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  • Profile photo of LeighLeigh
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    @leigh
    Join Date: 2003
    Post Count: 130

    hwd007 – a.k.a ‘The Devils Advocate’,

    Do you have to have a go at everything? There were people in this post asking for basic assistance in judging a property for cashflow at a glance. There have been several people offer assistance and you seem to always come back with an obvious what if and poke holes in the assistance they’ve offered?

    quote:


    Hmm property value / 10 to get rent ? hope this is not the only measure of cash +


    Yeah I’d hope not either. And having read previous posts in the thread you might have found a few.


    “If you can count your money, you don’t have a billion dollars”
    J. Paul Getty


    Profile photo of LeighLeigh
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    @leigh
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    Do the benifits out way the negatives?

    If you rent your PPOR it would be classified as an IP. Therefor you can calim expenses and depreciation, but if you decide to sell the property at anytime down the track you will be subject to capital gains tax you otherwide would’ve avoided. This could be quite substantial if the property has increased in value significantly.

    There is nothing wrong or immoral about tax minimisation, but is this viewed as minimisation or avoidance by the ATO? Fine line. If it’s legal and has moral justification though then it’s our right as tax paying citizens to minimise our tax (otherwise we’re actually paying too much!).

    I’ve heard of a story where 2 investors teamed together to get around the ATO’s view on renting your own property. They simply bought the property each other wanted to live in and rented from their mate [8D].


    “If you can count your money, you don’t have a billion dollars”
    J. Paul Getty


    Profile photo of LeighLeigh
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    @leigh
    Join Date: 2003
    Post Count: 130

    Hi Evelyn,

    You’ve taken the first step in identifying that property investing is a great opportunity. You now need to sit down and work backwards. What I mean by this is first set some goals, work out what you ‘want’ out of investing (is it a weekly income, to build wealth for future retirement..) and most importantly put a timeline to all of this. You then need to take an honest look at your current financial position and outside commitments. From this point, bring everything together and look into some investing strategies that will allow you to achieve what you want.

    Without knowing your level of debt, income etc. I would suggest that off-the-plan buying would probably not be a wise way of starting out. This is considered ‘speculative’ investing in that you’re hoping the returns will eventuate. You may wish to look towards buying property for cashflow returns to begin with to assist in paying off your current debt and providing a solid base to build on.

    Hope I’ve helped, Leigh


    “If you can count your money, you don’t have a billion dollars”
    J. Paul Getty


    Profile photo of LeighLeigh
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    @leigh
    Join Date: 2003
    Post Count: 130

    [:O] Run for your lives!

    Profile photo of LeighLeigh
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    @leigh
    Join Date: 2003
    Post Count: 130

    Hi,

    Just a small addition.

    An easy way to get the same result as the 11sec rule (10% return) is to drop the ‘000 and x 2 to find out the desired rental return.

    Example:
    Property value = $60,000
    Drop the ‘000 = $60
    x 2 = $120 weekly rent for a 10% return.

    If you’re good with numbers you should be able to see the picture without thought.

    $35k = $70/week
    $50k = $100/week
    $75k = $150/week
    $162k = $324/week

    Working backwards – halve the rent and add the ‘000.

    $120/week = $60,000
    $50/week = $25,000
    $182/week = $91k
    $200/week = $100k


    “If you can count your money, you don’t have a billion dollars”
    J. Paul Getty


    Profile photo of LeighLeigh
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    @leigh
    Join Date: 2003
    Post Count: 130

    I came across the abundance theory (or something similiar) about 18 months ago and made a conscious shift in the way I viewed things, reacted to situations and treated other people. I’ve always been a person to help others and treat them as you’d expect in return. However, over the last few weeks I’ve met several people that have challenged my view on things even further. These people were certainly the 1% out there, in my opinion maybe even the 0.01%! It goes to show, you should always be looking at ways to improve yourself not only financially but as a person.


    “If you can count your money, you don’t have a billion dollars”
    J. Paul Getty


    Profile photo of LeighLeigh
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    @leigh
    Join Date: 2003
    Post Count: 130

    Hi there,

    I’m employed by Centrelink [:D], I get paid to surf, snowboard and learn about real estate. It’s not all that it sounds though, I have to go to uni once or twice a week [;)].

    I do my part in the summer teaching kids and people with special needs how to surf and sail.

    Leigh


    “If you can count your money, you don’t have a billion dollars”
    J. Paul Getty


    Profile photo of LeighLeigh
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    @leigh
    Join Date: 2003
    Post Count: 130

    Haven’t filled in my tax return yet, but my account did a little research for me and said that I can claim the seminars as a deduction because i own other investments – shares (which I just sold some of to attend Steve’s next seminar!).


