Terry, the doomsayers have some valid points as the affordability issue is quite glaring in the current climate of uncertainty. I have to admit we owe it to ourselves to act responsibly to see our way clear of mass hype and chaos.

Properties are lumpy and one cannot get out as quickly compared to stocks (or shares). Three points are clear from…[Read more]

Thanks heaps Terry for the privilege. I understand it all boils down to the wording of the deed and the unit holder eventually buying up units to enable further borrowings.

You’re right in pointing out the detrimental effect of having finance in the trustee’s (in this case a company) name – any initial negative income is then quarantined in the…[Read more]

Thanks for the opportunity to join in this thread. I’d be grateful if anyone can explain the added issue of negative gearing in situation where a Hybrid DT is set up to invest in property for the purposes of distributing income and asset protection.

I gather it can only be done if the loan is under the name of the individual (beneficiary to the…[Read more]

Fantastic news!!

On a personal front, I do not give up easily when others see it as “it’s too late”. My lawyer (Malaysia) is chasing a reculcitrant tenant for rent in arrears. Small fee but well worth the effort.

CT

My, I thought we are here to learn through forum; I didn’t think this was the place to stir up emotions or be condemned by personal opinions.

No problem on fee for service at all. Far from it, the concern here is that accountants have to earn their dues. I was deliberate in giving him the benefit of the doubt as he has served us well in the…[Read more]

Wealth4Life, I don’t watch commercial TV channels for that reason. I do listen to the wireless, no point for guessing which one …

The sad thing is the Blame Game continues even at the political level. Costello’s points-scoring on Howard’s government diddling the public on his electoral promise on interest rates remain low during his term – He…[Read more]

I have been where you’re from, QL.

Just seen my accountant for advices on setting up a hybrid trust and negative gearing. He ended up in and out of the office and reception juggling three clients at one time. Finally, came back 10 minutes later and said it could not be done. Then, I pulled out an article by Dale, he clarified that it was…[Read more]

The Great Divide is a sad fact, but no one says it has to be the only way. It is so unsexy to tell the truth like it is, minus the sensationalism (media the culprit in particular).

Until the politicians and educators see it crucial to teach Personal Finance at school level to aid understanding of building wealth locally in oneself, it is not…[Read more]

I could not agree more with LifeX on educating yourself along the way before making a calculated decision on which Financial Planner is worth their fee.

It is not just the right asset mix tailored to your specific needs to plan for wealth creation strategy, but also looking in depth the asset protection and estate planning to fully appreciate…[Read more]

Well said kattan. You explained the very conservative approach bank (the big C) takes on the current uncertain economic climate. Their motto is – someone else can have your business when it looks bad in their book on exposure risk.

Perhaps it’s time we took a breather to check our sums if it stacks up in the light of possible interest rate hike…[Read more]

Dee dee, your scenario sounds more complicated than the initial thread first intended.

Expenses on maintaining IP should be tax deductible if you can substantiate them with good record keeping. Some can be written off in the year it is incurred, some should be depreciated over a number of years. Speak again with your accountant.

As for…[Read more]

Sorry to hear this happened to you, World Changer.

It takes courage to speak out, and do something about it. Have you considered lodging a legitimate complaint of breach of duty with their finance industry ombudsmen over there (assuming they have one similar to us)?

I hate to see others tripped up by the same broker while filling his coffer.…[Read more]

Hmmm, the scenario is a bit too hypothetical Foundation, thanks Celeste for the sums, for it to be real.

Are you saying it’s a zero sum game? The losers are paying for the others gain… ASIC would raise its head on RE practice of this kind, won’t it? No one has come out crying foul as far as I know. Banks have their hands in it and would not…[Read more]

Munno, I’m still green in investing topics. Although I know the basics I cannot tell you where to go for valuation. Do a search on this forum may be a start. Ditto as well to pointers for making PPOR to IP.

My accountant asked me to steer away from property investing as there are better alternatives. Make sure the accountant is knowledgable…[Read more]

Foundation, loved your graphic economic analysis, albeit fun and twisted, on ‘consequences’ of leveraging for wealth creation. Leveraging for scarce resources (depending on individual asset selections) is creating good debt.

Isn’t it the bad debt the culprit? The graphs have not distinguished the two. Readily available credit for instant…[Read more]

Good on you Munno for taking actions.

I guess going down the path of option 1 suit you as long as you’re getting good advice from accountant etc.

Has a valuation been obtained for the old PPOR before making it IP (refer to ATO site on the issue)? A quantity surveyor may come on handy for claiming depreciation to make the yield more…[Read more]

Hi all,

It’s quite thin in information in this tread as we’re finding out. Kindly elaborate if there is any Tenancy Agreement(s) signed here, Gerry G.

I’ve no local (Melb) experience in subletting rooms to property for investment. I’ve experience as a student tenant OS (Malaysia), there is usually a TA in placed for a head tenant to take…[Read more]

For my 2c worth – McKinnon area; I was priced out of investment property much due to its great public school.

Comparing 2004 and 2005 VCE performances of schools, McKinnon SC is way ahead of that of Frankston HS (great facilities though) and actually knocked Glen Waverly SC off its perch two years in a row.

CT

Terryw, I’m grateful for your posts.

My persistent questioning may put me in the broker’s ‘hard to please’ basket; he has not answered my concern on LMI. I have to watch not to trip myself up in the process of getting finance in terms of my credit profile. Btw, I don’t have idle $100K, I can assure you that it’s a dream i’m working on making…[Read more]

I don’t know about profiting from other’s misfortune is the way to go here. It doesn’t sit right with me; if the shoe is on the other foot.

I may be a ‘loser’ in this area of wealth creation, I suppose it’s the price I pay. Anyway, it’s my 2c worth.

CT