Forum Replies Created
Have been looking forward to reading and trying to understand everyones POV regarding our beloved HK. Its a bit like all of our opinions -RE, wrapping, politics, sex’n’religion. We all have our viewpoints and fail to understand that others have diametrically opposing viewpoints held as strongly as our own.
So, until I unilaterally become the official dictator of the republic of Australia, please feel free to understand that the following comments may be viewed only as my opionion, as opposed to “the one and only way that you are allowed to feel about the situation”[
]The first sentence of the first lecture of the first ASX course that I attended started something like this “Fear and greed, greed and fear, these are the problems and opportunities within any market”.
If anyone has ever written a book, and then does a seminar, (unless the book was a loss leader for the hard sell seminar), then I have always found the book to be highly informative, more thorough and more densely packed with information than the lecture. As the economists would say, the cost/benefit ratio of the book is much lower, IMHO usually by a factor of 100 or so. Significantly much more information at 1-10% of the price.
Think about it this way. Get your favourite book, and read a page. Took about a minute, didnt it? So, if a lecture lasted about one hour, the lecturer could read only 60 pages. In a three hour lecture (if you could remember half of it), 180 pages. How many pages were in the book?
Also, there is always some dopey moron who asks dead easy stupid questions to the detriment of others. These people annoy me more than people who talk during movies while throwing their popcorn. Perhaps there are only a few of these people, whom regularly rotate all of the courses on offer around australia, just to make the rest of us feel annoyed[
] Intelligent questions are fine, but they are usually preceded idiots repeatedly requesting basic stuff already covered in the talk. Or, even worse, thinking that the lecture is actually a dialogue between the lecturer and themself.We all learn differently, some better through books (which we can highlight, read, underline, reread etc), while others learn auditarily, visually, or through social contact. I believe that most lectures that are sold, are sold to people whom learn via social interaction rather than via the printed word, and I have nothing against that. The problem can become when you advisor is also on the payroll through your backpocket. I believe that many people in the real estate game make the dodgiest used car salesman look like shining ethical beacons from heaven.
A colleague of mine (who I had a lecture or three off) at university got stung by a huge scam to the tune of 300 grand. It was a grape investment, with management fees of up to eighty percent!. His accountant was wildly enthused, and was supposed to be investing, but didnt! It will be interesting to see if he was on the kickback payroll!
Was it fear (of missing out on a great return, of retiring poor) or greed (this cant lose), or naiivity (not likely-he was highly educated, and the person I would view as least likely to get screwed by this sort of scam). Well, he cant claim naivity, as even in our proffessional magazine, almost every tax year, the accountant warns us all to avoid the agricultural scams, and to focus on the INVESTMENT itself, rather than the TAX ‘ADVANTAGES’.
Heres a way in which I will guarrantee all you high income earners (>100k) to legally pay 10K tax per year.- take fridays off!, or lose 20k in a business!. Saving tax means losing money, but the ‘average dickhead in the street’ (my favourite coined saying of all time) thinks this is wonderful- I can pay less tax. They go to the adviser, who asks the (rhetorical) question- do you think you are paying too much tax?, followed by the uppercut of would you like me to show you how to pay less tax?
All the eggs in the one basket. Lets face it, all of us could probably lose 10 grand in bad mistakes, and live through it. I have done it before, and will probably do it again. But 300grand? on a scheme (or scam) like this? It is almost incomprehensible.
My old man (a chartered accountant) tends to ask three questions of me when I run something past him.
Firstly, what is your intention (and “making money” IS NEVER THE ANSWER!
Secondly, how did you meet them
Thirdly, how are you paying them. NOT If, but how. If you pay someone up front for their opinion, they will probably do your due diligence for you. If their opinion and information is “free” (as in a lunch), then they will be doing their due diligence ON you, and get paid via your back pocket commission.
And in any market society, we have not just the criminal element, but those that wish to line their pockets. I explained to my boss (on more than one occasion), that I would have a better chance of being jailed if I broke into his house a few times and stole a few grand worth, than if I stole a hundred grand off him white collar style. Witness Skase, he went in front of a judge, asked for his passport which he wasnt going to use. Judge gives him passport, he never uses his return ticket. HK may go this way, as I am sure that he is smart enough to get away with what he has done/ alleged to have done.
My view of HK is that he may (and I repeat, may ) be a cunning white collar criminal, or he may legitimise his activities as teaching. My proffessional courses start at about 350 dollars a day, upwards, and why not sell courses in RE? If people are making great money, they may attribute it to me (as opposed to the great bull market), and why cant I sell them my own investments and developments?
Perhaps he brought a two tiered scheme, with smaller margins and easier cash, but who really knows? (I dont think he would even honestly know the answer)
But I reckon that if someone had 30k to invest in RE, a proper accountant would suggest a few hundred dollars in books, a bit of shoe leather, a property investors club (non profit), solid financial advice, spend some time looking in the market to find a bargain, and still have about 29,654 dollars as a deposit. To spend large sums (prior to the first purchase) to me sounds like something I would personally never do, and find it hard to understand why anyone would feel the need to do this.
]
] Intelligent questions are fine, but they are usually preceded idiots repeatedly requesting basic stuff already covered in the talk. Or, even worse, thinking that the lecture is actually a dialogue between the lecturer and themself.
