Forum Replies Created
Hi Byronent
Yes quite happy to share the accountants name with you. PM if you like
Subdivisions is not something i have attempted at this stage. Seems like you know what you are doing so great to hear.
I am at a stage that i am deciding which direction to take.
Reno
Sub
etcOr just wait for a while.
Cheers
AlfHi Byronent
Yes i know what you mean.
Yes i remember the Salisbury/Parafield Gardens and adjoining areas houses were $50000 and renting for $120 a week. I spoke to my accountant he told me get into Managed Funds and to steer clear of these areas and the property market. I would lose money big time.
Well one has to move on. I wonder if similar circumstances will arise again but with different numbers.
By the way i changed accountants.
cheers
alfI would’ve thought that the learned few of the forum would know what i was referring to other than a four legged hairy animal. I was using the Peter Spann term for a non performing asset.
The property was owner occupied
It was 10 km from the CBD
It was in a preodminatnly housing trust areaAt this time there were many one could buy at these prices in this area but nobody wanted them at that particular time.
The thing is that this area was stagnant for years. Then it took of like most areas.
Yet had you spoken to many in the game at the time they would tell you to steer clear not a good area.
Cheers
AlfEveryone in the changeroom has got a smaller pecker than yours[gossip]
Hi Rob
Yes i may use a broker from the forum for the PPOR.
At this stage i will see how the IP refinance goes.
cheers
alfHi Rob
I am currently going to refinance my IP.
I am considering also refinancing my PPOR.
I currently have a LOC with my PPOR split
so part is for personal
and part for InvestmentI am just looking at the options at this point of what is the best move. At this stage i am not sure if i will sell the PPOR to buy another one.
Retain the current PPOR and make it into an IP.
So it appears that the offset offers the greatest choice at a time in the future.
I have been one in the LOC camp and liked them my last PPOR i had a LOC paid down to 20000 owing however i had to sell to buy this current one. Otherwise i would’ve had a large PPOR debt and a small IP debt if i had kept it as an IP.
So it seems that if i had an offset at that stage and had that 80000 in it which i had paid off the LOC i could’ve used it as a deposit on the current PPOR and the loan would have remained at 100000 and become (tax deductible) and my loan on the new PPOR wouldv’e been halved.
So this got me thinking if there is a better way of doing it legally ala
LOC or OFFSET
kind regards
AlfHi Rob/Terry
Thanks again for your response. Yes Terry this is what i wanted to establish. You have explained it well.
I will of course get verification from an accountant.
A Merry Xmas to you and yours
Kind regards
AlfHi Waynel
Yes it was verifiable she was a friend of ours we knew her when she maxed out her credit cards to visit the company to see with her own eyes.
So we saw her growth.
800pm
2000pm
3000pm
8000pm
30000pm
60000pm
70000pm
80000pmThis high end stayed sustainable for a few years she has since dropped out and doing other things shw invested heavily in real estate bought an island etc. She bought house all around the world
She still gets cheques approx 50000 a month now.Her words this is like winning the lottery every month.
I remember her telling us if this opportunity is half as good as they say this will make me rich.
She could see it and in a short space of time her predictions were correct.
There was going to be a quantum leap in earning/sales/sponsoring etc as momentum was starting to occur.She did beleive that the NW model with a good solid company with a unique consumable product was a good one.
She felt anyone with a hunger for success could make it in that model as reward was based on your own efforts combined with the efforts of others.
LEVERAGE of TIME.regards
alfHi again
My understanding is that this is quite legitimate.
The only proviso would be that the original loan on the PPOR is tax deductible if made to an IP.
If you had a loan for 70000 then spent 30000 on doo dads the original 70000 interest is tax deductible.
The only thing i am trying to establish is the question of CHOICE.
So if at the end of the day one decided to pay down the loan on the ppor then one can just refinance and put in the 40000 as used before and loan at 60000.
Otherwise one could go down the PPOR to IP path etc.
It appears the LOC does not give the same choice.
regards
alfHi Rob
Thanks for that reply just so the information is correct from how i see it i’ll use an example:
LOC
Limit 200000split ppor 100000 Inv100000
balance 60000
available 40000using the 40000 for
deposit on new ppor
the 40000 interest is not
tax deductaible because the purpose
is not for income producing purposes.Offset
Loan 100000
40000 in account I/OLoan still 100000
take the 40000 and use as
deposit for new ppornow rent the IP the loan is 100000 interst tax deductible
Thats how i understand it to be.
Regards
AlfHi Rob
Thanks for that what i was getting to was that with a LOC you pay your loan down or pay interest only however if you kept the ppor as an ip you would have to draw the loan back up and the purpose would be for your new PPOR for eg.
With offset you would have the cash as a sizeabel deposit but the loan would remain the ame and be tax deductable.
