Zacman, there are at least six brokers that I have seen post on this site.

Mortgage Hunter, Melanie, Stuart, TerryW, saskatoon, Mobile Mortgage, picja1 – that’s seven.

See if you can find any posts by them, and they have their contact details with the posts.

Cheers
Mel

Hi nextone

If you can sit down and do some figures for them, to show them the income they could get from the property/ies, and any growth etc. that would help to supplement their retirement lifestyle, that may help sway your Dad.

My parents bought their first IP at 47, and have since purchased another 4, stopping in 2001, so the growth since has given them a really nice equity position, and the rentals supplement their super quite nicely.

Cheers
Mel

quote:

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we have mobile phone pagers, that go off when a security breach has occured, internal alarm system and armed security guards at our work running frantic around and then external outside security, calling up due to their systems showing a panic alert, followed by police…..

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hahahahahahahahahahahaha[][:0)]

Cheers
Mel

Hi Lloyd and Deb,and welcome to pi.com.

click on the link that came at the bottom of your newsletter, or click on this link

https://www.propertyinvesting.com/newsletter/Newsletter023 and choose the downloads

Cheers
Mel

SIS, you’re not sorry at all[]

Thanks for the big welcome. I’m thinking that there must be quite a few of us out here that don’t have a life – to be spending New Years Day on the computer!!!

My New Years was good thanks. Went to a friends place, had a nice bbq, and played some board games up til 12. Then home, check to make sure the dogs haven’t gone absolutely nuts cos of the fireworks (they had, and made a mess everywhere, and scratched mum’s arm trying to stop my dog jumping the fence!), and fall into bed.

How was yours?

Cheers
Mel

quote:

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Guess it happens in any deal tho doesn’t it? … 10 of us paid 290K to 330K each and the 4 developers paid 150K each and got the pick of the uints. We subsidised them over 600K (150K each.) Between the 10 of us, that’s 60K added to our initial price isn’t it?

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Perhaps this is a. why they develop, or b. the way they wish to take their profit, rather than cash in hand. I think there were some excellent tax advantages doing it this way (although I believe the rules have now been changed so they would be taxed on the place as if they sold it anyway). So your prices were fair, and they used their profits to acquire ‘cheaper’ units for themselves.

You’re right about the same happening in most deals. I guess it just grated that they can’t be upfront, and say, we get $x so that we can provide all these services to our club members, and the Support Members and the Branch Managers etc. all get $x from each deal that they introduce – a ‘paypacket’ for their time for want of a better description.

It reminded me a bit much of the two tier marketing scam that I got hit with in the early 90’s – to see how much the ‘introducer’ got at settlement was staggering also.

If you look at it closely, I reckon they would make handsome money from their ‘in house’ mortgage business, they get the ‘commission’ from the developers, what sort of ‘kickback’ comes from their ‘preferred’ PMs?, QSs, Solicitors etc.?

Cheers
Mel

As my understanding of trusts goes – a unit trust has ‘units’ that are similar to shares in a company. You can borrow to buy these units, and claim the interest as a tax deduction against your income from the trust. The income is distributed strictly in accordance with ownership.

A family/discretionary trust does not give you the same tax benefits for borrowing and lending money to the trust. In a unit trust, effectively, you can claim a loss in your personal income tax return (where the interest claimed for the money you borrowed is more than the ‘profit’ distributed from the trust). The trust will profit, becuase it does not have a loan to service.

So when you combine the two types of trusts, you can borrow funds to buy units in a Hybrid trust and distribute income and ‘negatively’ gear in your personal tax return. At a later point, the trust can then borrow money against the asset (it owns it, and was letting you use the asset as security), and pay you back for your units. At this point, the discretionary part kicks back in, and you can distribute the profit to any beneficiary. when there are units oustanding, profits are paid as per a unit trust.

Cheers
Mel

Adrian, if the money is spent on ‘earning’ your income you can claim it.

Rates, renos etc. are a ‘cost of doing business’ and therefore should be claimable. Confirm with your accountant of course.

If you can add more value by doing the ‘reno’ first and then getting it revalued, you might be better off to go that way if you can afford it first. Although I don’t think a loan to ‘pay yourself back’ is then tax deductible (see disclaimer above[]).

You could of course pull the extra $$ out to purchase more property, and then it would be claimable.

Cheers
Mel

The other thing is – it did not look like you were buying HK’s property. It was a separate company who ‘dealt with developers’ and negotiated discounts by taking out the developments etc. – students were offered the chance of a ‘finders’ fee if they could find a good site for this company to then tie up – giving even more ‘credence’ to the fact that they were a separate company etc.

It wasn’t until early last year that I really twigged that they were selling HK’s own properties when they started selling ‘Oasis’ in St Kilda Melbourne – which were the units he secured for $88.2M using ‘none of his own money’. I was never interested in their properties anyway – but they keep ringing me – even a couple of weeks ago! – and this just sold it for me that I was right not to want their ‘discounts’ (hah!)

Cheers
Mel

Si, I personally would recommend you rent for a while before buying. The market here is slowing considerably, and there are many more properties available in the sub $300K bracket than there were 3 months ago. There are also quite a few apartments coming online, and some I think that have come online that still have rental vacancies (about 500 I’m guessing). This will lead to a fair bit of an oversupply for the moment, so you might find you could get a good deal to rent.

As spider said, check out allhomes, but if you know where you will be working, I would recommend you live close to work if you can – it’s much easier. Definitely don’t live in Tuggeranong if you will work in Belconnen and vice versa.

Cheers
Mel