I’m not an accountant but my understanding is that there would be no problem distributing the capital gain now.

Timboo,

I think there are two separate issues here:
1) the mortgage
2) onwership of the property

In terms of the mortgage, the Bank doesn’t care whose name is on the mortgage docs, as long as you make the repayents. As I understand it, the bank will only give 1 mortgage over the property. They will leave it to you and your wife to sort out who…[Read more]

I agree with Sharon. If you want to retire via property, you should speak to someone who can tell you how much you can borrow. Once you know this, you can start to make realistic plans for your retirement.

Try this on…perhaps others can comment on this strategy and if it could work for you (or at least tell me i’m full of it & then you can at…[Read more]

more info please…

At what age would you like to retire? and how much income per year do you want from your investments during your retirement?

cheers
Jason

I wouldn’t bother taking advice on your investment strategy from an accountant. You can set your goals yourself and learn as much as you can so that you are confident and capable of finding and purchasing cashflow positive properties (or any other investments you like).

Never invest in anything just for the tax breaks. you will never get rich off…[Read more]

Unannounced,

I agree with Jo’s comments (but unlike Jo, I’m still trying to claw my way above the poverty line).[tired]

It makes it even more dicey that his finances are bound to that of his brothers which is passed off as a good thing in the article. Many people learn the hard way not to mix business and family/friends.

I have recently done a…[Read more]

i hate to break it to you but there are no better results than property . How many shares can you leverage? why is it the banks give a higher lvr against any piece of crap property than against their own shares? not because they like risk!

Banks will lend less against shares because the data avaiable on share valuations is far more transparent &…[Read more]

Thank you all for your replies. It looks like I have to do a bit more thinking on this one. The business partner was goig to invest with was projecting the holiday rental being occupied 40/52 weeks of the year (approx. 75% occupancy). From the sounds of it though, the more conservative (realistic ??) figure might be only about 40%-50% occupancy.…[Read more]

You are definitely not too young to invest. I wish I had started at your age. There are lots of different types of investments but the main game consists of property, shares, and cash. Save and put some money into cash and some into a fund (or an internally geared fund) at this stage – just as much as you can afford. You have time on your side. In…[Read more]

You can avoid CGT altogether (if your living situation allows) by calling one of the houses your PPOR & selling it – quickly I imagine. Then you can move into the other house and call that your PPOR and sell it with no CGT either. But you may have to do this over a period of time & you should definitely talk to your tax adviser before doing…[Read more]

With all my IPs, I only manage the tenancy myself if I know the person involved (but this is probably asking for trouble). If you were going to acquire property in order to replace income, I would definitely use a Property Manager. This may reduce your profits, but if you select a good PM, then your can let them do all the hard work and the income…[Read more]

AMP have increased substantially (to about $7.90 at th moment) since relisting after the demerger (at $4.30), as have the HHG shares you would have been issued if you held AMP prior to the demerger (risen from $0.88 to $1.55). But i do have to concede that the days of having a ‘set and forget’ porfolio are over.

Don’t be put off by people who…[Read more]

From search of ASIC website, looks as though stop order issued as recently as 21/10/2004. (ORDER – NO SECURITIES BE OFFERED, ISSUED, SOLD, OR TRANSFD). Don’t know the details of this but Fincorp seems to have had a lot of ‘queries’ from ASIC since 2002.

The Feb 2005 article is about lack of disclosure in PDS. Generally ASICs concerns (in regard…[Read more]

TeacherK6…

the first 3 posts were talking about rates for cash. you are talking about rates for debentures (and other fixed term products). the return on debentures is higher because there is higher risk associated (ie, your capital is at risk, which is not the case with at call accounts or term deposits). Read article in Feb 2005 Personal…[Read more]

twinpeaks…thank you for so clearly illustrating the main weakness with the 0-130 properties concept – great if everything goes to plan, but when it tanks, it tanks big time!

Based on the number you have provided, you would have to be a lunatic not to sell it.

Hi Mangoeater,

they say “your best loss is you first one”, so given that’s it’s only $440 I’d just let it go and take on board the comments of other posts for next time.[glum2]

Just to explain my reasoning – your friend currently has $350K equity. If she sells IP2 and uses the $220K to pay down PPOR, she will still have $350K. So it seems that IP2 ad no equity, only adds risk. In the current market and with possibility of rising rates, I would err on the side of reducing the risk. Better to sell now under your own terms…[Read more]

I think your friend should sell the IP that she has the most equity in and use the profits to pay down the PPOR. At present, she only has $350K nett worth inthese properties. She would do better to pay off the PPOR sooner and buy another IP down the track.

The main reason is that cash flow is king and spare cash allows you the luxury of being…[Read more]

I had a friend do this kind of thing. he hooked up with a mate who was a licenced builder. They pooled their money, borrowed some more and completed the larger scale project. It is worth exploring, it could be very lucrative.

Also, if you don’t have the money yourself, you can always form a company that would do the project and get private…[Read more]