Forum Replies Created
- cu@thetop wrote:Yes – this guy goes for bigger tenants but usually has them lined up before the first sod is turned.I agree the smaller commercial tenants are always the problem children.
PS LA Aussie- like your work in the greedy tradies thread but I'm too scared to put my head up over there with all the vitriol flying around……..
A large tenant certainly doesn't mean garanteed return,…. An IGA supermarket near me has had it's doors chained by the land lord for unpaid rent,
smaller commerial spaces might seem like they have a higher turn over but if they are well located it will be much easy to find a tenant,…
simple wrote:With commercial property, you would sign contact for 5 years, but 6-12 first months are often free. This is normal practice and i also see vendors agreed to pay say for 50% improvement bill ( fitout and such). So it/s is all not that sunny. Like in residential market you need to know what property's a the good pick…6-12 months free is certainly not normally anywhere I have seen,…. you are lucky to get 1 month rent free in sydney
timbo. wrote:Hi all,My Question:
I want my current IP to be protected, but I'm not sure if it will be worth the costs involved.
Should I transfer my current IP into the trust or leave it out?I'd be grateful to hear from anyone who has been in a similar position or has an opinion on this.
Cheers,
Tim.I would not move your existing house into the trust,…. But I would set up a structure inwhich to buy future investments in,
Do you own your own home,…. If not when you finaly want to settle into your own home I would sell your investment that is in your own name to buy your home (since you said it was almost paid off) that way you will not have much debt against your home which is not tax deducable,…. you can then use the equity in your family home to finance buying another investment property in your trust that way you end up with a family home almost debt free and another investment with with debt against it which is now tax deductable,…
another thing is that you mentioned that you are paying off your investments,… you should never pay a single $ off your invesment loans if you have any other non tax deductable debt(car, boat, credit card).
Ptialv wrote:Can somebody please explain what is lazy equity.
Lazy Equity can also be used to describe money that is not working as hard for you as it used to be,.. for example,
you buy a house for $200,000 that earns $16,000 rent per year so that is a 8% return,…. how ever 3 years later your house is now worth $400,000 but you rent has only gone up to $20,000 per year so you are now only earning 5% return on your property, so your return on equity has been dropping because on that extra $200,000 of equity you now have your are only earning an extra $4,000
Scott No Mates wrote:As Foundation points out, there may be some long term capital growth (positive thinking), however as you continue to increase your leaverage (way ahead of capital growth) you are dramatically increasing your risk profile. If you aren't repaying your interest on your facility, the financier does have a right to foreclose and take suffient assets to cover its debt – mortgage insurance doesn't cover you – it is your lender & the insurers who are protected (twofold). The bank/financier will review your portfolio annually (if prudent) or every 3 years at the worst, at this time they can call your accounts into question if they are dissatisfied with the return to the investor (ie the financier). They can reduce your loan, or call in your loans – tread wearily!You sound like you are falling into the sub-primes category here (but unlike in the US aren't subject to a resetting loan portfolio, just rising inflation, rising interest rates, falling AUD, tightening liquidity market etc).
SNM
Thats right,… Just because your stratergy has worked in the past doesn't mean it will work in the future,…
If you are still doing now what you did in the past and expecting the same results you may be in for a bit of a shock,…
It might make sense to pile on coats, scarves and beanies as winter gets colder and colder but if you are still doing it when summer hits you might be in for a hard time.
regina wrote:well, what size of portfolio do you need to earn say $50,000 per year in dividends?as with property it really depends what yout investing in,….. you could earn $50,000 / year with as little as $625,000 if you invested in some high yeilding stocks,…. and remember alot of stocks come with franked dividends so the tax has already been paid on them, there is also no vacacy or maintaince or tenant problems.
so from an income perspective stocks can be more attractive than property,
regina wrote:Hi foundation,
share dividends, even with a large portfolio, don't really give you enough income to live on, unless you are heavily leveraged with installment warrants.What do you mean you can't live of share dividends,….. there are alot of share's that return good dividends, and you can also slowly sell small parcels of your capital to live off.
L.A Aussie wrote:In defense on the negative comments on the site, I think you'll find that a lot of them are from very experienced investors who have seen the busts as well as the booms, and are trying to protect everyone.People like Foundation are not trying to put us off property; he is trying to make sure we have our eyes open.
.
I agree with LA,….
To have a crediable, Balanced discussion on Investing you have to discuss the positives and the negatives,….. I don't think any newbie would benefit from discussions that only ever talked about the best possible outcome all the time,… if we only ever ramped up all the benefits and how easy it is to make money that would make us spruikers not investors.
At the end of the day you don't have to aggree with foundation, he is just expressing his opinion and showing us the data he uses to back up his opinion,…. It is up to you what you do after that., But it is always best to look at things from as many different angles as possible, it will help you form your own opinions more accuratly.
I actually think pointing out the weakness's in certain investments is a good idea, it can help people think of possible flaws in there stratergy that they may not have seen otherwise,… and help them build a stronger portfoilio for the future, there are alot of people out there with rose coloured glasses whos portfoilio is nothing more than a house of cards to say the least because they have only ever believed the best possible outcome stories.