    “If you can count your money, you don’t have a billion dollars”
    J. Paul Getty


    Profile photo of LeighLeigh
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    @leigh
    Join Date: 2003
    Post Count: 130

    hi guys,

    There’s a previous post over the last week about Richmastery’s seminars. I attended the intro seminar and the 3 day one last year.

    quote:


    Their event is long 10-hour days, too.



    24 hours – 4 hours sleep between days = 20 hours in my calculations! Well it’s actually about 40 hours of learning contact (not including lunch/dinner/breaks) for the three days because you start 8am the first day and finish 6pm on the last day. It’s pretty full on and you get a lot of unexpected things happening. One of the really good aspects of the seminar is that they try and mix in a bit of light entertainment into the seminar so it’s enjoyable (and so that you stay awake!).

    Everyone that attended last years was wrapped with the seminar, some of the guys I spent a lot of time with commented that it was the best seminar they had been to, and they listed about 20 other seminars they’d attended. One even thought he got more out of it than the $50,000 Henry Kaye seminar he’d just come from!

    Phil and David know their stuff, and they’ve got a very good business going for them. They also own and run the NZ Property Investor Magazine. You’ll hear one of Davids stories about his positive cashflow nursing home he purchased and renovated. Does $100,000 a year positive cashflow after expenses sound like a good purchase?!! The seminar isn’t about commercial property just residential, but they open up your context a lot during the seminar.

    Their software is great, takes 2 mins to get a 95% accurate calculation of the properties financials including 10 year projections (estimated of course), tax rebates etc etc. They also include their own bank application form (which apparently all banks currently accept) which all of the financials are generated from their aquisition software complete with your personal financials, current portfolio details etc which have all been previously entered and saved into the software. All you need to do is print it off, add the date and a signature and your done! Good for applying to multiple banks. They also have a portfolio manager and contract clauses you can put straight into purchase contracts.

    I also bought the seminar video recording of last years event which if anyone would like you can email me at [email protected]

    Overall, the seminar was great and so is the software (but I haven’t seen other products to compare). I know for $700 I certaintly couldn’t be bothered making my own or hunting around for 6 or 7 other products to do the same job (but you wont get the linked benifit of information being shared between the different software programs).

    They’ve also just written a book with Brad Sugars which I’ve just started reading, this could be a cheap preview of what sort of stuff they’ll cover. It’s called Real Money Real Estate.

    Leigh [:)]


    “If you can count your money, you don’t have a billion dollars” J. Paul Getty


    Profile photo of LeighLeigh
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    @leigh
    Join Date: 2003
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    Stuart,

    You impress me with every post [8D]

    There was a paragraph in that document which stated

    quote:


    We consider that self-education expenses are not deductible against payments under the following Commonwealth educational assistance schemes:
    (a) AUSTUDY;


    As I am currently receiving an AUSTUDY payment I can see that my seminar expenses cannot be claimed against this income. It did not make it clear whether the expenses could be claimed against other earned income though, one to check up on with my accountant.

    There was also a paragraph which stated

    quote:


    No deduction is allowable for self-education expenses if the study is to enable a taxpayer to get employment, to obtain new employment or to open up a new income-earning activity (whether in business or in the taxpayer’s current employment). This includes studies relating to a particular profession, occupation or field of employment in which the taxpayer is not yet engaged. The expenses are incurred at a point too soon to be regarded as incurred in gaining or producing assessable income.


    Hopefully as G-MAN007 suggested owning a parcel of shares will overcome this point.

    Profile photo of LeighLeigh
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    @leigh
    Join Date: 2003
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    I enquired about this one with my accounting lecturer at uni. He said that you should be able to claim the seminars as an expense for 2002-2003 as an educational expense incurred to generate a future investment income.

    Maybe this is why he’s lecturing at uni instead of owning his own practise? I’ll be getting my tax done in the next week or so I’ll let you all know the results.


    “All the world’s a stage, and you choose the role you want to play on that stage” William Shakespear


    Profile photo of LeighLeigh
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    @leigh
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    Another quick one – You can borrow most real estate books from libraries for free. I’ve borrowed a good 20-30 from my local, then bought about 5 of the ones I thought were really good. Just borrowed Real Money, Real Estate by Brad Sugars, Davaid Hows & Phil Jones – the guys from Richmastery for those who are talking about attending their seminars this year.

    Profile photo of LeighLeigh
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    @leigh
    Join Date: 2003
    Post Count: 130

    Some banking ones:

    If you use an eftpos card for transactions consider getting a VISA debit card (wont let you go below $0). This way you can put all of your transactions (except ATM withdrawals on the credit function and you wont pay any transaction fees.

