What are some of the "exaggerated stories" you've heard from investors/magazines??

[china]

It's not a lottery at all. The only luck that person had was that their preparedness met opportunity. Also I am not sure if the 10 fold increase is accurate. It may have been a little less than that although I stand to be corrected. Regardless, a smashing outcome for that person and their portfolio.

The acronym of LUCK being Labour Under Correct Knowledge was apt in that case. Especially, the labour part. They took action and administered plenty of elbow grease and guts.

The point remains that one must start. Grow where you are planted.

http://www.businessblueprint.com.au/spontaneous-inspirational-speech/

Agreed, if nothing changes, nothing can change.

 

[BayView]

Why cash flow positive after tax - would it not be better to be cash flow positive before tax?

The problem for the $1mill gross per annum earner is the tax paid on those earnings, unless they are a contractor or company.

If the property is CFPBT, the $1mill earner is paying even more tax than they already do on their PAYE wage.

PAYE wage earners have very few claimable deductions as you probably know.

If they are a company etc, they can still get the deductions, but the property would have to be bought in the company name etc.

Not many folk do that to begin with; they buy in their own name so they can invest, but also get the on-paper deductions off the PAYE. Double win.

I was referring to the $1mill PAYE guy who is being raped with tax.

In that scenario, it is better to have the CFPAT so that he/she gets a decent chunk of the tax paid on the PAYE back as a tax return, which when added to the total figures of the property/ies for outgoings and incomings, shows a nett cashflow pos result.

The resulting plan I mentioned in the previous post would then continue and the whole result can become exponential once there are a few IP's under you belt...CG, nett income etc.

 

[lizzie]

Especially depreciation - a paper write off, but not a physical cost

 

[Peter 14.7]

I was actually in one of those mags earlier this year. But it was all about my failed property development - so it didn't make me sound like an over inflated knob. I never even got a copy of the mag so don't know how it turned out.

It was basically my "Life - it's not all beer and skittles" thread compressed into a mag article.

I don't like how they only ever tell half the story.

Did you ever see story as my issue is they never show the failures. I did a development in early 1990 and broke even. Yet when I say this, people assume I lie and made $$$$$$ as ALL developers make $$$$.

Peter 14.7