Forum Replies Created
Thanks everyone this is good advice. It makes sense. Easy things to remember
The thing is, here people are more interested in property so it may not be the widest audience, however I’m sure there are some who have shares too. It makes sense to diversify. The big bonus to shares is the cashflow element. In good times, people often borrow for shares against their house equity. Personally, I’d be very careful with that idea. For me I’d treat shares more like savings that are a bit riskier. If I had a spare $10,000 that I’d need again in a year maybe I’d invest it there. It depends on strategy but that’s how I’d use it, but if I had a loan, maybe I’d offset it for another reason.
For me, property is the foundation, shares are the play. I have a friend who works the other way though and he has done very well.
Thanks again Terry. I guess I have done the sums but spousal transfer is the kind of tool I need too. I’m not against paying tax, I hate people at work complaining about earning more and paying more tax, but reducing tax is clever.
Redom I like your answer. I normally explain it even simpler.
When we get too many fat people in our society the government bans donuts for everyone, including the skinny people.
Sorry jaxon autocorrect
Jason I’m no specialist. I’d be emailing those questions to your body corp. They’re paid by your they can answer you. I do think you’re likely to be disappointed by your answers though, particularly utilities and gym. Contact them, turn up to their annual meetings, you may be the only person at the meeting. It’s good to go because you’ll learn a lot and can raise your concerns. Generally they are a bit like the government, difficult to change things but if you never say anything nothing will.
An intelligent and sophisticated question. I don’t know enough to answer it.
One thing I know about though is LVR.
This too has everything to do with risk. I’ve seen plenty of info from people saying this and that gives better returns. For me, I consider it from someone who has little to invest and must burrow. The ability to borrow so much for property for me is what interests me.
Diversifying makes lots of sense, but I’d normally start with property.
I’m a beginner too, but I reckon that property’s asking range is a bit narrow.
Darryl,
You are too nice. You can just tell people to put that in their pipe and smoke it. You are where so many of us want to be.
Congratulations.
Dear Richard, can you send me one too please? I’d be interested. Thanks.
I think when it comes down to bigger unit developments. If your building to hold them and your Servicablity can afford that, then what presales are you going to need? (None) provided you meet the LVR requirements. I’m about to start building 7 townhouses in a couple months. That’s all residential lending at 80 %. At worse they would go to a 70 % GRV loan for the 7 units. And then convert them all to 80 % individual loans at the end of the project.
Wilco, how did this go? I’m interested in doing something similar and need advice.
Is it profitable to buy the land, get your subdivisions and sell the plans to a developer? This would save me the huge finance.
Property I’m thinking is already $1m, the development would be another $2m. I can’t afford it. What would you recommend?
Ever had a developer pay you with real estate from the development?
Can this work?
Fair enough Richard,
wish there was a neater archive that compiled things.Magic, this is a great question.
My first ever self help money book was the millionaire next door. It taught me that people who look rich spend their money doing so much of the time.
Then the richest man in Babylon. Taught me no matter what, simple budgeting and saving something was an easy way to get ahead.
After some time I went to the library, sick of not being rich and borrowed about 40 books over a few months. When I started coming across the same info I knew I had reached a level of saturation.
There were a few themes. Time is a winner. Invest and be patient. The one minute millionaire shows us that we can all save somewhere. But what resonated with me most was using other people’s money.
Opp is like steroids in the financial gym. Suddenly I didn’t need to wait 30 years. I liked it.
Peter spanns broke to multi millionaire got me interested. I had a share in a property I was interested.
Nobody got me as excited as Peter spann. I could relate. His struggles were a bit like my own.
Despite investing I still had debts. Total money makeover was the best book for me on debt.
So, I sold my share, bought a house for myself. It was slow though.
I read steves first three books. I liked it but told myself interest rates made it impossible to do what he did.
Now I’m back, motivated again. I see pos cash properties all the time, in my mind. Not how they appear, with my own ideas added they are at worst neutral.
Steve is right, it’s working it out for yourself where the learning is.
