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An open question to anyone...if selling and reducing debt meant huge positive cashflows for you, BUT, having to pay the highest marginal tax rate on that income...would you still sell?
An open question to anyone...if selling and reducing debt meant huge positive cashflows for you, BUT, having to pay the highest marginal tax rate on that income...would you still sell?
I think we'll keep feeding it via the job for a wee bit longer, then switch to feeding it via excessive rents from other props later on, allowing me to ditch the job............. We'll still be chipping in significant sums for most folks even then.
In the immortal words of that turgid TV show - "No deal".
So when will you sell ?In the immortal words of that turgid TV show - "No deal".
So when will you sell ?
When do you intend to start derisking your portfolio ? The gambler says - just one more throw of the dice..... and eventually they get unlucky.....
And "planning to end up filthy rich, but failing that I'll be going down in a blaze of glory" doesn't cut the mustard as a response? If not, I'd better work on coming up with a better answer...Finally – what’s my exit strategy ??
Finally – what’s my exit strategy ?? This is always a cracker and one that the Bankers always hit me up with. It’s very new age and very hip to enunciate what your exit strategy is….and if you don’t have one, apparently that makes you an amateur, someone who hasn’t fully thought through all the options. I never play ball with stuff like that.
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No, I plan on controlling my portfolio for the next 70 years of my life, and then after I pop my clogs, will continue to control it via the Testamentary trust we have set up.
Because the only way to gain equity is to takes risks (often high risks as Dazz acknowledges). If you continue to take high risks then eventually it is LIKELY that the house of cards will crumble. The Packer example is one of those that didn't crumble - there are likely 99 nameless others whose pack did crumble. In the long term IP & Commercial IP are low risk investments, however in the medium term they can be high risk (enduring the flat/down part of the cycle). Dazz has riden the up bit of the cycle and has gained great equity. His bankers (who are older & have experienced more than one cycle, but don't have his risk tolerance or income) are suggesting that the down cycle exists and that things that are out of his control may possibly affect his asset valuations & cash flow. Sure lots of risks are managed - big bonds, rent reviews, lots of onerous exit/break clauses, fixed rates. But the macro risks are v. hard to mitigage against.WHY an exit strategy?
Exit strategy? What exit strategy??? Or, more to the point, WHY an exit strategy?
The problem is that little of it is controllable.
Couldn't be bothered reading the whole thread.
In a word 'SELL' cash up and look for other opportunities or not.
I was advised late in 2006 that the smart money was cashing out of both equity and property markets and going into cash and just waiting on the sidelines for this current ill wind that is blowing across the globe.
Yes, and this is one aspect where we "small fry" actually have an advantage over the Buffetts and Packers. We only buy individual properties, and the performance of "the market" isn't as relevant to us; the only thing that's relevant is how our investment performs. If you hold a very diverse, large portfolio, you're going to perform pretty much the same as "the market", whereas we small fry have the opportunity to out-perform it. Of course we can also perform worsehmmmm if Daz had listened to that advice in 2006 he wouldn't have bought this deal that could yield him millions in profit in less than a year. There's always plenty of general advice out there on the wider markets that doesn't apply to individual deals, food for thought....