Most people can make a profit in a boom. Only those truly incompetent or at the mercy of con-men will not.

Most “wealth products” can make a profit in a boom. There is certainly no shortage of property investment techniques for sale, with the “owners” of such techniques dribbling out the information to to the public at appropriate times to maximise returns, often many months after the investor really needed it and, usually, many more months after the “owners” have use it themselves and found it no longer relevant or viable.

The products the investor is now buying may already be past their used-by dates for the market they are investing in.

If the time comes when the tea lady, together with all and sundry, are offering “hot tips” for a particular market, it’s time to either get out or batten down the hatches.

Hi Guys! I’m 24.. got my first IP when I was 20~21 with help from my parents[]… since then, have acquired a 8 more really, really cheap IP’s (although they are not as cheap anymore []) I wish I bought more last year! Still living with my parents so saving lots of money[]

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Tomorrow, you might wish you started today.
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Rod, try here:

http://www.ato.gov.au/super/content.asp?doc=/content/7233.htm

This is the .pdf:

http://www.ato.gov.au/content/downloads/n8384CGT.pdf

quote:

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2. Make weekly repayments as opposed to fortnightly or monthly repayments (for P&I loans).

#1 is pretty obvious, however I’m amazed at how many people do not know about #2 (again P&I loans I’m talking about). Put simply, it only allows interest to compound for 7 days as opposed to letting the interest compound for 28+ days – this might not sound like much but it can make a big difference on a large loan. (weekly as opposed to fortnightly is not that great but still makes a difference).

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I’m sorry OlorinSledge, but this is just another one of those standard cons. The only way you will make much difference is by paying what you would normally pay in a month every 4 weeks, so you end up paying 13/12 more than normal each year. eg if your normal P&I repayments are 2000 per month, you’ll pay $24,000 pa, but if you pay $500 per week, you’ll pay $2166.67 per month or $26,000 per year. This will shorten a 25 year loan by about 3.8 years.
If, however, you pay exactly 2000 per month, but in 4 installments, ie one per week and a bit, then you will save about $3.40 per month in interest. This will shorten your loan by nearly a month, but that month’s repayment will only be worth about $800 in today’s money at 3.5% inflation.
If all your pay goes into a 100% offset account, and you transfer $500 across into your loan every week and a bit, then you won’t make a razoo of difference, because the offset account does exactly the same thing. This is because your interest doesn’t actually compound each week as you say. The interest is calculated at the end of the month, based on the balance of the loan each day, minus whatever is in the offset account, and then added to the loan on the loan cycle date. Eg if your interest is 7%, then the interest from each day is calculated as (Loan Balance that day – Offset Acct Balance that day) X 0.07/365. Each day’s interest contribution is then added together, then added to the loan on the monthly cycle date, ie interest doesn’t compound until that date.
Hope this makes sense. Jim

He who hesitates is sometimes saved!…Thurber.

Just book it at the library Sach! Only three in the queue at Logan Libraries. Shhhh.. Don’t tell Steve I mentioned the “L” word! I’ve bought the book online. Postage was included in the $29.95
Jim.

He who hesitates is sometimes saved!…Thurber.

Sugars and his Rich Mastery mates get a “caning” on consumer advocate, Neil jenman’s website – http://www.jenman.com.au

A good site for any would be property purchaser.

Regards
Chris

Hi Busterk, I know it’s a bit tedious, but you can find a lot of info in the ATO guide to CGT. I think I’ve selected the most appropriate page below:

http://www.ato.gov.au/individuals/content.asp?doc=/content/31570.htm&page=6#P670_56215

Jim.

He who hesitates is sometimes saved!…Thurber.

I was driving through Marsden yesterday, looking at some pretty small homes, thinking that these would have to be reasonably affordable, so I dropped into the local RE office to ask about investment properties. He offered me a few for $170,000 @170 pw rent. I said “I was actually after some properties at the bottom end of the spectrum”. His reply: “That IS the bottom end of the spectrum”. “Strewth!” I said to myself and back-pedalled out of there real fast.
I’ve just stared looking at bank shares. They pay about 5% dividend (fully franked, ie 7.14% grossed up) so perhaps that’s where I should be using my IP equity!
Jim

He who hesitates is sometimes saved!…Thurber.

Just this Rod:

Quote**********
I’ll be doing an article on this in the Sunday Mail on Sunday week so it
should answer your queries.

Regards

Noel
End Quote**********
Jim.

Hi Richmond, did you hear they are letting 40 employees go at channel 7 in Qld? They had a funny skit on B105 (FM radio station) about it. The Janitor read the news, and Ground Force could only afford one happy plant in the middle of the lawn![]