Forum Replies Created
- Originally posted by Marisa:
Hi All,
This is interesting, and lots of fun, but lets get back to the topic and answer shaztas’s original question……
It was something like “how many of you are considering putting up your rent/s due to the latest rise in interest rates?
The way I personally see it is –
generally suburbs with a limted number of rental properties in a well located area tend to achieve high levels of rental income because of scarity factor.Am I putting rents up???
I review every 6 months and look at the trend in the area, what similar properties are renting for. I also ask my PM, check local papers, and keep an eye on it.I am not sure how or whether interest rates factor into the equation.
That is a scary thought.
It equates to your local deli operator doing the rounds to see how much his competitors sell salami and prosciutto, and saying “that is all it counts”, “what does the cost of salami has anything to do with prices”?[cigar]May God prosper you always.[biggrin]
MarcGood answers everyone.
Now let’s see if we can learn something from this.What makes us act?
Actions are the consequence of thoughts. Thoughts are caused by our believes. Believes are placed in our minds as a program usually well before age 10.
When we set our conscious mind in action in the understanding that WE are making decisions, it is in fact our environment including all the person that had a go at programing us from an early stage that are determining what action we take.
Take this little experiment for example. I know how sensitive the topic of rent is for many. The landlord wants his return, the tenant does not want to pay more. The landlord is the bastard, the tenant is the moron, etc etc.
Yet forget for a moment who says what, put emotions and pride aside, look at this for what it is, a riddle, and think. IF all you want is an outcome X, and you know that you are not reaching such outcome because a particular program is stopping you, what would you do? Would you cuddle and pet the offending program because it brings you memories of the shop owner who sold it to you or would you drop it for what it is, rubbish, and bring in something that will serve you to reach outcome X?
Everything we do in life is due to a set of believes that are in our subconscious with our permission or without it, placed there most of the time without our knowledge. We have as always a choice. To pet and cuddle our limiting beliefs that stop us from achieving, but that we think are what makes us socially acceptable to others or we can drop them and replace them with believes that serve us.
There is no point in defending other people’s principles, recycling them only for a false concept of social loyalty. The deep rooted bias and angry reactions I was able to extract from you so easily, are but the tip of the iceberg, little samples of a huge array of limiting beliefs that appear not to be serving you but are a handicap to success.
Each time you feel the urge to express anger and frustration against a particular idea, stop to think why you feel that way.
Identify your limiting believes and drop them, replace them with principles that serve you and others and you will not fall in the same trap ever again.To your success !
May God prosper you always.[biggrin]
MarcOriginally posted by wezwaz:Why are retirements going to drain the share market? Even in retirement you want your money invested in something other than cash. People don’t just go and cash their Super and park it at the bank.
Explain why there will be a wave of selling.
Wes.
Precisely. I cannot see myself selling all my income producing assets in 20 years time to do what? Give it to the bank for 5% interest?
Go on a shopping spree around the world? I think that baby boomers have demonstrated beyond reasonable doubt that they are not the type to squander what they have accumulated, nor to fire sell in a flat market. Plus, it is well known that baby boomers will not retire in the way the previous generation have done and will remain in business in a way or another.
Market trends are important to know, panic is counterproductive.May God prosper you always.[biggrin]
MarcTenant leaves and IP vacant for one week = loss of rent until you find a new tenant, if you use a PM add his costs(divide that by $5 and see how many weeks it takes for you to catch up. Heaven forbid you get a “bad” tenant)
That is precisely the rhetoric used by real estate agent. It makes sense in the micro cosmos of the weekly rent arithmetic but it damages the market and even the resell price or you own property.
Let’s forget for one moment that we tax people who live below the poverty line then give them “assistance” and tell them that they should be grateful for it.
Not really, the tax system is designed with the vote of the masses in mind. Tax high the (bad) rich and little the (good) poor. Make all as much dependant as possible and then waive a carrot to get votes.
