Forum Replies Created
Now lets see if I remember this one.
Set up a unit trust, charge entry fee and w/off 85% as tax deductible management fee. use funds to buy land put in vines irrigation sheds and equipment. take out all that’s left so the U/Trust goes broke, and then buy back the assets from a friendly “administrator”
Yep that’s it i think, oh yeah forgot, now ask fed govt for a tax paid buy back to help you leave industry.
Then onto the next scam.
Foundation, thanks again, one part of me agrees with it, and another part thinks there must be a fallacy….somewhere.
This boom has been triggered by many factors, including political tinkering, (dereg and home buyer grants..some of this was over due some just to save furry butt after GST). The spruikers (hey Steve) had a accelerating effect, with the result that the Hot Issue in Sydney now is child care. Why because women who would drop out for 2 -8 years out of the workforce now give birth during lunch hour and are back by three.
It was not natural growth. Don’t know if your figures prove it, (still looking for the fallacy…..can’t find it) but feel it’s true.
The big question on this and not sure how you factor this in is the generational wealth shift from the boomers.
Read what I can on it but, can’t get a feel for what it will do. Some articles talk about large figures handed down others factor on the grey nomads spending and health costs.
One alarming figure was that many still expect to be in debt in there 50’s (but again was this home debt or investment debt)
Without knowing why I think you are on the right track, …… I keep thinking Japan,
Originally posted by njhansen:Has anyone thought of using a family trust fund to unlock equity?
I’m not sure quite how they work but ive been told they are a good way to unlock large amounts of equity.
How to best use this is to make yourself the sole beneficiacy of Sir Frank Packer’s …. it seems to have worked for Kerry.
Originally posted by alexlee:Foundation, I agree with you that credit will be harder to come by in a bust. However, credit doesn’t completely dry up. Properties still change hands.
What I saw was mostly sideways.
ie; sell for $200 and move to $300k or more realistically it was sell for $300k and move to 200k.
Did’nt see many new buyers with big loans.
Agree with Foundation, and I think having multiple properties will put a deal under greater scrutiny, not less.
What I also saw in 1991 was a lot of bank managers and loans managers reskilling …(fired)
To do well in a slump you need big equity, as the loan to equity ratios drop.
Pre 91 you could borrow 95%, post 91 for the next few years 70% had 1% mortgage ins. and loans over 80% were very hard to find.(expensive)
Properties were also valued at around 10% less then comparable sales as they factored in further slides.
What will happen to the low doc loans will be interesting. Remember in 91 the amount of repos that Citibank did in the fashionable lower Nth shore was amazing. They were the creative lender of the 80’s.
If I put on a third storey do I then get a water view ?????
Sorry forgot to ask what’s the waterview like.
Newcastle, ….for 400K (including s/duty) sound like a steal to me.
Thanks wealth, yep the 1980s “when you could have floated a school bus on the ASX” (quote GB Nathan merchant banker).
Photocopier salesmen driving New Ferraris and living in Mosman (went broke in around 1991) for a few brief years reality just went on hold.
and I agree around 2010-2015 the baby boomers contracting their expenditure as they face shortfalls in retrirement savings will have an effect. What effect is the big question.
Originally posted by maxolau:You used a solicitor in your purchase, didn’t you?
Wasn’t it his duty to make sure the financing is organised and inform you what interest you are paying and what the worse case scenario is!!! And it had to be in written!!!
I think quite a few solicitors would disagree about “organising finance” being there responsibilty. They get paid for conveyance and contract work can’t see finance as their problem.
Again sorry for his problems, but…
Thanks Foundation
Originally posted by foundation:So to clarify your above point, are we headed towards an upturn in social-conscience and consciousness? Or will something else have to break first?
Like all economics it is never concrete, but you are right greed should be followed by some sort of social freedom. Think it is seen in the Gen Ys not being as material as the Gen Xs.
Changes that have shrunk the world have a impact, unfortunatley usually seen after not before (a working crystal ball would be so nice )
And Dazz wars don’t change these cycles they just pause them ie the conservatism following the roaring 20s lasted a very long time, as the war put a big pause in it. Does’nt change it though. Thanks for your thoughts.
The problem is not that they did not organise finance but that they manouvred their “client” into their preferred finance option.
The conversations would then have gone “We will do everything we can to get a better long term finance option, ” or ” I think I can get something better IF or When”.