This is the way i understand it as otherwise you would have a small loan on a IP and a large loan on a PPOR.
I hope i express it correctly of what i am trying to highlight so you understand as to the better structure.
Can one get OFFSET I/O loans.
regards
AlfHi All
Great thread and some good points.
MMMM Network Marketing
Well i knew a woman that made it big she went from $2000 a month to $80000 a month in the space of 2years.What were the secrets of her success:
-She had a system
-She talked to people
-She phoned people
-She lived and breathed it
-She was a great motivator
-She picked her people like a board of directors
-She asscociated with peoples people
-She only signed up go getters
-She faked her wealth till she made it
-She set Goals
-She worked up to 90hrs a week in the early days
-She now works 10hrs a week
-She kept to a simple system
-She said the most important thing it has to be duplicable so every one can do it.(KISS)
-She recognised the company had something unique about its product.
-The product was consumable.
-The system was to help you make money
-The system could make you rich
-She was so focussed no distractions
-She made sure she would qualify her propspectsShe sponsored over 60 people herself
About 40 were like shooting stars
about 10 were like comets
about 5 were gold
and the rest were diamonds
These were her expressions.
The last 10 created downlines 8 times the size of the other 50.This she had forecast and she understood this business i feel as she said
(20% will do more thatn the 80% combined.)She had been in two NW companies before she struck it rich.
Was she the person that works at the local factory with a fag in her mouth and rollers in her hair you know
“anyone can do it.”
NO She was professional in all ways.A bit of food for thought if you apply yourself to any endeavour.
regards
alfHi all
Thankyou all for your responses and input. Had a discussion with my broker and he indicates the response from the ANZ is as follows.
Whether with a breakfree arrangement or not if the loan is Interest Only then the way the system is set up it has to have an account with ANZ to direct Debit. The reason is because interest is calculated daily and 28days/30days/31days different amounts are taken out monthly. So basically the system isn’t set up to deal with this from another institution.
P&I is ok it can direct debit any institution to get the funds.
Well something to be aware of.
regards
AlfHi
WOW[specool]super freak i am amazed bought 5 houses after reading the book. Well done.
I should speak to you i find it hard to go to the next level. alla buying multiple IPs.
cheers
alfIf someone upsets you just say
May the fleas of a thousand camels nest in your arsehole.[biggrin]
cheers
Hi
At what stage am i at i have signed the necessary paperwork. All that stands being finalised my electing to use my NAB account to pay the interest on the loan and not using the account set up by ANZ.
So if i decide not to go ahead for example can ANZ force me to take the loan. or can i not accept the loan.
regards
AlfHi all
Sorry if i didn’t make it clear. The application fee was $600. The broker negotiated with ANZ and was reduced to $200.
The broker indictated for the sake of $95 the break free was a better option.
The fact that you had to have another account was also known, and the broker did tell me.
What threw the broker was that the loan interest payments had to come from the ANZ other account no other account.
So as i understand it
Breakfree
must have ANZ account
must make loan interest payments from ANZ account
must have credit card min $7500
other benefits re fees etc.No Breakfree
Interest loan payments can come from any account
do not have to have ANZ account
do not have to have credit card
some fees applyDoes this appear correct?
regards
alfHi all
Thanks for your responses
Terryw
The Broker was able to negotiate the application fee down from $600 to $200. However he encouraged me to take the professional package at $295 for future borrowings etc.If i open a/c then close it this may be then in breach with the conditions as set out and they may not close it. I do want to try and do the right thing as you never know when you may need them.
What p…ed me off was that this was not disclosed to me. I also have a Professional package with the NAB. The idea was to ultimately take the PPOR over also thus the ANZ professioal package. In the immediate term though the cost is too high so only the IP.
Thanks all for sharing your own experiences and suggestions.
regards
AlfHi The Crest
Thanks for your reply when you say give them 30 days how do i do that. I mean i have a signed PM agreement that says 60 days.Do i have to give 60 days notice first and then renegotiate.
The other thing is that the tenants are company executives which use the place when they come over from interstate. They have said they may use it over a weekend from time to time. If they still have the lease up to its time.
I just figured that wouldn’t it be better to have a lease in place for another 12mths etc.
Any thoughts would be appreciated.
regards
alfHi Amanda
Thanks for that so if you do not have a tenant in place then a landlord can walk away irrespective of what is in the PM agreement. Or does one still have to give the appropriate notice.
Interesting my tenant is vacating the premises 3 months early but still paying the rent. They have asked the PM to ask me to seek new tenants so they can be absolved of the rent. If not they understand that they are bound by the lease.
The PM indicated that i would have to pay 75% of the advertising cost and letting fee because of the situation. This seems fair as i would incur this at the end anyway.
regards
alf