Do you think that if they weren’t getting that assistance that rents would be as high as they are now? an interesting theory. I’m afraid we will never know. The real estate market has so many people trying to twist it their own way for political purposes that it is impossible to make any assumptions on the line of a “what if” credible analysis.
If no rent assistance I suppose you should add no housing department either….mm….I actually think I would like both events.you are getting the hand out…. ha ha good one but wrong. I am alleviating the housing department job and palliating the government shortcomings.
Let’s also forget that if you are negatively geared you are also a welfare recipient… welfare for the rich.
Do you really believe that? Makes one wonder what are you doing on an real estate investment BB….but hey, knock yourself out, no offence taken.I challenge you to forgo your negative gearing.
Negative gearing is an instrument to transfer losses from one line of income to another.
Stepped personal tax is a way to transfer the burden of taxation from the person of lower income on the person on higher income. Negative gearing is a stimulant of production, staggered tax system is a stimulant for mediocrity.The abolition of negative gearing would simply re-shape the market, and after a period of adjustment, opportunities will have different forms. To fantasize that a change in legislation will make all those evil cruel speculators crumble and let the masses surge victorious is naive to say the least. Such ideas fail to recognize the true process of success and the origins of failure.
…with your arguments about paying too much tax [lmao] Try it from the bottom of the social ladder.
My friend, I know each step of the ladder enough to know that we all choose the rung we want to sit on, it is not “the others” who make us stay where we are, it is us.
I wish you well and remind you that “We are what we think” (James Allen)
May God prosper you always.[biggrin]
MarcThe last few post only come to confirm that whoever does not increase the rent because he wants to keep a “good” tenant is making a mistake, particularly if the property is negatively geared.
Price increase = rent increse.
Interest rate increase = rent increase.
You tenants goes because you increase $5 ?
Good! increase another $5 and find a tenant that can afford to live in your property.If you do not follow this, you are subsidising your tenants rent. Remember they are probably already recieving your tax dollars, (collected by Robin Hood and the jolly men in the forest), in $90 rent subsidies through Centrelink.
May God prosper you always.[biggrin]
MarcOriginally posted by foundation:
[brYou seem to be ignoring the fact that most rental properties were bought before property prices reached excessive levels. The landlords holding these properties are not under pressure to raise rents as a result of the interest rate rises, and can therefore undercut the over-stretched speculators who bought at the market peak. Why would they? Because that’s all it takes to ensure 100% occupancy when there is a 2 – 5% vacancy rate.
Also worth noting is that many renters will be prepared to move to a smaller cheaper apartment / house if rents outstrip wage inflation.
It’s worth mentioning that I do believe the ratio of rent to house price will return to historic trend – just not in the way you expect it to Marc!Cheers, F.[cowboy2]
Ha ha my friend foundation i love your post.
Properties excessive prices…overstreched speculators…ratio of rent to house price return to historic levels….not the way Marc (me) expect it…..
Love it.
Was wondering how do you know what I expect or perhaps hope for, but I can guess.
You picture me as 80 years old, bald, dressed poorly to save on clothes and counting my money at night time, kept in an old strong box bought from a railway auction. During the day I engage in evicting poor widows and use kids to mow the lawns and clean gutters (with no safety gear of course that cost money). Lunch and dinner I get from “meals on wheels” that i regularly rip off by telling them I am poor and inferm.
My properties are all in deplorable state with leacking roofs and rotting floors but I charge abusivly high rent that I collect with the help of a one eyed veteran of the Golf War that goes around with an aluminium bat.
My pastime is to throw stones at the windows of people I know to have comunist tendencies.[biggrin]May God prosper you always.[biggrin]
MarcIt is the market that determines the rent. Correct.
Yet the market is not composed just by tenants, it is made up by tenants and landlords and properties and many other factors.It is a simple economic reality that if cost increase rent must increase.
The fact that it does not always follow particularly in places with oversupply is because 90% of landlords are mums and dads with one property and their agents are morons.There is little else to add.
If RE agent would be worth half the money they charge for mismanagement, they would create a culture of matter of fact. Rate increase automatically equal to rent increase, like night follows day.
