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From: Mike .
Starting from Scratch - too many choices - this is a big one - bring a picnic lunch.
From: DSS - Desperately Seeking Solutions
Date: 3/3/00
Time: 3:57:47 PM
Hi everyone, I am new to the forum but have read almost all of it over the past week and am very excited to have come across it. I have read Jan's "Building Wealth..." (18 mths ago), + "Rich Dad...." & "Cashflow Q..(this year)" pls I have been getting Australian Prop. Investor for the past 12 months.
All this has had my head spinning with possible opportunities, and has given me a very positive outlook for the future - but - I am in what may potentially be an enviable position (judging from what I have read before me + all the books)and am finding the options too difficult to digest. Please help or at least tell me "what you'd do" if you were in my boots.
I am a single mum, early 40's, tall, blonde, gorgeous (no you don't need that stuff) gross JOB income $45k, 2 kids (15 & 11), renting $200p/w, no shares or other investments except a small amount in super, and have $300+ to invest. I live in Sydney but would consider buying IP's anywhere.
As recommended by Robert Kiyosaki, I would like to have the additional income source of my own business(s) and would like to start with something along the lines of property development (starting very small of course - just cheap fixer-uppers & resell, moving up to multiple residential developments). This is not just a source of investing for me, it's been my passion since I was 12 and would rather do this for a living that what I'm doing now. To do this, of course I would start a company. Then I thought I could buy my first IP (or a few) in the company name or perhaps a subsidiary and continue renting where I am (until the lease runs out - it's extremely cheap for the area). At some stage down the track I would rent one of the IP's from my company. In a nutshell, that's one of the ideas I am toying with. But timing and structure still needs working out.
I have not discussed this with a FP or Accountant yet because I don't know who to go to. There are too many FP's and A's out there who aren't aware of all the possibilities (I have spoken to a few on other related topics), I would love it someone out there in Forum Land to recommend a really good one - preferably in the City to North Shore/Northern Beaches area.
Another idea is this, I have come across a property development about to start construction. It's 4 very nice (wouldn't call them luxury) townhouses on the lower north shore. They expect to sell them for about 600,000 each. If they would take say 1.8m for the lot, (just roughly guestimating - don't take this all too literally) at this stage of the project, they could be resold on or before completion or, kept and rented for at least $700 each. I'm thinking $270,000 (or 15%) down and IO loan for the rest. With even a 10% vacancy rate, the rent would more than cover the loan repayments and probably most other initial and ongoing expenses. I guess it's kind of like putting all my eggs in one basket but kind of not at the same time.
Questions: 1. would this also be beneficial from the point of view that all 4 units are being purchased with the 'one' sale? Both initial cost wise and loan wise? 2. Are there any benefits/drawbacks in holding/owning the whole block? 3. If there are benefits to be had here, could the same apply to purchasing an older style block and updating it a little. 4. What about commercial properties - I'm told they are a better proposition especially from a tenancy point of view. If they stop paying the rent, you can change the locks and kick them out. 5. Am I totally off the planet.
Of course there are thousands of different roads to take but I am completely overwhelmed by them all. Not only that but the calculations and maths you all have shared seem to just spin around in my head and I can't quite grasp it. I'm not fantastic with numbers so need some reliable guidance. Oh Help!!!!!
I want to get out of the "Rat Race" as soon as possible (by the way I have played RK's Cashflow, once - it's great) and spend more time with my kids.
Les, you have had so many brilliant things to add to this forum, I would so value your input.
With regard to good books, another one to add to the list is Steven Covey's "7 Habits of Highly Effective People" - fantastic - truly life changing but certainly not a quick fix / feel good book. Have also read Men from Mars etc. I feel so at home with all you people.
cheers, have a great weekend all DSS
Starting from Scratch - too many choices - this is a big one - bring a picnic lunch.
From: DSS - Desperately Seeking Solutions
Date: 3/3/00
Time: 3:57:47 PM
Hi everyone, I am new to the forum but have read almost all of it over the past week and am very excited to have come across it. I have read Jan's "Building Wealth..." (18 mths ago), + "Rich Dad...." & "Cashflow Q..(this year)" pls I have been getting Australian Prop. Investor for the past 12 months.
All this has had my head spinning with possible opportunities, and has given me a very positive outlook for the future - but - I am in what may potentially be an enviable position (judging from what I have read before me + all the books)and am finding the options too difficult to digest. Please help or at least tell me "what you'd do" if you were in my boots.
I am a single mum, early 40's, tall, blonde, gorgeous (no you don't need that stuff) gross JOB income $45k, 2 kids (15 & 11), renting $200p/w, no shares or other investments except a small amount in super, and have $300+ to invest. I live in Sydney but would consider buying IP's anywhere.
As recommended by Robert Kiyosaki, I would like to have the additional income source of my own business(s) and would like to start with something along the lines of property development (starting very small of course - just cheap fixer-uppers & resell, moving up to multiple residential developments). This is not just a source of investing for me, it's been my passion since I was 12 and would rather do this for a living that what I'm doing now. To do this, of course I would start a company. Then I thought I could buy my first IP (or a few) in the company name or perhaps a subsidiary and continue renting where I am (until the lease runs out - it's extremely cheap for the area). At some stage down the track I would rent one of the IP's from my company. In a nutshell, that's one of the ideas I am toying with. But timing and structure still needs working out.
I have not discussed this with a FP or Accountant yet because I don't know who to go to. There are too many FP's and A's out there who aren't aware of all the possibilities (I have spoken to a few on other related topics), I would love it someone out there in Forum Land to recommend a really good one - preferably in the City to North Shore/Northern Beaches area.
Another idea is this, I have come across a property development about to start construction. It's 4 very nice (wouldn't call them luxury) townhouses on the lower north shore. They expect to sell them for about 600,000 each. If they would take say 1.8m for the lot, (just roughly guestimating - don't take this all too literally) at this stage of the project, they could be resold on or before completion or, kept and rented for at least $700 each. I'm thinking $270,000 (or 15%) down and IO loan for the rest. With even a 10% vacancy rate, the rent would more than cover the loan repayments and probably most other initial and ongoing expenses. I guess it's kind of like putting all my eggs in one basket but kind of not at the same time.
Questions: 1. would this also be beneficial from the point of view that all 4 units are being purchased with the 'one' sale? Both initial cost wise and loan wise? 2. Are there any benefits/drawbacks in holding/owning the whole block? 3. If there are benefits to be had here, could the same apply to purchasing an older style block and updating it a little. 4. What about commercial properties - I'm told they are a better proposition especially from a tenancy point of view. If they stop paying the rent, you can change the locks and kick them out. 5. Am I totally off the planet.
Of course there are thousands of different roads to take but I am completely overwhelmed by them all. Not only that but the calculations and maths you all have shared seem to just spin around in my head and I can't quite grasp it. I'm not fantastic with numbers so need some reliable guidance. Oh Help!!!!!
I want to get out of the "Rat Race" as soon as possible (by the way I have played RK's Cashflow, once - it's great) and spend more time with my kids.
Les, you have had so many brilliant things to add to this forum, I would so value your input.
With regard to good books, another one to add to the list is Steven Covey's "7 Habits of Highly Effective People" - fantastic - truly life changing but certainly not a quick fix / feel good book. Have also read Men from Mars etc. I feel so at home with all you people.
cheers, have a great weekend all DSS
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