing to use the equity to find a cf+ place (probably what RussH is talking about)
– use the equity in the land to get you loans on cf+ places. This is an option if you want to turn this to a investment property as well, some suggestions like a relocated house and turn it into an IP is a good option.
– if not rental but a buying and living area perhaps use the equity to build a house on it and sell it off. Look for comparable blocks with a house size you are prepared to build and find out its value. Even in this case you could rent it out, but probably not as beneficial as the cheap relocated house and other IPs option.
– if the block is large and you can sub-divide then perhaps this is the best option. You could possibly even relocate a few houses on a couple of the sub-divided blocks to get you a decent rental income, most probably end up quite cf+ in the end too.
– lets say it is a large block but no plans of sub-division currently and you don’t want to build or relocate a house at this point in case of a sub-division plan later on. Then at this point it is an Asset with an associated Liability (usually in the form of rates). If you believe the value will increase (capital gains +ve) and you could ‘rent’ the land out to local farmers, (for horses this is called agistment I think) for roughly the value of the rates each year. You can still draw down on the equity to get yourself some IPs and since you have more equity to invest in IPs than cash if you do sell it then obviously keeping it would help. Still rent from a cheap house outweighs by far rent from a farmer for livestock or horses to graze on….
Just a few non-blinkered ideas [rolleyesanim]
A bit more info would probably help btw [biggrin]
LOL….. yr non blinkered ideas have basically been covered by the people with blinkers on.
I would agree with Russ (which is Rich Dads definition) of what an asset and a liability are.
SuperTed
Member
@superted
Join Date: 2003
Post Count: 205
April 19, 2004 - 10:08 pm
Originally posted by Fish:
Hi all,
Just seeking some advice as to whether to sell my land and use the cash in my bank to buy an IP, or to keep the land and use the equity?
The land has had it’s boom and gives me around $50,000 in equity to show the bank. If I sell, I’ll have around $35,000 after CGT and sales costs.
Am I better to leave the land as is and borrow against the $50K equity, or to sell and have a lesser sum of $35K in my bank, against which to borrow???
Thanks all!
Fish
If the bank uses the 50k (after their valuation) then u will get more leverage, ie can spend more.
But having land that brings no income and has the possibility of declining in value, then CASH is king.
Me i would sell and sit back with the cash (which is what i am doing now afterall my area has started to come back down the other side of the peak.
SuperTed
Member
@superted
Join Date: 2003
Post Count: 205
April 19, 2004 - 9:53 am
Originally posted by Alby:
Im looking at my second property purchase at the moment – so im just geting into this. I came across a block of 5 units recently – a little run down but its right on the beach in a country location and it is currently fully rented. I can see a capital gain at some stage on it if I can get it ast the price I want – but Im still looking at coffing up around $400K for it – but should get close to $40k pa return. QUestion is is it better crawl before I learn to walk ? or is it ok to run if you see something that would work?
alby
If its a good deal? may as well get stuck into it before someone else does..then you kick yourself for the next 20 years. Only if you think its a good deal.
SuperTed
Member
@superted
Join Date: 2003
Post Count: 205
April 19, 2004 - 9:44 am
Everything cycles its just when to get on and when to get off the bike is the trick, so right now i would BUY as many NAB shares as I can afford, lunchtime today was ideal [aacool]
Something new!! mmm plenty of dough in doing things that have been done before and less hasle but only if you understand the game before you start playing it [biggrin]
SuperTed
Member
@superted
Join Date: 2003
Post Count: 205
April 19, 2004 - 9:35 am
I agree AusProp. I think this last property boom has been a blessing for the small towner wanting to get out, especially with all the +ve cashflow people running in to snap up the bargains.
SuperTed
Member
@superted
Join Date: 2003
Post Count: 205
April 19, 2004 - 9:29 am
Originally posted by kay henry:
You wouldn’t buy shares without reading a prospectus,
kay henry
Prospectus cant tell you everything
SuperTed
Member
@superted
Join Date: 2003
Post Count: 205
April 15, 2004 - 12:43 am
I went out and had a look at some regional NSW towns (new england and upper hunter).
I thought they’d be ok to live in if they had a beach [biggrin]
SuperTed
Member
@superted
Join Date: 2003
Post Count: 205
April 8, 2004 - 12:14 pm
Kay Henry.. I know generalising is a bad thing and you might be slightly different from the herd.
The herd refers to the majority of property investors in australia that have jumped in on this “latest” boom.
A lot of people have bought property on a short term speculative gain (like in the share market boom before it), theyve watched the shows its easy, buy houses, do them up then flog them for short term large profit.
Not everyone has +ve geared property which they can hold for the long term like yourself. I acknowledge that many people in here have +ve geared property. They represent a small percentage of the property invesors in australia.
The majority of property “investors” in australia have -ve geared property and have only 1 or 2 properties.
Also its possible for +ve geared to turn -ve with a low yeilds. Do you hold and hope for these to turn +ve again.
A exit plan would possibly inlcude income protection insurance (hope you dont ever have to claim it for a long term period) but more importantly the exit plan would include a thought process that would include the concept that the initial property purchases could turn out to be bad. most people $ee the good and forget about the bad things that could and can happen.
Many people rushin with $$ signs in there eyes with no thought that it might not turn out the way they think. (for example look at city units where people put down there deposits bonds without thinking that this investment could be worth less 2 yrs down the track when its due for completion).
Yack yes that the way i was thinking. A plan put in place wherebuy you decide the exit criteria and not the exit forced upon you.
SuperTed
Member
@superted
Join Date: 2003
Post Count: 205
April 8, 2004 - 11:18 am
everything cycles ..remember the “money’ show with paul clitheroe getting all the mums and dads (who had no idea into the share market) and remember when all the taxi drivers had a share tip, now they have the hot growth area for property). That “shares” show kinda dissappeared from the radar when the tech boom failed with other blue chips. The property tv shows will go the same direction in due course.
The majority of people have herd mentallity in that the have an entry point be it property or shares (following the rest) but have no idea of an exit strategy.
How many people even in here have never even thought about developing an exit plan should the unforseeable happen to their investment or thier abitity to fund it……mmm thought so
SuperTed
Member
@superted
Join Date: 2003
Post Count: 205
April 6, 2004 - 10:40 am
Yawwwwwwwwwn
SuperTed
Member
@superted
Join Date: 2003
Post Count: 205
April 6, 2004 - 9:41 am
Interesting that..investment property’s value is based on the /m2 rate you can get for the rent.
SuperTed
Member
@superted
Join Date: 2003
Post Count: 205
April 6, 2004 - 9:39 am
MMM then there is bracket creep..
Any new tax will be passed on to the consumer. As well as the higher building costs associated with the new workcover rules comming into effect. This will make it harder for first home buyers to get into the market.
If this is the excuse from Bob Carr (make it easier for first home buyers) to why he is introducing the new tax then it is flawed as is most of his failed management.
If they had sound management they could recoup the budget blow out and turn it back to black without any new tax.
SuperTed
Member
@superted
Join Date: 2003
Post Count: 205
April 5, 2004 - 2:06 am
Originally posted by MiniMogul:
“Is there an edit button for these posts???”
yes! but you have to log in to see it!
cheers-
Mini
Thankyou was thin king i was already logged in when i posted but not to be