Forum Replies Created
I can list the traits as the strategies are unlimited, being pro-active, having the right head space and being patient………
The deposit is more like 30% depending on the bank, they will not allow LMI. i.e. the lending is generally 90% of typical borrowed amounts for both Commercial and Residential without the Lenders Mortgage Insurance.
The property purchase is through the use of instalment warrants via a bare trust with corporate trustee's. The SMSF will borrow indirectly.
Yes, you correct this is a non- recourse loan.
crj,
How realistic is it for you to buy these stocks? Let us know the company, dates, prices, and I will break through all the BS and show how this is not very realistic for many people. Further I can than show you how this is still not a good option when considering opportunity cost.
casanovawa,
You have played this out the same as the many,
What you did mention was the upside…….. What you did not mention is that many people also purchased FMG between $5.00- $12.00 and today the price is $4.46. When people make an assessment you should also look at the downside because in the real world, in many cases the Cinderella stories are for people pulling the strings…….. No guesses who they are…….. Creating wealth is as much about learning what is marketing (smoke and mirrors) from large corporations vs what they do not want you to know.
Many financial institutions market the positives and then rely on Mum and Dad Australia to pass it on at a BBQ <moderator: delete>……..You do not give enough of the real picture, there are many factors/ variables that have a large influence on your wealth creation that you have not disclosed. go sit down with your local property guru and come back asking a specific question or two. It is very dangerous to ask how to plan your life with limited personal information.
DWolfe wrote:Hi all,I also think that Birchcorp, considering you are a financial planner and you are advising people how to invest wisely, you should be advising people to become more educated through legitimate avenues. No body knows everything and if they think they do you should avoid them like the plague.
I encourage people to further their education and become more informed. You may like to re-read my post, particularly directing you to the third last line…. I have taken the time to quote what you may have missed, "That does not mean you should not pay for this gig mentioned above, but when you are well researched you are able to make an informed decision on whether the course is suitable for you".
I hope this clears things up………
Yes it is possible ( but pointless), from the ATO's point of view you are assessed as an individual on your total income less deductions (interest). Your tax will not change (i.e. you have no net gain)….
Amsaini is correct, you could have effectively done the same thing with minimum deposit and put the rest in a offset account. Where possible, Never ever place your own funds in an IP or you PPOR for that mattter.
The negative cashflow as mentioned above is not a big issue as it will become positive in due course (rent today is not the same as yesterday)….
Overule: you are right in saying we all have our own strategy. It is just that some strategies will provide a quicker path to retirement or whatever it is you are trying to achieve: they call this opportunity cost.
Good Morning Matt,
and Welcome Jamesp33,
Matt is entirely correct in stating you will be bombed with many concepts and strategies, 101 ideas will hit you at once, the key is to understand that most strategies will have an element of truth and good value. It is your job to select the concept that is most suitable to your personality. In terms of your savings, you are very close to taking the plunge for yourself. You may need some practical knowledge to prepare yourself. Sit down with your local Broker or like ( the cost is nil), report back to this site and we will keep you on track….
People do not pay for this advice, it is free in todays climate….
If you Ignore the politics (not backing any party). Call me old fashion, what has happened to integrity.
So now Gillard is doing back-flips on her parties policies. I will teach my children someone may be good at sport, mathematics or particular areas in your life but integrity is the screw that holds all your traits together -surely honesty and the ability to conduct yourself in a trust -worthy manner must stand for something. Disgracing your boss in a public arena and smiling is up there with the worst I have seen.
Further, while Julia received a pay-rise, our children lost millions of dollars through the loss of revenue. We can only hope that some day we have another leader that will also go into bat for our country. But due to the recent incident, I feel we will have many puppets for a long time….. This is not the Aussie way!!!! A great Australian shame………..
Thank you K.Rudd for your courage and commitment to Australia………
I cannot help you as I am in sydney, but you are right…. go see someone. No-one is a certainty for a loan in todays climate….. You need to see a broker/ planner before blowing opportunity….. You are not going to get enough personal advice on this site without knowing all your intricate details (that is dangerous in a public forum).
RE: Who to see? Watch out for the references and who is in bed with who? My suggestion to you is to see several local brokers that have made themself money through investment properties.
As above…… In todays climate I do not believe you have the margins that you are giving these groups. It is a market for the astute, get financially savy by at least showing an independant third party after your meetings with these groups. I for one am happy for all my clients to display my thoughts, fees and strategies publicly, I am sure if this was a good value experience they too, will be happy to be completely transparent ……
I think the real focus has been lost on this post?
If you know they are good people, why would you dis-respect them by blatantly saying "I do not trust you". I have a lot of respect for all my tenants and in reverse they look after my property. Allow them some space to love your house (provide them with gifts i.e. A/C for your house), don't give them a reason to leave, but encourage them to stay. If your house value is $400k, they are effectively making you $40k pa. Why would you not have the greatest appreciation for your tenants? Property investing is actually a mindset…….
Like V8ghia mentioned above, but it can also be done with a standard loan with an offset (a little savings).
There is no accountant in the country that will give you this advice on the terms you are suggesting, you will need a private ruling in regards to the first instance.
In regards to the Trust option, you will find some creative accountants that will allow you to do this, that being said it is still not concrete on whether the ATO will allow.
What you are asking cannot be solved on this site or by your local accountant. You have two options: to speak to a creative accountant at a premium price (that may come undone in several years when the ATO cracks down on that particular scheme) or get a private ruling- this is the real option even if you go for the creative option.
If there is a way outside this, it it has part IVA of the tax act (ITAA 1936, s77) all over it……..
Make sure you have a good deposit, if property trends south, you will need the extra cash to make up the short-fall as the LVR will be reduced.
As above, with so many variables – but for a non conservative lender a ball park number of $210,000
A few eyebrows is an understatement. An auditor will have you for this, this is clearly not acceptable.
Further, you do not necessarily require an income but be actively looking for a tenant etc. The ATO's test is "was the purpose of the borrowing to invest in an income producing asset" Go back to what I stated originally and keep it real, but also make a decision on what is legislation, not hear say. Refer to Ormiston v FC T 2005 ATC 2340. A property vacant for four years…… I won't bore you with the details.
The ATO are real people, there do have laws to go by that are often grey…….. You will need to keep the deductions real… They may also classify otherwise typical expenses (not improvements) as part of the cost base due to it be that way when purchased. I would err on the conservative side on this one…..
