Forum Replies Created
Sorry Samuroo, it should be $50/week in the example.
Regards
TonyIt is a good question that jstuart asks. I am not seeing a lot of posts on the subject of a debt reduction plan.
If we buy 10 homes @ $100,000 each at 80% lvr = $800,000 debt. If each house makes us $50/month = $2,000 cashflow/month.
Money should be kept aside for tax, say 30%. (if tax is not eligible then one is spending money on tax deductions and so the money needs to be kept for that)
If the remaining $1,320/month is put towards debt reduction, then it will take 50.5 years to pay off the 10 properties.
Right now is not a good time to be spending that income on lifestyle or leaving ones job too early. It takes a long time to become financially free as opposed to becoming financilly independent.
If one is hoping for capital gains, then perhaps we have just witnessed the biggest gains that we are going to see for a while. (see ’60 Minutes’ tomorrow night) Properties are not as cheap as they were four years ago and some of us are just getting into the market.
Can I suggest that quality time is spent on establishing a realistic debt reduction plan as it is very easy to get excited about the income but if we are not disciplined it can be easier to finish up worse off, which I would not like to see happen to anyone.
Best regards
TonyMy experience with valuers is thay tend to be conservative. Possibly in-line with the financial institutions policy? (there is a history lesson here that I won’t go into) I would not say they roll-over to the lenders wishes but they do get work from them if you know what I mean.
So giving the valuer proof of the property next door selling for …. is factual and perhaps the valuer being between a rock and a hard place may give you a more accurate price, in your eyes at least?
So putting forward proof is not an attempt to get an inflated price and erode the ‘valuation system’, but it increases your chances of getting what you know is closer to the correct price based on your facts.
I suspect it still will be conservative though. lol
Regards
TonyHi Westan,
As I said in my earlier post, I did not read the John Reed analaysis all the way through. There is two sides to every story and if it was all lies then I am sure Kiyosaki would have been sued by someone by now about something?Just because he has made a point of view does not mean you or I will do it his way. At least we shoudn’t. Our job is to think about what was said and how that affects us or not, then act.
In becoming financially free at a young age, I was taught to think and concern myself with ‘majoring on the majors and minor on the minors’
It is diffrent for everyone, but for me this is a minor. I took what I could from the information Kiyosaki offered and I moved on.
I won’t be contributing anymore on this topic. I have already spent too much time on it when I could be out playing golf! Golf is a major for me now, focussing on some topic that I have no control over is a minor. lol
Best regards
TonyIt is not whether Robert said or his Rich Dad said …. that is important because who said it won’t make you rich or send you broke.
Surely it is the information that we need to assess to see if we can use it to meet our financial goals or not?
If someone came to me and said they have 40 properties, it is not whether they say they do or their Father says they do but do they really? I have to assess what is being said not who said it if I think I could use their advise or not.
If they do have all those properties, I may listen to them for advise. In the same way that I can choose to listen to Kiyosaki based on what is offered, not who said it.
Afterall plenty of people espouse his ideas on the subject of money today, which means it is now being said by someone other that Robert or his Rich Dad !! I might be able to learn from those people too if they have the fruit on the tree.
Please use the information or not but lets get off who said it! Besides it could have been said in the form of a fictional character so a knucklehead like me could understand it. lol
Best regards
Tony
I couldn’t make myself read the whole John Reed analysis, as I saw myself otherwise wasting as much time as he has.
Perhaps John Reed would be better off if he spent as much time sourcing a few more positively geared properties as the time he has taken to put forward his conspiracy theory?
If Rich Dad is not a real person, then more the clever Robert Kiyosaki, to break the paradigm of investment thinking with an analogy that he was clever enough to come up with, so the ordinary person can learn new ideas that have helped so many.
This website and hence forum may well not exist if not for Kiyosaki,as in Steve’s book he states it was going to the Kiyosaki seminar where he forced his partner, Dave to go as well, that was a turning point for them.(page 11)
Later in Steve’s book two testimonials credit Kiyosaki as a part of the process for them too. pp. 316 and 325.
So it MIGHT be a story and Robert is not telling? Get real and take the MESSAGE as it was intended.
But do not focus on someone who has made a lot of money doing what we could do ourselves.
If you help enough other people get what they want, then you can have anything that you want. That is Robert Kiyosaki and Steve McKnight have done. You can do it.
Best regards,
Tonycaz_in_perth
I can recommend a reputable non-bank financial institution that may be able to help you?
golfer
