Probably not wise to judge a book by its cover

[natmarie73]

Well I'm not going to argue the point Ben. When I commented I hadn't seen the photos. I have since looked at them and while I will still reserve judgement on whether they are his cars or not I will concede that they may well be.

I'm getting the feeling you have some sort of personal interest in this kid as you seem very protective of him and defensive when challenged.

Nat

 

[Chris G]

Originally posted by always_learning
The exciting bit is that in 5 or 10 years of focus action, my IP portfolio should have grown to the point in which a 6% increase in value should generate more equity than I could possibly spend on cars ( I dont need a M5 every year...maybe every second year!)

Hi peoples,

Always_learnings comments sound like the start of a great new calender? You can keep track of the years by what car you buy....2004 is year of the Porsche....05 year of the Mclaren Mercedes....06 year of the BMW etc etc. Is kind of like the Chinese Year of the snake etc!! Or for the SERIOUSLY WEALTHY....same idea but use months....my B'day is on 17th of Porsche Month....Easter is the 17th of Mercedes Month!!!...Sounds like something mr "disgraced stockbroker" may actually do!!!

Cheers
Chris

 

[always_learning]

Well saying "possibly spend", actually when I think about it, it is possible to spend more than a small fortune on cars very quickly.

What I am trying to communicate is that I should be able to easily afford lets say an M5 ($200K) for me and a CLK ($100K) for Mrs AL, combined the cars would loose value at $60K/year and replace them every 2 years! Just think about it, if you build up a $4M IP portfolio, a 6% increase in value in any one year will result in a paper equity increase of $320K.

Whilst I havn't thought it thru 100% (I suspect there are limitation in rules in regarding the tax treatment of luxury cars for business use) the M5/CLK could be purchased/leased by the trust so you can inspect your properties, ie you are buying the M5 with untaxed money. How can I do that investing in shares or bonds, what other investment class is as good as IP?

I believe it is possible in 10 years following some simple rules and principles with some focused effort to build my current IP's portfolio to $4M (or at 3%CPI $5M in 2012) . I believe this is more than possible here is my plan in simplistic terms.

I take my exising porfolio lets say it is worth $800K each year I plan to add another $500K of near neutral geared IP's plus I expect to get on average 6% of growth.

Lets do some maths, 2003, start with $800K then add new IP's of $500K total $1.3M then add 6% growth on the existing $800K = total asset value $1.348M. Year 2, take the $1.3M the growth of 6% and another $500K of IP's = $1.9M magic!

Year 2003	  800,000
Year 2004	1,348,000
Year 2005	1,928,880
Year 2006	2,544,612
Year 2007	3,197,289
Year 2008	3,889,126
Year 2009	4,622,474
Year 2010	5,399,823
Year 2011	6,223,812

What if I can only add $200K per year and IP asset growth is 4%

Year 2003	  800,000
Year 2004	1,032,000
Year 2005	1,273,280
Year 2006	1,524,211
Year 2007	1,785,179
Year 2008	2,056,586
Year 2009	2,338,850
Year 2010	2,632,404
Year 2011	2,937,700

A touch under $3M in 2011 ( or $2.2M in 2003 dollars)

Here is an array of the above ideas (addition $XXX a year and X% growth)

Year		  500K, 6%	  350K, 5%	200K, 4%	150K, 3%
Year 2003	  800,000	  800,000	  800,000	  800,000
Year 2004	1,348,000	1,190,000	1,032,000	  974,000
Year 2005	1,928,880	1,599,500	1,273,280	1,153,220
Year 2006	2,544,613	2,029,475	1,524,211	1,337,817
Year 2007	3,197,290	2,480,949	1,785,180	1,527,951
Year 2008	3,889,127	2,954,996	2,056,587	1,723,790
Year 2009	4,622,475	3,452,746	2,338,850	1,925,503
Year 2010	5,399,823	3,975,383	2,632,404	2,133,268
Year 2011	6,223,812	4,524,152	2,937,700	2,347,266
Year 2012	7,097,241	5,100,360	3,255,209	2,567,684

How do I plan to add the $500K of investment each year? by undertaking a small scale dual occupancy development each year! Am I taking taking action today/now? well yes I am, the first development will finish the end of this year or early 2004.

Yes I know a long slump in prices could hit the plan hard, but I am taking it a step at a time, I have my goal in mind but I will change it if and when conditions change.

Sorry if I get too excited talking about IP! ( In real life I am only 1/2 crazy...it happens when you live in Japan too long)

 

[brains]

M stands for Motorsport and is the high performance divison of BMW. They make some beautiful high performance vehicles, similar in performance to Porsche but much more practical.
Unbelieveable German engineering.

And its ok if people dont like them, i have a friend who is into growing cactus (exciting guy) and i dont understand or like that. Each to their own.

Originally posted by Jas
Ok,

I'm going get hung here... I've seen a few mentions of M3.

Could somone kindly tell me what the fuss is??

Jas

 

[XBenX]

Originally posted by natmarie73
Well I'm not going to argue the point Ben. When I commented I hadn't seen the photos. I have since looked at them and while I will still reserve judgement on whether they are his cars or not I will concede that they may well be.

I'm getting the feeling you have some sort of personal interest in this kid as you seem very protective of him and defensive when challenged.

Nat

dont know him at all

I thought I would post it to see if people would react to it like people did on the original forum.

For me it seems like they called his bluff and he played a royal flush...

It also shows Australia's tall poppy cliche working away yet again

 

[Les]

In a way, it's a shame, but the original link no longer works. This probably comes down to the reactions of the Porsche mob on that forum. Further along, the whole post degenerated into a furore (if you thought the early posts were "bad", multiply that by 10 for the later offerings..... There were several calls for the whole post to be deleted !!!! (And, the way it was headed, probably rightly so...)

Re "blokes and their cars", I have my sights set on a V12 Jag - simply because it is a Jag (AND a V12) - might be a few years yet, but it's in my sights....

Old petrol-heads never die - they just get "injected"!!!

Regards,

 

[D.T.]

Hi all,

I had a good look through that thread and agree with XBenX that it was full of the tall poppy syndrome stuff. There were some veeeery nice car photos in the thread tho that were worth seeing. Im not too much of a Porsche fan myself, but a couple of these were fairly decent looking. I dont really like the trademark fat low rear end, and yes im talking about cars

I much prefer BMW M3's. Theres definately one of these babies out there with d2k written on it in a few years time. It'll have to be after i;m 25 i guess, ya know how much insurance companies would love a pre25 male in a BMW

While we're on the subject of cars, is it better to lease them to yourself thru a trust (fringe benefits tax apply here?), or is it better just to pay yourself a vehicle allowance?


-Regards

Dave

 

[capitalist]

dead link

dammit, you're right Les - the link doesn't work anymore.
It had me very curious after seeing the replies to it here.

The Porsche 911 is definitely on my list of "toys to get" one day. I think it would look great parked next to the Ducati.

 

[D.T.]

Re: dead link

Originally posted by capitalist
dammit, you're right Les - the link doesn't work anymore.
It had me very curious after seeing the replies to it here.

The Porsche 911 is definitely on my list of "toys to get" one day. I think it would look great parked next to the Ducati.

That would probably add value to the Ducati, I wonder if the bank will give you a LOC on the increased equity

-Hehe

Dave

 

[XBenX]

haha Dave - have to give it a try when you get the opportunity....

 

[Jas]

Ta Brains

I've a green thumb, but I'm not into catuses either

Jas