Great post HB.
A diamond is only a piece of coal that has been under pressure for a long time as the saying goes…
I wouldn’t mind attending one of those auctions where there is only the auctioneer , the bank and you.. Was there any phantom bidding [biggrin]… Are you talking about 1990 ?
Shawn
thanks
1990…what a year
there was one old guy standing in the corner…plus 6 of my friends, at this auction….6 years later, 6 doors down..100 people.PS i still have the business today, and it is still as profitable.
but now the staff get a much bigger profit share, as i only go in every few weeks, just to say hello.Just adding to the SMSF, that building is owned by the fund and houses the business…so where does the rent go…..straight into the SMSF 15% tax…
in six months when i retire…..0% tax on income
who repairs and maintains the building? ..the business
win winwhen your 35 it’s the last thing on your mind is super…
when your 55 all you think about is your superYes, great post hb. Some real gems if insight that can only come from time and experience.
Cheers
PyramidYes , 1990 was a hell of a year .
1995 for me was also an interesting year ( migrated to Aus with 600k from cashed up property sales and small business sale )
Shortly after that I lost about half of it…… arrrrrrggg… but that is another story [fear]
Originally posted by Pursefattener:Yes , 1990 was a hell of a year .
1995 for me was also an interesting year ( migrated to Aus with 600k from cashed up property sales and small business sale )
Shortly after that I lost about half of it…… arrrrrrggg… but that is another story [fear]
Women eh! Awesome post HB. Like the 35 vs 55 comparison but at the rate which the govt is going, I’ll be lucky to get it out at 65! Thats like another life time for me. So I don’t really focus on super right now (although the tax breaks are great). Is that an incorrect way to look at it? Touch wood but I may not even be here in 5 years time so wouldn’t mind enjoying as much profits as possible. Any financial planners out there with advice for someone who doens’t believe or rather trust in what the govts doing to our super. Offshore accounts, investments…? Nothing illegal off course…
hi asdf
“but I may not even be here in 5 years time so wouldn’t mind enjoying as much profits as possible”
Totally agree
so why are you you looking at property…remember long term
What generates GOOD income today?
You have to borrow to invest, to generate, to create a lifestyle.
There’s no magic formula
some like IP’s, so like businesses.
both need borrowing to start……
I’ve done both…for me the business was a winner….doesn’t work for everybody.
Flying from NewYork to London in the Concord gives you a feeling your doing all right.
Business creates the cashflow….cashflow creates the investments and lifestyle.
I live on a cliff overlooking the bay….my next door neighbour bought his property a few years ago for $1mil…holiday house…”what do you do?”… Towing Business….what…there’s that much in towing, i ask?….”we’re doing alright….looking at buying another at Port Douglas”…”How much are you making?”Going back to this topics question.. heard that Melbourne median property values rose over 5%, seems a bit rich in a flat market.…
their lies the answer….. “BIT RICH”….look at the areas that have gone up
brighton, hawthorn, camberwell
who lives in those areas?
people with high incomes.
and with no sign of an econimical slowdown, the signs are positive for this end of the market.
Low to medium…..thats HARD work….obviously without substantial salary increases, borrowing power is constrained…so the market at this end becomes stagnate.
and the new IR laws and the cost of child care will only restrict this end of the market more.Don’t worry Pursefattener:
I know of someone with 20mil from sale of business, who lost a buckle load in a big property development… a big.. arrrrrrggg…Great Post HB and an insight into your experiences- thanks
I agree with you about diversification and having investment funds in both Property and Shares, both have Pro’s and Cons but work well together; Peter SPANN has some interesting thoughts on synergy between the two.
My personal preference is Property due to its leverage abilities
“Money is a currency, like electricity and it requires momentum to make it Effective”
Count The Currency With This Online Positive Cashflow CalculatorMs Wakelin suggested Surrey Hills’ comparative lack of diversity, and resales of new developments in Williamstown could explain the data.I have to disagree with Ms Wakelin. The reason for Surrey Hills having a lower December 05 median than in December 03 is that the 03 figure was a massive aberation (it went from ~540k in Oct ’03, to ~680k in Dec and back to ~540k in March ’04). In fact the trend is strongly up over the past couple of years and now sits at $650.
Just shows that the even the experts sometimes shot from the hip and don’t do the most basic of research.
shares do o.k when u pick the right ones.property does o.k when u pick the right ones.this is general knowledge. i like property always because it is something u can see feeel and touch .this is why most people prefer property. it is an emotional thing and some years u do heaps better in other asset classes and other yrs its in property. i think they basically even out in the end especielly property and shares. dont try and compare them yr 2 yr as each will generally work opposite 2 each other but still give basically the same result….. what do u prefer???what r u happy with?property? shares??? amixture of both??? amixture of something else…go a bit with ur gut feeling and u will be happy even if it doesnt do the best 4 that yr
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