Cashflow vs Monopoly

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From: The Wife


This post belongs to a topic called Cashflow VS Monopoly, do you think I can find that post again....?..nooooo


Anyway:

This is very sad but true...


I have heard about monopoly, but i have never played it...!


I had a very sad childhood :eek:)



I'm pretty much following the same lines as the cashflow game..


shares/ property/ business


I dont believe you can 'get rich' from property alone, ( come on, if these guru's are 'giving back' why do they charge $5000 plus for a seminar about property, they are running a business...see...told you, property AND business)



I have read 2.5 Kiyosaki books, and thats enough now thankyou, i have picked up the concept, and I am running with it, I dont think I am going to learn anything new from his other books, I am sure its just a re- hash of what I have already learnt,


Still, I marvel at the marketing machine he has become, churning out stuff like he does, amazing! I admire the perfectness of the way he is making his money, I'm taking that as a lesson as well.


I reckon to make a lot of money out of property, you have to 'make it your business', I dont think you can be a passive investor and make a lot of dough.


But thats what i reckon anyway, theres many ways to skin a cat. I think everyone should try all the different ways at least once, when they find the correct skinning technique for them, they should flog it to death :eek:)


Can the RSPCA sue me for what I just typed?


I dont think you will make a fortune unless you have a 'white hot desire' to make a fortune.


I believe some property is a vehicle to wealth, and other property is a parking space for wealth.


I believe, true wealth lies in unencumbered property.


I'll just say that again,


I believe, that true wealth, lies in unencumbered property.
 
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Reply: 1
From: Rasputin .


Sounds like a true strategy to me, I often wondered about this gurus telling us all that you can make al lyour moeny jsut in IP but then they charge like a wounded bull for us to learn that.
 
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Reply: 2
From: Apprentice Millionaire


Hi The Wife,

A very interesting post.

>shares/ property/ business

I certainly believe that, too. Although on the business side of things, it is often better to work 'on' your business, not 'in' it. Read 'The E-Myth' by Michael Gerber.

>I believe, that true wealth, lies in unencumbered property.

Expand on that, please The Wife! I want to know more!

Cheers
Apprentice Millionaire
(aka Jacques in the old forum)
 
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Reply: 2.1
From: The Wife


I loaned my copy of E Myth to someone...and I cant remember who? So, if your reading this, and your holding my book hostage, please send your demands to the above email address.

Unencumbered property, well..I guess if I have 10 "Blue Chip" properties, that are fully paid for, and are returning me a net of $5000.00 per week, I would consider this true wealth.
 
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Reply: 2.1.1
From: Owen .


I agree TW. A lot of the gurus peddle the "never sell" and I/O loan until death scenarios. Rubbish.

I/O loans are a means to an end allowing a larger number of IP's to be purchased because of the additional cashflow. But I believe that selling off a few and paying down the remaining loans at the appropriate time is still very valid.

It's the difference between getting a small cashflow from lots of IP's (and putting in the effort to manage them all) and getting a large cashflow from a few properties (and sitting back and enjoying it all).

I fancy the latter in the long term but need to do the former to get there.
 
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Reply: 2.1.1.1
From: The Wife


GREAT Owen, you said that so well :eek:),

Thats what I mean by, some property is a vehicle to wealth, and some are a parking space for wealth.

I personally trade a lot of lower end property in my quest for the parking space, ie higher end blue chip property, this is where I like to park my dollars from playing with the smaller stuff.

I think it was Debra L from Melbourne who said it so well in the chat room last night, that " the lower end property, didnt grow as well, rents not keeping up with cap growth" ( Deb, i didnt save your quote, can you re-write it for me).

I reckon lower end for the trading short term, but "the good stuff" for parking your dollars!

Sure, there is the argument that you can just get the higher end property now, and heavily neg. gear. But thats not my style, I feel it takes to long, and is a huge dollar burden for the average family.
 
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Reply: 2.1.1.1.1
From: GoAnna !


Hi TW

You got me wondering....

When you talk about blue chip are you talking prime dwelling in prime location in major city? Are you talking office blocks? Motels? Retail?

Are you talking blue ribbon with high return? Or just blue ribbon with solid growth and solid return? I presume you don't mean properties with spectacularreturns as you referred to negative gearing.

So why the big attraction to the "blue chip'? What do they give you versus cheaper properties?

Perhaps now is the time to snap up prime property with the interest rates so low. A lot would be close to neutrally geared. Or match then up with cheaper but positively geared properties so that overall you don't need to put in any money. Just a thought.

GoAnna !
(aka Anna before she got real)
 
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Reply: 2.1.1.1.1.1
From: Robert Forward


Hi GoAnna

The way I see it is, what do most of the "Rat Races" do in life. They want to upgrade everything all the time (there house, the car, the furniture etc etc), we live in a upgradable society.

Tell me, who would love to live on the Sydney harbour in a 5 bedroom mansion overlooking the Opera House and The Harbour Bridge. If you answered yes then you have just proved that you would upgrade your lifestyle if you had a chance.

What I'm really saying is the less fortunate (poorer) are always wanting to upgrade, it gives them a sense of well being I think.

So what properties are always going to be in demand??? The properties that are "Blue Chip"!!! But these properties need to be making money for you. I don't think it is worth having a $500k mortgage on a property that you then need to put $100pw into to keep. With $500k I can buy up to 10 houses that will provide me with $000's if not $0000's per month in positive gearing.

I, like TW, do invest in the lower grade properties for much the same reason. I can make lots of money in this end of property but then I turn that money into diversified areas to continue to grow.

But anyway that is my thoughts on the subject.

Cheers
Robert
 
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Reply: 2.1.2
From: Cathy Baxter


Hi
That's me - i'll get it back to you pronto.
Cathy
 
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Reply: 2.1.2.1
From: The Wife


Oh Cathy...its you:eek:)...now probs, keep it!
 
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Reply: 2.1.2.2
From: Gee Cee Cee


Cathy we needed someone to fill in for a public whipping at The Big BBQ.

Looks like you are it. !!!!

Gee Cee
 
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Reply: 2.1.1.1.1.1.1
From: GoAnna !


Hi Robert

You have totally lost me. Are you saying that your plan is to make the money at the lower end of the market and then park it in the top end? If so why when the returns would be lower?

Blue ribbon properties can also provide the equity to buy the highly cash flow positive cheaper properties.

GoAnna !
(aka Anna before she got real)
 
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Reply: 2.1.1.1.1.1.1.1
From: Robert Forward


If you started with a blue ribbon property it would take quite some time to build enough equity up to have it pos geared and then start buying lower end properties.

I start with lower end properties that are pos geared and then when I buy high end properties they are also pos geared....

Simple hey.

Cheers
Robert
 
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Reply: 2.1.1.1.1.1.1.1.1
From: Robert Forward


Yes it is there Michael. But I can buy 2-3-4 or even 5 low end places for the price of one high end place...

Cheers
Robert
 
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Reply: 2.1.1.1.1.1.1.1.1.1
From: GoAnna !


But surely it is the return and growth that is important. Not how many properties. And fewer properties would be less to manage.

Why not just mix it up?

Some high yield? Some high growth? Each has their advantages.


GoAnna !
(aka Anna before she got real)
 
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