Yet they do not, they will tell with trembling voice to their owners that if the tenant goes, the loss of rent will be never recovered. True? of course!… but only because of their lack of guts.
Every time I call my agents to say to put up the rent, they give me an ear full about how “you cannot pass on the cost and bla bla bla” I cut them short every time and say that for me it is a matter of principle, and that if I cannot pass on the cost increase be it GST, Land tax, interest rate increase or cost of maintenance, then this is not a business but welfare and I am not the DSS.
So far it worked every time, some tenants put conditions and ask for paint or some other minor compensation. No problems there.
In Queensland I put the rent up 5 dollars last year in a block of flats and two tenants ganged up and threatened to leave. The agent rang back terrified with the usual bla bla that if the flats are vacant for a week and so on and so forth.
I said, LET THEM GO. I don’t want them, I do not respond to blackmail, I rather have it vacant for a month then give in.It worked. Not only they paid the increase, this time with the latest increase, I cranked it up another $10 with no ill effects.
It takes two to tango, if the market is weak it is because of many factors but also because landlords are being scared by their agents who are only interested in not doing a thing and collect money for jam. You risk losing a tenant? If the value of your property is there, you MUST charge accordingly or you are not only shooting yourself in the foot, your tenant will leave anyway if he does not want to apy $5 more and not only that, you are stuffing up the market for the rest as well.
Me iudice
Marc GGMay God prosper you always.[biggrin]
MarcPyramid schemes are a very interesting way to test people.
Tell someone a perfectly legitimate business and if the business proposal includes recruiting others, the candidate in stead of telling you honestly that he feels inadequate to do so, he will turn and accuse you of running a “Pyramid scheme” possibly ignoring completely what a pyramid scheme is. But why do people react that way? Is it because of their high moral standards?
The following, I am told by a reliable source, is a true experiment attempted in a business seminar that seems to confirm that such high moral standards are not all that common.
When the usual smart person asked if the business proposal is a pyramid scheme the speaker in stead of going into lengthy explanations, simply said YES, and you can make a lot of money if you join right from the start!!
The number of people joining was double the usual that day.The only reason pyramid schemes exist still today is because they work, and because some do make money, the numbers are very clear.
Yet they are also illegal and the reason for it is also very simple, the finite nature of the target population makes it unfair for the late comer who will end up with small or no profit because there will be not enough candidates to join since all the possible candidates are already in the scheme. In other words, Pyramid Schemes are a guaranteed way to make money for the initiators and the early birds but a secure way to lose money for the masses that arrive late. Far from relating to skill it is in direct relation to time and therefore offering a pyramid scheme entrance half way through the process is a safe way to take someone’s money without any chance of success.
Yet people join this rip offs time and time again, not because they do not know what it is, but because they just hope that thy got in at the beginning of the run.
May God prosper you always.[biggrin]
MarcSorry about the bad link, I fixed it now.
Regarding the difficulties for proper debate, I agree. Mainly we have been indoctrinated in believeing that the addict of any substance, has a choice each time and that the person has his free will intact and therefore is responsible for his condition and the perpetuation of the problem.
The reality is very different, addiction has two components, one is psicological and the other is phisical. When every addict can trace his history back to one intial choice made willingly, the downward spiral is rather steep and the point is reached very soon where the person has completely lost his capacity for self extraction.
The above concept has now infiltrated other illnes and we are now witness to smokers and alcoholic who are put in the too hard basket and life saving surgery denied or put back in the queue and priority given to other cases.
When the rational behind such resources scarce decisions is self evident, the ethics are dubious at best.
What about the ethics behind the partnership between tobacco / alcohol / gambling and the tax department?As a society we have a long way to go before we can say there ise even basic equality between individuals.
May God prosper you always.[biggrin]
MarcOver the counter drugs, the end of black market.
The above is not a hypothesis but reality in Denmark where heroin addicts can purchase for a modest sum heroin filled cigarets, hand made by the local chemist and purchased with a prescription from your GP who recognises drug addiction like the illness it is, and not as a crime.