Da Man wrote:This may be a silly question……but I'm having trouble getting my head around it.If I have a fully variable loan on my PPOR and I have an offset account, does making extra payments from that offset account into the loan make any difference to slashing the term of the loan?
what exactly do you mean,…. if you are asking if you take money that is already in your offset account will it decrease your the term of your loan then no it won't because the money in the offset account is already offseting the interest on the loan so you are receiveing the same benefit as if it were off your loan
Boy in Blue wrote:I understand the concepts and the power of compounding investment…What i dont understand is how people will be able to afford property in 30 years time, on the basis of 8% average growth for 30 years, take Darwin as an example used before:
Annual Average Growth 8%
Annual Inflaction 4%?
Well I don't think it will be nessary for the bulk of people to afford a property, look at most of the large mega capital cities in the world and the % of people renting is massive compared to the number of home owners.
slowly the thinking of people will have to change from thinking of the family home being a 4 bedroom house on a 1/4 acre block to a 3 bedroom town house or apartment,
In my suburb in sydney the crapest house in the street is already worth over $1.5 Million,…. These houses are on large blocks less than 1km from 30storey apartment buildings though,
remember in 30years these houses that are worth $380,000 today will be surrounded by town houses complexes and apartment buildings,…. and the house that I mentioned above thats worth 1.5M will propbally be long gone and have a $30M apartment building sitting on it.
so yes I believe with inflation and growth it is not unlikly that in 30years a developer could offer you $4million for your home.
Handy Andy wrote:Hello Mick..I think you will find something for 900K…..however, if I were you, I would definitely consider something along the train line, because 900K will get you a VERY VERY GOOD PLACE in the burbs….whenever I had to go to the CBD, I always "train" it..parking is getting ridiculous…just an idea…
I aggree,… I would consider "training it". That way you could probally keep your investment and buy a decent house to.
Plus you get to read a book on the way to and from work, and save money on fuel and parking.
foundation wrote:Tysonboss1 wrote:remember that the most capital cities have averaged close to or above 10% growth long term,…. and the rent generally increases faster than inflation,Rubbish!
what is rubbish,… over the last 30 years most capital cities have achieve close to 10% growth,
remember that the most capital cities have averaged close to or above 10% growth long term,…. and the rent generally increases faster than inflation,
Scott No Mates wrote:Seriously guys, do you actually understand the scope of work or the cost of a loaf of bread today or are you happy paying Coles & Woolies the $3.60 ish each day when you can pick up the identical no frills loaf for a dollar less? Are you happy about paying $6 for a dozen free range eggs or do you prefer $3 from the farm gate?.
Yes I am Happy paying an extra $1 a loaf if the bread contains extra vitimins, calcium or omega,
and yes I am happy paying an extra $3 for eggs if I don't have to drive an hour to the farm gate.
as you said you have to look at what you are getting,. for your money.
All I am saying is that singling out tradies is wrong,
And when ever hear people talking about quotes and the like tradies have given them they always complain about the price, and say they must be getting ripped of.
I just think alot of people expect things two cheap, when you factor in all the costs.
Offcoarse there are rip off merchants,…. but tarring every tradesman is just wrong,…. and even if there are big differances in prices you have to examine the reasons before you just say " well his ripping me off and he's not",… there are alot of variables that will affect the price,….
Its like anything,…. not just tradies,
I mean what the price of a burger,… a big mac is $3 or you go to a cafe you can spend $13. weather it is value is up to you,
some tradies have to travel futther,… some spend most of the day doing a great job time on the job others will rush it so they can fit 2 or 3 jobs into their day,… some use quality materials others will cut corners,
I just got a quote for two differnt lock smiths the one 5 streets away charges a $25 call out fee the one 5 suburbs away charges a $80 call out fee does this mean he is over charging,…. no,.. not with sydney traffic and toll ways. You do have to shop around but generally for the hours they put in, I don't think tradies over charge.
I don't think tradies charge to much,… I think most people expect to pay to little,
when you factor in the traveling time, working time, materials, taxes, fuel wages. they have alot of costs, and it can be qutie gruelling work.
jfiori wrote:To Tysonboss and others like you;Don't worry, you can keep your apparent 'liitle' secret about positive gearing properties. I'm sure if it was making you so wealthy you wouldn't bother being on this forum big noting yourself. Its a sure bet that this is how you are in real life – just like one of those desperate people we come across now and then looking for a quick buck and falsely thinking they've found it, the type of person we steer away from.
I don't have any "secrets" re-read what I said and you will see that I was using the word "sercret" sarcastically as in that people read that book come onto this site wanting to get rich quick and wanting to know the secret of where all the positve geared properties are,…. I was not saying that I had a secret to weath which I wanted to protect,…
secondly you will find that there are many wealthy investors who regularly use this site, so your comment about if I was already wealthy I wouldn't be on this site is also wrong,…..
I would not class my self as "wealthy" how ever I started with pretty much nothing but a suit case of belongings when I was 18 and am only 25 now and hold over over $1M of investments….. Although my achievement is not what i would class as spectacular and I feel that I still have alot to learn myself I try to offer advice where I can on things that I have learned from my own experiance
How ever I can only help people that ask the right questions, when people ask questions like "where can I buy a cash flow positve property" or "I am new tell me everything I need to know about property" I can't really help them,. People need to ask the right questions.
Besides all that I have already apoligised for my first comment as I said I shouldn't have be as rude as I was, I must have had a rather short temper that day.
Sailesh C wrote:Petrie is a nice quiet pocket to own an IP in. It is close to train station, schools and shopping.I have a duplex there to,
Look for an oil well that would never run dry,…
