Spot on :)

I company by the name of SMATS do a lot of work with foreign income. Mainly non-resident expats living abroad.

The All Ords is just an index and to beat it you could buy all shares bar a couple that have poor outlooks. Out performing the market can be done in share investing if you diversify less. This however increases risk or so the theory goes.

According to the theory, buying a $300k property is going to be on the high end of the risk/reward scale. You…[Read more]

30 years!! That’s crazy talk! :)

That would definitely make life simpler.

Thanks for your comment Andrew.

This is generally the strategy used by billionaires like Carl Icahn, Warren Buffet, Jack Bogle, David Swensen etc. Albeit more sophisticated models but in essence a huge amount of diversification to optimise this risk/reward profile. This is also quite a common methodology in the US for individuals seeking…[Read more]

Thanks for your comment Redom.

My investment horizon is a lot longer than the 5 or so years lenders will generally fix for. I guess I am more interested in a hedge which is not limited to a time frame like this.

Hi Richard,

Quite interesting I must say. To complicate things a little more I have been a non-resident for the past two years while working overseas so this may hinder also. These things seem to stack up negatively and it becomes harder and harder to obtain finance.

Good fun trying though!

Thanks for your comments guys.

I think it might be best to get some structuring advice on this one. Once we have a structure which protects both of our interests then I’ll be able to clearly see the options with regard to future finance.

The majority of my wealth accumulation is coming from property so if the venture compromises this then it may…[Read more]

Thanks for your comment Terry.

Another option I thought of would be to buy in to my business partners entity (50% share) which will of course provide me with two years of tax returns.

If this were to occur, would a lender consider 50% of the after tax profits to be my net income? Or is there a more complex way of calculating?

Do you already own the property?

In NSW at least I’m pretty sure you need to pay stamp duty when making ownership changes like that which generally negates the benefits.

This is declared at purchase time.

I used credit cards when starting out to get a foot in. Instead of cash advances though, I used them for most of my expenses so I could save my salary. I would then balance transfer it to another card. Then when that interest free period expired, I’d do another balance transfer. You can keep doing them until you run out of banks really.

Although…[Read more]

Definitely sell the car.

If you can sell your old car also and upgrade to one that suits your needs better for $5k, you’re going to be $45k better off and have a car that suits your needs. In 5 years time you’re going to end up with a not brand-new car anyway so you’d rather be $45k closer to financial freedom.

Once sold, get rid of that $30k…[Read more]

Is your mum even going to be entitled to get the government pension?

I don't know a huge amount about the criteria but I can only assume that someone with a $500k house/unit mortgage free, $2,000/month passive income for the next 20 years plus $500k in the bank isn't going to be entitled to a whole lot. If the $500k is earning 5% she'd be looking…[Read more]

A Strata Company (Body Corporate or Owners Corporation in other states) is just the collective of all the lot owners.  I'm not sure what the agent means by none exist. Perhaps he/she means there is no Strata Manager.

You would definitely need majority (if not unanimous) agreement from the other lot owners to develop. This would need to be fully…[Read more]