I was only basing that on the doco I had for V8 Lexus a few years ago. The service interval showed 100,000 miles for the belt. Here it was 100,000 for the same belt. Maybe they have updated since then, or other manufacturers factor in the miles/km difference.
When do you know your a millionaire?
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I was only basing that on the doco I had for V8 Lexus a few years ago. The service interval showed 100,000 miles for the belt. Here it was 100,000 for the same belt. Maybe they have updated since then, or other manufacturers factor in the miles/km difference.
BV, but with the 5 M PPOR no debt, you can leverage it (to buy fully managed business) and have the income for the millionaire lifestyle. How could you not count it
Quite correct Soya - but there's the trick; you have to use the equity - then you could count it.
Of course; it's all viewpoints.
A has already been said -
"A million is not what it used to be"
When I was starting out a million dollars would buy you 50 houses in the western subs just buying at asking price. Now you will get 2 1/2 houses. A big difference and easily quantified.
As far as how to calculate. I think you should include your PPOR (as it can be loaned against) and just work out the liquidated value ala net worth (not including the imagined value of doodads
)Cheers
I agree with..."when you sell up everything and pay off debts and have $1m in cash and own your PPOR outright".....that's a proper millionaire.
You wouldn't want to be renting then next week after paying rent, fall off the millionair list would you.....lol lol
I think $10m is the new "millionaire".....
Maybe even $100mil
That meesly little 1 mil just doesn't go very far anymore.
Cheers
Graeme
I have about 2m equity in my PPOR and certainly consider it to be an asset. I can borrow against it and when it goes up, i can potentially live on the equity fairy $$$ anyway. I owe at best maybe 100k of non-deductable debt.
I sold all my ip's to pay cash for my ppor as i couldnt beleive how much they had gone up and didnt believe it would last - yes a dumb decision.
I still have 2 but little equity.
So if i didnt included my PPOR my net worth would be very small but i think you can use it anyway. I could sell, buy a PPOR for 700k cash and buy in a different suburb and load up on ip's again with 1.2ish in equity.
I sold all my ip's to pay cash
for my ppor as i couldnt beleive how much they had gone up and didnt believe it would last - yes a dumb decision. I still have 2 but little equity.
So if i didnt included my PPOR my net worth would be very small but i think you can use it anyway. I could sell, buy a PPOR for 700k cash and buy in a different suburb and load up on ip's again with 1.2ish in equity.
Seriously
Let's say you have $1 million cash and a PPOR paid oof as well.
You put it in the bank and get 5% return, if you had it in paid off RE you'd get about the same.
According to the ATO you have:
Gross Quarterly Earnings: $50,500.00
Tax Applicable: $9,568.00
Net Pay: $40,423.00
Lets assume rates, bills phone electricity etc $5000, car rego & insurance etc $2000 + $1,000 fuel = $3,000 your left with $32,423 and you still have to buy food & clothes at say $7,000.
Your now left with $25,423yr or $489 wk of expendable income.
Sure it's better than a kick in the bum, but does $489 a week give you a "millionaire" lifestyle?
Or with some more risk stick it in some shares and get 7.3 % which is $73,000 plus a franking tax credit of $21,900. total earnings $94,900 with tax of $25,060 leaving you $69,300 some $29k more than your previous calculation.
But I take your point that even $69,300 would not buy a millionaire lifestyle but at least with this sort of an investment you are a little bit more attuned to working your money.
Cheers
PS You would also make as many of those expenses mentioned business expenses accrued as part of managing your investments.
That "more risk" may have bought in >300-500K in capital losses and large cuts in dividends.
Ahhhhh. But you didn't ask if it would give you a "millionaire" lifestyle. You said "One million in assets only is actually quite poor. Do the calcs and you'll see."
Two VERY different statements, don't you think. Maybe ask someone living in a park tonight if "one million in assets is actually quite poor" and see what they think.
And of course you get no government benefits as your in the "rich" category.
You forget I threw in a fully paid PPOR in the calcs.
If you had to rent @ 300wk , then you have left $9,823yr or $189wk.
If you ask me that's quite poor imo in this country and if you count my expense assumptions it makes for a rather austere (& poor) existence.
The person living in the park may have never done anything, but the person with $1million may have worked 30yrs for it, be a millionaire, and still not have many bob to "rub together".
You forget I threw in a fully paid PPOR in the calcs.
If you had to rent @ 300wk , then you have left $9,823yr or $189wk.
If you ask me that's quite poor imo in this country and if you count my expense assumptions it makes for a rather austere (& poor) existence.
The person living in the park may have never done anything, but the person with $1million may have worked 30yrs for it, be a millionaire, and still not have many bob to "rub together".
Agreed with Rob on this. To us, we think when you live in a debt free home and have at least $1m net worth (liquidated value). This is not a millionaire lifestyle.
Tracey
Tracey
When a cute 19yr Brazilian is more than happy to light up your big Cuban cigar with her $ 100 bill.
Isn't it amazing how they find the millionaires in the world?
Attracted by.....love?
When a cute 19yr Brazilian is more than happy to light up your big Cuban cigar with her $ 100 bill.
Or, when a cutie WITH a Brazilian lights up my cigar with MY $100 bill.
I have about 2m equity in my PPOR and certainly consider it to be an asset. I can borrow against it and when it goes up, i can potentially live on the equity fairy $$$ anyway. I owe at best maybe 100k of non-deductable debt.
I sold all my ip's to pay cash
I still have 2 but little equity.
So if i didnt included my PPOR my net worth would be very small but i think you can use it anyway. I could sell, buy a PPOR for 700k cash and buy in a different suburb and load up on ip's again with 1.2ish in equity.
So, considering you have a PPoR with $2 mill equity, and 2 IP's with little equity - they would be neg geared I assume;
You would therefore need;
1. a relatively high paying job to keep it all afloat and live some sort of lifestyle,
2. or a good nett income from other investments you haven't mentioned,
3. or both.
Assuming the first scenario, being a millionaire from a PPoR doesn't really allow you to live like one.
We have over $1 mill in equity in property now, and it has never felt like millionaire status since the first day we realised it - went to work the next day, and the next - just like before being "rich".
However, if you give me a million dollars worth of equity in a few businesses which throw me a couple of hundred grand nett per year to pay with.....
The critical factor in this is INCOME from the nett worth. No fun being a Billionaire with no cashflow - this wouldn't happen of course, but you see my point.
I dont need to be a millionaire though to find a brazilian with a brazilian to wrap her laughing gear around my cuban!!!!!!
(have I just taken it too far?)
Big T
In terms of simple money, then once one has 1mill plus in investments that no one but yourself has total contol over then, in my simple opinion you are a millionare, not that it means anything
and as most people overestimate the unusual and i think it comes down too assessing the difference between what people actually know and how much they think they know,when i started out all i wanted to make was 100k,once i did that the rest was easy....imho willair..
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