The totally off-topic thread

[Milboo]

Wouldn't say this one is Private Equity as much as the tightening (shrinking) market showing up the massive cracks in any Franchise System and the punitive margins the head Franchisor demands/levies on everything. Private Equity doesn't help in any case. There are a number of Franchise systems that will come under pressure I feel in the coming years.

Franchising is a minefield for sure. The issue at the very core is that most franchisers are corporate entities and/ or multi branded franchisors. Then on the other hand, many franchisees are mum and dads or sole traders. For one the model is about business and the other, it's personal and the 2 don't quite meet in the middle, especially when issues arise.

 

[JohnK]

Every passing day without incident is a blessing and one less day to worry about. Getting closer....

 

[mannej]

Every passing day without incident is a blessing and one less day to worry about. Getting closer....

That is what I like to hear!

 

[whatmeworry]

Franchising is a minefield for sure. The issue at the very core is that most franchisers are corporate entities and/ or multi branded franchisors. Then on the other hand, many franchisees are mum and dads or sole traders. For one the model is about business and the other, it's personal and the 2 don't quite meet in the middle, especially when issues arise.

I still can't believe 7/11 is still in business. They take a 55% cut of profits excluding fuel. I guess that is why they still turn a blind eye to under paying workers. Modern day slavers.

 

[GarrettM]

Any fans/proponents/detractors of salary sacrificing here? Doing a seminar at work this afternoon and curious about wider perspectives.

 

[Pushka]

Any fans/proponents/detractors of salary sacrificing here? Doing a seminar at work this afternoon and curious about wider perspectives.

We salary sacrifice because we are into transition to retirement mode. Except, due to share market vagaries, our sacrifice seems to be getting swallowed up in one gulp. We have never worked for benevolent institutions so have never participated in the 'other kind' of salary sacrifice.

 

[andye]

I use Hospital salary sacrificing for novated car lease-it works well for me. I'm less sure it works so well for lower taxed groups where the main advantage of the novated lease is the lack of need for a deposit. I expect many buy a newer/more expensive car than they would otherwise. In addition when you drill down the repayments, the interest rate is not always competitive-leasing companies are very obscure about this

I also use the FBT-free salary packaging threshold for expenses (credit card bill/mortgage) which is a no-brainer for most (understand there may be implications if you have HECS/childcare payments)

Sadly the Meal entertainment benefit is capped now but will easily use this year's threshold. I always use the retrospective receipt method, not the Meal Entertainment card as I wanted the CC points

 

[medhead]

Working for a PBI/hospital salary sacrifice works well. I've never been able to see the benefit of car leasing if I'm not planning to replace my car and it still works well. But if you have a newish car there could be the option to put that onto a package, which should work out well, I think.

 

[docjames]

The issue with the car leasing last I looked (March) was that with the inflated interest rates, any reduction is tax is swallowed by the poor rate so I would be better off redrawing from my home loan (even in post-tax dollars).

I can see where it would work if you didn't have a home loan. Or if you could force them down on interest rate to make it worthwhile, but the typical interest rate is double the standard mortgage rate so any tax benefit is lost. Plus any "saving" they demonstrate on purchase price and GST is also swallowed by the interest rate.

 

[andye]

The issue with the car leasing last I looked (March) was that with the inflated interest rates, any reduction is tax is swallowed by the poor rate so I would be better off redrawing from my home loan (even in post-tax dollars).

I can see where it would work if you didn't have a home loan. Or if you could force them down on interest rate to make it worthwhile, but the typical interest rate is double the standard mortgage rate so any tax benefit is lost. Plus any "saving" they demonstrate on purchase price and GST is also swallowed by the interest rate.

My feeling is that they choose the interest rate so that the car cost is essentially neutral. The tax advantages are mainly gained on the running costs. Running costs are often relatively low in first year of a new car (no rego, CTP, tyres).

When comparing quotes the key number is the Monthly Lease Cost as the running expenses will be similar whoever you go with (some providers deflate the running costs estimates to look better).

There is a lot of talk of 'savings'. If you buy a new car, the savings will indeed be more but you will almost always be better off sourcing a nearly new one

 

[medhead]

The issue with the car leasing last I looked (March) was that with the inflated interest rates, any reduction is tax is swallowed by the poor rate so I would be better off redrawing from my home loan (even in post-tax dollars).

I can see where it would work if you didn't have a home loan. Or if you could force them down on interest rate to make it worthwhile, but the typical interest rate is double the standard mortgage rate so any tax benefit is lost. Plus any "saving" they demonstrate on purchase price and GST is also swallowed by the interest rate.

Agreed. the savings calculation is a bit tricky as well, since its basis is "if you purchased the exact same deal with and without sacrificing." If I purchased without then I wouldn't do the same deal! The quotes I've seen also seem to force you onto their insurance company.

 

[Foreigner]

5 BR home (unit) in Hong Kong sells for usd81m:

Wheelock Sells Hong Kong Peak Luxury Mansion for $81 Million - Bloomberg

 

[JessicaTam]

Agreed. the savings calculation is a bit tricky as well, since its basis is "if you purchased the exact same deal with and without sacrificing." If I purchased without then I wouldn't do the same deal! The quotes I've seen also seem to force you onto their insurance company.

I salary sacrifice a novated lease, and I have always been able to choose the insurer. If they are trying to force you into a particular insurance company I suggest you vote with your feet and look elsewhere.

 

[marki]

5 BR home (unit) in Hong Kong sells for usd81m:

Wheelock Sells Hong Kong Peak Luxury Mansion for $81 Million - Bloomberg

Was it not expecting more ?

 

[medhead]

I salary sacrifice a novated lease, and I have always been able to choose the insurer. If they are trying to force you into a particular insurance company I suggest you vote with your feet and look elsewhere.

hahaha. Work only has one contracted provider.

I'm more annoyed by the 50% of savings being paid to the employer rubbish.

 

[Foreigner]

Was it not expecting more ?

Reported that "The sale price works out to HK$78,000 per square foot, or an 11 percent discount compared with the first villa the company sold in February...for HK$740 million, or HK$80,672 per square foot."

 

[Mal]

5 BR home (unit) in Hong Kong sells for usd81m:

Wheelock Sells Hong Kong Peak Luxury Mansion for $81 Million - Bloomberg

That's nothing!! London's first £150m flat: 12 bedroom site for sale in Admiralty Arch | London | News | London Evening Standard

 

[Mal]

Wouldn't say this one is Private Equity as much as the tightening (shrinking) market showing up the massive cracks in any Franchise System and the punitive margins the head Franchisor demands/levies on everything. Private Equity doesn't help in any case. There are a number of Franchise systems that will come under pressure I feel in the coming years.

Another interesting article: Private equity's botched pizza strategy

I think ineptitude from the Private Equity fund and stripping of funds was to blame. This article does discuss some of these points.

 

[love_the_life]

ABC News had a piece on the Battle of Fromelles this evening Pushka. Didn't you say your brother has gone over for the ceremony?

 

[penegal]

A couple of grey nomads playing Uno in an exec lounge. No Pokemon here...