Forum Replies Created
Hey guys
It’s a 3 bed terrace house with parking, and a smallish backyard – too small for the three young kids – and a similar house 8 houses up just rented for $560 per week.
My friend will be doing a ‘clean up’ so it’s easy to rent it out when he moves out.
Cheers
MelSpider
The problem with that is that if audited, they would go back through the ‘money trail’ to find out what was used to buy it. They would see that the loans that are outstanding on the other IPs were used to purchase the (now) PPOR, and therefore disallow the portion of those loans that was used to finance the PPOR.
It’s all about purpose of loan rather than security used.
Cheers
MelMy (ex)partner had the same scheme going for his two kids. I convinced him to kill that off, and cash in the money, as by investing it in shares and property we would get a much better return than what the education fudn would give us.
Lucky he did too, as kid 1 didn’t bother going on to Uni, and kid 2 has been a pain in the backside, and was recently shipped off to boarding school (although she ‘unshipped’ herself back home again, and he now has to pay $5K as a ‘termination fee’) which cost $5K per term, and I don’t believe was covered in the policy anyway.
So you’re putting away $6K per year for 12 years, and getting back $57K, plus interest to pay for schooling?
I would go with an IP, which in 10 years historically should double in value, so if you bought a $100K place, which the $550 + rental should easily service, you’ve got far more money than that being offered by the education fund. Plus you have the chance to leapfrog using that equity into a second property etc.
Cheers
MelPeter Spann’s company freeman fox http://www.freemanfox.com.au also have a financial planning arm, where they happily discuss shares and property with you.
Cheers
Melcrj, have you submitted an offer and had it accepted under your terms?
My first thought was that I wouldn’t be too happy if I was the other bidders, but then my second thought was that how would you as the tenderer be sure that they didn’t just take your bid price as your max bid. That to me says exactly how much you are willing to pay. Are you able to look at the other tender documents if you are the winning bidder? I would think not, but that’s coming from a commercial tender background where a lot of it is commercial in confidence.
Cheers
MelWrappack, I thought that if you had under 20 investors, and under $2Mil to raise, that you didn’t need to get an ASIC propectus? If you could stick under these figures, you could save yourself a lot of hassle and grief.
Also, if you can secure the site, and get DA approval, why not sell to a developer and pocket the profit? Or form a joint venture with a developer and split the profits?
Cheers
MelI think they might James.
When I was on hold waiting for Baycorp, they were saying something about now being able to access New Zealand financial records as well when assessing the borrowing history.
So I guess it won’t be on the same report as such, but the Aussie banks can certainly then see your NZ borrowings. Can only assume it will also work in reverse.
have a look round their website – it might tell you a bit more about it.
Cheers
MelIt’s my understanding that the banks don’t look at your credit limit as a ‘debt’ as such, but that they look at the total limit available, and calculate the 3% (yes SIS, it’s the min payment or something) as a monthly payment, therefore affecting your servicability.
Cheers
MelHey Redwing
A Trust would be set up for long term needs, rather than short term income splitting.
If you are a 30% PAYE earner, then a Trust probably wouldn’t make any difference in the tax minimisation way. However, I’ve set up my trust for 3 reasons.
1. So that when I ‘depart this earth’, my beneficiaries don’t have to worry about CGT, and changing name on title, and waiting for probate etc. as the trust stays as is, and I have chosen the beneficiaries anyway.
2. Asset protection. So that I will not lose the lot if ever I have the misfortune of being sued.
3. Income splitting/tax minimisation. More for the income splitting side though – so that I can ‘farm’ income out to my folks who no longer work, to my sister while she’s on LWOP with her baby, to me so I don’t have to work etc.
If all beneficiaries of my trust are in the higher income brackets in any particular year, I am able to pay the money to a company that is also a beneficiary. This limits the tax to 30%, and I can distribute it from the company in future years when there is not such a high tax situation again.
Plus, if you read Dale GGs Trust Magic, he lists some awesome ways that your trust can buy you stuff pre tax that otherwise you would pay after tax dollars for, and you would be definitely still buying some of theset things.
Cheers
MelThere’s a note in the wardrobe telling him he’s going to be killed?
