Ideas... not advice

[sptrawler]

I was reviewing this the other day and thanks again for the ideas.
2 years have passed. They turned out to be pretty good for us...and probably many here. This despite my wife studying 2020 rather than working. We are still working and will be for another several years - especially my younger wife ..But she wants to, so all is good there. Look above for the changes to our circumstances in 2 short years.
The figures in bold are the current figures.

I am currently preparing investment property 1 for sale. There will be CGT but with the 50% discount pro rata'd for the % of time it has been let it wont be too bad. And I can make a voluntary super in same FY contribution to minimise the hit.

Those funds will go towards the loan on the PPR - and will take the balance down to under 60k.

Interest rates will go up at some point so it seems a good time to do this with this unexpected CG.

Still happy to take ideas!

Sounds like you are doing fine lindsayf, the last year should have crystallised your plan and shown that once in a lifetime events are happening much more often.
I still operate on a very conservative plan, which still allows for the worst and hopes for the best.

 

[lindsayf]

Still going to plan....with a very good dose of good luck.
Prepped it and Sold IP1 and got it unconditional just before we went into lockdown.
Sold after 3 days on the market. Got 4 offers all above asking price. Accepted 415 without conditions with 30 day settlement and they waived the cooling off period. They were investors from Melbourne I understand.
Very glad I stuck to my market assessment and not the agents. He would have put it on the market for 50k less than I insisted on.
Doesn't say much for the quality of the 'market professionals' assessment skills..but we all know they are more interested in a quick commission than the best price for the seller. In this case both were achieved - more or less.

 

[divs4ever]

Still going to plan....with a very good dose of good luck.
Prepped it and Sold IP1 and got it unconditional just before we went into lockdown.
Sold after 3 days on the market. Got 4 offers all above asking price. Accepted 415 without conditions with 30 day settlement and they waived the cooling off period. They were investors from Melbourne I understand.
Very glad I stuck to my market assessment and not the agents. He would have put it on the market for 50k less than I insisted on.
Doesn't say much for the quality of the 'market professionals' assessment skills..but we all know they are more interested in a quick commission than the best price for the seller. In this case both were achieved - more or less.

well done , whether with it was good luck or not

enjoy

 

[lindsayf]

I was reviewing this the other day and thanks again for the ideas.
2 years have passed. They turned out to be pretty good for us...and probably many here. This despite my wife studying 2020 rather than working. We are still working and will be for another several years - especially my younger wife ..But she wants to, so all is good there. Look above for the changes to our circumstances in 2 short years.
The figures in bold are the current figures.

I am currently preparing investment property 1 for sale. There will be CGT but with the 50% discount pro rata'd for the % of time it has been let it wont be too bad. And I can make a voluntary super in same FY contribution to minimise the hit.

Those funds will go towards the loan on the PPR - and will take the balance down to under 60k.

Interest rates will go up at some point so it seems a good time to do this with this unexpected CG.

Still happy to take ideas!

And yet another 2 years passes.
Second inv property sold. Another bought.
Yet another incompetent and unethical RE agent tried his best to under value the property by over 50K
Had to bully him up to get it into a reasonable asking price range.
Sold quickly in asking range at first open house and we are happy with the price and disgusted with RE agents generally.
If I ever sell again - I will do it privately.

Sold the property because we wanted to buy a townhouse across the river in NSW. Not happy with the idea of being a LL in Victoria anymore.

So here we are now - holding the PPOR (20acres out of town) and a townhouse which we may rent long or short stay.
Former has zero debt but leaving loan facility in place to access liquid funds for trading or life expenses.
Latter owned outright.
Both of us still working.

I do like that we are currently not paying any interest.

Dont know what the next step is or what the global economy may have in store. But I am positioned to deploy cash into the stock market if the opportunity presents.

We have done ok so far with property dealings.
But a $ now is not the same as a $ from 5 or 10 years ago.

 

[tech/a]

Lindsey your post is an opportune time for me to perhaps add my strategies and findings.

Trading has always been a wonderful challenge and while making some good money Stocks and Futures is not something Id place over $500K in I personally have 2 other options which Pay way better and are less volatile.

I'm always keeping my future financial security foremost in mind.

Inflation erodes Cash So my self-managed fund is pretty void of excess cash in the whole scheme of things.

