It feels good when you stop!

From: Dale Gatherum-Goss


Hi

The only reason why people bang their heads against a brick wall is that it feels good when they stop. It's an endorphin thing, I guess.

Why am I telling you this?

Because sometimes, that is exactly how I feel after meeting with clients who ONLY want to invest in property if they will get more tax refund.

Heaven forbid, if they have to pay any tax, well, they just don't want to do it then. Forget completely, that this would mean that they're making money and the tax office will only take a portion of what they make. That doesn't count!

Aaaaaaaaaaaaaaaaaaaaarrrrrrrrgh!!!!

Have fun - I'm off to find that wall again

Dale
 
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Reply: 1
From: Dirk Diggler


I just dont get. Can someone in plain english tell me how the above strategy will get me out of the rat race in the next couple of years. Many people on this forum say its the way to go. The way I see it,with this strategy is I'll be rich when Im 65 and might be able to shout some of the guys down the bowling club a few pots!
Please please will someone tell me how neg gearing will get me on the fast track!
 
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RE: It feels good when you stop! - GEARING

Reply: 1.1
From: Duncan M


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Dirk, you just need to appreciate that "GEARING" (not negative gearing) is
what has the great potential to make you wealthy..

Taking the few paltry dollars we might have beggared or saved and using them
to borrow a whole load more of them to put into an appreciating asset.
Taking the $20 you have, letting the bank lend you $80 and buying a $100
house and letting the tenant service the interest bill whilst the property
appreciates.

$20 invested at 10% after 10 years is worth $47.16
$20 geared into a $100 asset that appreciates at 10%pa after 10yrs is worth
$155.79

Some people just to choose to gear in a manner that derives tax benefits at
the same time ie. Negative Gearing, its a combination of two aims.

Some people just to choose to gear in a manner that derives income at the
same ie. Postive Gearing.

Some people (like me) choose to use Structured Gearing, a mix of properties,
some high growth, some high yield, overall a reasonably neutral income
position but after taking advantage of Non-Cash deductions (depreciation)
it's a Tax Advantageous portfolio.


Duncan.






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<TITLE>RE: It feels good when you stop! - GEARING </TITLE>



Dirk, you just need to appreciate that ="GEARING" (not negative gearing) is what has the great =potential to make you wealthy..

Taking the few paltry dollars we might have beggared =or saved and using them to borrow a whole load more of them to put into =an appreciating asset. Taking the $20 you have, letting the bank lend =you $80 and buying a $100 house and letting the tenant service the =interest bill whilst the property appreciates.

$20 invested at 10% after 10 years is worth =$47.16
$20 geared into a $100 asset that appreciates at =10%pa after 10yrs is worth $155.79


Some people just to choose to gear in a manner that =derives tax benefits at the same time ie. Negative Gearing, its a =combination of two aims.

Some people just to choose to gear in a manner that =derives income at the same ie. Postive Gearing.


Some people (like me) choose to use Structured =Gearing, a mix of properties, some high growth, some high yield, =overall a reasonably neutral income position but after taking advantage =of Non-Cash deductions (depreciation) it's a Tax Advantageous =portfolio.


Duncan.








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Reply: 2
From: Robert Forward


Yep, Dale. It's a solid brick wall your hitting your head against there isn't it.

This is why I would love the Australian Government to remove the negative gearing laws. This way we get to have proper investing where we make money rather then losing it with investing.

Anyway, I'll get off my soap box now.

Cheers
Robert

The Sydney "Freestylers" Group Leader.
 
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Reply: 2.1
From: Duncan M


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Actually, what we'd get is investing in your particular exact, insular,
manner.

Duncan.

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Actually, what we'd get is investing in your particular exact, insular, manner.


Duncan.




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Reply: 2.1.1
From: Robert Forward


/me Stands Back Up on His Soap Box

Hi Dunc

Investing in an "Insular Manner" yeah. Hmmmm. Admittedly there will without a doubt be people that would be severely hurt by removing the negative gearing laws. But the government needs to do it gradually, not like in 1988 when the laws were removed.

But give it a few years and things will straighten themselves out. Then most properties (not all) would be positively geared and/or running neutrally. And we'd still have good capital growth.

Check out in detail how the U.S. changed their laws and where they have gone since then. I'd rather invest in ALL ways rather then just negatively geared property.

But further on your comment
"Actually, what we'd get is investing in your particular exact, insular, manner."

Does this mean we'd have every property investor doing wraps, flips, buy and holds and trading properties all at the same time does it?

Cause if removing the Negative Gearing laws they would invest in "my exact insular, manner" this is what they would be doing. Is there a problem with this?

I can't see one, but would love to know if there was.

/me gets off his soap box.

Cheers
Robert

The Sydney "Freestylers" Group Leader.
 
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Reply: 1.2
From: Dale Gatherum-Goss


Hi Dirk!

In a nutshell, negative gearing will not get you out of the rat race in a couple of years. You have not missed anything.

However, please understand that not everyone aims to get out in the next couple of years and some are happy with age 65, in which case, there is nothing wrong with an accumulation strategy.

Horses for courses, or as my grandmother used to say when I was a little boy: "each to their own said the lady as she kissed the cow"

Have fun

Dale
 
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Reply: 2.1.1.1
From: Dirk Diggler


I still dont get it and never will.
I agree Robert, the sooner the government abolishes these silly - gearing laws, the better it will be.
If that ever happens, it will certainly sort out the wheat from the chaffe!
Then we might not see these silly posts saying I've found a great deal, a $300,000 house that rents for $250 per week. What a great deal! Pat me on the back and open the champagne. Pleeeease.
 
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RE: Of the topic

Reply: 2.1.1.1.1
From: The Wife


Dirk, just of topic , we discussed you at the freestyler meeting last night, or should I say, we discussed your moniker, we were in a huddled group in the corner, and I want to know, is your moniker dirk diggler the porn star? ( lordie I hope its not your real name cause then I have really stuffed it).

Some votes were, author, actor, and mine was the porn star, im sure ive seen that name used as such.

Cheers, TW
 
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RE: Of the topic

Reply: 2.1.1.1.1.1
From: Mark Laszczuk


Dirk Diggler is the name of the lead (who is, incidentally a porn star) in the movie Boogie Nights starring Mark Wahlberg. Came out about six years ago, maybe seven.

Mark
'no hat, some cattle'
 
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RE: Of the topic

Reply: 2.1.1.1.1.1.1
From: Dirk Diggler


Yes Mark you are correct. One of the greatest motion pictures in the history of Hollywood!
 
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Reply: 3
From: Apprentice Millionaire


Hi Dale,

>Have fun - I'm off to find that wall again

Please don't hit it too hard: I need you to stay sane so that you can help me some more!

:)

Cheers
Apprentice Millionaire
 
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Reply: 3.1
From: Dale Gatherum-Goss


Hi AM!

Ahem, who says I was sane in the first place?

I'm happy to help,and look forward to seeing you again soon.

Dale
 
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RE: Of the topic

Reply: 2.1.1.1.1.1.1.1
From: Rachel Freedman


Hmm I personally thought it was the biggest heap of crap and I couldn't watch it till the end!

Rachel
 
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