Comments on: A Vacation Question – Part II

By: Mike Hunt

Mike Hunt — Sat, 16 Jan 2010 04:43:21 +0000

Thanks AJC- been meaning to check out Noosa.

By: A (post)Vacation Question – Part III- 7million7years

A (post)Vacation Question – Part III- 7million7years — Mon, 11 Jan 2010 12:41:58 +0000

[...] to semi-anonymity, yet risk little by answering Mike’s [and, some of our other readers'] question: ”Which beach in Australia is [...]

By: Mike Hunt

Mike Hunt — Mon, 11 Jan 2010 06:13:43 +0000

AJC,

Which beach in Australia is this?

Are you sure he’s making thousands per day? At even 200 customers a day – a pretty big number – that would be $700 per day of revenue. He’s got to pay for gasoline and flavorings plus the electricity to make & shave the ice- so maybe his profit is about $500. Does he have to pay income tax on that?

And if he works 7 days a week he is netting about $14K per month. Not bad by any stretch of the imagination.

-Mike

By: ill liquidity

ill liquidity — Thu, 07 Jan 2010 02:20:06 +0000

what does one have to do to become an australian? where is it that one would find one of these ice vending carts?

By: Ryan @ Planting Dollars

Ryan @ Planting Dollars — Thu, 07 Jan 2010 01:53:27 +0000

I ran into this scenario all the time when working with investors. Often they weren’t ready to retire, yet they didn’t want to manage any more properties, so it came down to how much money they wanted to earn versus the hassle of more tenants or employees. Most would simply choose to do it slower and accept about 40-50% equity in their properties to lower their risk yet still have some leverage.

Either way I think you’re sitting in a pretty good spot if you have to stop and ask yourself that question.

By: Adrian

Adrian — Thu, 07 Jan 2010 00:05:59 +0000

@ TraineeInvestor – In Aus you could get ‘low doc’ (no audited accounts or proof of income required) loans for 100% or even 110% finance (until GFC). I doubt that an 80% loan would have been an issue … even today.

By: traineeinvestor

traineeinvestor — Wed, 06 Jan 2010 09:14:15 +0000

I’m looking forward to the day when I can have those sorts of conversations with my daughters.

Given the nature of his business (lack of a steady pay check and probably no audited accounts), I’d be a little bit surprised if the banks would lend him 80% on property purchases (unless he had other assets he could also put up as security). Would that be normal in Australia (either before or after the credit crisis)?