Positive cash flow - goal to earn 30k a year.

Discussion in 'Investment Strategy' started by barduck, 20th Sep, 2018.

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  1. hash_investor

    hash_investor Well-Known Member

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    why is that a better business? I have found that almost all small take aways close down after a few years.
     
  2. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    Yes, but you would also want to try to borrow at main residence rates - which may entail splitting the loan and paying it down and redrawing again, in a way that you get a tax deduction for the interest.

    1) - why 'after', you would ideally want income and CG while you are paying everything off.
     
  3. barduck

    barduck Member

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    'After' in the sense that I may not have the borrowing capacity to purchase residential properties straight away that may be suitable. Also the first year that I move into my ppor, I will likely be spending alot for the first few months on furniture, appliances etc as I have none of these currently.

    Thanks for the tip on loan splits i will look into this
     
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  4. Perthguy

    Perthguy Well-Known Member

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    I'm exactly the same. It's not popular with some posters on here but I run my own race and always have. What others think of me isn't important to me.
     
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  5. Perthguy

    Perthguy Well-Known Member

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    There are areas in Perth where you absolutely do not want to build a granny flat and other areas where it is a no brainer. A lot of careful research is required here.
     
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  6. NHG

    NHG Well-Known Member

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    Amen.

    I heard this concept recently, can't remember the poster:
    A lot of people chase this financial freedom as if it is the solution for all the problems in their life.

    Taking a look at Maslow's hierarchy of needs:

    [​IMG]

    ALL reaching financial independence does, is it takes care of the bottom layer or two. If you're dealing with some serious personal crap, it isn't going to do diddly. If anything, it likely makes it worse because now you have ALL this extra time to think about it without work being a distraction.

    Besides, is the hierarchy even a pyramid? Maybe it's upside down and the physiological and safety needs are the small ones, and the self-actualization is what takes serious work. Maybe it's a ladder. Maybe it goes in circles.

    This insane focus to 'escape' the rate race is a rat race in itself. If you ain't content with $50k, you won't be with $500k. The day I stopped trying to run away from hard work and create a 'passive income' (which I think is a myth), is the day I started making bank.

    That's why I love business. It's art, a form of self expression, the better you are at it, the more people get to enjoy it and help you grow it.

    So many other areas of life to explore. Don't 'do what you love', love what you do, embrace the journey, because we all have one-way tickets to the morgue, whether you enjoy the journey or not.

    Edit:
    *found the talk*
     
    Last edited: 27th Sep, 2018
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  7. Perthguy

    Perthguy Well-Known Member

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    @NHG. I like that. I have not reached my full potential and I doubt I ever will. But I will die trying to ;)