Hi Wylie
Im with you
wasn’t very successful with shares
hold over 90% of my investment portfolio in property….
but have just recently sold a penthouse in noosa heads, i was wondering if the 13 years investment could have done better.

well lets see

bought all up 310k, sold 13 years later $825K in hand, add some income of about $6k a year
total profit $593k.

I remember at the time being given advice about shares….
but a unit in noosa is hard to beat….

ok….had i bought the shares in something SAFE like
Commonwealth Bank…..
How much would i have made?????
then they where $7.50 each, thats 41,333 shares multipy by todays value $43.98 makes………

$1,507,840 TODAY plus the dividends

but what the heck…hindsight is wonderful
and i enjoyed my cheap holidays in noosa

So i now have cash to diversify………
what does one do?????????

buying property at top of a cycle……i don’t think so

HI borginvestor

talk to the business division of your bank

you’d be amazed how helpful they are

hi mja

give them cable broadband access only

and a big big Plasma TV….
that will justify the added rent charge

the 64million dollar question???????

ask any guru and you get completely different answers….

MichaelYardney says….
Our research shows that markets have bottomed in Sydney, Melbourne and Brisbane (this doesn’t mean we in the next boom yet!)

I am actively buying for myself – have for 6 months- and very strongly for clients.

and according to Bernard Salt , trendspotter for KPMG
“a modest upturn will kick off in late 2007,or perhaps 2008”
and “There’ll be another weak boom in 2018-2020”
and after that “all the baby boomers will be dead and then the property market will hit the wall”

weak boom 2018-2020……what???????
i’ll be dead by then

i’m sticking with micheal…….
hope your right?????

Hi
i think this is the way to go………

“CEOs pocket $65,000 a week
A new report shows the nation’s most powerful business leaders earn more in a week than the average worker does in a year.

The report by John Shields from the University of Sydney is based on 51 companies listed on the Australian Stock Exchange whose chief executive officers (CEO) are members of the Business Council of Australia (BCA).

It says the average weekly wage for a CEO is more than $65,000 and their pay has been increasing at a rate well above inflation

makes that $250/wk from rental income look dismal[confused2]

got to go…of to buy Financial review….see if there’s any jobs for CEO’s going….quite happy to take half……$3250/wk….

hb

Don’t panic everybody
according to Bernard Salt (trendspotter for KPMG) “a modest upturn will kick off from Sydney in late 2007,or perhaps 2008”
and “There’ll be another weak boom in 2018-2020”
and after that “all the baby boomers will be dead and then the property market will hit the wall”
something to look forward tooo

especially if you’ve paid to much for your IP….still 2018’s looking good.

great question property passion
the share markets going ape
bought $2k worth sold $2.4k in 2 weeks
but if i had your 200K, would have made 44K. profit …in two weeks…wow

a bit of a contrast to say 2 mil worth of property….
say i bought 10 x IPs in Vic at 200k each….total StampDutyPlus Total Costs -$83,384
or 1 x 2mil property totals costs -$117,564….wow…thats the cost of an IP at back of ballarat???…..we’ve being ripped off
it would take you a year just to get costs back…..
but heck the CG is worth it…especially in todays market….

hb

Well done Mitchy…..wise move

as i ran your idea past a financial adviser whos had 24 years in the industry, his reply was exactly the same “tell em to forget it!
save their money and get a decent deposit
brutal as this sounds…..”

Hi lizzy…..you right, you win…..lets not get into a arguement about what makes a good investment.
I have NO vested interest in what mitchy should do, only as a concern parent.
You on the other hand DO have an invested interest as you are a “Mortgage Lender”
Mortgage brokers are not financial advisers, and are not obliged to find you the best possible deal………..
i didn’t say that…tthe asic web site “Using mortgage brokers for your home loan” expands more on it
http://www.fido.asic.gov.au/fido/fido.nsf/byheadline/Using+mortgage+brokers+for+your+home+loan?openDocument

your advice of “There are a lot of new products on the market including 95% investment loans. 100% is available too however it comes at a premium interest rate although it’s usually worth considering if the capital growth will outweight the interest rate right?”

Is that really responsible advice for someone in Mitchy position?
if one has decent equity in PPOR then that advice is appropriate…
but the reality in this suitation….its not.

It might pay to read “a briefing paper from the Centre for Credit and Consumer Law, Griffith University and the Financial Counsellors Association of Queensland”
especially the submission to the government for credit law reform.
an area of interest would be….”regulate finance and mortgage brokers so that they do not direct
consumers to inappropriate and/or unaffordable loans”

just my little contribution

hb

You know dazz……i’m not having that 2nd red anymore….my finger slipped……. its should have been 115

troybec and wylie
apologies for any disrespect re asking questions about setting up a structure.
but the reality is the the system is so complex now, the only way to get any decent advice is to pay the money, and ask the professionals.
each question you ask has differently repercussion, depending on YOUR circumstances.
for example…(taken from http://www.australiandoctor.com.au)
Recently a GP was convinced he should transfer a rental property to his family trust. The property had been bought for $200,000 using interest-only debt, and was now worth $300,000. The stamp duty and other transaction costs were about $18,000, and the CGT was about $24,000.
This meant the transfer would generate non-deductible costs of more than $32,000 to protect just $100,000 of net equity. To proceed there should be more than a 32% chance that the rental property will be lost to litigation in the foreseeable future. This is unlikely, and hence my advice: “Don’t do it. Just make sure your insurance premiums are paid on time.”
So who advised him…..accountant….forum guru….wife…..

Recentlly looked at a spreedsheet that compared an investment through 1. Company 2. Non Fixed Trust 3. Fixed Trust 4. Individual
the summary
“Had the small business concession not been available, investment in an individual name would have provided the most favourable outcome. An individual would get the discount. A fixed trust will then be the next best option as the discount would be available, even although CGT would reduce the benefit of a discount from 50% to 25%. Neither a company nor a non-fixed trust would obtain a discount and both would provide a similar outcome”

the benefits of each system keeps changing, only a GOOD tax accountant, keeping abreast will benefit you.
Do you know the implications of the new penalty land tax system for trusts that was passed by the Victorian Parliament ?
Do you want the structure to protect you from litigation?
Do you want lots of income now, or build assets for the kids and grandkids?

running 2 companies, 2 trusts, and a SMSF, i am truely reliant on my collin str accountants……it costs…..$25k last year….but at least i get it from the horse’s mouth…….

now where did i put that red…..

good luck

hb

thanks masteraccountants for clarifying the trusts structures that you set up
has there been any tax related issue with australian residents using this structure and the ATO??

hb