Sell or Hold

The scene: The elegant drawing room of Castello Quiggles, replete with stacks of parchment scrawled with figures, arrows, numbers and question marks. The Bold Adventurer confronts the Empress of O'Connor and points out in a remarkably reasonable and balanced way that to sell the property will raise as much debt free cash as a refinance would raise debt laden cash, and that the investment returns available would ensure that they could live without the need to subjugate the household's time to external employers ever again. Satisfied at the inassailable case he has made, he awaits the response.

She imperiously (what else from an empress?) notes that she likes the present asset, that it is comfortable, secure and cashflow positive, in addition to having appreciated quickly. Although the Adventurer is correct as far as he goes, even an assumed annual 5% cap growth would tilt the odds in the favour of retention.

The Adventurer is, of course prepared. With a lightning riposte he shows that while an average 5% cap rate does indeed show this, in fact cap growth is slowing - better to take the funds elsewhere while cap growth remains slow and rejoin the party later when yields are higher and property less popular.

He has underestimated his adversary. She points out that he has glossed over the fairly easy value adding options for the property which will lower costs and improve values and possible rental returns. She repeats, she LIKES the property and like the bank, views it as secure.

Warily, and more respectfully, he comes at the dilemma from a new angle. He repeats all her arguments, affirming that he has heard and understood them. Then he attempts to make his case again, noting some minor flaws in her case that leave the two investment options largely balanced. It comes down to a risk/reward ratio question - how solid is the alternative investment option.

Eventually a compromise is agreed - he has three months to show continuous, high level profits. Once he can do that, she will acquiesce. A chaste kiss, expressions of profound and mutual admiration, and he sprints off to his alternative employment.





Does anyone else have days like this?
 
G'day Quiggles,

Ay, there's the rub....
and that the investment returns available would ensure that they could live without the need to subjugate the household's time to external employers ever again
which, if my efforts to interpret obfuscation are on song, means that "you'll be under her bloody feet all day" - thus NOT an option !!!! :D

Unless you plan to invest your time in manfully producing more equity by "getting out and doing it all again" (via reno's, watching the kids laying soccer, discount buys, serving at the school tuckshop, painting IP's, proffering the credit card for an empress's pleasure, etc) in which case, your sins will be forgiven, and the Quiggles household will live happily ever after...

Forget my ramblings....

Your situation sounds pretty damn good to me - well done, :D

Regards,
 
quiggles said:
The scene: The elegant drawing room of Castello Quiggles, replete with . . . . Empress . . . . and he sprints off to his alternative employment. . . .

Err, that would be doing the dishes, right ?

She's done a right royal slam dunk with her pinkie, yield & lose gracefully serf.

(Love the prose though) ;)

cheers
crest133
 
Programmer said:
Nice quiggles. :) She's going to win Quiggles, you know that, don't you? She always wins.
The battle, of course, is to get one's way while incontrovertibly showing that (a) one has lost and (b) one is sorry for having had the temerity for thinking independently while (c) not noticing that she knows both (a) and (b) are bunkum. Thus is equilibrium maintained.

I actually intended this as a serious discussion, btw, not a coffee lounge sally.
 
Don't ask Dorothy

Please keep this to yourself, but for those of you who don't know, Les still gets 'laying turf' and 'playing soccer' mixed up. It's a childhood thing. Sshhhh. :)

Serious! Sorry quiggles, got thrown by the prose which I really enjoyed.

Yes, I do have days like this. But disregard anything I say because nobody knows her like you. She wants security, comfort? She's not a Cancer? Have you got kids? If not (I hasten to add I'm not sure I want to ask this), possibility she might want some? Is it a nest or an investment? Find her weak area and run a dagger through it with all your might. You're a "bold adventuer" and she's not?

My better half (and that's often more than 50% of the time) can be dynamic and bold and... etc etc She can also be very 'straight', depending on the situation. There are distinct areas where we have worked out that I can run ragged, and others that we sorta call the 'comfort zone'. Maybe some negotiation - caring and understanding of eachothers interests/needs blah?

That said, probably got it all wrong. Cheers, :)
btw, who's Sally?
 
Yes, have lots of days like this :)

Though I'm more of the one who dislikes selling assets unless I have to - though I was convinced to divest a little last year.

I am also more of a risk-taker than my partner. So anything I proceed with either has to meet her risk profile or be 'on my own time'.

Cheers,

Aceyducey
 
Days like those! Yep!

My other half would like to leave the paid employment route also, and I suppose if we were to go down the line of living off equity it could be a reality, but that would be too far outside my comfort zone. While I don't know the ins and outs of your financial affairs I do believe you are doing nicely, but maybe Mrs Quiggles would prefer a bit more security before you leave paid employment for ever. :D
 
Hi Quiggles.

Sorry I don't have any sort of answer to offer, just wanted to say I loved the way the initial post was set out. For some reason, I conjured up a "Cleopatra" type setting, or even "Richest Man In Babylon".

Maybe we could twist that to "The Richest Man In O'Connor". I'm sure you would agree that has a nice ring to it :)

Regards
Marty
 
skater said:
Days like those! Yep!

My other half would like to leave the paid employment route also, and I suppose if we were to go down the line of living off equity it could be a reality, but that would be too far outside my comfort zone. While I don't know the ins and outs of your financial affairs I do believe you are doing nicely, but maybe Mrs Quiggles would prefer a bit more security before you leave paid employment for ever. :D
If we were game to live off equity we could've done it long ago, but the very thought gives us both the heebee jeebees. No, I'm happy to wait until I've replaced my effective salary and to work like hell to achieve that.
 
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