And that is the crux of the matter. Politician have convinced us that the criminal is the user, by showing us how the user is the one that breaks into your hose to steal for his habit.Yet if you had first hand experience with the general drug addict population, at lest in Australia, you would know that they are a rather dumb bunch, not capable of any complicated strategies, almost harmless, and that they are driven to crime like a hungry person would be to feed his stomach.
Would this people still commit crimes if the drug would be available on the cheap and legally?
Not so according to the Swiss Studyhttp://www.aidslaw.ca/Maincontent/otherdocs/Newsletter/Winter9798/18HEROINE.html
However the drug problem is a complex one, and one that we usually only hear the American – Hollywood version.
This link gives an overview http://faculty.ncwc.edu/toconnor/pol/495lect08.htm
May God prosper you always.[biggrin]
MarcSpanky, in the realm of predicting the future, (this is what everyone is trying to do here) I can only tell you that it is very difficult if you don’t have a magic crystal ball.
The alternative to the crystal ball is listening to what others have to say, or … making your own [magic] predictions.
Usually people who strike it big are the one that don’t give up and that can see what the majority does not. This does not necessarily mean to go against the current just for the sake of it.
So, sometimes the majority have it right other times they get it wrong and by the time they change their mind the horse has bolted, one example is negative gearing versus positive.
I can only tell you one thing, and that is that the only regret I have, is that I was so picky in my purchases, should have bought all the one I did not like as well.Would be a few millions better off.
Can you use this?
Of course not! the future is a big unknown and I am talking about the past.
You will have to take your risk. Just take only as much risk as you can handle if things go the worst possible way.May God prosper you always.[biggrin]
MarcOriginally posted by byronent:Marc,
Can I ask who you think you are?
I will post what I like when I like and say what I want.
YOu can cut and post and paste and eat what I write.
AS for no PM’s, what is that about? You above the world? You don’t read them?
Give me a number so I can tell you personally, better still, where can we meet, I would be happy to share my opinion face to face any time mate.
Byronent
Adelaide SAMm, Wow! So much for restraining the frontal lobe.
If my post provoke this rection, what do you do to the tenant that don’t pay rent?[baaa]Nomina stultorum parietibus haerent
May God prosper you anyway. [biggrin]
MarcWayne
Nemo surdior est quam is qui non audiet.
May God prosper you always.[biggrin]
MarcAs others have pointed out, any “scheem” that has as main purpose save tax will be disallowed by the tax man, now or any time in the future as it has already happened numerous times.
A ruling a few years old like the promoters will show you, means absolutley nothing.May God prosper you always.[biggrin]
MarcOriginally posted by wayneL:Quote:What happened to your “spend spend spend” law of preposterousness.Wayne, I see that you have chosen ridicule over interest or even logic, a sure sign of stale thoughts production.
It’s your choice I am certainly not here to drum up support for anyone rather to share my modest knowledge in personal development something I give free to whoever is interested. If you choose to cling to your antivalues, be my guest, I did not sell you any seminar nor book so all you need to do is skip my post.
Remeber though that to post only what you would say to the person face to face, is a good rule of thumb, a sure way to reamin inside the courtesy boundary and to keep the frontal lobe in check.
PS
No PM’s please I don’t read them, or I cut and paste them here.May God prosper you always.[biggrin]
MarcAdvertising is a fascinating subject.
It is our way to communicate, “here I am”, it is he interaction between normal individuals in a functional society.Since we all advertise in one way or another be it by one page in the SMH, two lines in the local paper or sucking the abdomen in and keeping the chin high at the beach, I don’t see the reason for finding the hand written letters from your local RE agent wrong cheap or ludicrous.
It is just part of the freedom in a functioning society. He uses fliers, you use business cards, Steve uses a Bulletin Board. I use a red convertible you use an Armani suit, he uses worn jeans…we all advertise in one way or another and if someone lacks inventive and copies a book…I say good for him. After all… you may have had to learn from a book how to advertise yourself to find a girlfriend, only are not ready to admit it just yet …[biggrin]
May God prosper you always.[biggrin]
MarcOriginally posted by aussierogue:Marc – do you know any good easter bunny jokes??? jacks are hilarious!! where do i sign up???