If this is the case how can he have a case ????
If he had other finance options would he have not taken them.
Had a client who was a money lender, charged 120% and it was always legal.
Just because it is unfair does not make it illegal.
Again sorry to hear it but again their are some real rogues out there and buyer beware does not just apply to used cars.
Wealth, this Russian economist came to the conclusion that the major cycles are around 40-70 yrs and require the people who saw these mistakes to be out of the workforce decision making before the next arrives.
After these biggies the next cycles run something like
1/ Conservatism 1890s /1950s
2/ Social relevance / 1960 or the suffurgette movement
3/onservative snap back 1970s /1910-1920
4/ Monumental Piss up 1980s / 1920s
Then the cycles repeat.
Each cycle is a reaction to the one before.
Economic Cycles are part of the human condition
Don’t know what they will say about this “ME” period.
I am amazed at the responses here. Absolutley amazed.
We always have people talking about creative finance well can’t get more creative than this.
Unfortunatley the punitive interest would have been stated in the contract, can someone please explain how this is an ASIC matter (you have to be kidding… ) or fraud. Maybe Current Affair, but how is this criminal ????
Seen it before, guy in trouble borrowed $200 serious history of late payment, and yes he was always late, and shock horror they never chased. the default rate jumped interest from 11% to 25%, and in three years they just stepped in and took the house, smooth clean and minimun of fuss. Wife had breakdown dies soon afterwards, hubby is shattered and now lives in a unit in the outer suburbds that his kids bought.
If you have to go to lenders of last resort (creative finance) then be very aware.
Really sorry to hear of the problem but amazed at the response from what should be a sophisticated audience.
Okay flame away.
Originally posted by WinstonWolfe:Many talk of cycles as if they are a cert.
However, rarely does one find analysis of cycles extending back into the 19th century. And continuity of cycles depends much on many economic and political variables remaining constant.Foundation may be able to help me here but there was a significant Russian economist in the early 1920s who came up with cycles within cycles and charted them not back to the 19th Cent but the early 18th Cent.
Can you say Tulip !!!!!!!!
The big cycle depends on every one who experienced it last time disappearing before it happens again and then the mini cycles about a generation long each, take hold.
These cycles are based on human nature, which afterall is what governs supply and demand. Greed, innovation, fear, conservatism.His work is quite good, can’t remember his name let alone pronounce it.
Having said that, I am currently sitting here listening to the slow hiss of steam coming out of the East Coast market, and marvelling at how developers are still throwing up Towns houses in areas where stock remains unsold from a year ago.
Go figure.I’m an accountant and am sure the big talk this year will be should I still hold.
I am a cynical watcher ( oh yes I have property, but not quite the ones in the usual box, a land bank and a commercial one high growth other high return) and have to agree.
My own son is doing exactly what the poster is doing as are many of his friends, also is canvassing work opportunities out of Sydney.
Agree that in any cycle shares or property can be made to look wonderful, but draw out the time frame and the more equal they become.
Factor in inflation and all of a sudden you wonder why people get excited.
Yes, we had an extraordinary boom, but the soft market on the East Coast is having a extraordinary decline (usual decline occur when rates go up, rate rises so far have not reached rates of a few years ago)
What will happen, don’t know, but sentiment is turning full circle.
All my client discussions latley is on selling property not buying.
Are you asking for an accountant who acknowledges these strategies or one who will lead you in these strategies ???
Foundation thank you.
Japan market peaked at 30k, tin late 80shink it is now around 15k.
US market peaked at 11.7k in I think 2000 made it all the way back 11.5k before getting profit takersdropping it againBoth of these followed exceptional booms, totally out of sync with rest of the world.
Kind of like the Sydney property market of a few years ago (don’t mention Perth…please..)
Were looking for a new residence last year and simply said “high sevens mid eights.”
Stupid agents tried to show us he latest listing, “was sold for 1.1 (owner builder so don’t know how he sold to himself but…) last year but rush in now blindly and you may get it for 990K..” Sold for 930K and I bet they regret it.
smart agent told us “was on for 1.2M now 1040K but have a look and see what you can offer. “
Both told the same, one we flicked one we will always listen to
Agents vary enormously, good luck.
AND …. if plane or ships had never been invented he would be right.
Hmmm ….boom in 3 1/2 yrs you say ???
