Forum Replies Created
Apprentice meet up
Hi everyone,
any Apprentices at the conference who wish to meet up?
I’ve asked around it does not appear there is any specific organised.
Looking forward to network with other people
Ritchie
Hi Everyone,
My partner and I just meet with Jovic accountants in Geelong Yesterday.
They are part of Bantacs group. (worth getting Noel Whittaker book)we were very happy with responses to questions we had before we meet them, and the planning options put forward.
they also do not do free consults, but if you go prepared with your questions and what you wish to accomplish you can achieve a lot in an hour
Cheers
Ritchie
Thanks Terry, no I did not make that distinction in my post, but wasn't really where I was going
Thanks Richard,
Is this likely to be a major road block/barrier? or is it a registration and approval process?
Can you point me in direction of where I can find information on criteria I need to meet to become licensed?
Cheers
Ritchie
I have the following skill and knowledge, and license in regards to vendor finance
1. little or
2. very little
3. most would say none.
hence I am looking at employing an "experienced and qualified person" to facilitate the transaction
I am examining if this is a viable exit strategy for this property.
This appears to be a way to maximise my return on a bad investment choice.
Cheers
Ritchie
Hi Jary,
Welcome, you've done the hardest part and that's ask the question…
a VERY ROUGH way to work out cash flow is using the 1% rule.
there are few threads on it in the forum.
Take it with big gain of salt, as there are buying costs, holding cost, deprecation, maintenance, interest rate changes etc.. etc.. to factor in
if the figure is neutral or only slightly positive, it's most likely you will make a loss in the first year. (if not first few years)
Due diligence should be applied before you commit further to any acquisition.
Run it past your accountant if you think it's worth pursuing, and ask them what are the pros / cons, and pitfalls of this purchase (you can always put this as a clause in your offer)
Regards
Ritchie
Jim, be very careful on how you proceed with this.
It can land you in a lot of hot water with the ATO. and on the face of it (if you do not declare the facts, it is fraud)
As stated in requirements of the grant (which is a reasonable sum of money, please don't forget this. Its a privilege in Australia not a right) you must reside in the property for six months in the first 12 months of ownership after completion of construction
As Terry pointed out if you live in the property, and then it becomes an investment later on, and you sell (with in 7 seven years of you living there) the property may be deemed PPOR, thereby not subject to capital gains Tax (something to consider in your exit strategy)
Saying this as you asked for creative ideas, and I personally like to hear a slow yes than a fast no.
an option maybe to take on a boarder while you live there (ie a house mate). there is certain criteria they have to meet, however, the income will have to be declared, but you deduct their portion of expenses (eg power phone, gas etc), and you may meet the conditions of FHG and PPOR.
get the balance right (expenses = board)
Could be the win you are looking for. however check your facts first!!
Just on a side note (and perhaps a big learning point for you), buying a property as a home for yourself is NOT the same as buying an investment. please don't confuse the two, it can be very problematic, especially when it comes to financing and government grants
Please let us know on how to go
cheers
Ritchie
Hi guys,
I have started, and the amount of work gone into producing the resources is fantastic.
You receive a folder with a large amount of reading materials, broken down into simple easy to manage modules and sections.
a private login to online resources to recorded webinars, Q&A sheets etc..
There are people in the office you can phone direct with any assistance you require.
All of the content is very comprehensive the assignments are not difficult, and are protractile to real life
I am getting more than monies worth out of the course so far
Cheers
Ritchie
Hi Tom,
I congratulate you on entering the property investment world early in life.
It looks like you have the drive to research and understand what you are getting into, which will put you in a great place in the future.
I have made some errors along my journey which I would like to share with you and some things I have learnt;
1) be very careful what you take out of reading books from other countries. Australia has some very different Tax rules to the USA. Although some property investment strategies have been adapted to Australia (eg vendor finance) not everything can be done the same.
2)Leading on from this TAX and Law is fluid, a book on property investing from 10 years, and how to structure your account may not be applicable today (for example the use of Line Of Credit accounts to maximise negative gearing)
3) PAY A PROFESSIONAL TO SET UP YOUR Structure. it may cost you a few thousand dollars which really hurts I know. but employing a property savvy accountant AND a legal professional AT THE SAME TIME IN THE SAME ROOM will reward you in the long term. (note accountant & legal advice do not choose the 'OR' option like I did)
When a system (note choice of word system) is developed, you can then talk to your finance broker who can set up bank accounts for you. (no more standing around in banks!!!)
something a little off the topic for asset protection but a fantastic bit of info I picked up early. You will start to gather a group of people who will work for you eg accountant, finance broker etc… When you find someone that fits well with you and your team, keep a hold of them, and facilitate them meeting the others in your group – you'll be surprised what can come out of it.
Have a look at the info below from Master Wealth Control.
It is a good starting point; take some notes and develop some questions to ask who ever you go to see
WEBINARS
Putting it All Together Webinar
All the Best
Ritchie
He has provided me with some borrowing options with my current structure, and is able to assist with borrowing through a Trust if required
Moreover, now that I am looking at the next step up, my basic understanding is I need to structure to protect myself, and my assets better than my current setup.
So here I am.
I'm fast coming to the conclusion that Terry pointed out to engage a lawyer to get more information and set up a trust (of which type I'm still not entirely sure, and a business as a corporate trustee)
Cheers
Ritchie
Cheers 007,
I have started to put together a good team,
I have a very good finance broker who is the process of establishing finance.
However, before I wish to proceed I want to ensure the account / business structure is correct
One thing I am trying to learn more about is the Trust Deed, and any terms I should or should not include
Cheers
Ritchie
Hi Terry,
The LOC was set up to have a clear separate investment transactions account, and not to be mixed with personal spending.
Also a buffer for when I am not able to keep a close eye on the balance, as I am often away.
As I have reached a point where I am assessing my current structure with the mind set of becoming a property developer.
I have no issue with paying TAX, I am just making sure I have the account structure setup correctly from the start.
Cheers Ritchie
Hi Richard,
I am very interested in your information;
unfortunately I get an error the document I am looking for does not exist.
has it been removed?
cheers
Ritchie
