Forum Replies Created
Solar electric panels are a waste of time,…. They are expensive and take up to 20years to pay for them selves.
If you wish to use solar energy, then its best to use it in the form of a solar hot water system,… it's cheaper and collects more energy.
A 1m x 1m solar hot water panel will heat a hot water tank in about 2hours,…. it would take a 1m x 1m electric panel all day to collect enough energy to heat that volume of water.
If you you want to invest some money to lower energy costs I suggest putting in a solar hotwater system and convert your car to LPG,…. these two things pay for them selves very quickly and will lower your total energy bill by up to 40%.
Check out your electricty bill,…. you are probally paying about 12cents per kw of electricity,….. so weigh up the cost of the 2k/w syetem and see if it is worth it to save 24cents a day,….. you could save 24 cents a day just by turning your lights off when you leave the room and take shorter showers.
Jaleesa wrote:CBA $300 wealth package (I'm not promoting them b/c right at this moment I'm not happy with my structure) however, for $300
I have no fees on any accounts or any of my 4 mortgages and I get a free credit card (which of course I don't use). I think that's pretty darn good. Aah yes and I get .7% off standard or 0.15% off fixed.Just for those that don't like to pay upfront a reminder its alot easier to claim $300 on your tax if you have 1 IP than to run through all your accounts trying to claim all your fees for the year.
Why wouldn't you use your credit card,……. It's a fantastic wealth creation tool.
Jaleesa wrote:CBA $300 wealth package (I'm not promoting them b/c right at this moment I'm not happy with my structure) however, for $300
I have no fees on any accounts or any of my 4 mortgages and I get a free credit card (which of course I don't use). I think that's pretty darn good. Aah yes and I get .7% off standard or 0.15% off fixed.Just for those that don't like to pay upfront a reminder its alot easier to claim $300 on your tax if you have 1 IP than to run through all your accounts trying to claim all your fees for the year.
Why wouldn't you use your credit card,……. It's a fantastic wealth creation tool.
Fill out applications at your local bank branch
bardon wrote:
Arrow Energy shares have taken a big dive recently so might be good buying except I know people that work for them and they tell me things that scare me..
Hi Bardon,
I want to increase my holding in Arrow,…. What have you heared that scares you.
mikeking wrote:Hi,Can anyone explain what the differences are if you buy a property through a trust or a company? The company (hypothetically) being one I have setup for my investing needs. I'm ideally looking for advantages/disadvantages, plus an idea of the initial costs of setting up both.
Thanks
MikeA trust and a company are two very different things ,
A company is a separate on going legal entity where as a trust is not really a legal entity it is just a form of holding an asset in trust for the benefieries.
When you set up a company, the company is a new legal entity that can buy and hold assets, have bank accounts and take out loans and is subject to different tax obligations than a human, a company does not die there are companies in australia that are well over 150 years old.
A trust however is not really a separte legal entity as a company is, A trust is just the name given when one legal entity ( wheather that be a human or a company ) holds an asset for someone else. Trusts are also normally set to expire after a certain time frame such as 80 years they are not ongoing like a company.
when deciding the structure you wish to hold assets in you really need to examine the reasons you wish to do it and think of the benefits each structure will provide.
bardon wrote:I still want the uranium though as a bit of diversification and the poms have just signed off on a nuclear powered future.
I personally would only invest money in a uranium company if it were producing, At the moment I feel to much speculative money is flowing into uranium and there is a lack of producing companies on reasonable P/E ratios.
I Know the the Nuclear industry has been silently growing with most of the worlds plants increasing capacity, How ever I feel the coming boom in nuclear energy is still some years off, There are still some hurdles that need to be over come before it is full staem ahead with neclear, The biggest issue beening some sort of longterm storage for the waste, There is currently no longterm storage for spent fuel rods anuwhere in the world. Power plants are just stockpiling the spents rods till governments appove a longterm facilty some where in the world, I think Australia should put there hand up for this.
devo76 wrote:I personally would be happy if property doubled over 20 not 10 years.Not the greatest investment i know but if i get the properties at or close to cashflow neutral quick with rising rents or paying loans down.That would be good for me. I am now 30. making me 50 in twenty years. Now if i build up a portfolio of several properties in the first 10 years or so.Allow there value to rise over the following years and bingo a nice retirement fund ( I actually dont want to retire till 60).My personal goals are not too retire rich in the next few years. My goals are
Retire at 60
Own around 5 properties outright at the age of 50-60
Have axcess to cash during my working life( equity)
Nice amount in my super.
Enjoy my life all the way through.This is very achievable even with lower than expected growth. If its closer to 10% well thats even better.
really to achieve over all return on investment of 10%p/a a property only has to include capital growth of 6%pa if you include the 4% rental return.
