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Robbie B
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@robbie-b
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Post Count: 2,493
May 19, 2005 - 4:54 pm
I hope you followed the link I provided. You don’t seem content with what you saw. I was very impressed with it.
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Robbie B
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@robbie-b
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May 19, 2005 - 4:28 pm
The lost rent between the tenants moving out and the new tenants moving in is not recoverable.
I would sack your agent and send them an invoice for the unpaid rent if he did not take it out of the bond. The bond is to cover all money owed, repairs and cleaning when a tenant moves out. What a stupid agent!
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Robbie B
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May 19, 2005 - 4:24 pm
And that is the whole point. We are talking super funds here so you can not look at it from a return point of view as opposed to safer investments.
I don’t see the problem with covered calls if you get called out. You make your option premium and you make your margin. There is absolutely nothing wrong with that. I think of covered calls as a wrap on property – the premium is generating a rental return on your asset and the strike price is the transfer of property at a pre-agreed value.
You can always buy back into the underlying shares if you like them long term and do it all again.
There is no risk in this strategy if you intend to hold long-term without using a stop-loss.
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Robbie B
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@robbie-b
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May 19, 2005 - 3:37 pm
I am like Codral – Night and Day. I am a bit of an insomniac. I only sleep 4-5 hours in every 24-36 hours.
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Robbie B
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@robbie-b
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May 19, 2005 - 3:24 pm
A 1km RP Data search around the property will provide this information or you can just check the single address through the Council or if you know a real estate agent with access to RP Data in the area you seek.
I also find asking a neighbour works well especially if they have an adjoining fence or wall as both have to pay for maintenance or repair or maybe even insurance if a duplex.
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Robbie B
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@robbie-b
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May 19, 2005 - 3:22 pm
Is that not the idea behind super investments? Long term capital appreciation of assets in expectation of retirement???
I think actively trading your super funds in higher risk investments is a recipe for disaster. No-one is always right!
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Robbie B
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@robbie-b
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May 19, 2005 - 3:08 pm
You need a larger deposit on most inner city units and especially inner city serviced apartments because the lenders do not consider these as good security to borrow at high levels against. I would take this as a warning and listen to it. A suburban unit can usually provide you with much higher borrowing levels.
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Robbie B
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@robbie-b
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May 19, 2005 - 3:04 pm
I meant the ‘living off equity’ thing.
Regarding the pre-paying tax (or anything for that matter), I am a firm believer of paying everything as late as possible. Money is more valuable in my hands than someone elses regardless of the deductibility. I like to make more money and pay more tax first and then work out how I will pay less tax later.
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Robbie B
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@robbie-b
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May 19, 2005 - 2:54 pm
I use a corporate trustee as it seperates the entities and offers an additional level of asset protection.
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Robbie B
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@robbie-b
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May 19, 2005 - 2:49 pm
Are you suggesting a covered call is useless (“stinking”) Wayne?
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Robbie B
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@robbie-b
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May 19, 2005 - 11:45 am
Vic, it is clear from your post that used equity short-term and much of it for investment, albeit we do not know how much.
Why don’t you confirm it for us now?
Regardless of your response, I have come to the final conclusion, supported by advocates of this strategy (excluding Terry), that ‘living off equity’ is very restrictive in its use and requires a substantial NET equity position (in excess of $1,000,000) to even consider this as a ‘strategy’. It is certainly not to be used by the majority.
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Robbie B
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May 19, 2005 - 10:20 am
Fully deductible as an investment property since rented out but no capital gains tax for 6 years or until you get a new PPOR.
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Robbie B
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@robbie-b
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May 19, 2005 - 9:20 am
They are not allowed to give official advice without doing the plan.
Why don’t you tell people here what advice you need and you might get some exce3llent responses for a good price – FREE!
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Robbie B
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May 19, 2005 - 8:44 am
Luci, that is a huge reason why I think that people who plan their investments around tax deductions as opposed to making more money are crazy!!!
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Robbie B
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@robbie-b
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May 19, 2005 - 8:08 am
Originally posted by 65ens:
Im paying extra on the loan as well as putting all savings into this account.
I strongly suggest not paying extra off the loan if you might convert it to an investment property in the future. Just pay interest only and leave the rest sitting in the offset. It does the same thing. Just don’t spend it on rubbish!!!
Im thinking that maybe when i get an IP i may be able to draw from this offset as emergency funds for the IP…eg breaks downs, maintenance type things.
It would be better if you could secure a split loan on your PPOR to use for these expenses. Paying out of the offset means paying upfront and no interest expense. That assumes you are looking for more deductions.
i have no ties etc so will have friends boarding with me to help reduce the loan quicker.
Good idea. Make them paint the place on weekends for food!!!
If i was looking at an IP for around the 300-350k mark how much equity would i need?
To avoid mortgage insurance, you would need to have 20% left over (difference between all loan amounts and property valuew) AFTER you borrowed enough to purchase the investment property and pay all costs like stamp duty etc. You could get away with 10% but you would be paying a lot in mortgage insurance.
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Robbie B
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@robbie-b
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May 19, 2005 - 6:29 am
I think this link will be of great assistance to you. I was very impressed:
http://www.housing.wa.gov.au/key/access.htm
Please let us know how you get on.
The Mortgage Adviser
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Robbie B
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@robbie-b
Join Date: 2004
Post Count: 2,493
May 19, 2005 - 6:17 am
Contact Richard with the username Qlds007 in this forum. He is a Cane Toad!
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Robbie B
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@robbie-b
Join Date: 2004
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May 19, 2005 - 6:03 am
I don’t think there is any point to obtaining tax deductions on a pension as there is no tax to deduct.
Regarding planning this strategy out, I don’t know of any lenders who will lend money to someone without an income (other than just a pension) so I don’t see the point if your plan does not include obtaining income from working or starting your own business.
You will need a high deposit for a no doc loan so the lender will see your bank statements so it is assumed you cannot hide the fact you receive the pension as the deposits will be seen.
However, I have heard of various Government schemes besides the FHOG that help people in your situation. I will try and find some information for you.
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Robbie B
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@robbie-b
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May 19, 2005 - 5:57 am
Terry, instead of telling everyone they can do it and saying that it could be a problem if done incorrectly, why not just tell everyone how they can do it correctly.
Surely one of the many accountants on this site can assist here.
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Robbie B
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@robbie-b
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May 19, 2005 - 5:43 am
Terry, the $200,000 for the couple was not my example. It was the $100,000 per annum for a single individual.
Regarding you brainwave about using the money to pay for expenses and then living off rent, that is NOT ‘living off equity’. It is common practice to borrow to pay expenses and then deduct the interest on this expenditure and it is the sensible thing to do.
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