PS: The news about the discretionary trust/hybrid trust not receiving the benefit of the threshold is just depressing, but thanks for alerting me to the horrible fact[].

Hungry[]

That’s right, BB, you need the right people for the job.

I have an Oz P/L as trustee for an Oz discretionary trust. I inquired about the chance of getting a loan from a NZ banking institution. The reason I asked is that some people on this site seemed to think it was way too difficult. So did I at that stage but I thought it couldn’t hurt to ask around. So I asked a NZ broker.

My question: “Is it possible for an Oz P/L trust structure to be considered for a NZ loan?”
His answer: “Oh yeah, Of course! As long as you go guarantor, it just depends on how experienced the lending institution’s administrator is! If he/she isn’t experienced they will knock you back, so we go to the highest admin to get it done”[:0)] I have since gotten pre-approval.

So, there you go BB, find the right people and it’s a goer. But as some people have said already, you seem (like me[]) not so experienced with all this so increase your knowledge base. Learn as much as you can about the whole industry of investing in IP’s from the Banks requirements and procedure to the agent’s. Study a little bit about contracts and your rights with regard to them. Study Study Study so when it comes time to talk to an advisor you will know what you are talking about and you will know if they know what they are talking about[]. Otherwise you could be in store for some big disappointments[].

A great start is to search the threads on this forum… very helpful (and the ATO/OSR/related websites). Also check out Sooshie’s links thread. You’ll be surprised what you can learn with a little time and effort in the http://WWW.[] Learn, then act.

Good luck with it all, and happy journey.
Regards,
Hungry[]

Hi Huey,

I’m REALLY no expert but…

“I bought my Sydney IP almost 2 years ago. I didn’t receive any notice from the council regarding land tax. Is that because it’s land value is still under the threadhold of $261K ?”
Yep[]

“How can I find out it’s land value?”
If you check out the gov. vluation that should include land value and improvements value separately. Call the agent who is managing your property or the council. []

“An accountant firm prepared for my a depreciation schedule showed its land value of $200K . I don’t know where they got this value from.”
Neither do I []

“The IP is in joint tenants with 99% my husband’s & 1% mine. If we want to buy another IP in NSW how should we structure it to minimise paying land tax?”
You could put it in a unit or discretionary trust (around $800 set up costs) with you as the trustee and you and your husband as beneficiaries. You’d still have to pay property tax once the land value in the trust reached the threshold. But, you could then establish another trust (and pay another $800-1000). Be careful though, make sure you include something that indicates your prmary motive being to secure/protect the asset or you might send tax avoidance signals[}]!!! But the rules are changing all the time so nothing is 100% secure. I’ve set up a corporate trustee to work with a discretionary trust. Have you read Steves Wealth Guardian? It nice and simple and includes most of what you need to know[8D]

“The NSW gov website indicates that the threadhold is not applicable to Trust.”
That site is not that informative and probably doesn’t take the trust arrangement into account. Have you tried discussing this with the Office of State Revenue directly. They are pretty helpful at times[:0)]

Regards
Hungry[]
PS: Check out the thread on “trust-advantages” you might be able to get more definite info from some of those guys.

People have always communicated “true” concepts and principles couched in parabolic symbolism since the the evolution of complex and developed language. Story has always been the favourite medium for communicating thoughts, ideas and beliefs as many of the world’s most ancient manuscripts testify. The fact of the matter is, a true story doesn’t have to be true. I know that will really annoy some people, but the fact is that people think differently and appreciate dfferent things.

I appreciate the concept of truth through parable. It is inspiring and creative. Sure, RK could have written the basis of his first book in one paragraph, but the facts are boring and often need illustration to make sense. They also need repetition and reinforcement to become inculcated. So story is the perfect medium for such a process. “THE BOOK” is a story for that reason. Conclusion: RK is a great educator.

For many people the book is a godsend and they will go on to apply what they have learned and reap the benefits. Money well spent then[].

Others will find it difficult to appreciate these principle because they are presented in such a dynamic and creative context. If that is you, then maybe the book is not for you.

I read it, I loved it, I wish I had thought of it[] and I am engaged in a well thought out plan for financial independence because of it. You can’t argue with that. That is my experience.

Kind regards,
Hungry[]
PS: Please excuse my spelling[]

Hi again,

I’ve just been looking at the HECS deal on the net. You don’t actually incur any interest[]. It just creeps along with inflation. So, since that is the case, I wouldn’t worry too much about paying it off in a lump sum (any payment over $500 is still awarded a 15% reduction in the amount you are paying off…higher reductions if the amount is more significant). Do what Terry suggested and pay the loan through the tax system (see threshold chart below) when you have to and commit everything else to deposits for your financial freedom. I wish supplement loans worked the same way…damn the private college [!]!!

HECS repayment thresholds:

Below $24 365 nil
$24 365 – $25 694 3.0%
$25 695 – $27 688 3.5%
$27 689 – $32 118 4.0%
$32 119 – $38 763 4.5%
$38 764 – $40 801 5.0%
$40 802 – $43 858 5.5%
$43 859 and above 6.0%

So have you considered investing in Oz from Japan?

Hungry[]

Hi Scott,

Mmmmm…good question. I’d like some light on this one too. So far I havn’t mentioned it because it doesn’t really qualify as a student loan, does it?

I have a hefty Austudy supplement loan that I plan to pay as soon as I can simply because I just don’t like the idea of having the thing growing like a cancer in the dark recesses of my financial history [}] so I’ll get rid of mine when I can.

I guess some people accomodate dead debt comfortably and others uncomfortably…which one are you?

Keep researching and best of luck,
Hungry[]
Chiba, Japan (until April 2004)

Well Pinky, the author is one of those accountant types, you know. They are quite intelligent…but a little low on artistic creativity []

I haven’t read his book, BUT I was bogged down with a text on family systems psychological theory by some french guy (?) once that I couldn’t really come to grips with. I mentioned it to my lecturer and she said that I should read it through like a novel and then read it again slowly digesting every point the author was making. It worked for me. You could give that a try…just don’t give up…Oh and leave that poor old dog alone hey…dogs are people too[]

Nice ta meet ya
Hungry[]

Hey Milkman,
I’m forever ringing up agents in the same area to get an idea of what the rents might be. I usually ask three different agents to get a reasonable ball park figure. You have to take the condition and extras into account.

By the way, they want you to buy IF they think you are a buyer. I’ve called agents and asked about rental prices and they thought I was looking for a home to live in…I don’t usually tell them any different…unless they ask which happens if they are on the ball. However, if you haven’t mentioned any particular property they don’t usually get too excited in my experience.

Have fun with it,
Hungry []

Firstly, a big thankyou to all the contributors on this forum over the last year or so. You’ve inspired and motivated me to take the big first step and buy my first IP…well, actually, I haven’t bought it yet[]. I’ve been on the hunt now for three weeks. Each time I’ve found one that fits my criteria others have always beaten me to it or have come in over the top with a conditionless offer!(it is tough buying from Japan[]) So my questions are:

What do most people on the forum do when it comes to making an offer? Do you always make a conditional offer or is it not unusual to make unconditional offers in this current NZ market?

I’ve also heard people saying they make 30 or 40 offers for every one that is accepted. Does that mean that you actually make multiple offers or do you have to wait to hear a yes or no from your previous offer before you can move on to another house/offer???

Thanks to any replies in advance
Still Hungry![]