I think for it to work in the future someone needs to be able to explain how it works. Having said that, heaps of people (including plenty on this site) were happy to go along for the ride with little/no real explanation…so maybe it wouldn’t be that difficult to give it another run.

Hi,

I.m not sure about whether the quote represents good value.

As a comparison, my wife & I and another couple recently painted our 4 bed IP. It cost us $400 for the paint & brushes. We already had rollers, drop sheets, etc. It took us 2 days (did it over 1 weekend). If you have the time & are in a position to paint, it isn’t very difficult &…[Read more]

Those who do not work in finance do not realise that your ‘real’ equity is not your ‘useable’ equity.

I’m hearin’ ya Rob.

Or should I just say, welcome to the world of cash flow positive property, where inflation, CGT, property maintenance costs, unforeseen adverse events, & other market forces don’t impact negatively on your…[Read more]

I’d say it’s the latter.

I dont’ know much about SMSFs but i thought there was a consensus of opinion that you need a minimum of around $200K for a SMSF to be worthwhile?

Does anyone know if this the case?

cheers
Jason.

Mortgage Adviser, thanks for introducing facts & common sense (the mortal enemies of seminar advice).

I reckon we will have to add another thread titled, “Seminar said…Reality is…”

Cheers,
Jason.

As I said with my post in the “Equity Lending Forum is a Disgrace” thread, living off equity is more dangerous for those people who don’t understand how to accurately calculate numbers like owners equity etc…and as is the case with some people in this thread, a simple thing like income tax.

I would like to introduce another aspect of reality to…[Read more]

I agree with Surrey’s summation.

Living off equity doesn’t make sense to me. If you look at the way big companies were rated by (for example) Standard & Poor in the last year, capital management & in particular, debt reduction, was a key focus.

I think the comment made was something like, “…in terms of capital management, nothing beats debt…[Read more]

It won’t affect my investment decisions as I see negative gearing as a tax reduction strategy, which for me is always secondary to my investment strategy (ie, make sure you’re buying a good investment first; you will never get rich off tax deductions).

I think people investing in something just because it’s negatively geared, is as silly as…[Read more]

I periodically have the wrapping debate with friends & family. They all argue that it is immoral, whereas I think it is just another way to get a decent return on your investment.

(I also think that generally there are good reasons why wrappers are wrappers & wrappees are wrappees).

IMHO as long as people are clear about the conditions of the…[Read more]

Originally posted by resiwealth:
I want 2 go on record as saying that IMHO this is leading Australians of the future into financial turmoil.

We r not teaching financial fundermentals of how 2 save and start small to build wealth, we r teaching laziness.

I agree. IMHO this is reflected in an article in May API, which features a portfolio that got…[Read more]

I suggest you talk to a financial planner before you make your decision.

Cheers
Jason.

Jack would actually pay 48.5% (47% tax plus 1.5% medicare levy).

Have you noticed a trend in LPTs recently? Not perhaps the place for the majority of a pension portfolio perhaps?

Like residential property, it depends which ones you buy.[biggrin]

J.

I agree with Mortgage Adviser on this one.

I currently hold property, shares, cash & some $$$ invested in a venture capital project.

I read an article in the AFR on the weekend in which someone was quoted as saying that over any 10-year period in history, shares have always outperformed property.

I don’t know if this true or not but I do agree…[Read more]

Hi Mortgage Adviser,

I breathed a sigh of relief when I saw your figures. I thought I had miscalculated something when everyone was saying this was such a great deal.

(I should correct my original post though – I meant to say the property would return 2%-3% in real value terms each year over 5 years – rather than “..it would keep pace with…[Read more]

I use Shane Watts for all my investments, structures of trusts etc. He is based in Milton in QLD. Will send you a PM with his details.

Cheers,
Jason.

Going by the numbers The Mortgage Adviser provided, it looks as though this investment would only just keep pace with inflation (between 2.5%-3%) per year over the 5 years.

So it seems to be maintaining its “real” value but not really making you any money in terms of net worth.

What are other people’s thoughts? What did you come up with Mortgage…[Read more]

babu88,

In my experience, agents are great at attracting tenants but are useless at securing attractive rental yields.

With my IP, the agent said they could get $340/wk but that would cost me 9.9%, leaving me with about $305/wk. Instead, I put a 3-line advertisement in the paper for $63 & got a tenant the day after settlement who paid…[Read more]

If you can get a hold of the Money & You lifout of the Courier Mail (from Wed 4 May, 2005), there is a “makeover” on page 3 that sounds a lot like your situation.

It may provide some useful tips for your future investing.

Cheers,
Jason.