Forum Replies Created
- Originally posted by foundation:
everything he wrote
Nearly fell off my chair laughing as I started to read the post
Seals139
Here is a start – did not leave in the totals
Address
Purchase Price
Mkt Value
LOC Value
Mortgage Value
PI or IO
Rate
Int PM
Int PA
Rates PA
Ins PA
Body Corp Exps
Maint
Other Exps
Rent PW
Pent PARegards
JohnInspired Finance
(02) 9944 7776Kuade
The property is what you would call a secondary property. Its location quite often means that its price is discounted.
1) If you buy it, remember that when you sell it, it will be harder to sell, and the price will also be discounted.
2) If you really want it make a hugely lowball offer.
3) Its location can affect whether you get a reasonable rent, so maybe slightly lower. It may also suffer higher vacancy periods. But both of these things will depend on state of the rental market.
4) People renting, because they are not buying, will not worry so much about its location, as they can always move on. Quite often they get used to the noise.
So do some due diligence, ask a few different agents about rental returns in the area, and vacancy rates.
Regards
JohnInspired Finance
(02) 9944 7776Originally posted by The Contrarian:I understand that no-one is able to give any specific advice etc,
but would anyone have good suggestions to fund their retirement?I’ve heard that (as crazy as it sounds) they can draw an equity loan from an IP upto $1500 per month as one way to receive tax free money and still receive the aged pension.
Anthony
What you may have heard about is reverse mortages. It is possible to do a reverse mortgage on a property from age 60 (youngest borrower) and the payments do not affect the age pension.
Whether your parents can get the age pension is another matter, and something they can determine later.
I have PM’d you
Regards
JohnInspired Finance
(02) 9944 7776When I first started working for such a group (similar but different) being new I did not realise exactly what they did. I left after 1 month.
Basically they telemarket and employ a slick marketing spiel, and then work the numbers.
The broker then has a set talk/presentation that they complete, and out of a certain number of people, they will get so many to sign up. The better the broker the more they get to sign up.
as the others have said here they are not telling you anything more than a normal broker may be able to tell you, they just have a fancier way of doing it. Sample and Partners have been in the paper a few times for this type of behaviour. At one stage they were charging $6K and when one client asked them to help with something else they got hit with another $6K – the article was not very complimentary.
Regards
JohnInspired Finance
(02) 9944 7776As Richard said there are quite a few that do it. Suggest your bank that holds your current portfolio, would be more than happy to help.
Regards
JohnInspired Finance
(02) 9944 7776Change accountant quickly
Get a proper depreciation schedule done by a quantity surveyor, as accountants quite often are conservative, due to the tax department not recognising them as suitably qualified to assess all items.
For example an accountant can not estimate depreciation for construction costs.
If a construction – builder will supply one, but it is normally based on simple cost, not real cost.
You will get a lot more using a quantity surveyor.
One of the better ones is BMT & Assoc – http://www.bmtqs.com.au
I will also add for others – the building does not have to be new, it can be as old as 40 years. BMT will also advise whether they think it is worth it before they agree to do it, but ask them to do that anyway.
Regards
JohnInspired Finance
(02) 9944 7776Michael
Having a car lease as part of pre tax dollars is nothing really special since FBT came in. It is only a slight advantage.
The real advantage is being able to claim all the expenses like petrol, reg, insurance from pre tax dollars. So keep it going I suggest, but it may depend on you tax bracket.
One thing I did do was have my wife buy a car outright, which I then leased back from her through the company I worked for. My company then made pretax payments to her of P&I. Now the principal is just her getting her money back, but the interest, she had to pay tax on, but she was in a tax bracket much lower than me. Even if she borrowed money from a cheaper source and then bought the car, it would work. In essence I was transferring part of my wage to her. Of course you should see your own tax agent who could advise you better.
You can release a car at the end of the lease – remember it is the costs paid out of pre-tax dollars that are cream.
In regards to paying off the properties – always pay down O/O first to reduce interest you can’t claim.
Regards
JohnInspired Finance
(02) 9944 7776lburcham
Just be aware – your mortage broker mentioned 2 years, but as Terry mentioned, its more like 7 years before you wont have any difificulty, or pay higher rates.
Regards
JohnInspired Finance
(02) 9944 7776I would suggest you find 3 local strata managers and ask one of them if you can get a copy of the rules etc. The regulations may give you something that will allow you to find out what is happening. Also find out how much they charge and what they provide for that – Only tell one of them your problem, as you want biased and unbiased information.
It is difficult to know how you went about this, but sometimes a simple upfront in your face question at the next meeting will give you the ammo to prove someone is incompetent.
For example – “The sinking fund is quite healthy but the contributions to it increase each year. Why is that?”
Now the answer may be something to do with “inline with CPI”, but that can be checked, and if not in line with CPI you can bring it up at the next meeting or already know that information.
OR I have been in contact with several Strata Managers and their fees range from … to …. Can you please explain why your fees are so much higher.
THEN GO SILENT – leave it up to them to come up with the answer. AND whatever you do, do not give them the answer or an ‘out’ from the question. Too many times people say – “Is it because of such and such” and the other person jumps on it.
The point here is – if there are irregularities, then the other two owners will hear the answers themselves.
Just remember as an owner you have the right to ask these questions, so if anyone gets upset, take the moral high ground, but never get upset.
Also sounds like you are the new kid on the block, and If you try a side attack, as you have, they will look at you with suspicion.
Do your homework, and be upfront about wanting to understand. Most want to explain or help, and any disreputable people get quickly caught.
