Went to their seminar last year, attended a small group session at their office and was turned off when I found out how they work.Basically 'Custodian Wealthbuilders' is just a marketing thing to get business. They're pretty much a developer. They buy a massive chunk of land, divide it up and sell house and land packages to their clients.  They…[Read more]

I would also be interested to find out about this.

Hi Bator.h,I'm currently selling in regional vic, fees are 3% + gst and advertising/admin is $600 + gst, but is only payable if/when sold.Seems like you are on the right track.

Hi Ben,I am no expert and can't fully answer your question, however you should be able to retain the 'distributed' income within the trust. When you distribute income its so you can pay tax on the income earned so whats left can stay within the trust to buy property as opposed to transferring to your personal accounts.As I said im no pro, you're…[Read more]

Haha gold!!!! Keep it up mate, you had me in hysterics

Benjamin Csikos wrote:
I nodded and smiled as I visualised wrapping a rope around my neck and going for a bungee jump. 

hahaah very funny!!! This line made me burst out laughing while at work…oops!

Hi Hughski,My parents did exactly what you have said but to their PPOR. They bought a 3bed brick house with double garage(separate roller doors) and built a wall blocking off half of the double garage with panels. The panels they used are installed with railing at the top and bottom and you just slide the sheets in! The room has two doors, one in…[Read more]

ryan mclean wrote:
If i could subdivide then I would subdivide and sell off the land and use that money to reinvest in something else that is positive cashflow and would offset your losses on the current property. Or subdivide and sell both and then reinvest

Thanks for the idea ryan. I know of and have considered this strategy, however my…[Read more]

maree_bradross wrote:
I am noooooooo expert, but if you reduced your loan to interest only, claimed your depreciation it would be worth while to hold imho

I know this can and does work in some situations….however the building is far from new so I don't think I would be able to recover all the holdings costs, and since any growth is minimal…[Read more]

Hi maree,I have not claimed any depreciation. This was previously my PPOR and has only been an IP since the start of this year. I don't know that it would be worthwile getting a depreciation schedule done considering I am now planning on selling?

Hi hleung and Terryw,

Thanks for the comments.

I’m sure there will be capital growth in the future, however my understanding is that it will take a long time. I lived there for nearly two years and as it is a small town its very easy to keep up with the real estate. I’ve looked at houses sit on the market for months and seen freshly renovated…[Read more]

sonyasal wrote:
What would the figures be like if you changed the loan to IO?

Hi Sonyasal,If I refinanced the loan to an I/O on the existing balance and at the same interest rate the repayments would be approx $8880. The rent ($8580) just falls short of covering the repayments without taking into account other costs. I think its time to add…[Read more]

mattnz wrote:
If there is no growth potential, there is no point having it negatively geared, (also known as making a loss). Sounds like you have already decided it is time to sell.

Hi mattnz thanks for your comment.I completely agree. As it is currently losing money and not in an area where I'm going to see any good growth in the near future,…[Read more]

patriotsoldier wrote:
Without knowing the complete picture, could you hold onto it and value add by renovating?ORas it is a bigger block, could you get approval for a second dwelling, like a modular house or a kit home, something basic that could be rented easily, this may turn it positive and give you a little capital growth along the way.Or…[Read more]

Hi Richard,

Thanks for your comments, and sorry for the late reply! I will be looking to move the loan across to an IO with 100% offset in the near future, and setting up some sort of trust for further purchases.

Thanks again for spending the time to answer my question.

Cheers

Pav

Hi Nos1,My understanding of offset accounts…."an off set account on a an IP loan actually pays off any of the loan"No it does not pay off the loan balance. Its more like a savings account that (as the name suggests) offsets the balance of your loan when paying interest."does it just reduce the monthly repayment?"It reduces the amount of b…[Read more]

Hi Trev,.For me the first place I go to look for most things is the internet. What I find there is my first impression of the company/service etc. After this I would probably discuss with family/friends etc. and if they make recommendations I check them out on the internet for myself! I havn't opened a yellow pages book in years! Another idea…[Read more]