Forum Replies Created
Guess my joke fell on deaf ears then ….. [thumbsdownanim
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.
Why do people here always view shares and property as being opposites and a choice between one or the other?
I think a strategy for wealth can be adopted to include both – in fact many clever investors have a balanced portfolio.
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.
A man was riding in the back of his limousine when he saw a man eating grass by the roadside. He ordered his driver to stop and he got out to investigate.
“Why are you eating grass?” he asked the man.
“I don’t have any money for food,” the poor man replied.
“Oh, please come back to my house with me!”
“But sir, I have a wife and four children…”
“Bring them along – the more the merrier!” the rich man said.
They all climbed into the limo. Once underway, the poor fellow said, “Sir, you are too kind. Thank you for taking all of us in like this.”
The rich man replied, “No, you don’t understand. You are doing me a favour – the grass at my house is over three feet tall!”
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.
Terry speaks the truth as usual …
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 mathewc73:Writing covered calls always seemed a contradiction to me as writing the call assumes the market wont rise, yet owning the share assumes the market will rise. Why would you have capital in a market that you assume wont rise?
Mathew
http://www.arrttt.com
Custom Oil PortraitsYield….
Just like many of the positive cashflow investors here.
In fact I have discovered that yield is a better way to build wealth than simple growth. Better for me that is – I know we all have different ideas on strategies [biggrin]
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.
Or you can have them hard wired in to the electrical system with a battery backup.
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.
Or you can have them hard wired in to the electrical system with a battery backup.
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 65ens:i am nowhere near as experienced as all of these guys but the way i look at the I.O. vs P+I scenario is like this:
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…..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.
thats my simple way to look at it….coming from a simple mind (who failed maths in grade 10) hehe.
Analogy is great.
But your figures are hopeful. I suggest you would have only made a $5K dent in the P part of the loan in that time …
All the Principal repayment action happens in the later years of the loan!! [blink][blink]
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.
As much as we would like to help you I suspect things are not the same in the US as they are in Australia.
I suggest you contact a local agent or solicitor for advice. Perhaps some local investors have such a forum as ours.
All the best,
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 cata:Spot on Terry
Registered mortgages get paid first in the case of bankruptcy.
CATA
Asset Protection Specialist
[email protected]So the funds from the topped up or second mortgage could then be invested through the trust and be untouchable?
This is my plan as well.
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 Terryw:Just drive an old bomb, and keep your cashflow clean and borrowing capacity clean.
Terryw
Discover Home Loans
[email protected]
Send an email to get my newsletter.Thats what I do …
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.
Capital.
If anything is done to improve the property above it’s condition at time of your purchase then it is classed as capital. Regardless if someone else was renting it out it all starts fresh from your purchase.
You will be able to claim depreciation on the repair.
if however damage was caused after the purchase then a repair might be in order. Not normal wear and tear but storm damage or the like.
Your accountant will be better able to advise you.
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.
I use NickM for my HDT who is one of Chris Batten’s favoured accountants http://www.strategicwealth.com.au
Nick tells me that he is well into negotiations with the ATO re hid trust deed and they they are definitely on the front foot with them.
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.
Be aware that some agents are unscruplous and such an agent could be trying to manipulate both the size and timing of your offer by suggesting a second buyer.
Of course he could be honest too ….
But don’t let him influence your decisions too much [blush2]
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.
So to simplify things you want to sell a property to buy another property?
Sounds like a lot of fees for others …
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.
Once again this isn’t a simple question and people will have had success using either.
I personally feel that you should choose areas that have a history of capital growth. Whilst many people made money out of remote towns in the recent boom some of these places had little growth in the 20 years preceeding what was the biggest boom in our short history.
Personally I prefer major regional centres or capital cities. But you need to research this fully yourself. Choose an area or a few areas and research them to death [biggrin]
All the best
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 freeman cooper:Hi Cathy,
I am currently refinancing with a company with property investing experience. The CEO has 40 investment properties and gives sound inteligent advice as well as providing finance all over Australia.
Deatils are:
Ranges Finance
Alan Lee (CEO)
42c Aitken St Gisbourne 3437 vic
PH: 1300 785 281
http://www.rangeshomeloans.com.auRegards
FrankWow Frank – you didn’t even attempt to answer the question – just plugged your mate.
Keep it up and it will start to look like spamming.
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 jxf:G’day all
I am also interested in finding out what these Interest Only loans are all about.
Simon (Mortgage Hunter) I go back to your example of your parent’s place.
. So they paid interest only (hence their mortgage payments were smaller each month) and now they still owe the initial borrowed sum of $47,000. Will this sum then be paid out when they sell the property? Are you under any time frame to come up with this sum or will the bank just wait until you want to sell it?Now, if they had paid Interest and Principal does that mean they would now owe $0 on the property – so the full $3Million would be theirs? (ie you don’t have to subtract the $47,000 from the $3Million if you sold the property). But by paying interest and principal over those years the draw back was paying a higher mortgage payment each month which then (could have) meant they didn’t have as much cash lying about to finance other investment properties.
Is this logic I have applied correct? Is it a too simplified view to such a situation?
If the logic is on track….are we talking the same time frame for each of these scenarios? That is will you pay off all your interst only loan in the same years as you would an interst/principal loan – assuming you stuck to the minimum payments. If not which is quicker and why.Another question if these scenarios are vaguely right – isn’t it better to own your property outright at the end rather than still having to pay off the initial borrowed amount?
Also do you still choose if you want a fixed or variable interest rate for interest only loans? If so which is better – or is it a case of looking at what the market is doing and trying to pre-empt a drop/rise in interest rates.
Sorry for the overload of questions! Just trying to get the terminology and different options out there under hat!
Cheers
jxfThis is an interesting post and one I am always trying to explain to people. Firstly let me say that there is no right or wrong. Consider what I have to say and make your own choices and remember I am not offering any investment advice. Just my viewpoint for discussion.
Our parents generation viewed debt as bad. They were influenced by the depression stories and had a goal of owning a home. Perhaps a beach shack too if they were wealthier than the average.
Are they the benchmark that you wish to compare your outcomes too? If so then I suggest that you are aiming for a lower middle class result. Noble but you can do better.
Typically IO loans are 5-10 years long at which stage they revert to P&I. They can be renegotiated to IO or a LOC can be used which is a permanent IO loan.
So a 30 year loan might be IO for 5 years to keep the repayments lower at your early stage of working life and the house will still be paid off in 30 years.
For an IP then only the interest is tax deductible. Not the actual principal repayment. So why have any non deductible costs on an IP? Who cares if you never own it? You own all the growth and own all the rent. Aren’t these the best bits?? [biggrin] I think this hang up with owning the property outright is a working class mindset – wealthy people actually own very little.
So IO is a lower repayment and fully tax deductible. The additional cashflow that this generates will allow you to invest further and generate more cashflow and CG.
If you only ever want one property then P&I is clearly the best strategy.
If you want to own multiple properties then IO will get you there sooner.
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.
I am guessing that a bunch of anonymous strangers in a forum isn’t the mentorship that he had in mind.
The problem is that the more successful the mentor the less likely he has the time or the motivation to spend it here … myself included.
All the best but I am thinking that you need to approach this in a more targetted and businesslike fashion.
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.
No
Interest paid on interest capitalised to the account is not normally deductible.
This is a murky area and I would suggest you tread carefully if you do decide to claim it.
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.
