other peoples money
Bad economy good for investor with many IPs??
- Thread starter sash
- Start date
other peoples money
One thing I learnt recently is that when your property manager rings up and asks you which of the prospective tenants you would prefer, choose the public servant
Yeah I remember once my application was successful because of the fact I was a permanent public servant. I was on a low salary of just $37 K back then in 2006 but they still wanted me!
Thanks Zed kid.
Over time....I have learnt to sort BS from truth....boy have I heard some porkies from people off this forum. Fortunately they are in the minority.
When you meet some in person....you occaisionally come across people who have told some real whoppers!! Pretty hilarious to watch them squirm when you have caught them out.
Over time....I have learnt to sort BS from truth....boy have I heard some porkies from people off this forum. Fortunately they are in the minority.
When you meet some in person....you occaisionally come across people who have told some real whoppers!! Pretty hilarious to watch them squirm when you have caught them out.
sash, it seems anyone who does not concur with your view of the world is deemed to be 'telling porkies'. No one here accuses you of lying or tries to act condescendingly to you because your strategy is different, yet you seem to do that on a constant basis. Perhaps you need to find some extra conviction in your own investment strategy before you begin telling others that they are notorious conmen on a public forum.
Haha Sash, good job on catching me out. I'm actually really blown away by your highly cashflow positive portfolio.
Aaron, I'm sure you're in awe at the $40k cashflow positive portfolio too, especially if there's $2m equity in it. A whopping 2% return on equity - before tax of course. Though on your income it'd be 1% returns after tax (courtesy of high Australian tax rates). One would have to look very hard to find returns like that. Imagine what I could do if I could make 1% returns on my capital each year... I smell a formula to success right there!!!
Aaron, I'm sure you're in awe at the $40k cashflow positive portfolio too, especially if there's $2m equity in it. A whopping 2% return on equity - before tax of course. Though on your income it'd be 1% returns after tax (courtesy of high Australian tax rates). One would have to look very hard to find returns like that. Imagine what I could do if I could make 1% returns on my capital each year... I smell a formula to success right there!!!
Hi Sash,
This is exactly the situation we found ourselves in with our London properties when the economy went to pot in the UK. Our interest costs are very low and we make good CF each month. As far as rentals go we have not had any issues with voids or having to reduce rents. In fact, rents have been going up (particularly in London) as demand has increased because people aren't buying. We have a range of property types (from low to high end) but all in good locations (close to tube/ train etc...). I don't think I would want to be renting out in the north though where things are more bleak.
I'm not sure how things will play out in Australia but I wish I could buy some more +CF properties in London. The only downside is that the pound is weak so its not worth taking money out right now.
Rachel
This is exactly the situation we found ourselves in with our London properties when the economy went to pot in the UK. Our interest costs are very low and we make good CF each month. As far as rentals go we have not had any issues with voids or having to reduce rents. In fact, rents have been going up (particularly in London) as demand has increased because people aren't buying. We have a range of property types (from low to high end) but all in good locations (close to tube/ train etc...). I don't think I would want to be renting out in the north though where things are more bleak.
I'm not sure how things will play out in Australia but I wish I could buy some more +CF properties in London. The only downside is that the pound is weak so its not worth taking money out right now.
Rachel
Actually, when you combine our Government, business, residential property and credit card debt, it's 292% of GDP...
Keep in mind how much of our GDP is made up of the booming commodity trade, while only directly employing 2% of our workforce.
I don't think that kind of debt level is sustainable, we're entering a period of deleveraging here as well... We're no different to Europe and the USA in that we have unsustainable debt levels.
Aaron - I doubt you will care what I say. But without a doubt in my mind I would place you in the top percent of SS users in regards to intelligence, experience and knowledge all things property investing. For what it is worth I favour your outlined strategy of "blue chip" suburbs rather than the lower socioeconomic suburbs. However, with your intelligence, experience, success and knowledge your comments are often condescending, arrogant, aggressive and rude. You give the impression that anybody who disagrees with you is clearly wrong and less educated. You bait someone on by belittling their question/comment and when they reply you accuse them of being too defensive? Why not encourage others and put forward your views less forcefully and accept that those that do not agree with you are not necessarily wrong or stupid.
[QUOTE=Deltaberry Haha Sash, good job on catching me out. I'm actually really blown away by your highly cashflow positive portfolio.
Aaron, I'm sure you're in awe at the $40k cashflow positive portfolio too, especially if there's $2m equity in it. A whopping 2% return on equity - before tax of course. Though on your income it'd be 1% returns after tax (courtesy of high Australian tax rates). One would have to look very hard to find returns like that. Imagine what I could do if I could make 1% returns on my capital each year... I smell a formula to success right there!!!
