ahhh yeah ...but it ain't that simple. IF you're self employed and IF you own the commercial premises the business occupies then the strategy 'gels'. But for the average wage slave with wife and kids (and I was one up to 55) nothing but nothing beats a geared resi IP portfolio OUTSIDE super. You can't renovate/improve/develop inside SMSF. You also cannot release the equity of IPs in a SMSF and BOTH are KEY to building equity & growing a large flock. Also much better to use spare cash flow to NG OUTSIDE super than to just contribute to super. LL
The 'so how many properties do you have?' question and how to deal with it politely
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ahhh yeah ...but it ain't that simple. IF you're self employed and IF you own the commercial premises the business occupies then the strategy 'gels'. But for the average wage slave with wife and kids (and I was one up to 55) nothing but nothing beats a geared resi IP portfolio OUTSIDE super. You can't renovate/improve/develop inside SMSF. You also cannot release the equity of IPs in a SMSF and BOTH are KEY to building equity & growing a large flock. Also much better to use spare cash flow to NG OUTSIDE super than to just contribute to super. LL
Post-2008 some cities were fairly flat in terms of growth. Didn't that worry you? Or is it more a matter of withdraw out 10 years worth of living expenses and worry about it at a future date? Are you worried what banks will say when an 'unemployable' guy goes back to them for more funds?
Perhaps some of this stuff should be split into a separate thread?
Yep. Post 2008 I'd punt all capital cities have been flat. That's the cycle. Read Jan's books. Now the growth cycle is here. No it doesn't worry us. The system is LOE ....not LOG ( Live On Growth ...I just made that one up !). When I jumped we had enough equity for "years". Bank is happy. No problems there. I don't see us going back to the bank into the forseeable future. IRs will be low or lowish for quite a while. IPs are increasing in value. If we want to have a "splurge" we just sell an IP. All good.
PS If the bank ever "questions" we just offer to 'cash out' the whole portfolio, which would work but as Buffett says " Cash is a horrible asset class ... no hope of growth". Our current LVR is about 50% over the whole of assets. LL
Hi Jane! So what answer do you give to the 'generally curious / trying to start a conversation'?
That's actually the best response I've heard!
It's not lying and side steps the question in a humorous way. The sub communication is 'I have a few, but we are not going get specific about how many'.
Depending on the interest level any of the following might suit:
1. Not as much as the bank does
2. Enough to house 26 people
3. Enough to get to my goal
4. OMG you can see me I thought I was invisible...
5. Pass the sauce
6. How about those Tigers/Blues/All Blacks?
Jane
Back on topic: I rarely get asked.
I use to but after my "tree change country move" our life is very different and as are the people we know. Many are middle income and into enjoying their efforts earlier in life.
We are much more likely to be asked:
Q. How many acres do you have (because), how many horses/ponies do you run.
A. None, we free agist at friends, and 2 ours, total managed 4.
I would like to comment on PT Bear statement that it is not the no. off but equity that mattered. I.e. One of my horse friends, if you meet her, appears to be not that financially successful, a bit muddle headed.
We have made friends as she is generous and fair in barter (like me) and it turns what you see is not what is reality.
She actually owns house in the inner city Melbourne, and owns a significant horse property here in the ranges with full time on site manager. Brand new float worth $15k and new car worth $45k. All leisure not business. From her discussions on money, debt is not present. That is $2M equity at least. Not bad...
Peter
I use to but after my "tree change country move" our life is very different and as are the people we know. Many are middle income and into enjoying their efforts earlier in life.
We are much more likely to be asked:
Q. How many acres do you have (because), how many horses/ponies do you run.
A. None, we free agist at friends, and 2 ours, total managed 4.
I would like to comment on PT Bear statement that it is not the no. off but equity that mattered. I.e. One of my horse friends, if you meet her, appears to be not that financially successful, a bit muddle headed.
We have made friends as she is generous and fair in barter (like me) and it turns what you see is not what is reality.
She actually owns house in the inner city Melbourne, and owns a significant horse property here in the ranges with full time on site manager. Brand new float worth $15k and new car worth $45k. All leisure not business. From her discussions on money, debt is not present. That is $2M equity at least. Not bad...
Peter
Dont judge book by covers.
Some of old ladies are very savvy.
A not for profit group I work with recently got contacted by a solicitors who said said "my client, and elderly window, wishes to make anon donation please need bank details!!!
Alarm but we checked it out and to was legit, bingo $25,000 landed in acct.
And we were not the only group to benefit.
Peter
Everyone always asks me this -- it's almost a running joke because they all think I'm crazy.
