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Sit down for an hour or two and write a document detailing what you wish to achieve and then determine a strategy to get there. When you have done this the path will be a LOT clearer for you.
Too many of us think that owning an IP is a good idea so we go and buy one. Then a bit further down the track we think another one would be good and so we buy that too. I was guilty of this in my younger days.
Not a lot of structure and direction in this strategy. My single best piece of advice is to have set goals and a plan. Anything else is just kidding yourself that you are an investor!!
I happily negative gear but many on this forum see that as some sort of sin [blush2] But with my situation, goals and plan it fits perfectly. Doesn’t mean it is right for the next person.
Simon Macks
Residential and Commercial Finance Broker
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0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Originally posted by kellylock:Being rich for me is:
how many days/months can I go without working before everything collapses.
I guess, because of this definition of wealth, having income from assets is my priority. It is a bit of a different way of looking at “time-as-richness”.
Kelly
Maybe the goal might be that if you stopped working then nothing would collapse no matter how long [blush2]
Simon Macks
Residential and Commercial Finance Broker
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0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
I know a good mortgage broker there but not an accountant.
He should know a few though if you would like to chat with him.
Simon Macks
Residential and Commercial Finance Broker
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0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Originally posted by Sacko:Does any body know whether it’s possible to use this product for an IP, as if so it should help make more IPs CF+
SACKO!
I am no expert on this product.
But thinking aloud …
If cashflow was your goal and you planned to buy and hold forever then who cares if the lender owns 40% of your equity – esp if they don’t get it until you die?
Might be a fast way to build up the cashflow that so many members here are after?
Richard?
Simon Macks
Residential and Commercial Finance Broker
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0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
AIMS don’t even need an ABN.
Simon Macks
Residential and Commercial Finance Broker
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0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Originally posted by dacium:There are some exceptions, like you said with livining in a rental.
But I would check with your tax man to make sure you are doing it correctly. The reason for this is because if you don’t pay GCT you are liable to pay back all tax you have deducted over the years as a ‘loss’ on an investment house that didn’t end up being classed as an investment, and you will have to pay the money back with interest.
Daicum,
You made some valid posts and certainly wrote some long ones.
But this last one is just plain wrong and shows up your lack of depth of knowledge.
All the rest is just opinions …
Simon Macks
Residential and Commercial Finance Broker
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0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Originally posted by Dr.X:………and I know a few “sophisticated investors” who made alot of money out of the derivex products.
I wasn’t aware that any Derivex loans were actually provided?
Simon Macks
Residential and Commercial Finance Broker
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0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Wealthy is when you have choices.
Some may be wealthy on significantly less income than others.
Simon Macks
Residential and Commercial Finance Broker
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0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
yes – as long as you dont own another home as well.
Cheers,
Simon Macks
Residential and Commercial Finance Broker
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
You would be liabl;e for a CGT component for that 8 months. Given that it is reduced by 50% four months later I wouldn’t be too concerned about it – it will be a small proportion of any profit and will be smaller the longer you own the property.
Cheers,
Simon Macks
Residential and Commercial Finance Broker
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
My spidey sense is tingling here …
Simon Macks
Residential and Commercial Finance Broker
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0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Don’t touch it mate.
We can explain it to you here easily enough.
In a nutshell you pay all income into your loan. Live frugally off your credit card then each month draw from your loan and pay down that credit card.
The funds stored in the loan will reduce your interest bill and the strict budget is key to making those much larger repayments.
It can work well for a disciplined person. For other people it can be a disaster.
Mortgage Minimisation brokers will charge you $3000 and get a refinance fee for helping you with this. Most of them are shonky operators in my experience.
All the best
Simon Macks
Residential and Commercial Finance Broker
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0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
You wont go wrong with Richard or Terry. They both have enviable reputations and are men of integrity – shame more brokers aren’t the same.
Let us know how you get on. These guys deserve a good writeup!
Simon Macks
Residential and Commercial Finance Broker
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Originally posted by dacium:“..its kinda like saving 50k in the bank. in that 5yrs i could of just paid the interest on the loan and put that 50k into other investments and made further profits rather than it sitting on my mortgage doing nothing.”
That statement sums up the typical complete ignorance over interest only loans and why banks love people who taken them. The capital payments don’t “do nothing” they reduce your interest payments, so they are making money at the interest rate, totally tax free.
Consider this: If the interest rate is 8%, every dollar you put onto the home is making 8% PA Tax free. This is because you don’t pay interest on it which is 8% of what you owe. So unless you can use that money to make more than 8% PA after tax and all expenses, putting in onto the house is BEST investment you can make.
Consider an investment house that doubles in 10 years, thats 8% PA increase. Now consider all the costs you have paid, all the tax etc. The profit is typically between 2% and 5% PA. Where as you could have not had that extra investment at all and make 8% buy paying off your loan.
“Say if i buy a house for 100,000 and then sell that house for 175,000 in 5 yrs time creating a 75k capital gain.
If i had the loan set up as P+I i may have paid 50,000 off the principal. So i would receive a “profit” of 125k when i sold it……….. but in reality the extra 50k i paid off the principal is just my money being returned to me”Wrong. You would have saved 8% each year on the money you put into the house. For example if you just lump payment $50,000 when you got the loan, obviously that would save you 50% of the interest you paid over those 5 years (about $20,000!). But if that $50,000 is paid grandually over the 5 years the result is probably a saving of about $10,000 or so. Either way the saving is 8% per year tax free. No way would another investment house get that much! INterest only is CRAZY, please do the math, unless you can someone get an awesome negative gear than it *might* be better but in most cases , NO NO NO NO NO!!!
I agree.
But only where you have finished buying properties and are in a consolidation (paying off) phase.
If you are still accumulating and wish to own mulitple properties then P&I should only be considered on your PPOR.
Cheers,
Simon Macks
Residential and Commercial Finance Broker
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
This is a US based spammer. FICO score is a method where US property lending id assessed for each different client. Fortunately things are simpler here.
I have left this post up for admin to see and ban the spammer.
Typical example of the stuff we remove daily to keep this forum focussed.
Cheers,
Simon Macks
Residential and Commercial Finance Broker
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Nope. Unless it is simple mortgage minimisation techniques repackaged with a new catchphrase and sold on for $3000+.
Can you give me some more detail and perhaps I can save you some money and time.
The more things change the more they stay the same.
Simon Macks
Residential and Commercial Finance Broker
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0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Has worked well for me.
Simon Macks
Residential and Commercial Finance Broker
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Can you let people keep horses there for nominal rent and no responsibility?
Simon Macks
Residential and Commercial Finance Broker
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Get a folder for each property and for each year. File all records for the year in that folder then put it away.
Don’t make the mistake of keeping all rates together, bank statements together etc etc.
You will always sort this info by property and by year – esp for tax so file it the same way.
There are some neat little binders at officeworks with elastic bands to close them and keep loose papers inside. These are perfect.
Once again, one per property per year. Label it in big texta letters!
Use something like Property Manager Pro to do IP tax statements and pass these to your tax agent – the folders can just go away in archive boxes until they are needed.
Simon Macks
Residential and Commercial Finance Broker
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Originally posted by kellylock:Hi everyone,
Just have a question:
Is it possible to delay paying CGT by puting your gain into a similar investment. I have vaguely heard of the idea but I dont know anything about it.
Thanks, Kelly
That really is an American strategy and not possible here.
Cheers,
Simon Macks
Residential and Commercial Finance Broker
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
