Ill give my 10 cents worth on commission as an active marketer of residential investment property.The back story…I have been a small developer over the years and generally budget say $25,000 for the marketing and sales commissions of my developments… its pretty standard practise in the industry (I also used to fund development projects).So..…[Read more]

In any event I would use the following variables to help me decide and rate them against each other 1-10 Yields above 4.9% Easy affordability Independent land valuations Independent rental evidence…[Read more]

I would make sure the loan funds come from separate lenders as well so they cannot claw back from both in the event something goes wrong.

I am happy with the tax opinions I have regarding the product and would suggest people get their own Private Binding Ruling from the ATO for their own circumstances if in doubt.

Terry,Still cant see it in the hard copy brief that I have but bmaybe I have the version pre downgrade of LVR.Will be interesting as I know we have a number of 75% commercial deals in the pipe with Perpetual as the Trustee, maybe again before the downgrade, will keep you informed as to if or when they blow up.

I have recently read a PBR (private binding ruling) from the ATO which allowed the capitalisation of investment debt as a short term measure to fund the repayment of OO debt.In other words all income into the home loan and all costs including interest on investment capitalised and yes the interest on the interest allowable.You would have to get…[Read more]

If its all east coast property you could roll both into a 'Cash Flow Manager' loan essentially almost halving the repayments required, the other part of the loan is capitalised which you may choose to do until you and hubby are back together?Email for the spreadsheet and info to see how it works if you want.The Cash Flow Manager Loan Where you are…[Read more]

We all buy things to enjoy, whats the use of working or investing if you dont.  I personally dont beleive it all should be about the $$.  It's called investing in your joy.If I were in your shoes, had a long term view and depending of course on your particular circumstances I would roll the OO property in a Cash Flow Mortgage (only if you needed t…[Read more]

Most long term investments other than 'true' +ve cash flow rely on the hope of some rise in markets over 7-10 years so I dont believe this is an issue.  Of course you are taking a gamble on rising markets over the longer term.  Personally I use a 5% long term growth objective when crunching numbers and any more great any less I knew what I was ge…[Read more]

Cant see that written in the ammendment anywhere (just checked)? Do you know something I dont?I know when we were looking to get our funds we were shooting for 80% on commercial as well as resi but only got 75% on both.

ah, if I only knew at 17 what I know now…get into Mortgage Broking, there are plenty of good deals out there but finding the money and knowing how to structure yourself for tax, that is where the money is in my view.

I would suspect that yes funds contributed from the partnership are deemed as a loan and hence can flow back without triggering extra tax.I use partnerships for several of my entities, most of which are partnerships between two family trusts and this is how we treat injected monies.

recent changes the Super Legislation now allow you to essentially gear your SMSF to purchase both residential and commercial property using instalment warrants.I have access to funds at 75% LVR for both if anyone interested.This may be a solution but pleaseeeee make sure the Trust Deed is complying for this purpose as this really is the where mo…[Read more]

50% split your way on each settled deal moving higher as the monthy volumes increase.  Cost about about $500 to process each deal using support staff and the rest up for grabs.I have several of these joint ventures on the go and have the capacity to handle large volumes,l would suggest you email me personally and have an offline chat.

If you are not being led towards a 100% offset they are not a good broker, it preserves the tax deductability for future use and when you crunch the numbers can often give you a 0.7% discount on the real cost of the dealie. say offered 7.9% variable, using an offset can usually generate 0.7% actual savings on the rate or in other words make the…[Read more]

Problem I see with all those trusts mentioned is they have a vesting date i.e. an end date and therefore a CGT trigger for someone (maybe you will be dead but someone!), imagine the Capital Growth and subsequent tax on a 50 yera property hold that you are forced to sell because your trust is at an end!I use a hybrid DT with no vesting date (…[Read more]

Jasmin,Centrelink look at the net rental loss of you IP and add that back into your income stream to asses as taxable.i.e. Interest + costs etc say $20k on your IPRent  $10k = you lost $10k on that 'business that year'CL will add in $10k into your taxable income to assess which means an adjustment to your FTax for sure.If you are going to do it…[Read more]

I am an originator for these types of loans and have a view from both sides, no type of structure involving equity being used to handle repayments suits anyone but agressive investors hence…1. if you look at the structure of the Cash Flow Manager loans they are not at all disimilar to obtaining a Line of Credit to 90% LVR and using this LC to…[Read more]