In my eagerness to support a junior member that wants to make business contacts, I forgot the bunnie and the spam comments, to be honest they went stright over my head.[cap]
May God prosper you always.[biggrin]
MarcHi Jack!
I hope you are enjoying the boom Usana is experiencing in NZ this days. Are you in the “True Friends” group?I agree that there is little else that can compare with the potential there is in Network Marketing. I am also a fan of Robert Allen and R.Kiyosaki and I share your enthusiasm for personal development. I coped my share of flack for defending the principles they and many other very successful people teach.
I like the testimonial you posted and I heard similar stories before. In fact I don’t think there is one person on this BB that has NOT read success stories used by seminar presenters around the world day in day out, just like the one you posted.
So the reason for two pages of negative responses, (take away 3 or 4 honourable exceptions) is somewhere else.
It is a fact that many people resent seminar presenters who charge for their stuff, somehow thinking that they owe the public somehow and should give it away for free, go figure!
Others point their sarcasm to the fact that the fees for the seminar is what makes the presenter rich, discrediting what he purports as the way to wealth. He makes his money by telling others how to make money.
When such fallacy does not withstand the most superficial analysis, it is still a stumbling block for many to accept that a seminar should cost 3k, 2k, 1k, or even $500. Most people wouldn’t object to paying $150 but would then bag the presenter for being cheep.As for Network Marketing even in its fourth stage of evolution it is still a novelty business, attracting more people new to business in general, rather then the one who have learned a form of traditional business, and found some form of success.
Advertising.
As others have said, many here advertise their brokering services for funds or real estate tips. Network Marketing and real estate are good complimentary business and in fact I think many successful N.Marketers should become more “real estate literate” since they seem to burn their money with an alacrity that is alarming in liabilities, rather than buying income producing assets.The one thing that stands out for me is that your post is a success story with a message that is useful to any business certainly useful to property investing and your inevitable plug for Robert Allen is clearly one you recieve no remunertaion for.
I think that you have contributed value to the reader that is prepared to see value where there is some, plus… you have given a reason to others to vent their anger at advertising, seminars, and Network Marketing. That is also value since they all feel much better now that they have put you down.
All in all a good effort, and I am glad to know there is a fellow Usana member in this forum. I wish more of us would have the wisdom to find places to invest their money rather than blowing it away only because it just keeps on coming.
Best wishes and good hunting!
May God prosper you always.[biggrin]
MarcFor the millionth time…Rich and poor have nothing to do with good or evil.Huhu intersting, particularly coming from you.
Anyway, I am not trying to be disrespectfull, just that I find it rather amusing how some of you jump up and down at the mention of some basic principles of our subconcious in action.
It’s amazing that people can go through life denying the very existence of our subconcious mind, convinced that everything we do is a concious deliberate decision made after some logical reasonig.
The anti values rich is wrong poor is good, are stored in everyone’s subconcious mind and repeated every day since you get up untill you go to sleep by media friends, relatives, shopkeepers movies, books, preachers, folclore, kids stories, even the eco will produce some reinforcement of this and many other antivalues that end up in your subconcious without your permission.The study of our subconcious mind is very interesting and a great help for personal development, to understand why we make the choices we make, why we react to certain words and … I suppose also why we choose the cars we choose…[biggrin]
May God prosper you always.[biggrin]
MarcIt’s about rejecting middle class values which are fraught with insecurities and unsustainable habits. I am more interested in spiritual prosperity.Or in other words “Rich is evil, poor is virtuous”[biggrin]
Open the bonnet my friend and have a look inside, there is nothing wrong with leraning something new and you may increase your edge and buy 18 more horses and perhaps ( why not) a Saab…[cigar]
May God prosper you always.[biggrin]
Marc
