Tenant protected from effects of the GFC
- Thread starter Rob Williams
- Start date
It's a win-win deal. I get close to full market rate (she gets a bit of a discount to allow for the fact that I'm not losing rent during tenant changover) and she gets to keep her cat (few strata groups and fewer landlords are pet friendly).
Yield as a percentage of current value of the property would be around 5%. This is a blue chip suburb where the median yield is more like 4%-4.5%.
The big picture is that there is no safe heaven from the GFC, even if your money is in cash in the safest banks.
If I would have moved my cash from the euro to Australia$ I would have lost over 20% in the last few months, and for sure I would have realised it one day when I want to buy a nice european car or Kitchen.
In this GFC there is like a war between lender and borrower and inflation/deflation, if borrower win the war backed by government bailout I don't want to have any money in any banks and I am better off spending my money now and stop been a lender (debt will loose value compare to assets). If lender won the war I don't want to be a borrower and pay back all my debt that would increase in value more then assets. The safe option is the one that makes you either not a lender or a borrower, or perhaps to lend money in a country that is much more likely to pay back your money or borrow in one that for sure is not going to be solvent.
I wonder then where did she put her money left from her home sales?
If I would have moved my cash from the euro to Australia$ I would have lost over 20% in the last few months, and for sure I would have realised it one day when I want to buy a nice european car or Kitchen.
In this GFC there is like a war between lender and borrower and inflation/deflation, if borrower win the war backed by government bailout I don't want to have any money in any banks and I am better off spending my money now and stop been a lender (debt will loose value compare to assets). If lender won the war I don't want to be a borrower and pay back all my debt that would increase in value more then assets. The safe option is the one that makes you either not a lender or a borrower, or perhaps to lend money in a country that is much more likely to pay back your money or borrow in one that for sure is not going to be solvent.
I wonder then where did she put her money left from her home sales?
But was she happy ??
We are constantly told that as long as you are happy doing what you like doing....that's all that counts.
She sounds like a happy soul, and therefore that's all that counts apparently.
It's a load of old codswallop of course, but there you have it.
Nice joke Rob....I laughed a tad. Reminds me of the Colonel's outlets up in Asia during the bird flu crisis. The were quickly changed to KFF as they only sold fish. No chook to be had.
Was and still is, it would seem. New furniture, Foxtel, a job that will keep her occupied until she's 65 and an endless supply of Winnie Blues on the coffee table. What else could one want.
Happiness is a matter of perception, isn't it. Codswallop, indeed!
....that's gotta be bad for business and hurt the cashflow if she thinks the LL is just great.
Like most of this forum, all of my tenants think I'm an absolute pr1ck. Money focussed, with not a compassionat ebone in my body. That's exactly where I want to be. Helps during negotiations when they play the emotive card.
I like to instill the 'ouch' factor into my tenants.
Every time we communicate, they are fully aware that they are paying absolute top dollar for what they are currently using....and as soon as they don't feel like that, it's time to up the rent levels again.
I definitely don't want to win any of these "best Landlord" competitions.
LOL - she sounds like a simple person. But i can't stop thinking - nothing ventured, nothing gained?? Makes me wonder what her inspirations and goals in life could be? What keeps her going... her cat and winnie blues
And having the best landlord she could ever hope for!
TPFKAD:
Rob Williams:
....maybe the 5-HTTLPR gene.
There was another thread, not all that long ago, something was asked about people that choose to invest, and keep on investing, not just the PPOR or holiday house at the beach, or one, maybe two IP's..but the very low percentage of people that have a red hot crack at it.
I was quite surprised at the low numbers/percentages that were mentioned, something like 2% of general population? get themselves an IP, then it falls away again for a couple of IP's, and again for the red hot cracker group.
It has always interested me, why people do what they do, or don't do for that matter ...GoAnna answered with a really interesting post. I've looked for it, but it's still hiding somewhere.
Rob Williams:
....maybe the 5-HTTLPR gene.
There was another thread, not all that long ago, something was asked about people that choose to invest, and keep on investing, not just the PPOR or holiday house at the beach, or one, maybe two IP's..but the very low percentage of people that have a red hot crack at it.
I was quite surprised at the low numbers/percentages that were mentioned, something like 2% of general population? get themselves an IP, then it falls away again for a couple of IP's, and again for the red hot cracker group.
It has always interested me, why people do what they do, or don't do for that matter ...GoAnna answered with a really interesting post. I've looked for it, but it's still hiding somewhere.
According to Quoll's thread some time ago on ATO stats, I think it's around 5% of the population that invest in at least one IP. From memory, only about 0.5% have 5 or more IP's.
The rest belong to what Rixter calls the 40/40 club - working 40 hours pw for 40 years so they can retire on super and pension.
The rest belong to what Rixter calls the 40/40 club - working 40 hours pw for 40 years so they can retire on super and pension.
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