Perhaps it is the receiver of the light ... rather than the light itself?
Why are you disappointed?
New Years Resolutions - Your Goals for 2012
- Thread starter One Drone
- Start date
Perhaps it is the receiver of the light ... rather than the light itself?
Why are you disappointed?
Just a bit down at the moment Lizzie.
Wanting stuff to go faster but being dictated to by the markets and finance boys.
Being a property owner at the moment feeling a bit like walking thru the desert on a scorching hot day, with nothing to eat than a whole packet of dry Sao biscuits.
It can be done, but it's not much fun.
The thrill of the chase of new acquisitions is a memory, last one was back in 2010. She's been a constant plod of working the assets, re-financing, paying down debt and other ho-hum activites.
It'll be years in the future until this anaconda is ready to gorge itself on another meal. I'm still digesting the one from 2010 to tell you the truth, and as it had a few bones in it and a few unpleasant tastes, it's taking longer than expected to chow down.
Still - better than working....so not so bad.
Wanting stuff to go faster but being dictated to by the markets and finance boys.
Being a property owner at the moment feeling a bit like walking thru the desert on a scorching hot day, with nothing to eat than a whole packet of dry Sao biscuits.
It can be done, but it's not much fun.
The thrill of the chase of new acquisitions is a memory, last one was back in 2010. She's been a constant plod of working the assets, re-financing, paying down debt and other ho-hum activites.
It'll be years in the future until this anaconda is ready to gorge itself on another meal. I'm still digesting the one from 2010 to tell you the truth, and as it had a few bones in it and a few unpleasant tastes, it's taking longer than expected to chow down.
Still - better than working....so not so bad.
Draw equity instead of selling once portfolio is big enough!
You know that if your portfolio is big enough, you don't have to sell, as you can live on taking extra equity against it. Although, you may not feel comfortable with that approach....
You go to the bank and explain you have a self-funding porfolio that no longer relies on your income.
The idea is that in the long run your portfolio would grow at a faster pace than the extra equity you draw. If you are not familiar with the concept read p.21 in API magazine where Mr. Yardney illustrates that.
I personally thought that I would have to sell too but now I don't think I would..... The approach is still risky but it's interesting....
You know that if your portfolio is big enough, you don't have to sell, as you can live on taking extra equity against it. Although, you may not feel comfortable with that approach....
You go to the bank and explain you have a self-funding porfolio that no longer relies on your income.
The idea is that in the long run your portfolio would grow at a faster pace than the extra equity you draw. If you are not familiar with the concept read p.21 in API magazine where Mr. Yardney illustrates that.
I personally thought that I would have to sell too but now I don't think I would..... The approach is still risky but it's interesting....
....tried that approach 4 years ago....my Banker laughed at me and said he wouldn't even write it up and present it to the Credit boys.
The Credit boys would give an instant NO and take a very dim view of what I was proposing.
LOE spelt poison to them.
That was before the GFC hit. It's got far worse since then.
Decided to LOR instead. The Credit boys don't mind that.....and they rule the show.
Ah - you would be missing the razzle dazzle - when we get addicted to the adrenaline high of pursuit and catch.
Perhaps time for some ooomph in the personal life. Doing any travelling this year? How about volunteer work with the Orangatans in Indo, or building some houses in India? Or even that villa in France and kick back as a local for six months?
I only meant that approach for your passive stage, where you live off it, not the accumulation stage of your portfolio.
Unless the BANKs credit guys change their approval criteria it won't be a viable option for 99.9% of us.
Saying that, the option is still in my list of possibles, wouldn't be a long term thing but if we can pull out enough cash every now and then to fund a few months or a year that would be nice.
Cheers
Graeme
Your portfolio AND equity must be big enough, so keep at the accumulation phase and just remember it in your pension phase.
I heard some people tell their banks they require the equity to do their renovations but they really use it for their living.
Again, I would only try this strategy when I plan to fully retire.....