    The Adelaide bank offers 5% interest on their savings account with access via a cheque book or debit card.

    Close accounts you dont use, or consolidate several accounts. This could reduce monthly account fees and also government fees.

    If you’re a student St. George and Westpac both offer really good student accounts with no fees at all (to a limit).

    John Burley’s books (seven secrets of the rich – I think) gives good advice on managing your finance, including a debt terminator which shows you a very effective way to quickly reduce your debt. (It’s also a great real estate book covering, positive cashflow, wraps, no money down etc). An interesting one from left field that he mentions is that most travel insurance (personal belongings) is a waste of money because a lot of home & contents insurance policies cover you for this.

    Oh… and avoid breaking traffic rules!!


    “All the world’s a stage, and you choose the role you want to play on that stage” William Shakespear


    Profile photo of LeighLeigh
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    @leigh
    Join Date: 2003
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    Add to this the banks pushing for people to borrow against their equity and also making it easier to qualify for new loans and credit cards and I think we may see a period of high foreclosures.

    Generally though, I can attest to the increase in consumer spending and living on borrowed money amongst younger people. As soon as you’re out of uni and into work the banks are throwing plastic at you. At this age (early 20’s) most people don’t understand the level of debt they’re getting into and look at everything with the view of ‘I’ll be able to pay it back in a few months’. That was before you went and bought a car and all those new clothes as well!


    “All the world’s a stage, and you choose the role you want to play on that stage” William Shakespear


    Profile photo of LeighLeigh
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    @leigh
    Join Date: 2003
    Post Count: 130

    Bring on the clowns?

    Profile photo of LeighLeigh
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    @leigh
    Join Date: 2003
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    Hi trying,

    $606,000 is what you can borrow based on your current asset base. However, if you are aquiring new assets then I would assume you could borrow a lot more. My calculations (subject to servicability) would be as follows;
    The $606,000 you could borrow as a ‘deposit’ towards further assets. Therefor allowing you to purchase roughly $3,000,000 worth of property at 80%LVR if the returns stack up.

    Someone correct me if I’m wrong.


    “All the world’s a stage, and you choose the role you want to play on that stage” William Shakespear


    Profile photo of LeighLeigh
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    @leigh
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    Hey C2,

    You should be looking right into doing some investing if you can get loans at 2.5%. What are the basic qualifications for these loans and what sort of fixed rate and duration can you get on them? If I was in your position I’d be snapping up properties left, right and centre by using Australian JV partners!

    Stuart,

    As mentioned above, I think there is a lot of interest on the site at the moment for;
    1. Aussies investing in NZ.
    2. Unlimited finance techniques.
    Something else I personally think would be good may be a comparison between the Australian and overseas markets i.e. Can you predict trends in Australia by looking at the American market (things like interest rates and loan products, vendor finance etc).

    Cheers, Leigh.


    “All the world’s a stage, and you choose the role you want to play on that stage” William Shakespear


    Profile photo of LeighLeigh
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    @leigh
    Join Date: 2003
    Post Count: 130

    Yep, just checked their site, it’s on the 2nd of July. Check out http://www.richmastery.com they also have another site Entrepreneur Success Centre. Not sure the site address but I’m sure there’ll be a link on richmastery somewhere. These guys also own and run the NZ Property Investor magazine.


    “All the world’s a stage, and you choose the role you want to play on that stage” William Shakespear


    Profile photo of LeighLeigh
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    @leigh
    Join Date: 2003
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    Nice one Ozbroker! I’ll pass on the link to my friend, I’m sure he’ll be having second thoughts about it.

    Raises an ethical question though, should we judge someone on mistakes they made 20 years ago? I’ve told him to have a good look at the article and he’s actually going to approach Victor about it, see what he has to say! He’s going to still do due diligence on the properties (a little more than he would of before knowing this) as there’s always the chance the guy has changed and the deals are legit.

    Cheers Ozbroker [;)]

    Profile photo of LeighLeigh
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    @leigh
    Join Date: 2003
    Post Count: 130

    Hey guys, the seminar you’re going to is an introduction seminar. For the price you’re paying it’s worth the look, but their full seminar is a 3 dayer up on the Gold Coast for about $2,500-$3,000. I attended their last one in november ’02 and it was a great week. They also have their own analysis and aquisition software which is very useful ($700-$1,000). If you want some more information on either the seminar, the guys that run it or the software let me know and leave a more detailed reply.

    Good luck.


    “All the world’s a stage, and you choose the role you want to play on that stage” William Shakespear


Viewing 20 posts - 61 through 80 (of 129 total)