I’ve heard this one before, but do you think I can remember?
Cheers
MelIs it the very start of the innings?
If not, end of one over, start of next, both have hit a 6.
Cheers
MelHey Huey
I’ve always wanted to ‘buy an income stream’ for charity, rather than giving them a big chunk of money. Although I suppose they could probably do more with $100K right now than $10K this year, $11K next etc. etc.
I’d like to help out street kids, by setting up a house where quite a few could live, on condition that they attend some sort of wealth and life building programs, and are encouraged to then go and help other kids in turn.
Cheers
MelJake, check out
https://www.propertyinvesting.com/forum/topic.asp?TOPIC_ID=7466
https://www.propertyinvesting.com/forum/topic.asp?TOPIC_ID=5291
https://www.propertyinvesting.com/forum/topic.asp?TOPIC_ID=5446There’s a whole heap more if you do a Search on ‘Burton’.
Cheers
MelHey Redwing
I’m still learning stuff from HK, as I’ve got all my notes, and a set of DVDs of all the seminars he has run – about 8 sets all up I think.
Basically, I guess you could say the main thing we learned was that we shouldn’t listen to a bank manager who will maybe tell us that we could probably, if we were lucky, scrape through and buy another property sometime in the next 2 years.
We learnt how to structure our finances, how to do our research on properties, and how to sell each ‘deal’ to our bank manager, so that it was ‘deal’ based finance rather than completely on our ‘borrowing power’ as defined by their computer.
It also gave me more confidence in buying off the plan (we did it quite successfully even with a couple of major hiccups), and in actually buying more than one property at a time. We bought 7 in one hit, and 3 in another. Funnily enough, the 3 have outperformed the 7 by about 100%!!
I’ve also teamed up with a group of people who are looking at deals that return a minimum of 20% per annum on our cash, and the latest deal we have been offered works out to be a 70% return in 18 months, interest and profit share. There’s no way I would have even known that these deals existed, much less how to get in on them without doing Henry’s courses.
We also learnt how to secure long term tenants, at higher than market rates, and how to improve current rentals – esp in comparison to almost identical apartments.
Quite a few other things, but this post is long enough.
Cheers
MelHuey, you definitely still look young and beautiful. Your husband is telling the truth! [
]Cheers
MelHi guys
Sorry, I was off celebrating my birthday and trying to do my filing so I can do my tax return from last year – oh yeah, and I had a book to read too. You’ll be pleased to know that I finished my 600 page book in about 2 days!!
Bron, I’m guessing that you mean learnt from the forum? If I remember rightly that was what you asked of the others?
1. That ‘chatting’ with others on a forum is a really good way to not only learn, but where you can have fun learning about property. Most of my friends are so not interested, but I feel I’ve made quite a few friends both on line, and some that I have actually been able to meet up with in Canberra. When I eventually get to Sydney I’ll meet up with SIS, PG and Kay, and probably some others.
2. That there are many different ‘philosophies’ behind the way we invest, and that no one method is right for all people. I also have to stop being jealous of Westan who now gets to retire thanks to his investing, and I’ve got to remember that when I get to his age, I’ll definitely be in the same position (in fact, I’m working on it for age 30).
3. That I don’t always answer questions properly!!!
4. That I love helping people (although I sorta knew that already) and that I hate seeing anybody’s quesion going unanswered – even if I don’t know the answer, I’ll most likely give it a stab to help steer the person in the right direction.
Chan$, HK is finished as a seminar presenter – but perhaps not as a ‘behind the scenes’ guy.
Cheers
MelI have problems with that first lot and I don’t even drink (often anyway [
])Cheers
MelDel was on tele? Oh no, I missed it. A Gold Member (congrats!) and a TV Star! Wow, just like Mini. [
]Cheers
MelAnd don’t you blokes ever forget it.[
]Cheers
MelOriginally posted by Rugbyfan:Hey Chan$
You made 500 posts on the 16th of Feb. You are now at 599. At that rate you will have 1500 and 5 stars in 81 days (16th May).
Only 2 days later, and he is already at 729. Might have to recalculate the 1500 date Rugby.
Cheers
Mel
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