Tasmania is an area that really heavily relies on mining and logging…. and so the market can be very boom and bust… Mines go through big cycles (so when it’s good, it’s good, but when it’s bad, it can be real bad…), and at the moment were on an large upturn, though apart from China the market is quite weak.

“Queenstown has great yeilds” -…[Read more]

I think 5% is ideal… But in the end it comes down to your comfort level.

Rgds.
Lucifer_au

How about just filling it in, compact the dirt and throw on a Gazebo on top (please note, I don’t think there are any regulations regarding filling in pools, but there could be…).

Rgds.
Lucifer_au

Go through a mortgage broker. Don’t go through a bank.

If you want to see your borrowing power go here: http://moneymanager.smh.com.au/tools/calculators/borrowingpower.html

My only concern is you being able to servie the debt, as it’s not going to wipe that much off your tax…

Rgds.
Lucifer_au

So you could be indeafinantly be paying of the $80,000?

Yes. It what many people do, I plan to do it forever…

Rgds.
Lucifer_au

Does your friend need all the upfront money when he sells the house??? Why does he need the money. If he dosen’t need it that urgently offer to buy it from him but he leaves in the deposit for 1 yr (you pay intereest on it, just like a bank, revalue props. and give him back his deposit). There are lots of other creative things you can do, check…[Read more]

Banks look at a lot of figures to come up on how much they will lend on, this includes rental on the place you are buying, income level, no. of dependants, other debt (credit cards really reduce the amount you can borrow), etc. Banks look at equity in property as roughly the equivilant to cash though, so while you dather might have a ‘low’ income…[Read more]

You need a hybrid trust, which contains shares, which allow you to carry forward tax losses to other income, outside the trust.

A hybrid trust is like a family trust witht the benefits of a unit trust.

‘Trust Magic’ explains it all.

Rgds.
Lucifer_au

With a trust and a company, never more than 30%, but usually under 10%, CGT at 15%.

Rgds.
Lucifer_au

It depends on what style you want. I know TerryW (from his posts) can be quite agressive at getting loans (from the banks (not from you), and also his knowledge on wraps and legal structures is excellent.

His number is 1300 1300 14. His office is in North Sydney.

Rgds.
Lucifer_au

The financier offsets his risk onto the Mgt Insurer, so in the end it’s the Mgt insurer who has to pay out the financier if you default.

Rgds.
Lucifer_au

There is some hope! I have recently calimed some expenses from 3yrs. ago (just found a whole lot of reciepts, over $2,000 – AAGGHH!!!), and we will be claiming them for this yr (got the okay from my accountant). Of course the ATO can deny them but I pretty confident.

But do get a good accountanct to see how much you can claim back, and if you can…[Read more]

“Lets buy in Canada Luc!”

I’m with you (or NZ – it’s closer and we don’t have to walk as far []).

Rgds.
Lucifer_au

You could always offer them something if they pay on time or before the rent is due (free movie hire, etc), rather than just getting the stick out and trying to beat them with it (I know it feels good sometimes!). Or put in your next rental agreement that any monies payed late will attract interest. See a solicitor about this before hand though…[Read more]

If you want to raise (from memory) over $2 million (or have 20+ investors) you have to provide a prospectus, and abide by ASIC’s laws (so you turn your deal into a private placements, selling shares, etc). Also you cannot ‘advertise’ the deal.

I must say if you want to attract investors you must offer them a very high return (over 50%+). Mainly…[Read more]

I think it’s important to try and figure out the motivations of governments tax policy. For example – why do governments always prepared to lessen PAYE/Personal Income tax rates rather than ANY other tax rate?? Bracket creep – so they hit you with the new tax (CGT, GST, etc) reduce your PAYE tax and everyone thinks – “fantastic!”, untill 3 yrs.…[Read more]

It isn’ too late at all. They have massive equity built into their proeprty, and I think there would be a couple of banks that would probably lend them 105% of a property’s price (Commonwealth – but go through a mortgage broker, preferable one on this forum). You father could borrow approx. $400K.

Rgds.
Lucifer_au

“The changes to the NSW WorkCover scheme in 2001 are estimated to have reduced the deficit by $1.8 billion, more than 90 per cent of it from legal costs.”

So how did they do that??? O’h thats right, make it harder to and recieve less compenation if you recieve an injury. Wow go Austrlain Labor Party (still representing the workers, ha???).

Good…[Read more]

Perhaps tell us what the property group is called. I’m sure someone from here has probably delt with them before.

As diclem suggested check out everything, and don’t sign anything!!! Also alot of the time property resellers won’t put vacancy factors in (so vacancy will equal 0%) to make a deal seem CF+.

Rgds.
Lucifer_au

Well there is a few ways, get the property revaluaed in 6 months and see if the banks will lend you more.

The otherway is to add the rent to your income (and deduct the mortgage payments). THis calculator will give you a general idea on how much you can borrow: http://moneymanager.smh.com.au/tools/calculators/borrowingpower.html

Otherwise it…[Read more]