When I was in my early 20's the answer was "about 10" but friends didn;t realise mostly that these 10 houses were CRAPPY, worth under 100k - usually 50k, in godforsaken parts of thr world like Rocky and Orange!!!
Now I have 4 quality places in Sydney, my husband bought 2 with him when we married, and together we have 2. I put his name on my purchases. So the question is a bit silly as there's now no straight answer.
I usually say 3 (as don;t include jointly owned residence, etc)...
People are impressed and entertained and I think it's great to share, although frustrating as noone ever takes my property advice!!! They just think I'm nuts but actually -- I'm rich!!!
When I was in my early 20's the answer was "about 10" but friends didn;t realise mostly that these 10 houses were CRAPPY, worth under 100k - usually 50k, in godforsaken parts of thr world like Rocky and Orange!!!
Now I have 4 quality places in Sydney, my husband bought 2 with him when we married, and together we have 2. I put his name on my purchases. So the question is a bit silly as there's now no straight answer.
I usually say 3 (as don;t include jointly owned residence, etc)...
People are impressed and entertained and I think it's great to share, although frustrating as noone ever takes my property advice!!! They just think I'm nuts but actually -- I'm rich!!!
I find this is quite common, people would rather listen to someone who hasn't made it as opposed to someone who has steadily accumulated wealth. It baffles me.
+1 - ...usually those who have done well talk themselves down, or not at all.
yes often people who are comfortable with their wealth do not feel the need to display it or give explanations/details.
1 answer to the question could be, why do you want to know? someone we know gives very little a way but did mention once their land tax bill...it was eye watering.
a lot depends on the individuals having the conversation, and their relationship. is it polite to ask? how do you know the answer is even the truth? the number held gives no indication of wealth, without lots more information. debt/cashflow equity etc.
enough is a good answer, if an answer is asked.
1 answer to the question could be, why do you want to know? someone we know gives very little a way but did mention once their land tax bill...it was eye watering.
a lot depends on the individuals having the conversation, and their relationship. is it polite to ask? how do you know the answer is even the truth? the number held gives no indication of wealth, without lots more information. debt/cashflow equity etc.
enough is a good answer, if an answer is asked.
500
Only after a dyno-tune
For split second you had me
as I know many people with 25 and a few with 100.In fact, they are like cars/toys when you consider this:
- the old FJ out the back still waiting to be restored (the older unsound horse you took on to improve and sell but never have the time)
- your first car, now a paddock basher (ahh..pony no 1 , old, faithful, worth nothing but costs to keep)
- your everyday car (your pleasure riding horse does the job)
- your show car, polished, primped, only brought out a few hrs to win a trophy and put back under cover ( your show pony/horse, polished, primped, only brought out a few hrs to win a trophy and put back under cover
- your rally car, it goes fast, loose and loves mud ( your games pony, it goes fast, loose, and loves mud)
- Your drag car goes really fast but only in straight line (that ex racehorse thoroughbred you picked up two speeds: walk and gallop, very dangerous, no brakes)
- Your race car, squirting around bends, over bumps, all good (your show jumper, tight , fast, leaps everything, sometimes even with you on it)
LOL Peter 14.7
+1 couldn't agree more. That's can be applied not just to finances in life but to actually living this life.
I am advising a good friend at the moment. She is ok but so niave and she is a doctor?!?!
The scammers are saying "SMSF" and "look at the tax savings" and I say, IGNORE THAT... get CF+!
I raise this as it is stuns me but hey, that is why us here can make $$$.
Anyhow, I nailed her when I said I will shut up if you ask those so called experts this, "who many do YOU have!" It is is not more than me ( she knows and it is more than a couple) listen to ME! Then the penny dropped!!!
However I only think it is still a 50% chance she will listen. And if you knew the income and the equity she has, OMG. She could have 10 IPS and not even touch the sides!!!
Peter
The scammers are saying "SMSF" and "look at the tax savings" and I say, IGNORE THAT... get CF+!
I raise this as it is stuns me but hey, that is why us here can make $$$.
Anyhow, I nailed her when I said I will shut up if you ask those so called experts this, "who many do YOU have!" It is is not more than me ( she knows and it is more than a couple) listen to ME! Then the penny dropped!!!
However I only think it is still a 50% chance she will listen. And if you knew the income and the equity she has, OMG
. She could have 10 IPS and not even touch the sides!!!Peter
LOL. Nailed her down to an issue.
Mind you..... a doctor as a wife earning $$$$$, owing outright her PPOR and wanting to invest and leaving it up to you....that would be someone's fantasy out there for sure.
Me, I have the "so WHY do we need another IP" and "I am retired I don't want to go back to earning $$$$" wife..Sigh....
Depending on who you talk to, sometimes more is better or they don't want to talk to you.