I know you meant LOE ... fully understand it - not comfortable with it - others (including some on this forum) have been caught out and had to go back to work - would rather "live" off rents and if need extra money for something major and unexpected then can release equity.
Each to their own.
Just a word of advice MIW - you're coming across as a preaching know-it-all. I guess we all do when we first come to SS with successful portfolios and lots of ideas. Was like me dictating to Dazz about commercial investment 7 years ago, without realising who he was.
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New years resolution.
Do nothing.
I've done everything I can for now, Banks won't lend to me anymore.
Doing nothing IS part of my plan though so.. thats what I'm doing! Although we're going to Thailand for our first ever O/S trip Friday so really getting excited now! I might do a little rennoing later in the year too if any tenants decide to move.
Do nothing.
I've done everything I can for now, Banks won't lend to me anymore.
Doing nothing IS part of my plan though so.. thats what I'm doing!
Although we're going to Thailand for our first ever O/S trip Friday so really getting excited now! I might do a little rennoing later in the year too if any tenants decide to move.That's fine Lizzie, an please forgive me if I seem to preach, I don't mean to do it, perhaps I do it too often to our kids so it carries further. It is really unintentional.
I just thought about a close friend's situation of having $10million in property and $3million in loans leaving $7million equity. That's what I meant, having that situation but you are right you have to feel comfortable drawing down equity (say $150K/yr) and hoping that the porfolio grows by at least $500K/yr (based on 5% growth - but in reality it's never constatnt, right?).
I would be interested in the cases you mentioned, of some people in this forum, as I like to learn on past mistakes can you point out where can I re-read them? (Thanks).
Friends? They kinda get scarce when they realise you have realised your dreams and they are still plodding along. It's very hard for the resentment not to start showing. And being generous with them just makes it worse.
I'm always happy to meet people who had a go, I always encourage people around me to do things and praise even the smallest efforts and results.
But the pre & post xmas periods are always the worst where everybody complains about not having any money and the resentment just gets worse when I "appear" to be hardly ever doing any work, buying stuff, happy and always "liquid" regardless of how much $$ they urinated up against the wall in useless BS.
So I guess I should heed your wisdom and once again aim to just be myself, ie Piston Broke.
Or just start complaining about how everything is so dear, how I have no money left on monday, and how much I got smashed on the weekend even though i don't remember it.
I spose there aint much difference between "can't remember" and "didn't really happen" is there.
pinky promise?
Hi Lizzie,
Yes. Pinky promise.
Geared to 90% LVR on both IPs, so need time to digest them like a python who has just consumed a whole chicken.
Focused on expanding the family, so not investing for the next few years might be a good plan actually.
Regards,
Daniel
My thoughts exactly. I love the resi property investors who buy 500 houses bringing in 0.02c positive cash flow each just to add up to $10 while they still drive a 1979 Mitsubishi Sigma and say they're "financially free". Lol.
That is all good advice Dazz, well said. I have often though the same thing myself. That is why I just live off my cash flow now and enjoy my life rather than bogging myself down by trying to smash stupid amounts of debt with it while I end up poor and underwhelmed in the mean time.
My 2012 goals:
1) don't smoke (112 days and counting)
2) lose 5 kilos, improve fitness and get toned
3) cut back to working 4 days per week (day job)
4) finish Forde and if the market picks up at the end of the year sell for profit
5) complete 4 units of the diploma of journalism - freelance magazine writing
6) make more effort to spend time with family
7) continue to education self on property - investing, renovating, building
8) be inspired and inspiring
1) don't smoke (112 days and counting)
2) lose 5 kilos, improve fitness and get toned
3) cut back to working 4 days per week (day job)
4) finish Forde and if the market picks up at the end of the year sell for profit
5) complete 4 units of the diploma of journalism - freelance magazine writing
6) make more effort to spend time with family
7) continue to education self on property - investing, renovating, building
8) be inspired and inspiring