I think you should calculate your returns including the rent,…… just like when share investors calculate their 5 year share price return figures they include the dividends they have received.
3 bedroom houses on small blocks are already selling for in excess of $2million in my neighborhood.
some houses that aren't even fit for people to live in sell for over $2million
mikeking wrote:Howdy all,I'm fairly new to this site, so have loads of questions, but have one or two that I'd like to get answered now.
I've read Steve's first book, and although its old now, I'm still interested in how Steve managed to use his $10,000 that he and his partner had in cash to start investing and then go on to 130 properties in 3.5 years. How does he finance his properties now? does he have hundreds of loans or one or several?
I'd also like to know how (and if) you can get 100% finance (without using equity in your own home) and what the disadvantages are (if its possible). I'd also like to know what the benefits are of buying property through a trust rather than in your own name.
Also, why is it that every property investment guru sets up a website, and then has various products for sale (and all seem to be at greatly reduced prices e.g. not $2,300 but only $695 now) at what I would call expensive prices?
Cheers
MikeSteve bought his properties on 80% lend.
remember while steve was looking for his properites Dave (his Partner) was running the accountacy firm generating the profits they used for deposits.
if there were stuck they would turn over a property to unlock the equity so they could use it for further deposits.
they also used wraps to generate income and equity which could be used to fund more deposits.
McNorman wrote:NAB choice package, $370/yr,
no fees + cheaper rates
the commonwealth bank wealth package is good,
bardon wrote:Forgot to add to investment strategy:identify and invest in small under capitalised uranium developers,
does anyone know of any ?
Before uranium,…. Take a look at coal seam methane.
Take a look at QGC ( queensland gas company ) and AOE ( Arrow energy ).
Coal seam methane is going to be big,….. Why?
– Coal seam methane can be used in the same way as regular natural gas and natural gas demand is going to go through the roof,
Why will natural gas demand grow?.
– Gas is the fuel or choice for new power plants because it is greener, and electricity demand is set to grow, especially if you take into account plugin hybrid cars which toyota has said could be on the road by 2009.
– Natural gas is the fuel of choice for domestic use such as cooking, hotwater and heating and it is being supplied to more and more towns around australia.
– Natural gas use will grow as a transport fuel as oil becomes more and more expensive, both directly as compressed natural gas and also using gas to liquid technolgy where the gas can substitute both un leadeded fuel and diesel.
– And to top it all off Australia has a growing Liquified natural Gas export industry where we are exporting Gas to be used for all the reasons listed above, and with peaking oil and demand for gas growing the current gas price will only go up.
both companies that I listed above have producing gas fields in queensland and massive reserves that they are continually adding to.
QGC already has plans to link there fields to the sydney grid to replace the moomba fields which is in decline and is building a power plant which it will feed with it's own gas.
AOE is also going good, the main differance it has with QGC is that it is exploring opportunities to drill for coal seam gas close to the big asian markets aswell as grow it's Australian portfoilio.
mrtender wrote:Hi TracyMy beef with the NAB's fees is really not to do with property or mortgages…. it is more to do with my business, which happens to be a very high transaction business…. $15mil turnover with an average sale of $80 = a lot of individual business transactions = a lot of fees.
$15 mil turnover might give you the impression that I am loaded with $$$$…. but the reality different. I have a small franchise group, of which I own 1 store and have 10 Franchisees. The industry is high turnover low margin… transaction fees across my group for the 12 months to Sept 2007 = $104863!!!!!! This is on top of the finance I have pushed to the NAB to finance some equipment purchaces
To be honest i don't even know what interest I am paying on my personal home loan, nor could i tell you what other charges are in there. But now I have a reasonable amount of equity in my house, and my eyes have been opened to the opportunities that intelligent property investment can create, I'm going to work on my bank manager and demand the deal that I deserve, and start making some bold but safe investments.
Thanks Terryw for the info on Arrears / Advance Interest only.
I'll let you know how I go on the take it or leave it negotiations
Brent
Surely that is including efpos transaction fees,….. If you are paying more than 0.74% on credit card your paying tomuch
F and Mr D
At the end of the day you are going to be either right or wrong,….
we can argue about this all year, But the only thing that will uncover the truth is time,
Time will tell which of us will have egg on our face,… Till then you will never beable to convince a hard core property bull that there core beliefs are flawed.
I am worried with all these frantic typing of Posts the size of SA's that you are going to give yourself a heart condition.
foundation wrote:Tysonboss1 wrote:I don't think the price of land is linked to incomes as you would suggest.Picture the price of land in sydney CBD,… it was affordable housing as 1/4 acre blocks 200 years ago, but valued at $50million a 1/4 acre block is defiantly not affordable there now,…. But if you build a 60storey apartment building then it does become affordable, so comparing the price of land to incomes doesn't give you a true value.
