Friday, 21 January 2011

On using debt to get rich today

To those with whom I have recently discussed the wisdom of taking on significant debt in order to buy income-producing rental properties (partly for tax reasons, although I would imagine that in truth it is also because they don't have the resources to do it otherwise), in spite of the fact they too believe the world is heading into very choppy economic waters (a large part of why they are looking for income-producing assets in the first place), here is just one small piece of evidence to support my case that you had better pick and choose your properties and tenants very carefully, and make sure you have a good relationship with your banker. Perhaps being just a little bit lucky will help too...

BBC:Rent arrears rise again say letting agents

This is before the... choppiness... starts. The world has changed, and it's going to change a lot more IMO. We can no longer get rich the way our fathers did, unfortunately. Tread carefully my friends, I wish you good luck!

8 comments:

Dave Narby said...

I have a feeling rents are going to become more and more negotiable as things progress...

DP said...

I'm wid yoo, TC

thedeadfauvi said...

This should help you starting a good week:

http://imarketnews.com/node/25457

I'm so nervous for the next 4 weaks, that BTFD is soooo difiicult to plan...

DP said...

Are the Burlington Town Fire Brigade up to something in February..? :->

Thanks for the link to the Sarkozy quotes article, appreciated. ;-)

Some nice hints in there about where we're going aren't there?

"The dollar plays a prominent role and should be strong." No plans to tip the US into hyperinflation then.

"But preponderant currency does not mean the only currency." A number of regional/national reserve currencies should be expected.

"Who could think we could replace the dollar with the [IMF's] SDRs?" Don't waste any time looking at those any more then.

"To say there is a monetary system is an error. We haven't had one since 1971." Implies, to me, that as far as France is concerned you don't have a monetary system if it doesn't reference gold in any way, given the clear symbolism of the 1971 reference.

"France does not want to return to a fixed currency regime." It's float-float-float, all the way baby.

"Unproductive accumulation of foreign exchange reserves." China/Japan/etc (Germany? Naaahh...) to turn inward and focus more on domestic demand rather than just exporting their way to prosperity?

"If the IMF doesn't do it [financial monitoring], who will? Nobody." Well, that answers the question what the IMF will do with itself in future then.

As I say, a rich set of pointers. Thanks! ;-)

Dave Narby said...

' "The dollar plays a prominent role and should be strong." No plans to tip the US into hyperinflation then. '

Remember, that's what France wants (and I'm sure the Fed wants too), ...But it might not be avoidable.

DP said...

We'll have to wait and see I guess

Dave Narby said...

' "The dollar plays a prominent role and should be strong." No plans to tip the US into hyperinflation then. '

Remember, that's what France wants (and I'm sure the Fed wants too), ...But it might not be avoidable.

DP said...

I'm wid yoo, TC

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