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  • Originally posted by Damap View Post
    I'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!
    You could write a thread here on it. I'd be interested to hear about it for one.
    Squadly dinky do!

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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.
        www.3888444.co.nz
        Facebook Page

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        • Originally posted by Davo36 View Post
          You could write a thread here on it. I'd be interested to hear about it for one.
          I also would be interested to hear. Always keen to learn from others. I have been investing for 12 years and have been through two roller coaster rides when all I could do was hang on until I came out the other side.
          Charlotte30

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          • Originally posted by Davo36 View Post
            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...
            You are right, it's a good problem to have. My son will turn 5 in 2017, I'm half thinking of coming back to NZ around a year before that so he can go to kindy with the kids he'll go to school with and we will try to purchase our next property then, hopefully timed with the downturn.

            I feel very fortunate knowing that if I died tomorrow I've done almost everything I've ever wanted to do.

            Comment


            • Write it! Or at the very least start a thread here. I find the writing process to be cathartic. You may find the same.

              Comment


              • Originally posted by Davo36 View Post
                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...
                Good thread. Three months ago I wrote out a plan to be retired from my dayjob (own my own business) and live off the proceeds of my rentals and sale of my business by age 40. Sometimes having an exit strategy can be harder than knowing what to do when you retire....

                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
                Last edited by GenY; 03-01-2015, 03:00 PM. Reason: Spelling

                Comment


                • Originally posted by speights boy View Post
                  Why is paying off debt "really annoying" ?
                  For someone who has been around a while I would have thought it was a priority.
                  Goodness lots of good comments flowing.
                  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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                  • I recommend you guys a good book must read, retire young and retire rich thanks

                    Comment


                    • Originally posted by Damap View Post
                      I'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!
                      Do you think you actually might write it? I would love to read such a story, would be educational having leveraged and bought a lot of properties quickly myself.

                      Comment


                      • well done Damap, who DARES WINS!!

                        And trust me, it pays to be a winner

                        Comment


                        • Eugene, you never know your luck in the big city!
                          I doubt I could find the time these days but maybe one day.

                          Comment


                          • Originally posted by Keys View Post
                            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.
                            Hi Keys, your rule was the investor of yesterday, today there is new breed of investor, the one with the motto.

                            DONT BREAK THE LAW,BREAK THE RULES,

                            and i am on of them thanks

                            Comment


                            • Soon he will be the part of the "what the f**k happened" breed when he goes tits up. Unlike you and I keys :-)

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                              • Still looking for the "like" button Dmap.
                                www.3888444.co.nz
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