A 1/4 acre block might seem affordable in the 50's but over time as land becomes increasingly expensive it may be subdivided and two dwellings placed on it,…. then years later 4 town houses,… years later three storey apartment block,…. etc.etc.etc.
This is the alexlee (of somersoft) theory of increasing income density, no? Basically, the price of the same amount of land will infinitely rise but the number of dwellings/people living on it will increase? In contrast to your suggestion that price is not therefore linked to income, this is actually placing income (as it should be) at the driving seat of prices. It falls down in one small (but absolutely defeating) regard – the population growth that would be required to support real 'median' dwelling (even if the definition changes) prices doubling every 12 years (8% pa, 3% inflation, remainder population based) would be impossible to achieve and impractical to maintain.
To put it simply, to double Melbourne dwelling prices in real terms without increasing the individual (per person) cost (in real terms), you’d have to double the living density of all areas in Melbourne. That would require growing the population from 3.6 million to 7.2 million persons without adjusting the city boundary. That might actually be achievable, but at the current rate, over 50 years, not 10 to 12. And more problematically, the current rate of urban growth is sufficient to house the current population growth without requiring any increase in living density at all!
The simple fact is that our present house price bubble is the product of increased lender ability and willingness to lend, and increased borrower ability and willingness to borrow. It’s not sustainable on the debt front. It’s not sustainable on the population front. It’s not going to last. The willingness and ability of both borrowers and lenders is cramping up as they always had to, and the results are equally as predictable.
Cheers, F. [cowboy2]
I see what you mean, but remember the housing density does not have to double to double the value of the land, alot of areas will go up in value as the become more sort after because alot of people don't want to live in apartments.
So a combination of some areas staying low density where high income people are willing to pay the extra to live in such low density and other people/investors just sitting on there low density property holdings without developing will squeeze the other areas into higher density.
foundation wrote:MichaelYardney wrote:Boy in Blue – you are right – the figures are wrong .
A junior journalist misquoted me over the summer holidays almost a year ago.
What is correct is the basic principals of compounding growth and leverage.And despite all the arguments to the contrary of why it can' happen and how simplistic my argument is, a recent study by Massy University in NZ showed that since 1920 Australian property has returned an average of about 15% per annum – made up of capital growth and rental return.
I'd argue the opposite. Regardless of whether you or the junior journalist mussed up the final estimate by throwing in an additional doubling of the figure, it’s the principal you’re applying here that is wrong.
F.
Saying that house prices can't go up into the future is like saying a share price can't continue to rise,…
I don't think the price of land is linked to incomes as you would suggest.
Picture the price of land in sydney CBD,… it was affordable housing as 1/4 acre blocks 200 years ago, but valued at $50million a 1/4 acre block is defiantly not affordable there now,…. But if you build a 60storey apartment building then it does become affordable, so comparing the price of land to incomes doesn't give you a true value.
A 1/4 acre block might seem affordable in the 50's but over time as land becomes increasingly expensive it may be subdivided and two dwellings placed on it,…. then years later 4 town houses,… years later three storey apartment block,…. etc.etc.etc.
so it is possible that the pirices of the land can rise faster than incomes while the price of dwellings still remains in the check with incomes.
Just thought I would reflect Back on this post now that oil hit over $100 a barrel recently.
It was a price spike I know,… however unless the usa plunges deep into recession we should see Oil trading steadily over $100 buy the by winter,
So far we Aussies have been sheltered from most of the oil price increases due to our $$$ strenghting against the $US,
I hope our $ remains strong or we will be feeling the burn.
ranjitsudan wrote:I
On other note: How good are they in re-evaluating and increasing rent every year?Any comments?
Thanks
they do include rental increases in the lease, you would have to ask them how they are calculated though..
jamo.d wrote:Who is right or wrong ?
You are wrong,…
anyway good luck with things,…. to this thread I would like to say,
Tysonboss,… over and out,
jamo.d wrote:All my activities are kept within council code guidelines.
What I am doing is pretty normal in the area.
J.D
The Delvelopers would use the same arguement,…
What you have to understand is that areas do not stay the same,….. Things change,…. an area will begin a transition when the land value increases to a point where the land is more valuable than the house,
As much as you would love to keep everything the same you are really swiming against the tide,… it really started long before your house was built,…. there would have been a time where 1/4 didn't exist in that area and a developer bought a section of land and carved it up into housing blocks,
Anyway I really think the best thing for you to do move onto a large block that better sutis your life style,… the habits that you have mentioned such as light industrial work shops, motocycles and dead animals really don't belong in a residensial zone. If you current neighbors are happy with it thats fine,… but your future neighsbors shouldn't have to put up with it,… using the excuse "I have been doing these things for 10years before you moved in" doesn't really cut it.
At the end of the day I think it's your ativities that don't belong in the area rather than the activities of the developers.
