All Topics / Opinionated! / investing in flipping burgers?

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  • Profile photo of jess_2jess_2
    Member
    @jess_2
    Join Date: 2004
    Post Count: 20

    hello all

    I’m just wondering why all the hype about property investing?

    By living frugally, saving and learning some biz basics, one can buy a small biz at a good location and the ROI could be much better than that of property investing…

    For example, if you run a takeaway shop in Sydney’s Townhall or Wynyard, (as far as i was told by insiders)it’s easy to earn 200k-300k/per year or even more! Excellent cash income and excellent cashflow!

    so what’s the problem with flipping burgers? :)

    Jess

    Profile photo of redwingredwing
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    @redwing
    Join Date: 2003
    Post Count: 2,733

    I’d say post some figures..

    I.e the rental on the property, satff wages etc etc etc etc..how many small businesses go bust?

    I’d rather own the property and rent it to the shop owner, getting an income, tax breaks and Capital Growth..

    what the heck do i know about ‘flippin burgers’?

    Just my 2c..

    Biz is a cut throat industry with long hours, especially in the food game..

    “Money is a currency, like electricity and it requires momentum to make it Effective”
    Count The Currency With This Online Positive Cashflow Calculator

    Profile photo of jess_2jess_2
    Member
    @jess_2
    Join Date: 2004
    Post Count: 20

    rental maybe expensive—even up to 2k-3k a week! but as far as i know, those small bix ern 200k-300k/year after taking account into ALL the expenses—expensive rental, wages blah blah.

    and i’m not only talking about food industry…nearly all those small businesses are making very good profit—florists, takeaway shops, fruit shops, cigarrette shops etc etc—of course i’m talking about the shops at the right locations such as Townhall Wynyard and CircularQuay…

    I’m not saying flipping burgers is good and RE investing is bad…just trying to make a point that running a small biz could bring you higher ROI, if the location is good…

    Jess

    Profile photo of Rouquin_2Rouquin_2
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    @rouquin_2
    Join Date: 1969
    Post Count: 16

    Horses for courses Jess

    I would consider if I wanted to spend me day flipping burgers or if the income actually does cover staff to do it then it is leveraged.

    If that is your passion then go for it, for others it is property and others the share market. No one is saying not to do it just that a fair portion of this website is for people with a passion for property and its applications. Business sites will be pro business and not so much on property.

    My suggestion is to do what you are passionate about and maybe use this website to invest some of that income generated from the business venture and spread your portfolio.

    All the best with the path you take.

    Rouquin[party]

    Profile photo of lukis plukis p
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    @lukis-p
    Join Date: 2004
    Post Count: 47

    Yes business can be a good money earner. Property allows peace of mind and a “passive” income stream. It has been the vehicle of wealth to the masses, it has histoy positive growth. And at the end of the day if we ever see another resession people will eat out less but they will always need a home. I would imagine that the rent in a great location would be high because it would be owned by a property investor who wants an income without going to work for it.[medieval]

    Profile photo of fostonfoston
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    @foston
    Join Date: 2003
    Post Count: 111
    Originally posted by lukis p:

    Yes business can be a good money earner. Property allows peace of mind and a “passive” income stream. It has been the vehicle of wealth to the masses, it has histoy positive growth. And at the end of the day if we ever see another resession people will eat out less but they will always need a home. I would imagine that the rent in a great location would be high because it would be owned by a property investor who wants an income without going to work for it.[medieval]

    I agree totally, i have had several of my own businesses and not one of them gave me a passive income if i didn’t work.Maybe i chose the wrong businesses.
    Foston

    Life is a series of new beginnings

    Profile photo of kpkp
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    @kp
    Join Date: 2004
    Post Count: 509

    Jess,
    You want a high ROI on your business to justify the time commitment involved and risk attached to owning a business.
    In some instances your ROI will be 100%
    It is difficult to borrow money from a bank to buy a business.
    Usually the bank wants you to offer property as security against the borrowings for the business.

    As a business owner you are generally trading TIME for MONEY same as you are for a JOB.

    If it can be run under management then it may provide you with a passive income, but if it a cash business then you will also need to be there to keep an eye on the till.

    You need to ask yourself “What is Wealth”

    If you agree that Wealth is being able to do what you want to do, when you want to do it and having the means to do it, then the only way to achieve this is by passive income.

    To achieve this you need to replace the money you earn with passive income, so that you are no longer trading time for money.

    Property investing is favoured over other methods, because you can borrow or leverage a large percent of the purchase price, more so than you can with any other investment vehicles.

    A good cashflow business can give you the means to kick start your journey towards creating wealth, but it is not wealth in itself.

    Ask yourself why the guy behind Macdonalds ( Kroc ) announces that he is in the Real Estate business and not the hamburger business.
    KP

    Profile photo of TerrywTerryw
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    @terryw
    Join Date: 2001
    Post Count: 16,213

    I agree that you can make a higher return in business, but you can also lose it very quick. I think it is good to make you money in business and hold your wealth in property for asset stability and good long term growth.

    Terryw
    Discover Home Loans
    North Sydney
    [email protected]

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://structuring.com.au/
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Aust wide) http://propertytaxbook.com.au/

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