Forum Replies Created
AD & Ziz,
Thanx for your feedback & assistance. I think that the instalment contract tax thing has been answered.
Short of drawing up a network of companies to offset the tax, are there any deductables directly related to the wrap?
Your thoughts???
Michael [
]Steve,
The new website looks great. More user friendly & easier to access frequently used areas.
Michael [
]Oscar,
The first part of this sounds a bit like a quasi-flip rather than a wrap. Not sure if it would work (or the legalities of this) but it sounds good.
About presenting the wrap element of the contract, might I suggest that you clearly explain the term & conditions prior to any agreements or action. Discuss these with your solicitor to ensure you minimise risks & have them presented to your client’s solicitor with the other documentation.
Michael [
]Brent,
Steve spoke about how he was in the process of organising this at an earlier master’s series.
Could you please also e-mail me this information.
Thanks
Michael [
]Angie,
I suggest borrowing not more that 80% to avoid mortgage insurance. Also gives you more in the property & greater cashflow.
A further consideration is whether you’re planning on using this as a buy/hold or wrap property. Either way, you’ve automatically got 20% equity in the property. You’ll own the propety sooner if you re-invest the dividends & don’t get cashed out.
Michael [
]Dear Admin (Brent / Steve),
I was anticipating the RBA raising interest rates by 50 basis points, however, not to be. While the drought has had a major impact on rural economies where cash is still king, there’s not as much of this around at the moment. Rural towns are feeling the pinch & the more affected the area, the less spending.
How does this impact on housing & the economy?
As I live in a (semi) rural Vic town, we’re starting to see this impacting on the overall economy now. Industries supporting the rural sector are reporting a massive downturn in sales. Cascading thru, this also means potential for increased unemployement. In economic terms, this is good for the government ’cause high unemployement means lower inflation rates. This further consolidates the RBA’s decision to maintain low interest rates & everyone’s happy. Except investors….While the FHOG is a good thing, when combined with the (almost) lowest interest rates in 40 years (earlier this month the US Fed Res dropped interst rates for the 12th time in under 2 years to 1.25%), it’s amounted to excessive numbers of potential new home buyers. My financial advisor (sic) showed me some data around 6 months ago indicating that the rental payments in most areas will take approx 12-18 months to cach up to P&I loan repayments. This has increased the gap between rent & (neg gearing) investors loan repayments. People are basically paying too much for property ’cause the market is demanding too much, cause it’s overheated & the stockmarket’s not really a great option for speculative investors…
As earlier stated, I’d have liked interest rates to have gone up (by as much as 2% would have been ideal). This would have corrected the market in a HUGE & RAPID way. People with excessive disposable cash & credit card bills may be forced to sell as the repayments are now out of their ability to repay. More houses, less people, less demand, oversupply of units around Melb = a great time to buy…
Regarding wraps, I’d be anticipating an increased demand in both property services & people seeking low cost housing. Tenent risk levels may correpsondingly increase.
My 2c’s worth….
Michael [
]AD, Sooshie, Michael, Mike, Steve, et.al….
I found the free 2001 Census data at the below link which I thought to share with all…
A quick download from Adobe (for those that don’t have the right software – it’s also free), then you’re presented with a map. A few clicks later & you can look at any town in Australia. If you download the XL file, there’s the usual demographical data, immigration, languages, etc…. However, on the last three pages (19-21), there some interesting stuff on housing, including numbers relating to “Being Purchased Under a Rent/Buy Scheme”.
Not only can you evaluate the number of people renting, but also the potential of wrapping success in that area – might have saved me a fair bit of money in advertising…. (that’s gotta be a good thing [
])Regards,
Michael[
]AD,
I’ve e-mailed Brent / Steve about establishing a trading or swap element to the forum. Bit like meeting point, but where trades can occur. Didn’t want to openly advertise these, so thought I’d ask the right people first[
].Flea,
I’ve a copy of the Kiyosaki / Burley 16 tape set “Secrets of Professional Investors” that I’d like to swap for some of J.Burley stuff. Drop me a line at [email protected] if you’re intersted[?].
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