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Why is Freedom a long term thing?
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It takes times to grow. Yes, grow in your mind and your
habits. Habits of spending, habits of saving and habits
of investing. The quicker you have developed good Freedom
habits, the quicker you will be FREE. |
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I'm happy with my life, why change?
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I'm not asking you to change anything. If you want Freedom,
some things will obviously need to change else you wouldn't
be telling me how happy you are. |
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Won't the Government be looking after me when I retire?
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I would like to think so, but in reality - no. Less
than 10% of retirees will be self-supportive from their
super and pension, and living below the poverty line doesn't
sound like fun. You better get into it and look after
yourself. |
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Don't shares have a better return on investment than
property?
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Ok, yes and no. Shares appear to have a better return in percentages but you can’t use leverage (a loan) on shares for the average investor, i.e. say you have a spare $100,000 (lucky you) and you buy shares with this $100,000. Then your friend has the same amount of money and uses it as a deposit to buy a property up to say $500,000 and the tenant pays rent which makes the difference on the loan. If the market has an increase of 10% in both arenas, your shares will increase only by $10,000 (hey ten grand is still ten grand) but the property has increased by a massive $50,000. Even if the shares have a growth of 20% ($20,000) it won’t ever keep up with property. |
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Have you got a book on this stuff? If so, where
do I get it?
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No I haven't written one as yet, but if you read some
of the Recommended
Reading you will be on your way. |
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When selling a house is it better to spend the money
on landscaping or not?
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Each property and situation will be different.
For a more appealing look I would say, yes, spend from
$1,000 to $3,000 to freshen things up. However if your
house is a bit of a dump, then no amount of landscaping
will help. So generally, Yes, but as I mentioned earlier,
each property is different. |
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Can you still find any properties with no money down?
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If I said "no", you may take it on face value
and not even look. However if I said "yes, there
are out there for the taking" you will hunt them
down till you find one. So like the Good Book says, "Seek
and you shall find". |
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Is vacant land a good investment?
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It all comes down to the numbers. If it is growing faster
than the outlay expenses, then yes. If you buy a 600m²
house block and sit and hold it with no capital growth
for two years, why keep pouring money into it? However,
if it was a few thousand square metres in suburbia, you
have a huge potential for growth. Check values often. |
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I'm thinking of buying a unit off the plan. Is this
common?
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Yes this is, but be careful. Research this well as it
can be a mine field for the novice, but also very profitable
for some. |
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How many years should I hold onto my rental property
before I sell it?
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If you don't have to sell, then DON'T. However, if selling
will get you Free where you are living now, then sell.
The longer the better, or not at all, is the best long
term result. |
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What are conveyancing costs for the average property
sale?
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This will vary from State to State. Here in Queensland
for a standard residential Sale you can expect to pay
anywhere from $300 to $500. For a Purchase, approximately
$400 to $600 plus Stamp Duty and Searches. Ring around,
some are better than others. Remember cheapest isn't always
the cheapest. |
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How do I work out the stamp duty for my next property
purchase?
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When you check out how much finance you can get, your
finance person should be able to roughly work this out
for you. Your Conveyancer/Solicitor will do this for you
as well with accuracy or you can check it out for youself
by using the online
Duty calculator. |
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How long will it take me to become Free from debt?
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Everyone's circumstances will be different from others.
Have you a plan or are you trying to just wing it with
a hopeful Lotto win. Follow my 12 Steps to Financial
Freedom and you will be able to tell me how long
you will take to get there. Plan and plan well. |
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