Now when Helen collier kogtevs said stuff I had worked out in my head but more concisely I felt reassured that I had some good ideas.
I find when you read enough there is a saturation point. When you are happy with your plan and there are enough ideas you can use that plan knowing you have knowledge from other sources.
Sometimes gurus seem to be selling you the dream. Like diets make you skinny. I’ve got news for you, they can all work because if you eat less than you expend you generally lose weight. My style is not to eat soup every day, so that’s not the diet for me.
Investing is a bit the same. Choose your style that suits you.
What I don’t like is a lot are too simplified. They want you do buy their stuff to delve. Well, I’ll always buy a book. I’m not buying seminars and courses without reading reviews first.
To his credit Steve goes into good detail. Steve gave up his houses for starting his own educational style. Can you imagine having what he had and say, I’ll do it all again, here my friend take all this hard work? He did.
I am interested in Helen collier kogtevs as her style suits my plans.
There are some YouTube guys that I watch and take bits from. I can’t remember names. They vary so much and are fairly lightly detailed. Webinars and stuff. A lot more basics saturation, but nevertheless I found out New Zealand has no capital gains. That hour was worth learning that one fact.
These forums are very good too. Still learning.
YouTube dude on options blew me away, I researched more and decided to take what I could and see that he was probably not my seven day shake diet either, but maybe one shake a week builds the diet that suits my property gym plan.
Bangers I would think it has to do with deductions.
Using offset or redraw on an investment has its place but when they say not a good idea it’s back to the negative gearing theory that you save more money and get better roi by having a loan. So reducing that loan means your money isn’t working as hard for you.
Using offset for non deductible has its place for PPOR because you can use that money and pay less interest parking it in your own home helps a lot. Speeds up things.
That would be my guess but I’m no expert like terry.
I can tell you how to structure your loans but I can’t tell you where to buy your property :-)
Cheers
Jamie
Jamie, I’d like to hear what you normally advise, do you normally say, all interest only loans, do you say one with an offset, what would you typically encourage for someone who wants to build a multiple property portfolio?
Thanks,
WTRThanks Benny,
that’s exactly what I wanted to hear.I’m no expert I would say yes because it’s easier to divide between properties and sounds like PPOR too so even more important.
In terms if mortgage repayments the banks will normally insist on what the best savings are using offsets etc.
Pretty sure in regards to tax so long as you calculate right it doesn’t matter, but it’d be hard to work out if things were all put together. I’m sure someone knows more than me and will help you more.
I’m surprised nobody has mentioned this and judgemental as I may seem, i don’t care I lived in Dandenong for 5 years, I considee myself centre left but,
Consider socio economics. Holiday parks and caravan parks are not the same thing. There’s also a law somewhere I believe about not being allowed to refuse rights of accommodation. Have to confirm that and people work around it but technically it’s supposed to be fair and accessible for all. So when an intellectually disabled person arrives who probably has no real means to pay, how are you going to handle that? How will you handle it when a guy turns up drunk and is making trouble? Sure call the police, which far flung town are you going to be in? Can you handle yourself?
I guess the message is from most of us, it ain’t no dream. I used to think yeah I’ll be a fitness instructor I’ll be super fit and happy. It sucks being on the other side. Looks glamorous. Sucks. Being on holiday is different to working at a holiday place.
If you think about your audience, who is likely to stay in these places? You need your permanent residents and your visitors. Why not tone it down a bit, get a place and airbnb some rooms? Is that workable? I know that’s not what you asked but nobody is on here raving saying what a great idea. There must be a reason.
Maybe another business in a holiday town, a laundromat and restaurant with some rooms for accomodation. I’m not sure but my mum wanted to do what you’re planning and I really recommended against it.
When you travelled did you speak to the owners? Make some contacts? Get some honest feedback? Maybe you could email or write to them If you didn’t already ask telling them what you liked about thir park and ask them honestly saying you were inspired. They will most likely happily share honest advice.
Good luck.
