I think a good financial planner/ accountant should add value to set your structures and investment vehicles up. Hopefully they can show you how others who may be more successful manage their affairs then it should be up to you to select the investments after doing your own research and due diligence. If you leave it all to your planner (not…[Read more]

Simon’s right. Its only a relevant interest that counts. If you don’t move into it, then it should be OK. I wouldn’t intentionally be defrauding the govt. Would hate to get an audit. Apparently they’ll ask ou to show proof like send in copies of drivers licence, change in electoral roll, utility bills…etc..

On another note, anyone have any…[Read more]

I’m not sure which part of Syd you’re living but you could probably get a unit for $350K with your deposit. This way your “dead money” rent is going to pay your P&I loan instead and you can start to build equity in your CGT free PPOR. Once built enough equity, set up LOC and move on from there.

I believe Celebration, Home Buyers and Dale Alcock are the same mob. They seem to be the best. Had one done around 10 months in SW. Engaged Celebration to do another in April and almost caught up to other with Content when plans drafted end last year! They’re short the works – if its not brickies one week, its roofers or plasterers. Think the Dale…[Read more]

Taxes are a necessary evil but where some countries’ highest MTR is 10-15%, I often wonder where Mr Howard is spending our hard earned dollars. Since I live here by choice, I shouldn’t complain too much but it sure sux when half your bonus virtually disappears before you.

I agree with most that Syd and Melb won’t take off in the next couple of…[Read more]

I’m also struggling with the same dielemma. From where I’m looking to buy and live, even the cheapest 1 bedder will cost me in excess of $325K. And unfortunately I cannot find a strategy in converting the equity in all my IPs to equity in PPOR so I don’t need such a huge mortgage to get in to the market. Only way to increase deposit is to sell IPs…[Read more]

I had a couple of those and solesly for Credit Cards only. Seeing I’m onmy IP acquisition phase, I’m trying very hard to not be tempted by these new c/cards companies offering zero/low interest for 6month transfers..etc… I’ve got enough IP queries on my file as it is and try not to sign the bank’s finance applications unless I’m pretty sure I’m…[Read more]

Thanks for that Terryw. Might be a bit troublesome to show audit trail for rent to come from family/friend but for all purposes, I could argue that its just like any other IP. Might continue to use parent’s address for correspondences with ATO/electorate so it doesn’t create alarm bells with me claiming deductions from IP owned by the trust which…[Read more]

Hi Babu88,

Just with your comments below:

“The brief answer to this is that when the property becomes net positive cash flow in the future, the trust will then borrow the funds to re-purchase the units from the one who owns them (this person will pay out his loan with the bank).”

I read that in Trust Magic as well and was trying to work out how…[Read more]

Candy,

i too live in Syd and have IPs in WA. Theres is simply no way I will do this without a PM. They charge more than over here – up to 8.5% plus GST but negotiable if you have a few IPs. I have built a good relationship with mine and she gets on top of problems ASAP. Especially with this storm they just had. Also helped out in organising the…[Read more]

Thanks for all the info guys. Ohblessed, can I ask what “county recorders” are? I’ve looked at the land titles office but looks like I need to pay $8 everytime and then I suppose I need to try to locate the owner through the white pages. Will give it a try. Cheers

Thanks Mortgage Adviser. You must be a night owl just like me!

Hi guys, thanks for the ideas. I know my accountant is a bit conservative and not too IP savvy (time to change accountant me thinks..) so not sure if she’ll be confident on the draw down equity from IP, loan to trust on a higher rate part for trust to then acquire IP (with added borrowings). I think the rent from trust part (as long as its market…[Read more]

Hi guys, Thanks for both your responses. I think I do want that cake and eat it too. I really want to access that equity but have that equity be tax deductible also. I think Terry may be right, the only way to do that is either to sell or with the joint borrowing scenario. I suppose the trick is to increase the IP loan and for the increase to be a…[Read more]

Hi Stargazer,

Check out http://www.vanguard.com.au. Not sure how big they are in Oz but in the states, they are huge. Look up index investing in google to get a feel. Essentially investing in these is simple and based on premise that funds managers do not outperform index in long term – I’m talking 5-10 years plus and even if they do, not by huge…[Read more]

Hi guys,

This is my first post so be gentle. I think this forum is great to pick up valuable info on IPs. I’m still relatively new to IPs but have in the very short time done found a little success compared to my previous experience with the share market. I was trying to pick stocks back in 99-01 during the tech hype. You’d be up $30-$40K in a…[Read more]