A sign of the economic times?

[Shaddam IV]

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?"

 

[Auspm]

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?

 

[wrcmad]

You can only squeeze so much blood from a stone.

 

[Ernster]

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.

 

[Byron]

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?

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.

 

[Auspm]

Australia has become too "fake rich" Like those men who drives nice cars yet are broke.

Your timing is impeccable...

Flash ride an agent's secret weapon

WHAT is it about eastern suburbs real estate agents and their cars? Property listings (and big commissions) were harder to come by this year, but you wouldn't have seen too many rocking up to open homes in a clapped-out Valiant.

Beemers, Audis and Mercedes-Benzes are most common, though one highly successful and suave inner-city principal gets about in a sleek grey Maserati and his co-owner, a Porsche.

But it's the Double Bay set that takes things up a notch. One leading duo have ''matching'' Aston Martins. In the same neighbourhood, one of the best has just taken delivery of a brand spanking new white Bentley, though he isn't keen to go public with it.

''I'm happy to talk to you about real estate, but my personal life and my toys are strictly personal,'' he says.

The white Bentley isn't just a boy thing, nor the shyness. Alison Coopes pulled out of a planned photo shoot in her white Bentley convertible at the last minute.

''I'm pretty embarrassed about the car, to be honest,'' Coopes says. ''Basically I'm driving it because my husband chose it.

''It just guzzles the fuel I'd much prefer a Ferrari California.''

A red one, perhaps? One off-the-plan marketer celebrated a highly successful year by purchasing a bright red Ferrari 519. ''I only bought it for fun,'' he says. ''I've just always wanted one.'' He was shy on the pic, too.

Even young inner-city agents in trendy suburbs such as Surry Hills and Darlinghurst have to look the part, which can be tough on a $40,000 starting salary heavily reliant on commissions.

For BresicWhitney go-getter Nic Krasnostein, his Audi A5 coupe is the same as having ''a nice suit''. ''People judge you on the way that you arrive at an appointment,'' he says. ''It's a reflection of how you do business.''

His colleague Dominic Kuneman, in his Audi TT RS, points out that agents receive a car allowance as part of their salary package that goes towards their car's lease arrangement. ''It's a leap of faith,'' says Kuneman, 27, who has notched up a couple of million-dollar Bourke Street sales this year. ''I think having a nice car motivates you we're in our cars 95 per cent of our lives so we might as well enjoy the journey.''

http://smh.domain.com.au/real-estate-news/flash-ride-an-agents-secret-weapon-20121215-2bg7b.html


:lol:

 

[Ernster]

"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

 

[willrocks]

"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

Maybe they sleep in there too?

 

[nonrecourse]

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?

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.

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

 

[valuecreator]

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?

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.

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

You're living in the past.

The tide has turned and you don't realize it yet!

 

[nonrecourse]

You're living in the past.

The tide has turned and you don't realize it yet!

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

 

[RhythmDoctor]

You're living in the past.

The tide has turned and you don't realize it yet!

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.

 

[southerncross]

"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.

 

[valuecreator]

Business Insider. You must be joking.

 

[GiLa]

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.

 

[valuecreator]

"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.

 

[Shaddam IV]

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.

 

[Auspm]

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.

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.

 

[Ouch]

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?"

They're probably moving to make space for the hordes of foreign firms moving in :lol:

TWO months ago Swedish furniture company Ikea fingered Australia as one of the most expensive places to do business yet committed to doubling its store footprint in the next few years.

It seems Ikea is not alone. For all the whinging by retailers about the tough conditions in Australia, including the high Australian dollar and an online disadvantage due to the GST-free threshold, ever more international retailers are opening up physical stores and customising their websites to target the Australian wallet.

Source: Sydney Morning Herald

 

[hiho]

You can only squeeze so much blood from a stone.

Yes thats right, are you listening Julia?