Originally posted by Damap
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What Do You Do When You Get There?
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syd2chc, I don't think you have much of a problem.
A bit of a dilemma, yes. Work now and have lots of money down the track, or take it easy now, do the things you want to do now, and still be comfortable but not rich.
To some extent, this is the dilemma all investors have. Theoretically you can keep going until the day you drop dead. Always gearing up and buying another property or business or what have you. Just look at Rupert Murdoch
But most of us want to stop earlier, no reason to be the richest man in the graveyard and all that.
And I guess we each have to choose where that point is...Squadly dinky do!
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My rule was;
* Don't go to anyone other than the main four banks for borrowing. They are conservative.
Second tier lending has inherent risks which blow out when it starts to rain.
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Originally posted by Davo36 View PostYou could write a thread here on it. I'd be interested to hear about it for one.
Charlotte30
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Originally posted by Davo36 View Postsyd2chc, I don't think you have much of a problem.
A bit of a dilemma, yes. Work now and have lots of money down the track, or take it easy now, do the things you want to do now, and still be comfortable but not rich.
To some extent, this is the dilemma all investors have. Theoretically you can keep going until the day you drop dead. Always gearing up and buying another property or business or what have you. Just look at Rupert Murdoch
But most of us want to stop earlier, no reason to be the richest man in the graveyard and all that.
And I guess we each have to choose where that point is...
I feel very fortunate knowing that if I died tomorrow I've done almost everything I've ever wanted to do.
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Originally posted by Davo36 View Postsyd2chc, I don't think you have much of a problem.
A bit of a dilemma, yes. Work now and have lots of money down the track, or take it easy now, do the things you want to do now, and still be comfortable but not rich.
To some extent, this is the dilemma all investors have. Theoretically you can keep going until the day you drop dead. Always gearing up and buying another property or business or what have you. Just look at Rupert Murdoch
But most of us want to stop earlier, no reason to be the richest man in the graveyard and all that.
And I guess we each have to choose where that point is...
When I do "get there" I plan to have more free time and quality time with the family and travel (barely left the country so far)
Also looking to volunteer in my community, be the cool dad at the school camps, generally enjoy life and still be useful to society at the same time
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Originally posted by speights boy View PostWhy is paying off debt "really annoying" ?
For someone who has been around a while I would have thought it was a priority.
The answer to that question is yes and no.
IMO debt in my name is a priority. That was eliminated but have just purchased another property!!! (could not help myself I must be addicted)
That one new property explains things. 10% gross return. 50% LVR produces 12% net on money invested. Like about three times what I could get in fixed deposit.
Coming back to my commercial syndicate. Once you enter them it is hard to exit. Returns are usually better than you can manage by yourself. So a one off investment is a prudent approach. These sort of investments are pretty well hands off investments. So it is reasonable to expect a good consistent cash return. With a below average interest rate less than the rate of return from the property it is possible to gain a very good rate of return on the money invested. That theory gets shot to pieces if your income is spent on paying principle on the internally financed loan. Sure if we live long enough our interest payments reduce and our investment increases. The problem with the mathematics of that argument is our rate of return on money invested keeps reducing to the interest rate the bank charges. The other issue is for every dollar that the syndicate company pays off our common mortgage we all need to earn close to two times that dollar due to income tax and if you think about it the 15% GST. (we could have a good discussion on GST in these sorts of situations)
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Originally posted by Damap View PostI'd have to write a book to explain what happened. We had a LOT of real estate and Murphy was testing his laws on us :-).
But we survived!
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Originally posted by Keys View PostMy rule was;
* Don't go to anyone other than the main four banks for borrowing. They are conservative.
Second tier lending has inherent risks which blow out when it starts to rain.
DONT BREAK THE LAW,BREAK THE RULES,
and i am on of them thanks
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