Yep. Live the Aussie Dream Now…..and pay it off later.

I see it as a basic misunderstanding of the concept of living within your means.

I think the problem begins with with a basic financial illiteracy on the part of the Australian Public.

Resi, I think you have hit the nail on the head when you point out that the contingency plan for a lot of people is to get a second job.[blink]

The far reaching social problems that I think will result when families find they have to use all their time to pay off “The Credit Funded Dream Lifestyle” will be devastating.[wail]

Personally, I am mortgaged to the eyeballs and have a lot of other debt. HOWEVER, all my debt is tax deductible, so none of it is bad debt (unless you include the rent I pay to my own landlord is sort of like bad debt)…..and I sleep very well.

Lifexperience

Ask the NAB, they should give you actual contact

Lifexperience

0 -$400

Lifexperience

I found that when all the room were full, you have great positive cashflow and also get benefit of any property price rises. Seems at face value to be the ideal scenario.

I found that it was a huge amount of work due to a few things.

1. Many more tenants mean many more vacancies. Which means many more applicants to find and process and mucho paperwork. Make sure you have automatic payments

2. Lots of students go home for summer holidays so your actual vacancies are higher. So you may have to hold their room for months with little or no rent.

3. Furnishings…..what a nightmare I had buying second hand stuff and moving it in. Fridges, Beds, wardrobes, washing machines, I also did linen and kitchen utensils. More Time and money.

4. It is very difficult to put quiet students (exchange kids) in the same house as party animal students. I devised a personality quiz to evaluate their temperments. P.M. me if you want a copy.

5. Share houses have many dynamics and it doesn’t take much to throw it all out of balance…..which then takes up more time.I had additional house rules tied to lease which protected peace and privacy of all tenants. PM me if you want a copy.

6. Electricity Bills ….eeeeeeeeeeek.

I do live 2 hours drive from my properties, so the time for me was taken up with travel and petrol money.

At the end of the day, I had hoped to grow a huge business out of this but found that the extra time and money drain restricted me in setting up multiple properties.
Now I am focused on doing property deals that don’t require as much time.

I have heaps of info, PM me with email address and I will send you all I have, and hopefully you will build a better business out of it.[]

Lifexperience

Dammit,
So what am I supposed to do with all these donkeys now??

$2 a ride anybody??

Lifexperience

Agile.
” I think it is important to acknowledge the legal rights to the leased property these tenants have.”

Well said, What you want to do with an IP is really something that needs to be clearly thought about before you move tenants in.

Unfortunately we live in a dynamic world where the best of intentions when moving a tenant in, may change when you least expect it. I suppose thats why the law is there. To protect everyones interests.

Lifexperience

Ooo, ooo. I have another from last weekend.

All the boys from work went out fishing on Port Phillip Bay . A dozen blokes and 4 boats.

Anyway as the day dragged on, and we were unable to catch anything worthwhile, We discussed a bit of skiing behind the boat….we had no skis or wakeboard or anything suitable……..except.

Well, as I am always eager for a bit of fun, and saw that there were a number of spectators in the other boats. I said

“Mick, pass that Esky lid. Glen, grab the duct tape.”

So, I strip down to my boxers and the lads proceed to mummify the esky lid to my chest with the tape.

I grab the rope and jump out the back and into the ocean.

“Righto, give it half speed”[biggrin]

Well, off the boat took dragging me behind. The esky lid didn’t have the characteristics needed to get above the water and I became a human anchor, gasping and flailing around.

Jim, who was driving the boat took this to mean “speed up”. This was the last straw for my boxers which slipped down to my knees……………….and then down to my ankles.[blush2]

So now you can visualise the scene as 3 boats and a dozen blokes are having fits of laughter as i try to hang on to my underwear with one toe. At this point the esky lid decides to lift up out of the water, And I begin to aqua plane over the waves. This became a problem for my little fella (it was a tad cold) as it was getting a pounding as i skimmed across the bay. Two white whales streaming along with an appendage that would not have been too dissimilar to the fishing lures used to catch barracouda.
[blink]
Suddenly realising that I was prime bait for any of the larger fish in the sea, I hollered out

“I think thats enough”

As I climbed back into the boat, stark naked with the esky lid taped to my front, I was glad that at least I know when a joke has gone too far. [cool4]

Lifexperience

Has anyone set up a hybrid discretionary trust on-line? I havent been able to find this on cleardocs or lawcentral.

Lifexperience

Greg,
Its the same for quotes, I find it easier to drag and highlight the area to change colour THEN select the colour from the pull down list.

[red ]It should look like this in the message editor[/red ]

And then appear like this on the boards

[red ]Fonts should look like this in the message editor[red ]

and like this on the boards

cool [cool4]

Lifexperience

derek,
Is that for real? Gee whiz, the ATO never cease to amaze me.

So, the interest paid to a lender for a mortgage on an investment property is not deductible in this instance?

Is there any way to structure it differently.

like maybe take a LOC on the block and then put it into a term deposit and a few months later then use it to pay off the house.

Derek, do you have a link to the ATO reference on “What was the money for test”?

This seems to penalise people who pay their investments off before they pay their own PPoR loan. I can’t see the logic behind it.

Lifexperience