Regards
JohnInspired Finance
(02) 9944 7776You can get real estate agents to act on your behalf to purchase.
You can use a company trust structure to purchase and ask the RE agent to make sure that your name is not on the contract anywhere. The biggest problem is the address, so you would need to register at a family members address.
If you already have a company trust structure, a change of address is easy, and a rechange of address before settlement. Talk to you solicitor about the ramifications of just using a different address on the contract.
But if you do not have the structure already in place, then this is an expensive item to set up unless you get to use it. I take it there will be other purchases, so the structure can be used elsewhere if the offer fails.
Regards
JohnInspired Finance
(02) 9944 7776Will just add
Originally posted by as41:WOuld you leave 20% deposit in it or go the full up to 5% only?
For a refinance you cant get to 95% with the two main insurers, and get money out, even though for one their guidelines say they will. If you go outside of them, then the rates will rise significantly. Obviously your strategy will determine if you want to pay the cost.
If not, factor in 90% LVR only.
Regards
JohnInspired Finance
(02) 9944 7776I like the offer side of it.
You could do some due diligence and prove that all units may rise in value if they were gone. If so maybe some of the other owners would join you to make the offer. Call it the Neighbours From Hell JV
Regards
JohnInspired Finance
(02) 9944 7776arrowsmith
You are trying to look into it too deeply.
Your figures already prove that buying you own home is not a good investment in your eyes.
Most don’t buy a home for that reason. To some it is a forced way to save. To others it is emotional.
If buying an investment property, then you must include rent. Do you get a better return than the other investments out there, maybe not, but that is normally due to perceived risk.
I have clients advise me to get into this or that as the return is fantastic. BUT wherever there is fantastic return, there is more risk.
Now the managed funds you talk about are not HIGH risk, but their perceived risk is higher than property.
Remember the old adage “Do not put all your eggs in one basket”
I have an article I wrote a while back on comparing managed funds with property. I will email it to you if you like.I also don’t advocate high risk investing.
Cheers,
Simon Macks
Residential and Commercial Finance Broker
[email protected]
0425 228 985Simon – If you don’t mind sending it to me I would like to read this article.
Regards
JohnInspired Finance
(02) 9944 7776Hope this helps
It is a misconception that a Trust can pass back losses.
A trust can not pass through losses EVER, therefore a trust with a negative geared property can not pass through the loss where interest is higher than rent.
To get around the problem, you use a unit trust/hybrid trust.
The lender, lends the money to the person who will PURCHASE the units in the trust.
The Trust receives the Money for the ISSUE of the Unit, and buys the property OUTRIGHT.
The rent less any costs is sent back to the unit holder as income.
The person holding the unit who has borrowed money for investment purposes can claim the interest, against the income received (leaving a loss) claimable against normal tax.
The Lender takes both the unit and property as collateral.
Now after saying all that – the above is what is normal for the majority of trusts setup. But Chan and Naylor do say they have a Property Trust, that possibly could avoid that. I have never used it, or exactly know how it works, as it is something they will not tell you. Of course they will do what they need to if you use them as accoutants. (I have no affiliation with them)
I will add there are many aspects to using trusts (Even the above can have capital gains issues if you don’t know what you are doing) – you should always have a good accountant, that really understands trusts.
Regards
JohnInspired Finance
(02) 9944 7776Originally posted by Nathan Danker:Hi
I believe that people are just better off remaining with their spouses in the first place, thus saving that headache.
Question: Is it true that in life we are going to have problems whatever we do in life?
Sooner or later we always want someone to be there, and it’s just as easy to remain with our spouse.
Either way, we are going to have problems, so we may as well stay with our spouses.
*NB – I am currently single, and having been separated from my ex for the past two to three years, I’ve realised that it wouldn’t have mattered either way. Problems are always going to be there.
Besides, statistically, couples, both men and women are better off financially by remaining in a marriage status.
It’s and indirect methodology for being able to retain and improve your current financial position.
Nathan – this is a very old post to reopen, just to talk about staying with your partner. And like lifeX I disagree, especially as I just went through it, and had no choice in the matter anyway.
You may have made a choice or a mistake, which we all make occasionaly, but sometimes there is no going back. You have to move on – maybe you need to have a think on that aspect. Good luck with that.
Regards
JohnInspired Finance
(02) 9944 7776you need to find out what your PPOR is worth.
Get 3 real estate agents around to give you an idea of how much you could get if you sold.
Now the price by them may be inflated, but the advice is free, whereas a valuer would cost.
go to realestate.com.au and look at Sales – find comparables for you area and house. That will also help.
Depending on whether you want to borrow 80 or 90% on your PPOR will give you an idea of how much cash you could pull out, and then add that to the cash you have in the offset account.
Now you have a real idea of what deposit you have.
After reading steves book, and I hope others, and this form, determine what your goals are, and then make the decision yourself on what you want to do.
Our goals, stategies, and thoughts on the marketplace can be different, and therefore nobody can determine what you should do.
Regards
JohnInspired Finance
(02) 9944 7776The trust owns the property. What you do with beneficiaries or trustees does not affect who owns the property, and therefore there are no stamp duty issues.
Regards
JohnInspired Finance
(02) 9944 7776Is this rural residential? If so I can get you a 90% LVR is you want.
I will PM you.
Regards
JohnInspired Finance
(02) 9944 7776even my own companies are owned by trusts
Regards
JohnInspired Finance
(02) 9944 7776Good advice there from Simon
just add the preferred way is to say the money within a mortgage, as it is more tax effective.
Regards
JohnInspired Finance
(02) 9944 7776
