actually a little to attractive…
Cheers,
sisThere’s no such things as “easiest and safest way to make money”
Kind regards
Chan Dollars
[Retire Young, Retire Rich] [strum]Westan,
Thank you for those kind words. I would like to return the favour by saying what a considered and balanced post you have posted. I totally agree with the points you raise…both on employment and SIS’s strategy
SIS’s strategy is fine for the share/futures markets where the transaction costs are now ridiculously insignificant. But in property where transaction costs and CGT are a major impost, I have doubts. Add to that the inability to effectively hedge yourself against corrections….hmmmm.
Alright I ‘spose in a raging boom, but market timing is difficult enough in an information rich environment like the sharemarket…very very tough in an info poor market like RE.
Cheers
Hi Ezy, you talked about pooling our money.
The problem is that then there would be too many Chiefs and not enough Indians.
I very much disagree with having a partner. Surely one doesn’t need a partner to buy a house ?
Pisces
Wayne is quite right about trading in property is difficult because of the high costs involved (stampduty, legals etc).
Pulling out one’s initial money once the property has gone up in value that is fine.
Provided however one realises that continuously walking a tightrope means exposing oneself to the distinct possibility of being wiped out eventually.
No ifs and buts about that, a guaranteed certainty.
Pisces
Pisces,
You asked “surely one doesn’t need a partner to buy a house?” I think it depends- on so many things, but mostly on the incomes of the individuals. Two incomes of 25k is 50k. Two incomes of 50k is 100k. How can that not make a difference? My issue would be portability and independence/autonomy. I did own two IP’s with my ex. And then we split them in the divorce :o) I felt *totally* comfortable buying with her, and then worried about havingto actually be independent. But now, I am happy to control my own finances. I think having joint finances with *any* person is like having a relationship- as long as you are moving along the same path and want the same things, it all works out ok. But when you both want to do different things, it’s trouble. One wants to sell, and the other doesn’t… then you have all kinds of exit charges blah blah…
But really, if you have worries about your own serviceability, and you’re compatible, and you trust each other and can make a watertight contract, and you have the psychology to deal with it… it would suit many.
kay henry
If you dont have the required finance and you know someone who does…why not it gets you closer to your goal of independance sooner.
. If you all put x amount into a business venture and make it just that a business venture, with a contract that says the property must be sold, each person can have a clause saying if they want to buy it they can put in a bid like any one else.
But the property has to be sold.and have a time line for selling..even a small profit is a profit.
EZY.[biggrin]>>But when you both want to do different things, it’s trouble. One wants to sell, and the other doesn’t… then you have all kinds of exit charges blah blah…<<
Kay, you hit the nail right on th e head in what you said above.
Having a business partner is fraught with problems. One wants to sell so he can get his money out, the partner wants to keep the property for a longer time frame.
One partner loses his job (or gets transferred interstate and wants out) and problems arise.
Something unforeseen goes wrong with the property which means more expenditure than was anticipated
and there is another source for friction.Everyone smiles whilst things go O.K. but the moment something goes wrong the partners will start blaming each other.
Pisces
Originally posted by Pisces:>>But when you both want to do different things, it’s trouble. One wants to sell, and the other doesn’t… then you have all kinds of exit charges blah blah…<<
Kay, you hit the nail right on th e head in what you said above.
Having a business partner is fraught with problems. One wants to sell so he can get his money out, the partner wants to keep the property for a longer time frame.
One partner loses his job (or gets transferred interstate and wants out) and problems arise.
Something unforeseen goes wrong with the property which means more expenditure than was anticipated
and there is another source for friction.Everyone smiles whilst things go O.K. but the moment something goes wrong the partners will start blaming each other.
Pisces
In my circle of friends and family, there have been some truly bitter experiences with business parterships.
Of those that have survived, some have been financially successfull, but none have been particularly happy affairs.
So totally agree with Pisces here.
Pisces and wayne
Haaaaaving said what I said, I guess I was considering longer-term financial partnerships (the thought raises nightmares for me)… however, if there were 5 people who had say 50k each and there was some sort of short deal…. and there was a real chance of some kind of significant CG… and the risk wasn’t excruciating… and it would be over quickly… then I would consider it.
Overall, in a deal like that (asI said, short-term), I would be looking for the partners to:
(1) have stable personalities. I think the thing which can destroy anything can be those who lose (a) the plot
(b) their temper
(c) sight of the shared and common vision of the members(2) be a similar financial position to begin with. I wouldn’t want the partners to be:
(a) in such a position that they would lose the shirts off their back if the deal didn’t work out
and the money was lost- this could lead to desperate or unreasonable decisions being made
(b) in such a position that the 50k menat nothing, in which case the person might be overly-cavalier or speculative.The deal would also have to be watertight in legal terms, looked at by a lawyer independent to each partner, and each person would share equal profit or loss.
The deal would also have to be of about 3 months duration- quick enough to get excited about, and not so slow that I would get too stressed. I don’t like waiting- it gives me chest pains
)Re family or friends… I would NEVER do a financial deal with family members (I love them too much and family relationships can be complex enough without making it financial). With friends, they would have to fit into the above personality types and financial situation.
kay henry
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