I was chatting with one of my suppliers today and we were talking about businesses changing how they operate. He said that a commercial removalist told him this week that now around 75% of their business is "moving factories into houses". Basically small manufacturers and workshops who were tired of the overheads, staff and rent costs and over-regulation who just decided to scale down, drop the expenses and work at a smaller scale as solo operations from home. The supplier said "Wow, at least it's good for your business", the reply was "No, it sucks, what is going to happen to us once they all move?"
Isn't NR a commercial real estate landlord? What's the trend there atm? I'd love to hear it from the horses mouth... are small businesses having problems keeping up with the rent nowadays?
Australia has become too "fake rich" Like those men who drives nice cars yet are broke. Time to go back to the basics and stop spending like millionaires when you're just middle class. Trust me, you won't be any less happier with less junk! Well actually maybe they will since most are materialistic morons, but oh well too bad for them.
Interesting as NR does espouse the virtues of commercial real estate. My family's experience was that our commercial property, in the middle of a state capital stayed vacant for 4 years in the early 90s. Eventually it was leased out. However if tenants move out it can be problematic.
Your timing is impeccable... http://smh.domain.com.au/real-estate-news/flash-ride-an-agents-secret-weapon-20121215-2bg7b.html :lol:
"we're in our cars 95 per cent of our lives so we might as well enjoy the journey." 95%? LOL somebody didn't too well in maths
During the GFC we had 4 empty commecial buildings that I carried with mortgages on them and outgoings too. Its called sucking it in and not blinking. We also had one scumbag tennant who thought closing his doors and leaving the place like a bomb hit it and pissed off was ok. I got my pound of flesh it took two years. That is why Reno and I laugh at some of the comments from people who know nothing about investing in property come up with on this site. There are investors, speculators wanabees and the most common don't know what they wanna be they just wanna have fun. Kind Regards non recourse
What I am is a true investor. I haven't spent a lifetime building foundations to blow it off because the fashion for the next ten years is deleveraging. You want to time the market and go with the lemmings be my guest. One of my kids just came home from the office. He has just qualified as an accountant has started his CA training and he puts in serious hours and has since he was a cadet employee. For five years while doing his commerce degree he has watched,questioned and argued with me but slowly it has seeped in. He was expressing a view about two different trust structures I am looking at a business venture that has taken four years to come to fruition He now appreciates that the foundations in place will be there long after I and his mother are gone and he and his siblings children take over from them. Except for a smal number of old money families the usual result is the first generation makes it, the second spends it and the third loses it. Living in the past...... no mate our eyes since the beginning of our marriage have been on this; http://www.businessinsider.com/how-to-turn-your-family-into-old-money-2012-9?op=1 Kind Regards non recourse My wife and I love what we do and we have educated our children to be passionate about their life work and never ever just worked for money
A very interesting article there fella. I too was raised on a diet of hard work, no matter where you are or anything in your life, you work damn hard, or you get nothing. From 12 years old, I worked every day, or I didn't eat. To some nanny state softies, that's child abuse. To me, it made me a man before I was a teenager, and gave me a foundation for life. Some very strong themes in that article that I can relate to NR - thanks for pointing it out.
"In practice, investors act like befuddled crowds," write the authors. "They tend to bid up certain favorite investments far beyond what the random walk would suggest. This makes those investmentsthe very ones that most people want to buythe very worst ones, because they are selling above what a purely random system might provide." Read more: http://www.businessinsider.com/how-to-turn-your-family-into-old-money-2012-9?op=1#ixzz2FPMY8htm Sounds a bit like realestate to me.
I do believe in alot of what NR says and it coincides alot with what the book "Richest Man of Babylon" rules and I do think it still applies today. I have been foolish the last ten years of my life and just blowing money away rather than investing. Sure I've enjoyed the ride and have met quite interesting people along the way. Having learnt from alot of various clients about money, 2012 is the year I can gladly reflect upon as my awakening year. Now I have quite a few trust structures in place, and I am on my way to building my wealth too. Like NR, I also want to be my own bank.
"Only when the tide goes out do you discover who's been swimming naked." - Warren Buffet "When you combine ignorance and leverage, you get some pretty interesting results." - Warren Buffett "By a continuing process of inflation, government can confiscate, secretly and unobserved, an important part of the wealth of their citizens." - John Maynard Keynes Education: the inculcation of the incomprehensible into the indifferent by the incompetent. - John Maynard Keynes "I work for a Government I despise for ends I think criminal." -John Maynard Keynes The avoidance of taxes is the only intellectual pursuit that still carries any reward. -John Maynard Keynes "The way to crush the bourgeoisie is to grind them between the millstones of taxation and inflation." ~ Vladimir Lenin The ride is over boys and girls. Those that still value their wealth in toilet paper are about to find out that they have 20 cents on the dollar. Farming 101. The Boomers are ripe for a good squeeze.
Getting back to the original topic, despite the anecdotal nature of the conversation, I would personally still think that the smart property to own is commercial or retail if you are using it yourself to run a business that makes you money. The people that he mentioned who were getting out were renters, they were sick of paying rent and other expenses and just wanted to scale down and "go it alone". I would suspect that the model there would be to move away from an Australian manufacturing basis to a foreign import business in the same field where the owner can still use their expertise but not have to deal with commercial leasing, staffing and our crushing regulatory systems.
Whilst I agree with the general sentiment that there's really no where to run when you combine a paper trail and a desperate government, I would like to go on record here in this thread and say I appreciate NR's feedback. We don't see eye to eye on many things and have personality clashes from time to time, but the information provided here was logical and presented well, without the usual snide derogatory comment for the rest of us plebs looking on. I admit I'm envious as my own parents threw me on the street the first chance they got and where I am even now by most people's standards would be considered a 'miracle', but the parent in me appreciates the efforts he's going to in looking after his own and ensuring his family at least gets the opportunity some of us will never see. On top of that, he is in the envious position of not answering to anyone and not having to pander to asshole employers to put food on the table. We can debate the methods and ideology behind the business / wealth models until the cows come home, but looking at my own life experience and family driven priorities in life, I will tip the hat on this one & say thanks for the feedback.
They're probably moving to make space for the hordes of foreign firms moving in :lol: Source: Sydney Morning Herald
