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  • Profile photo of sinnersavedbygracesinnersavedbygrace
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    @sinnersavedbygrace
    Join Date: 2020
    Post Count: 4
    October 28, 2020 - 5:57 pm

    Ah yes you’re right on your point 2. I have now doubled it on what remained and my ending result is 66k.

    On your point 1, it looks like I only apply 15% but what I actually did was applying that 30% to the increase in asset (not the whole asset itself), because we are taxed on the increased of asset not on the total asset.

    But anyway the point on compounding is so well made. Thanks for sharing this with us Benny!

    Profile photo of sinnersavedbygracesinnersavedbygrace
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    October 28, 2020 - 3:53 pm

    @benny

    @terryw

    Guys, sorry but what am I missing here. I did the numbers on excel but I didn’t get to the $40k that you both did.

    I got the final number of $891,289.6. Here is my excel calc (link to the shared file in Dropbox)

    https://www.dropbox.com/scl/fi/8un7vrpad40nju0g7ue58/Compound-Calc.xlsx?dl=0&rlkey=a4ccywk2x9e9t8xrp0s640oh3

    I’m sure both of you and Tony Robbins are correct but I just wanted to learn where I made the mistake :)

     

    Profile photo of sinnersavedbygracesinnersavedbygrace
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    @sinnersavedbygrace
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    October 28, 2020 - 3:27 pm

    @benny

    Thanks a lot Benny. Funny that I just got off the phone (information session, strategy call, or whatever attractive name they want to call it) with some of these “expert property investor groups”. And they tick all the boxes you mentioned.

    Definitely a must read for all new property investor (like me) because sadly these kind of companies are the ones that we first come across as beginners as they advertise heavily on social media.

     

    EDIT: oops sorry I should’ve made the reply to the relevant post (https://www.propertyinvesting.com/topic/5023872-property-investment-firms-advice-needed-please/#post-5023875)

    Sorry Benny for cluttering this thread! Tried to delete this but don’t see the option to do so. If you have the capacity to delete this as Admin, I’m more than happy to be deleted :)

     

    Mod here (Benny) :-  No worries Sinner – its an honest post, and you did put a link to take others to where you wanted to go (and you likely found it from this topic anyway, so it is relevant here).   These marketeers do untold harm, so the more they get called out, the better.  I’ll leave this right here. ;)

     

    • This reply was modified 4 years ago by Profile photo of sinnersavedbygrace sinnersavedbygrace.
    • This reply was modified 4 years ago by Profile photo of Benny Benny. Reason: Adding a comment
    Profile photo of sinnersavedbygracesinnersavedbygrace
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    @sinnersavedbygrace
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    October 28, 2020 - 3:20 pm

    @terryw

    I was reading a list of must-read thread for beginners that Benny put together, and this article is one of them.

    This is great! I have a question please sir. My question is why this option is not available – Refinance the old PPOR and use the cash from that refinancing to pay down the debt in the new PPOR?

     

    Best regards,

    Anton

     

    Profile photo of sinnersavedbygracesinnersavedbygrace
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    @sinnersavedbygrace
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    October 28, 2020 - 3:14 pm

    Thanks for your reply @terryw.

    I think what he meant by ‘straight forward’ is that there is a general template that list all the usual clauses for simple Trust structure with few family members as beneficiaries.

    But if you think there is no such thing as general template for Trust Deed, I will have to find a lawyer/accountant to set this up then.

    In regards to your test question, here’s my attemp ;)

    The assets in the trust will go to the primary beneficiaries. And if all the beneficiaries mentioned in the Deed have also died, they will go the nominated charity mentioned in the Deed.

     

    Profile photo of sinnersavedbygracesinnersavedbygrace
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    March 10, 2020 - 1:26 pm

    Thanks Cathy. I may not be eligible to go down that path (short-selling) as my property value is still within range of the loan amount. But the information you have provided is so invaluable!! I didn’t know that kind of arrangement exists!

    Thanks again!

    Anton

    Profile photo of sinnersavedbygracesinnersavedbygrace
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    March 1, 2020 - 2:58 pm

    Thank you all for taking the time and effort to help!! I really appreciate it!

    @benny thanks for your encouragement, this is definitely a lesson that I have learnt, to do my research before buying anything (an expensive lesson indeed!). Currently the 1 bedroom apartment is renting for $360/week. And the townhouse (3 bedrooms) is  renting for $400/week.

    I calculated all the costs and my total negative cash flow for these 2 properties for the year is $23k (net of all property-related expenses).

    Because I have offset account which reduces the interest charged on these 2 properties, I saw that total repayment made towards the principal for these 2 properties are $26k. So I can rationalise spending the $23k per year as a ‘forced saving’ towards these 2x properties.

    My worry is that the property market in Perth won’t recover and I am throwing bad monies after another…

    Honestly my stomach can’t handle to swallow $150k+ losses and that’s why I admire Cathy and her husband by making that decision!

    @cms I just wanted to let you know that you and your husband are really brave and I’m so inspired by your story.

    We are lucky that, in our case, the proceeds from the home will likely cover the outstanding debt to the bank. We might just fork out from our own pocket the selling agency commissions.

     

    Any other advise or type of consultant that I can see to help me is greatly appreciated! Have a great weekend y’all!

    Best regards,

    Anton

     

     

    Profile photo of sinnersavedbygracesinnersavedbygrace
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    February 27, 2020 - 11:26 pm

    Thanks for your reply Cathy.

    That’s a good question. It seems silly but to be honest I don’t know what outcome I want.

    Best possible scenario for me is to hold it until it increases in value and then sell it at break-even (I think I can afford to do the repayment for the next 2-3years). However, there is no guarantee that within that time period the properties will go up in value (especially the 1 bedroom apartment! which has abundance of supply in the market.

    I ‘m curious as to what would you do if you were in my position. Thanks!

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