Dale’s web address is
http://www.gatherumgoss.com

Terryw
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I have done a few, but wouldn’t do them again the way I did. The tenants ended up making more money than me. Go for a rising strike price linked to the value of the property at the time of cashout, that way you can get some capital gain. Also look for short leases, about 2 years, so it doesn’t just drag on forever, unless you want it to.

Terryw
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I agree Oldtimer, I wish I had just kept my properties instead of wrapping them. A few extra dollars in income has been obtained at the expense of large capital gains. Oh well.

Terryw
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I would suggest there wouldn’t be much money in property, but maybe you could do it short term to learn and then move on to more lucrative areas.

Terryw
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I would agree with Richmond, IO if you still have non deductible debt as it would be better to direct all extra payments to getting rid of this first.

Terryw
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You can claim anything and get away with it if you’re not audited! You must make sure you can justify it if audited. I do beleive you should claim these expenses, but remmber reading a ruling on claiming investment courses, and from memory, it wasn’t too good news. For example, if some part of the course covered shares and you didn’t have shares, then that part would not be claimable. Also some courses have personal development aspects, patting people on the bum, hugging jumping etc. this portion would not be claimable. So in the end only a small poriton would be claimable, and the same for travel expenses etc.

However with Steve’s course, amost all of it is directly property related!!

Terryw
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Your parents could borrow money secured against their own property and lend you the money. make sure you have legal loan agreements, so they will be able to claim the interest (actually passing it onto you). If they gift it to your they won’t.

They lend you the money and you borrow the rest. After the property grows in value, you can then increase your loan and payout your loan to them. This increase will then be claimable – the interest portion, i mean.

This way keeps everything separate, so if you go under, they do not lose their house.

Terryw
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Finance would be the major problem. As they say in the industry, this ones ‘hairy’. In fact it has at least two hairs, one being inner city, the otherone being size (yes size does matter). I imagine it would be well under 50 sqm in size.

If it is hard to finance, then it will be hard to sell. This will limit your capital growth.

Terryw
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Another way is to purchase a property in a unit trut with an individual or discretionary trust holding the units. The superfund could then aquire units in the unit trust. The trustee of the unit trust would then use the funds received from the unit trust to redeem the units. the menas the cash in the superfund is effectively replaced with units in hte unit trust.

Terryw
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It is a very hard decision to make. I would work out all the possible scenarios, 1) move out and rent, 2) Sell PPOR and rent etc. Write each scenario on a different piece of paper, and see which is more cost effective, in the short term and the long term.

Things to watch out for:
-Your husband earns little, while you earn a lot. so oculd he stay home while you work a few more years?
-If you sell your PPOR, it will be CGT free, but this is your only tax free asset, if you rent you won’t have a home growing in value which will be tax free.
-if you are going to sell, condider moving into your rental property short term and then rent it out, so that you can establish it as your PPOR for tax purposes.

And don’t rush into anything.

Terryw
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