(1) I've selected Property as the vehicle to hedge inflation with. I have both a Private and Superfund portfolio.
only around 15% of property value is under any finance (Private).
The rent return on my initial capital invested is ---well amazing on 3 of the 5 properties and good enough on the other two.
The capital appreciation is stellar.

(2) The second choice is in business. Surplus cash is no longer wise to have sitting in cash flow.
Material Purchase ( Hot Dipped Galvanised Steel which doesn't degrade even over years) is returning 35-100% over a 6 mth period
demand is well over --- supply and used for my own company. (A clear advantage over competitors).

(3) The third part of the equation is being the sole equity Partner in my own company releasing TIME! (Selling is not an easy option and I don't have to).
The return as dividends on equity is way better than the Stock market and up there with Property in the short term and at times better.

So The passive income stream is 5 x Property rental.
Dividend returns from my own company
and Currently a wage as Im still 3-4 days a week until I fly off somewhere.

So this is how I've played it.
I've always said if I can control it then I'll do it.(Given an opportunity)

By That I mean Id never pass over 7 figures or even 6 figures to a third party to invest ----- no matter what the implied return was.

If you have income streams you just don't need to worry particularly if they are diversified.
Those streams are both in super and outside.

This may be helpful to someone in the planning process. I've been implementing the plan for over 30 years.

I wish anyone like Lindsey the very best.

PS Im definitely not adverse to using other people's money for investment where they receive an interest amount.
Most know about housing and trading leverage.

I can use it and other things as tax deductions or Depreciation and I can keep the capital gains and the money generated by say an equipment purchase. (Eg a $4000 a month Excavator purchase returns $ 140 an hour in net profit and they just keep working)

You could buy one---long term hire it and place an operator on it ---that's what I do with 10 of them.

Outside the square.

 

[tech/a]

Be one of the 1% ers.

I've been asked by some how the excavator idea works
I'll explain below but a similar principle can be used in all
Equity-type business investments.

I have some in a few diverse fields where I receive a return on
my investment as an equity partner. I also have contacts and
business expertise.

One is a small Paving Brick manufacturer and Laying company.
20% equity
And strangely one is a Nail Salon (private home ) 25% equity.
Both are doing well and have an expansion program in place.

So The excavator situation (Brief form) for me is part of my own
company.

I need them and I keep them going all week every week.

But there are companies like RAM, Orange Hire , Loadex who
specialize purely in the hire of Big ticket Heavy equipment hire along
with a large range of attachments.

Most are dry hire where you need to supply your own operator.
But some are wet hire where they come with an operator.

I have dry-hired some machines when we run short of our own.
Most mid-sized Civil companies do from time to time and the
Larger ones often hire machines for months.

The benefit for us is we don’t need to service them or keep log books
other than when on our sites. All safety requirements are met with these
new machines. Most hire companies sell them off at 2500 hrs. When
company warranties expire. (We have bought some in the past).


So if you had one say 20-25 tonne machine you’d only need a couple of
Companies who use you and would be very easy. Attachments make massive.
$$s. Like Drill Rigs and Rock breakers. It would be a business and you’d need to
Have your contacts. Obviously, the supplier would service the machine.

The return on $ invested even on one machine would be excellent once set up.
There are hire companies who float machines to site so you don’t need to own
A semi Client pays --- we have our own which is moving plant and material every day.

So there are hundreds of opportunities out there as an equity partner and more
If you have certain skills and excess $$s.
Everything should be in a business contract just like a house sale is.
Again, once set up is simple.
Keeping the original business owner as the principal means you have someone.
With a larger financial interest than you and a passion as its His/Hers.
I’m happy to be bought out once I’m not needed or add more if I see potential.

Eg my nail person has taken my advice and is looking at selling courses on line
Top end for 4 figures. Once in place, it's just an email /Australia Post rinse and
Repeat structure!

Don’t get me started on Fans Only. (investigating some of the opportunities here).
Way more diversified than the obvious. Its really marketing.

So I hope I've opened the eyes of some to ideas and opportunities never dreamed of.
If you can get some going you become in multiple areas from Property to Trading to
Business Equity partnerships or indeed small businesses can create multiple incomes.
Streams that can continue way beyond retirement.

It's not about how much you have its about how you use it!
Due diligence and professional help from Accountants and Solicitors you know and trust
Are a must.

Good luck.

You’ll never become wealthy working for a boss. Be one and at worst think like one.
A really good one!!!