How Much Cash Flow Could I Get Using My House Equity?

“How much can I get in cash flow from the equity in my house if I invest in commercial property?” That’s the question that came up recently. It fits the age-old saying “How long is a piece of string” and it’s not far off “what is the sound of one hand clapping”. But, never afraid of a challenge, I’ve decided to try and quantify the length of string to help you get a handle on commercial returns. You might even be able to use that …

Focus on cash flow but don’t get obsessed

  Most people work for 40 years or more before they retire. That’s a long time to commit yourself to building your retirement nest egg. Not to mention taking 25 or 30 years of that to buy your home. Did you ever hear that Bill Gates quote – I think it’s Bill Gates – Might be Tony Robbins… “Most people overestimate what they can do in one year and underestimate what they can do in ten years.” ― Bill Gates or Tony Robbins… Maybe some …

Suddenly the rainbow ends in South Australia – will other follow?

South Australia is burdened with the highest unemployment rate out of all the Australian states. It also had a sluggish economy, and its property market drags its heels like a sulky kid who dropped his ice-cream. But a few years ago the South Australian government conceived of a plan to change all that. It’s been slowly phased in over the last year or so and sometime this year it will be in full effect. The SA govt has bravely gone where no other state government …

New rules for developers – but who cares?

I’ve noticed that some councils have started to allow people to build much more on house blocks. It used to be that a 350 sqm block used to be the smallest house block you could build on… And you could build one house, and that’s all. Architects, small developers and a population increasingly worried about affordability have been pushing for smaller options. There’s already a “small house movement” where people are building homes on the back of large trailers… But now some councils are dipping …

Roman warnings about your profit expectations

  When you start a business there are a lot of expenses. If you have offices or a shopfront there will be a fitout. There’s stock to buy, maybe staff to pay and legal and insurances which you need to get in place before you can even open the doors. All of that adds up to a big outlay up front before you’ve even made a single brass razoo. People generally know this and it’s not uncommon to factor into a business plan that the …

Where people lose focus

  I wanted to share something that I believe holds a lot of people back from achieving more. It’s to do with where you focus… And one thing you may be forgetting to focus on. Your first instinct might be to say “Nah-James that doesn’t happen for me”, but you’d be surprised how often I see this one thing come up fro people in all kinds of subtle and covertly unconscious ways. Happens to me all the time. It’s this: The feeling that because someone …

How long can you sit around doing not much?

When I moved up to Byron Bay many years ago I wasn’t actually moving here. I’d bought a property that was a bit of a fixer-upper and I just came up here to renovate the place. I just never left. I did renovate the place – but I also fell in love with Byron Bay and decided to stay. At the time I’d already created enough passive income to live on so there were no worries there, but I didn’t have any specific purpose for …

Who’s the boss here anyway?!?

I remember back in the dark ages when I was a youth and got my first job. I remember the feeling of being at the mercy of the boss… Like, in a way, I lived and died at his whim… He could sack me any time and I would be without a job and have no money… In reality it probably wasn’t all that serious, but I know I didn’t like the feeling of having someone else in charge of whether I had money or …

The Goose That Laid The Golden Egg

Some years ago I purchased a shop with an apartment upstairs in Bondi. Over that time it’s produced awesome cash flow for me. A few years ago, with zoning and planning changes in the area, I was able to build up and adding two apartments above which added to the cash flow considerably. The original leases, of course, had built in rental increases, which, subsequently increased the value of the property over time. But when you start adding on apartments, you not only increase the …

The Time Factor in Commercial Contracts that Help You Make Money

  Use your time wisely I took a call from an old friend last night. She was asking me for some advice about a property that she wanted to buy. It was a small, old run-down house (I know right! The cheek of calling me and asking me about residential) that was going to auction at the end of the week. Small… old… ugly… with bonus asbestos. Not ideal – but it was cheap, so it had that going for it. She told me about …