TerryW

Oops, I see that Jan’s book didn’t say if it was HDT, presumably a normal family trust.

With HDT, if structured correctly, the individual lend the borrowed sum to the trust (company trustee) by buying units in the trust. So he is entitled to negative gearing while the trust benefitted from rent revenue and claim full expenses (other than…[Read more]

Now and then, I return to the forum to share and learn. I’ve done more on the latter. Yet, I can only speak for myself.

There are those of us newbies trying to read and keep abreast of changes in the finance market for investment purposes. Asking a few questions to satisfy curiosity is hardly a crime. The ‘stupid’ thing to do is to act with…[Read more]

Thanks for speedy reply, Qld007. No apology needed.

Been to see a FP last month, she highly recommended using one from her referral soources. At this stage we haven’t done a complete figure on what we need, but glad to know you’re able to help.

Now I really show my true ignorance here – can you offer pointers on how work out a list of…[Read more]

You know what they say about Murphy’s Law. I’ve been lucky with other types of insurance, income protection policy should not be ignored as there can be too much at stake if injury strikes…

brc, do you have any good sources as to which brokers?

I suppose the industry super fund can help at good rate – we’ve life and TPD insurances through an…[Read more]

Kjs, we’re here to learn and are warned enough times in the forum to back up opinions with qualified professionals with expertise in properties.

I cannot underestimate MB opinions. Loan features are constantly changing as well as the rigid tax compliance issue to boot. Where do you turn Kjs? Reading this thread alone said a lot…

Afterall MBs…[Read more]

Yes, Elka, it’s been a hot topic for a while in this forum.

It is a undeniable risk that the loan provider do not want to spell out in bold print….., I’d like buyers to heed the warning here and make suitable adjustments to justify the risks taken on. The promoter of these loan prey on those that can least afford this type of ‘cheap’ loans by…[Read more]

I read the article ‘In Your Best Interest’ in the October issue of API. It was almost cut and dry in attempting to answer the interest deductibility concerns we have as investors. I quote the following pointers:

1. No change on deductibility of interest, for that matter, interest on interest. (It was implied that normal business with overdraft…[Read more]

Hi Dom

Interesting read and good to toss this around for opinions.

I’ve just listened to Steve’s take in the mini-seminar for his Book #3 launch. Sounds like he’s got very conservative in the current change in property trend generally.

Property definitely has its place in one’s overall wealth creation asset selections, albeit the savvy may try…[Read more]

Hi BreakEven

The following is a checklist I’d use for any Mortgage Broker:

1. only use MIAA Accredited Mortgage Consultant (see MIAA website for detail)

2. check the number of lenders on their books (wide choice of lenders available to you maybe a good thing)

3. how do they get paid (you are entitled to have their fee disclosure to minimise…[Read more]

Thank you all for contributing your expertise in this thread.

Now, I’m almost tempted to join your line of work. Great job satisfaction for helping people achieving their goals; your integrity will be rewarded beyond the commissions (and trails)….. See, I’m learning.[laughing]

Thanks Terry, I think you have answered my concerns on interest…[Read more]

Hi all,

Thanks John for taking care in replying to my late posts. I’m grateful for the generosity demonstrated by all.

John, I understand the business loan should ideally be independent from personal or investment purpose to follow strict tax compliance guideline.

My last question relates to the cost saving on the loan stamp duty (originally…[Read more]

Hi Simon,

Following your line of discussion, “..to deny shares or property as a bad investment is to rob yourself of 50% of the boom action each cycle.”

I just want to add that some experts (with some vested interests) would say, “it’s time in the market rather than timing the market” that has a long term winning strategy.

I find myself…[Read more]

Geez, I don’t know what I don’t know… Thanks for clarifying that JohnSmith.

I really appreciate you pointing out the split loan trap on claiming interest later. It is definitely something the broker in contact was unaware of the issue here.

Yes, I do recall reading from posts in this forum the Offset is the way to go. But I’m not clear on…[Read more]

Thank you Terry and Simon for your replies; I guess I must heed your warnings and play it safe as you guys have seen the bad things happened to the uninitiated more so than we do.

Hmmm, it’s all talk for now as I’m waiting for settlement of my other property before doing anything. All the more reason to do my due diligence. [blush2]

CT

Hi elkam,

Thanks for your input; that’s more like what I thought it feasible. Otherwise it’s a blatant miuse of the ruling and spelled tax avoiding scheme no matter how one looks at it.

Anyway, there are people doing just that and have deep pockets to defend their stakes… The penalties may be slap on the wrists to them, but too much to bear…[Read more]

Hi Terry,

Why do I need a lawyer for ? [blink]

I haven’t done anything remotely like those cunning devils the case studies; although I’m certainly jealous [jealous] for those in the know who dared to test the unchartered waters to create inconspicuous wealth.

I suppose the lawyers cost them enough to fight their cases in the end.., and I for…[Read more]

Hi Simon,

It’s all well for learning from the case studies. As a general sweeping statement – the compound or capitalisation of interest is allowed, if there is evidence in subtantiating the purpose test for property (or any other business) investing (using LOC) to generate income.

But is it allowed to generate loss as a result to claim…[Read more]

Thanks, Simon for the your reply.

I understand one is better off getting loan from conventional channel like the banks before looking at these nonbank lenders. There are reasons I look elsewhere. Also LMI is not charged regardless of LVR – are you referring to deferred LMI option?

The Mortgage Originator (MO) I spoke with has a range of…[Read more]

Hi D and V8ghia, I think the problem is proving that it was fusion; and the onus is on me to prove with the support of the power supplier (in this case Alinta). So, it’s much ‘easier’ if I can make claim through Alinta.

Thank you all for your replies. Now it’s all done, machine works beautifully. I thought the repairer was courteous,…[Read more]

Hi Celeste, Terry was right in that an ordinary discetionery trust is ineffective to allow negative gearing, assuming the individual has the finance arranged in his/her name (not the trust).

Other HDT benefits are

* the ability for other “lower income bracket” unit holder to buy back the units later for CGT reason,

* and of course, asset…[Read more]