Hey kiwi,

Welcome to the forum!

Talking about life-changing books, have you read Robert Kiyosaki’s books? They’re the second-most important set of life-changing books for me (behind the Bible). They completely turned my understanding of finances upside down, but for the better!

I know that there are people who bag Kiyosaki’s books, just like…[Read more]

Hi Digger,

Sounds like the “refinancing” principle, where you can use the money the trust pays you for the units to go and buy a PPOR or holiday home (or just spend it all on a holiday!), and the interest on the loan is tax-deductible, because the trust borrowed the money to redeem its units.

The property is not located in WA is it? Because if…[Read more]

I like “Unlock the Secrets to Your Money Personality and Change Your Life” by Greg Smith.

He’s also got a website: http://www.moneycafe.com.au

As for keeping track of things, I use Microsoft Money. It’s affordable and easy to use (although it’s a bit quirky at times).

Cheers
Elysium-M

Looks like they’re in the market to buy another house.

Which means they’re going to have to borrow money from the bank.

When you (or your solicitor) send them a letter demanding interest and damages, politely point out to them that if they don’t pay up by the deadline, you will be forced to sue them, and if you were forced to sue them, this may…[Read more]

Hey kay henry and rugby (and even bear, if you’re feeling discouraged and need a glass of vino),

I’ve discovered an even better deal so you don’t have to go to the cellardoor to pay $5 for all you can drink.

Send me a private message, plus a $1 fee (to weed out the tyre kickers), and I’ll tell you. [:p]

But seriously (actually, I’m not) – just…[Read more]

Hmmm – I must confess I haven’t looked at those areas.

As for beachfront and regrets, here’s a story about one that didn’t get away: my life insurance agent told me how he bought his house in Ocean Reef, literally metres from the beachfront, years ago for a couple hundred grand. Back then, it was woop-woop. Some houses in the neighbourhood are…[Read more]

Hmmm – I must confess I haven’t looked at those areas.

You need to set up a proper self-managed super fund.

For that, you need a lawyer to prepare all the documents (trust deed, trustee’s minutes, application for membership, notices to the member and employer, investment strategy, etc).

You also need an accountant to apply to the ATO for the necessary things (election to be regulated as an SMSF by…[Read more]

Hi guys,

Thanks for all your advice.

I wasn’t really looking to work out what my legal rights are (pretty easy to do that).

I was more interested in practical solutions, which avoid things getting out of control and keeps the tenant happy.

Apparently, the tenant’s pay comes in a couple of days after the rent is due, and he said that he tried…[Read more]

Hey dev,

While I totally respect Steve’s views on +ve cashflow investing, I firmly believe that any portfolio should have a mix of +ve cf and what I call “rare earth” (which is almost invariably -ve cf) properties, if you can afford to maintain the payments on the latter.

Which should you get first? Hard to say, unfortunately. I’ve already got…[Read more]

Hey Terry, that idea of yours sounds quite clever! I guess it’ll be a case of you renting the property to the trustee of the trust for say $50 per week, and the trustee sub-leasing the property to a tenant for $120 per week, which means that the extra $70 will be trust income, giving you the flexibility to distribute it in a tax-effective…[Read more]

Look on the bright side – at least the capital gain will only be taxed at the company rate of 30%.

If you’re in the top marginal rate of 48.5%, even if you had the benefit of the 12 month CGT concession, your concessional tax rate on the capital gain will be approximately 24% Which is only a difference of 6%.

Besides, if you’re going to have a…[Read more]

Hey Hamster,

$250k for both houses? Is that semi-detached or 2 standalone houses? Anyway, it seems like quite a bit.

Is it a turnkey price, or do you have to spend extra for fixtures and fittings? For example, carpets, painting, window treatments, appliances etc. And what about site preparation and utilities connections?

If it’s turnkey, then…[Read more]

Absolutely, Melbear!

I’d to think that you can learn a new thing everyday!

Cheers
Elysium-M

Onya richo! Everyone looks happy. Looks like a great wedding.

Here’s to a long and happy marriage, with lots of kids and even more +ve cashflow houses!

Cheers
Elysium-M

Goes to show how little I know!

Cheers
Elysium-M

Thanks kay henry. Of course, you know that my comment was made tongue in cheek, right? []

Still waiting for my private message for a bit of illumination.

Cheers
Elysium-M

hehehehe![]

Hey what’s good for sensible hobbits has got to be good for humans, as long as the roofs are not too low! []

What’s the Hellfire Club all about? Sounds sinister. Or risque?

Cheers
Elysium-M

Of course, you’ll need to research the rentals for similar properties in the area. There’s no point overcapitalising on improvements and doodads when no one is going to pay the rent you are hoping to get.

Hey original, the kit home idea is cool! Only thing you gotta check is the local zoning requirements, since it could count as an additional…[Read more]