Forum Replies Created
- Quote:Wow…the banks suck even more than I thought!! 15%-20% LVR!!!
There you go! ;o)
Jason, how much of your personal money would you lend to a person over 70 y.o. whose only income is the pension, and who has to pay food and housing costs out of this pension?
Terry
FinanceHi 6*1
As I umderstand the CGT rules your PPOR is exempt from CGT, and you can only nominate one PPOR.
So any IP’s, whether held in your own name or in a trust or company, if disposed of will attract CGT. There is a 50% discount of CG if the asset has been held for more than 12 months. Have a look at the Australion Tax Office site for the official info.
Don’t be hung up over paying tax. I would love to be paying say $300k in tax; imagine the income I would be keeping using legal minimisation methods.
TerryTerry
Finance‘Rental properties are for poor investors’.
Frank Loewy has been wrong all these years?Interest rates IMHO:
money is a commodity and costs more when it’s scarce, less when it’s not.
Interest rates of 15-18%, and I paid them, were due to baby boomers all wanting housing and consumer finance in the same decade. Now these same people are essentially cashed up, houses paid off, super topped up and looking for investments. We are awash with money! Hence stable interest rates and the tech and housing booms. Rates will go up when the money supply from this age cohort dries up.
Any contrary ideas?Terry
FinanceHi Leigh.
The difficult part may be proving to the US lenders that you have a secure investment.
Another thought: what about currency fluctuations?
The A$ is now around US59c. What happens if it goes back to 49c, as happened not so long ago.
How many Aussie farmers were burned taking out foreign loans following the advice of their bank?Terry
FinanceEdited by – [email protected] on 11/02/2003 08:49:22 AM
Hi 111111.
The book ‘Family Trusts’ by Nick Renton is an excellent resource. It can be borrowed from libraries, but is good value!
Bruce mentioned legal changes. My thoughts are that most of the rich & powerful decisionmakers already use trusts and won’t make adverse changes for themselves!
TerryTerry
FinanceA reply to Louise:
A trust cannot exist where the sole trustee is the sole benficiary! The legal point is that one cannot hold something in trust for oneself.
If you don’t wish to leave your wealth to anyone then you don’t probably don’t need a trust!
Who are the beneficiaries in your will? They could be the other beneficiaries in a trust besides yourself (a trust has been described as a living will).
Nigel Renton’s book “Family Trusts” is worth reading even if you don’t need one…yet!
TerryTerry
FinanceHi Adonis.
Try http://www.creativerealestateinvesting.com.au.
There is a handbook, written by an Aussie for Aussie conditions, available on this site. Y0ou can buy an e-book or a hard copy. I found it good value!
TerryTerry
FinanceHi Vlad.
Welcome to the board.
With rentals yields in Adelaide at present you may find that the only cash-flow positive properties will be in “less attractive” suburbs. I think most members on this board would agree that investing in property earlier will be better than “saving”, if you mean saving in a term deposit etc. Of course, everything depends on yur personal circumstances.Terry
FinanceHi charalambous.
Do a lot of research before committing! See page 3 of “The Australian” today (3/1/03). If there is enought concern for Govt. agencies to be considering action there must be pitfalls for the unwary. (This does not mean that deposit bonds won’t work).
TerryTerry
Financequote:
And now my questions…2. If you remove Company B, and make Company T the beneficiary instead (so it’s both trustee and beneficiary), doesn’t that negate the asset protection benefits of the trust? i.e. If Company T was sued when it was only the trustee, it has nothing to lose. If Company T was sued when it was both the trustee and the beneficiary, it has all my money to lose (seeing that I would distribute everything to the company to minimise tax)?
3. Can beneficiaries be added to a discretionary trust at any time, or must they all be specified when the trust is created?
I hope this has helped, and I hope that someone can help me.
Thanks,
Mark Leet.
Mark,
Company T cannot be both trustee and sole beneficiary, otherwise the trust disappears!
Additional beneficiaries can be added later, but it costs to have the trust deed amended (each time).
A good read for laymen is Nigel Renton’s book ‘Family Trusts’ – borrow from library or buy!Terry
FinanceCongrats, Steve. Well deserved.
A big thanks for your Melb. seminar.Will you be the Don Burke of property?!!!
Terry
Hi, Tara.
Why sell your property? Surely you will incur costs of sale, and costs to repurchase? Draw down on your equity in your home, and use this loan to make a deposit/s on investment property/ies. I am an older baby boomer, and like my present home (in Adelaide). Age makes no difference, except that you have less time for compounding to work than those younger!
Terry
