CT, I guess the question actually is ‘Who will be living in the house?’

If it’s you and/or your girlfriend there will be no tax benefits, but if you buy it as an IP, then there will be.

Cheers
Mel

Elves, if you own any assets in your own name, that will for various reasons not be transferred to a trust while you are alive, I suggest that you set up a ‘testamentary trust’ which is executed within your will.

The best reason for this is that if there are any kids that are beneficiaries (under 18) they will be taxed on any income as an adult. ie the $6K tax free threshold will apply. If they receive income from assets left directly to them, rather than through a testamentary trust, they will pay the kid rate of tax ie $400ish free, then taxed at 66% or something like that.

Cheers
Mel

Jacqui, was it a PPOR before an IP, or IP, PPOR, IP?

As Terry said, that will define whether or not you have to pay any tax at all. Also depends on whether you live in your own home now also, but can still be done.

Cheers
Mel

James, I have no spouse or kids but have a family trust. My parents, siblings, and any nephews, nieces and spouses of any of those are also included, as will be my spouse and kids.

I too am negative gearing – although that will be hard to do without a job shortly[8] – and so am only buying positive investments in the trust. I also doubt very much that i will transfer any of my current assets in. CGT and Stamp Duty would be killers.

Rob-wa, if you send the profit to a company, and even in the trust, there are many expenses that you can legitimately claim as other than income, and therefore are tax free. If the money is tax paid in the company, you can also organise your affairs and decide when to take the money at a later date. I think you MAY also be able to loan yourself the money from the company, but I would definitely see your accountant before attempting that one!

Cheers
Mel

I’ve been told that 99/1 is a good way to ensure that the 1% person is on the finance application, and therefore could get the deal across the line. As opposed to guarantors and stuff which are much harder to do these days.

Cheers
Mel

trev, are you working out the neg or pos gearing based on income versus interest, or have you factored in mgmt fees, cleaning fees, rates, etc. etc. etc.?

Cheers
Mel

Hi Ian

I have downloaded, but I am really slack and haven’t installed yet. Sorry []

Cheers
Mel

Wrappack, the people taking my money still are EZYPAY. They sent me a letter in December saying ‘Hey, you better update your VISA expiry date, or tell us new details, cos our records show your card expired 05/03’. They’ve still happily charged my card all those months though. It wasn’t until reading the administrators report that I thought I could even cancel the direct debit, so I immediately sent a fax to these guys telling them they’d best not debit it anymore, as NII was bust, and my calculations showed I was owed about what I owed (in entitlements etc.). I also said that my card had been cancelled.

Well, good old Citibank, they have cancelled my card, but they’re still letting direct debits go through!! [] I’ve quickly contacted them to show how I told these guys to bug off, so I’m waiting to see what will happen. I do not intend paying the money though. I do not expect to get any money back through the administrator at all, and have not even asked.

Secondly, yes, we did buy several properties off the plan, but we used cash deposits rather than deposit bonds. Some of this cash we borrowed off friends and family (and paid them a 50% return on their cash). We did also exchange on 5% or less. HK also teaches how to maximise the value of your current properties – sometimes by renovation, how to maximise the rentals etc., so I guess you could say we have made the money ‘on paper’ only. He also teaches how to get the best valuation – which is what a lot of the guys on this site have also been saying. Do your own research, provide it to the valuer, and 8 times out of 10 they will accept what you have provided – in the right format etc. of course.

Structuring our finances basically means how we are set up (with loans etc.) and how it’s maximised. How you present you portfolio to the bank certainly can take a lot of the computer out of the equation. ie. To present a new property you are wanting to get a loan for, you present the proposal with a picture, a description, put in the amenities etc. etc. You put in comparable sales, comparable rentals, population of place (if not city), employment, rental vacancy rate. Then you put in your financials – perhaps with a PIA 40 year projection etc. BAsically a big folder with sooo much info that you will really come across as having done your homework. You also need to get to a person in the bank who can make decisions – not just a lackey who uses the computer.

The proposal is for any bank – but again, you need the decision maker.[]

Cheers
Mel

ICC One-Day International Championship Table
[ as at 29th February 2004 ]

Team Rating
1 Australia 135
2 South Africa 114
3 Sri Lanka 109
4 New Zealand 108
5 Pakistan 107
6 England 106
7 India 105
8 West Indies 100
9 Zimbabwe 66
10 Kenya 28
11 Bangladesh 0

If the Aussies hadn’t played their second stringers against the Sris in the last game, the Kiwis would be third! However, if they beat the South Africans ([]) in the last game they will be equal third. Not a bad jump from 7th!!

I tipped all 6 games in the footy tipping! yay for me. Only second win in three years!

Cheers
Mel

No choice Chan. The system will make you wait!

Cheers
Mel