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  • Profile photo of HHHHHH
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    @hhh
    Join Date: 2004
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    March 20, 2004 - 2:38 am

    Hi guys, need to bring this one back alive for a moment…

    I was convinced an offset account on an IO PPOR loan was the way to go for me.

    However, please consider this example.

    PPOR IO loan 300K with 100% offset.
    All income (wages, rental etc) are placed into the offset reducing interest on PPOR. I then redraw funds for living and business expenses as needed. The interest on the PPOR is then payable on the new high figure and is non deductible.

    Alternatively I could use a LOC agains the PPOR and have all income placed in the LOC. Again redraws will come out for living expenses. HOWEVER, if those redraws from the LOC are for business and/or investment purposes, those would be tax deductible. So the way I see it, with a LOC you can turn your non deductible loan into a deductible one at a great rate of knots!

    Firstly, is my thinking correct, and if so, could I please hear some ideas on how I could do a similar thing with an offset account.

    thanks guys[biggrin]

    HHH

    Profile photo of HHHHHH
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    @hhh
    Join Date: 2004
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    March 18, 2004 - 2:43 pm

    Thats a good point about the 4 years.

    Anway, I am ready to give it my best shot.

    That 12 month membership is extra again – about $4,000 I think – they only allow 50 members at any one time. You have to wait for people to go out on their own. He says people are normally experienced after a short time with the group where they don’t need them anymore, but are welcome to come back for adhoc advise. You can still be apart of the group without joining, you just have to pay for individual workshops and seminars.

    I will be sure to let you know how it goes, it is in the first week of April.

    SeeYa

    HHH

    Profile photo of HHHHHH
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    @hhh
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    March 18, 2004 - 1:17 pm

    He is basically a real estate investor (see http://www.realinvestors.com.au) involved with a large network of other similar minded professionals.

    I went to his introduction seminar and he is pro +cf properties and has some real good ideas. Sort of like an Aussie version of Rich Dad I guess, but I am not sure of his wealth. He claims to have built his wealth in the last 4 years, so he does’t waste any time.

    I am paying $1395.00 for my partner and I to attend his 2 day workshop. He only takes a maximum of 50 people per workshop.

    I have a good feeling about him.

    Happy to hear your thoughts.

    HHH

    Profile photo of HHHHHH
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    March 15, 2004 - 3:01 am

    thanks once again.

    I hope one day I can help you once I gain more knowledge.[^]

    Dan

    Profile photo of HHHHHH
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    @hhh
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    March 15, 2004 - 2:59 am

    Thanks heaps for your reply![^]

    I guess I need to keep thinking, I will let you know if we come up with anything.[;)]

    Dan

    Profile photo of HHHHHH
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    @hhh
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    March 12, 2004 - 12:53 pm

    Thanks Terry.

    So please just confirm one last thing.

    I have a trading business and want to setup a trust for my investments.

    I am still confused as the best way to go incorporating my trading company and the trust.

    Should I make the trading company a beneficiary of the trust? Or should I setup another shelf company and make
    it the Trustee of the trust or the beneficary of the trust?

    Sorry for the dumb questions,[:p]

    thanks again

    Dan

    Profile photo of HHHHHH
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    @hhh
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    March 12, 2004 - 12:47 pm

    Can anyone answer my question on the differences between Trust Magic and Steve’s Wealth Guardian?

    Cheers[:D]

    Dan

    Profile photo of HHHHHH
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    @hhh
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    March 12, 2004 - 10:12 am

    Hi Simon

    on point 1.

    I have a PPOR which I am refinancing to gain access to approx 30K in equity.
    I also have an IP which I am refinancing to free up approx 70K of equity.
    The 100K total equity is going to be for purchasing my first business. I was just hoping to see if anyone had any ideas on how I could more wisely my situation to maybe pickup another IP as part of the deal.
    It just seems to me that 100K is a lot to have and not come out of it with another IP. I guess I just want my cake and eat it too![:p]

    I have 14K on loan to me interest free for two months. I must hand it back in two months. I was looking for ideas on how I could smartly use the 14K plus the 100K to get another IP (even if a cheap one) as well as still being able to purchase my business.

    on point 2, my concern is the banks will question my servicability of any future IP’s until I have been in the business for at least 12 months. I don’t want to wait that long before I buy again.

    Hope you have some ideas for me. I just want to make sure I am getting the most out of the money I currently have freed up. So just looking for advise more than anything.

    thanks heaps[^]

    Dan

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    March 11, 2004 - 2:58 am

    Good Information,

    I like the way you think![^]

    You help is very much appreciated.

    Dan

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    @hhh
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    March 10, 2004 - 3:23 am

    Hi Brendan, thanks for your reply [^]

    I really do believe our home was undervalued.

    Can you give my an idea of what your valuation checklist/kit includes and what format it is in, so I don’t get caught out again.

    thanks again[:D]

    Dan

    Profile photo of HHHHHH
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    @hhh
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    March 8, 2004 - 2:56 pm

    Thanks to Simon, everything is clear now.[^]

    Us newbies really appreciate all the advise of you experts. Thanks Heaps.[^]

    Dan

    Profile photo of HHHHHH
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    @hhh
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    March 8, 2004 - 12:47 am

    Thanks, my understanding was not correct. [^]

    I was also under the impress Trusts were used for tax savings, however I guess they are really only for asset protection?

    Also, if people are recommending to have a company the beneficiary of a trust, I assume again for tax savings, how are your assets protected if the business my company owns is sued? Or are people recommending to setup yet another company (separate to my business) purley to be the beneficiary of the trust? and is this even legal?

    your help appreciated again.

    thanks[:D]

    Dan

    Profile photo of HHHHHH
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    @hhh
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    March 6, 2004 - 1:32 pm

    The point was trying to clarify was how the LOC/offset account can be transfered from place to place.

    I have an IP that was my original PPOR. There is a lot of equity in the IP that I want to “transfer” to my new PPOR. I have not been able to think of how to do this. The original post hinted this was possible.

    So how can I do this?[:)]

    Dan

    Profile photo of HHHHHH
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    @hhh
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    March 4, 2004 - 3:01 pm

    Sorry, but I must be having one of those days.. I totally do not understand what was said in this thread. Could you maybe please re-word it slightly as I believe it will apply to me.

    thanks

    Dan

    Profile photo of HHHHHH
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    @hhh
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    March 4, 2004 - 3:15 am
    Originally posted by MortgageHunter:

    Sorry mate,

    You will be creating a new loan on the amount you draw from the IP. The purpose of this loan is for your PPOR so non deductible.

    However if the money was in offset you would be OK as you are not touching the original loan.

    Cheers,

    Simon Macks
    Mortgage Broker
    [email protected]
    0425 228 985

    Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.

    Could simon please explain his second sentence, does this mean there is a way to place equity from an IP onto your PPOR and still claim as tax deduction?

    Dan

    Profile photo of HHHHHH
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    @hhh
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    March 4, 2004 - 2:39 am

    Hi everyone

    Man I am sure confused. I am relatively new to this site, and am a huge fan of Steve’s book “0 to 130 properties..” and was convinced that positive cashflow properties was the way to go. HOWEVER, what you all have been saying makes a lot of sense.

    Are you all saying you disagree with Steve’s book? and if so, how can we all earn a passive income without these +cf properties?

    thanks

    Dan

    Profile photo of HHHHHH
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    @hhh
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    February 23, 2004 - 12:23 pm

    Thanks for the replies everyone[^]

    I have taken Jarrod up on his offer.

    Us newbies really appreciate all the help offered on this site.

    Dan

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