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End Game \ Retirement Category

Discussion in 'Help & Feedback' started by Vassago, 30th Oct, 2015.

  1. Vassago

    Vassago Active Member

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    Would be a nice section to split up for people to discuss when & how they made it and tips etc for retirement.

    These threads are currently split in different sections (Investor Psychology and Living Room)
     
  2. Ace in the Hole

    Ace in the Hole Well-Known Member Premium Member

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    I'd guess it would be pretty empty.
    I mean if you were really done for good, you wouldn't bother keeping in touch with anything related to investing or making money cos you'd be too busy enjoying your life.
     
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  3. Travelbug

    Travelbug Well-Known Member

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    I don't believe there would be many in the "done for good" category. Even if you've finished buying you still keep tabs with the market. Unless you sell everything you still need to know what's happening in the market. And a bargain is hard to pass up.

    I don't think there would be enough traffic for a separate section though. There are many threads on how people have "made it". Whether retired or not.
     
  4. hobo

    hobo Well-Known Member

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    I like the name "End Game". :)

    But yeah, not sure what it would be used for.

    An area for people to plan out how to get to retirement / financial security??

    Or maybe for people who were able to relax (however much they choose) and be comfortable that their passive income is enough, ie they are (or could be, if they chose) "retired"...??

    I still like the name. :D
     
  5. Xenia

    Xenia Adelaide Property Manager Business Member

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    I will keep growing and building wealth and working until I die.

    I have an investor client who is 85, still develops property, still works on his properties and his portfolio expands every year - he is my vision.
     
  6. MTR

    MTR Well-Known Member Premium Member

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    Same here Xenia, I gave up day job in 2006, but have continued to invest and develop more skills.

    Seems most of the investors I know never really stop investing. Also I have a goal to teach my children what I know and do JV with them

    MTR
     
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  7. D.T.

    D.T. Adelaide Property Manager Business Member

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    Why would anyone want to stop, its fun and rewarding :)
     
  8. Azazel

    Azazel Well-Known Member

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    Believe it or not, there are ways to find out what's happening in a market without being on a RE forum :eek: ;)
     
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  9. Lacrim

    Lacrim Well-Known Member

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    Hi MTR, I like the idea of being able to actively buy IPs post 'retirement' but how does one continue to invest, let alone develop, without a fairly strong and constant cashflow stream?

    Is it your US properties that are enabling you to continue?
     
  10. MTR

    MTR Well-Known Member Premium Member

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    No, US income is really more for living expenses and also to use rental funds to buy more properties in US. The way we structured this its not necessarily looking good on paper when we submit tax returns in Australia

    I have holding costs for deve sites, which is offset somewhat my positive cash flow in Australia and LOC.

    At the moment I am averaging around 2 development projects pa.

    Each development project generates around $150K? or more dependent on the deal. I now have 2 years of tax returns once my accountant finalises this so I should have no issues servicing loans

    I have a project management company set up and this shows income, and we buy in the Trust and my accountant works strategises each year.

    The last 2 projects I had to use low doc loans and my accountant signed off on these, in terms of income which is not an issue as he can see my projections etc.

    MTR:)
     
  11. Daniel007

    Daniel007 Well-Known Member

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    How is your turnaround so quick? Do you target smaller developments because they're easier/quicker to make your profit and move to the next one?
     
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  12. Lacrim

    Lacrim Well-Known Member

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    Thanks MTR, so cut long story short, are you saying that your accountant is structuring your finances in such a way, that you present the $150K profit for the developments as recurring income to the banks?
     
  13. MTR

    MTR Well-Known Member Premium Member

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    No, not at all, its dependent on a number of factors, all I am stating is I develop as a business and this generates an income.
    Income is dependent on projects and number completed, ie....when it sells and what I keep and the financial year that the project is completed.
     
  14. MTR

    MTR Well-Known Member Premium Member

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    I purchased 3 development sites 3 years ago, I have completed 2 and another will be completed in February, 4 townhouses, 3 have already sold OTP.
    I have another with council at the moment, I settled about 1 month ago, but had a 6 month settlement, during this period I used this time to organise plans and permits together.

    Some developments can be quick turnover, ie cut up land in 2 lots and sell off, 8 month turnaround time. Put together plans and permits 6-8 months dependent on whether there are any objections.

    If you are interested in viewing one of my projects the numbers go to SS (Spearwood), I sold all 3 villas as Perth market was starting to tank

    MTR:)
     
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  15. Lacrim

    Lacrim Well-Known Member

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    Thanks MTR but still a bit confused - I'm guessing that any profits that you make from your developments need to be ploughed back as a deposit for the next property/development (if the profit is sufficient of course).

    Otherwise you'd have to dip into savings/equity to make up the difference. Presuming you had this, you'd still have to borrow the remaining funds to buy the next developable block and construction costs from the Bank.

    What I'm a bit stumped by is how you've managed to secure lending from the bank without a fairly substantial stream of income - either from a business or PAYG.
     
  16. Travelbug

    Travelbug Well-Known Member

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    Yeah but it's not as fun. :D

    BTW I didn't say you need to be on a RE forum. I said there wouldn't be many who would fit the category.
     
  17. Azazel

    Azazel Well-Known Member

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    I would rather be out and about kicking tyres on houses than sitting in an office sometimes...
     
  18. geoffw

    geoffw Moderator Staff Member

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    That means you buy trailers in a trailer park?
     
  19. MTR

    MTR Well-Known Member Premium Member

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    It is confusing, I should clarify.

    We fund developments using bank money, we need to service loans just like everyone else.

    We take income from our profits from our developments, so we pay tax on this just as any business, this is how we service our loans.

    Banks require 2 years of income tax returns, we now have this. Prior to this, we used lo doc loans and my accountant signed off on the income because the projects were not completed.

    There are other developers on this forum who do the same, its about creating an income stream from developing property.

    MTR:)
     
  20. MTR

    MTR Well-Known Member Premium Member

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    I don't see the need myself just my opinion.