QUOTE
Another typical Deltaberry comment, you obviously think you are very clever and funny but really your sarcasm is just lame. Why bother with this bull&*%?
You are so, so, so wrong LukeyLangy.
No-one agrees with ypg, what were you thinking ?? Are you on drugs ??
It's posts like yours Luke that make me question the good in humanity.
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Why does this forum need to be constructive? Obviously the last 3 posts aren't.
At least I took the courtesy to educate you that 1% ROE is not very high. Though I can understand why you're in awe at 1% ROE if you're actually on negative 5% ROE. Those properties would have to grow a lot for you to break even.
Why don't you educate me with some numbers at me and let's see how on top of things you are...?
At least I took the courtesy to educate you that 1% ROE is not very high. Though I can understand why you're in awe at 1% ROE if you're actually on negative 5% ROE. Those properties would have to grow a lot for you to break even.
Why don't you educate me with some numbers at me and let's see how on top of things you are...?
Well in regards to your previous comment, that you have since deleted after realizing how stupid it was.
Yes i don't have much experience, I only just bought my first ppor and half share in an ip in toowoomba. at the very early stages in my overall plan, still I'm happy with my start.
But I'm not claiming to be a great source of knowledge. I'm just saying why bother with sarcastic and arrogant comments that achieve nothing. Clearly it is just your personality.
It's funny that you previously have said you do not disclose your details about your portfolio and then go ahead to question about mine in order to try discredit me.
I thought I'll be a bit nicer hence I deleted it. Though I do admit I'm sarcastic and arrogant - your point? My numbers still stand correct. It is definitely my personality and if you can't see through that to appreciate the substance what I'm saying - that 1% ROE is low - then it's your loss. I'm guessing your one PPOR and half an IP is generating negative cashflow for you in a non-blue chip area of course, which is probably why your jaw drops at 1% ROE.
Try double digit ROE, 10 minute walking distance to CBD with significant cap growth potentials on 80% leverage and several of them. Though stuff like this don't even interest me any more as the returns are too slow, which is why I'm retiring soon, at your age (I think).
Of course to answer the original question - this is all self-made, which is not too hard when you start work at say a $200k salary at 21. If I got my inheritance any time sooner, well I'd look to buy buildings and boats but I don't like relying on inheritance though my friends tell me balance sheet is balance sheet.
How's that for arrogance and fact mixed together?
Since, you like numbers, you should get the full picture by including CG and then calculate the ROE. Have you asked Sash, based on his original investment (His Equity) what's his portfolio worth today + all the positive cashflow? I have a feeling it might be more than 1% ROE.
Cheers,
Oracle.
Much as I have no desire nor inclination to defend DB, I suspect that a few posters might not realise that they're a little out of their league on this one. Better to let sleeping dragons lie, I'd suggest. DB's at her best for us all just taking the p*** out of us, rather than skinning us alive.
Speaking of being out of one's league and dragons and such, reminds me of Eddie Murphy in the film Golden Child.....when asked whether he knew who he was messing with...........my dear sweet Brother Numsie
http://www.youtube.com/watch?v=eUeda7dRN0E
I enjoy the mixed and varied methods that everyone on this board adopts and shares to reach their specific goal$. I know my strategy has altered over the years by way of calibre of assets and class of assets. From more blue chip growth (land rich) houses to higher yielding middle rim units and the like for ca$h flow.
I think it serves us well to be a little flexible however in our journey during these times. My broken record saying of keeping LVR's modest continues. Those who remember 1991 will understand. Rates may fall in the short term, however they will rise and tighter liquidity, cost of funds will head north. Personally I look to benefit from shorter term softening as my largest loan comes off fixed in six weeks. Will fix for 3-5 as we see sub-six percent rates become the norm. I don't think the window will be open for long.
We won't see double digit interest rates, however we don't need to.......with income purchasing multiples being what they are, wages will need to play a little catch up (outside of some mining reegionals) to bring some overall homeostasis to price points and affordability for the masses......then it will be yippee kayay again......fasten you seatbelts.
Have been in Perth the last few days.....
The comments have been pretty good.
I see some storm clouds in the horizon....and making rash decisions in the current environment could be lethal. Cash flow is now more important than ever...particularly of GFC Mark 2 arrives.
Having said that...just put deposits on a H&L package in the Northern suburbs of Perth for less than 355k!
The comments have been pretty good.
I see some storm clouds in the horizon....and making rash decisions in the current environment could be lethal. Cash flow is now more important than ever...particularly of GFC Mark 2 arrives.
Having said that...just put deposits on a H&L package in the Northern suburbs of Perth for less than 355k!
all this time, I thought DB was male !!!
He is......
