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P.S I have another theory how Australia might cure it’s lack of future work force…
Communism can’t last forever and we have a very large population looking for a home in the sun just like the rest of us and just over the equator:)I totally agree that retirement complexes are nothing short of scurrelous but that doesn’t change the fact that they’re springing up all over and that regardless of any strata or limited type of agreement – a good percentage of people are going to choose that kind of life.
And rather than “not understanding” how this gig works – I’ve toured several of these “lifestyle” complexes in the last year as a relative in retirement is considering this option.
This option came up for two reasons (neither to do with dwindling cash reserves)
1) Resort lifestyle
2) Secured up the wazoo – patrols, buzz buttons and whatever else these big conglomerates want to throw in.
That these conglomerates can afford beach side real estate in exclusive/quiet neighbourhoods also adds to their appeal.Waste her money on strata? I wouldn’t have her do it but save her money for her kids after death and live a life on a property too big with too much maintainence and no lifestyle…
You really can see why some elderly people do it.P
Get a really good accountant and make sure you know exactly what it is that you want to do first. I have a trust myself but with the recent changes in tax law using a trust isn’t as tax happy as it used to be.
P
Have you read “How to Build Riches” by Bruce Davis?
Don’t be put off by the cheesy title it really is a good book about how to strategically build wealth with what you have:)P
Okay so we know that some babyboomers will be looking for lifestyle and some investors believe that they’ll be able to cash in on that. But how do all of the retirement villages that have been popping up up and down the coast here in WA fit into this.
In my neighborhood you can’t buy a decent house for under $600K but just around the corner a retiree can buy a villa in a retirement complex for under $200k some of them have views.
And last time I checked none of these places were available to people under 55’s or non-retirees to buy. What if more of these places spring up?P
I don’t know about contracts but I do know that if you are not Australian you have to seek permission from the Foreign Investment Review Board before you can buy.
They have a website with all of their rules laid out.
If you’re buying with a corporation you have to already own substancial assets in Australia –Good luck,
P
I would also be subscribing to the whole babyboomer thing if it wasn’t for the fact that all of the over 50’s in my family have sold up and either moved in land for more affordable housing or in one case moved to the country so that they could cash up and pay for their house outright.
I myself (am not ashamed to say it) live in a very nice coastal suburb where many of my neighbors are in their 50’s and older and I have noticed 2 things about them.
1) They either bought their house back when the suburb started and have no more to owe and can get by on a pension (usually the smaller older style homes that are slowly getting knocked down now) or they are
2) The older people who drive a Mercedes and can afford to live here because they basically sleep on a pile of cash, stocks, bonds and not forgetting real estate deeds.Just how it’s happening around me – could be different on your side of the island!
P
I’m confused by this one too – on my council rates sheet there was a blurb saying the figure on my rates was the yearly “rentable” value of the house which was weird because a freind lives in a different shire and their council rates go on land value and nothing else.
P
I agree with the others – everything in write – communicate effectively and all the time – dealings with family and friend is tricky at best
P
Thanks for the moral support Derek. I think the reason I wanted to use the woman was that she had stayed in contact and seemed so nice – she even agreed to be negotiable on her percentage rates.
I think this house has some emotion attached to it as it was the first one I ever bought (and boy was I ever wide eyed about it!)By the time I’ve sold it – thanks to the boom I won’t have lost any money but more importantly I think I learned a whole lot with this one:)
Anyway – thanks again – I think I will be contacting more local agents today and having a few more walk throughs.
P
Bruham,
With much respect – forget what my moniker may tell you – I am far from simple and can tell the difference between non-fiction and fairy tales. I write both for a living and that’s how I afford my investments.
But for someone who grew up with little or no financial education Kyosaki was a good place to start – Peter Spann also has a rich friend as do I and many others – who cares as long as you learned something right?
P
You could always try this link too:)
http://www.pwc.com/extweb/manissue.nsf/docid/BF0CBEB0DF801CB285256ABF007E8505If it doesn’t work try a search under trusts at price waterhouse cooper
Best,
P
I’m with you on this one Michael – I’m a Gen Xer who believes I shouldn’t have to pay for a baby boomer bail out either. Financial education is nothing new – the last 30 years has been plenty enough to pick some up.
Neither do I feel, as Mr. Costello suggests – that I should have to “breed” in order to support the economy. Another novel approach to the whole baby boomer problem – why should my kids be burdened with higher taxes for past governments lack of foresight?
P
We know someone who works for a major retailer and at this time of year he basically spends his days writing up paperwork for hundreds of interest free deals.
I was watching Today Tonight last night, they did a story about a lady debt collecting for these companies – the real interest rate was 27%!!!People get into debt because they want to keep up with the Joneses! I on the other hand say to hell with the Joneses – because the Joneses will be the ones who will be relying on the government for a handout when they’re old – I would sooner cut back and suffer some financial hardship while I was young and able to handle it then have to deal with it when I’m old and infirm.
P
Setting up a family trust is never a bad idea – the trust can own the shares in your business. Trusts and companies limit liability.
Our trust cost us $250 – and it means that I can build a nest egg for the entire family – one that is protected from other members who you may have not wanted to benefit upon death etc.
The best book to buy is NE Renton’s “Family Trusts” and “More Family Trusts”
You need to get a good accountant to help you with this and take professional advice always:)
P
Hi,
We lived in the U.S for quite a few years before deciding to come home to Australia and one of the things we wanted to do first was to own our own home.
I funded a house purchase out of my savings and shopped for my house over the internet – there are many excellent sites for this.When we arrived back we had been proud home owners for over a month without ever having set foot in the place but beware!
If you are not on hand to inspect the property yourself – undertake a severe amount of homework!!!
There are laws in place now to stop people offering one price to locals and another to immigrants – but you need to get a structural inspection on any property you buy – esp sight unseen.
If you still have friends or social circle here – get someone to go and take an honest look for you and ask for plans and plenty of photos.
Be prepared for stamp duty costs too.
Good luck finding your new place:)
P
thanks!
I use two premisis for my business – my commercial and a home office – the reason we have a commercial is because (as was mentioned before) a lot of councils don’t want residences used as businesses. Whether the tennant gets away with it will probably come down to if he has any drive up traffic…
If I were you I would ask him what plans he has for the phone system in your house – with three employees, i wouldn’t be surprised if Telstra sticks an ugly box inside the house somewhere!
Good luck,
P
I think Spann’s book works so well because he’s personable – much like Robert Kyosaki. I enjoyed all of the Kyosaki’s and the Spann but in the end I think it all comes down to your personal circumstances as to which path you choose.
What I liked about both Spann’s and McKnight’s books was that they were tailored to the Australian market – if anyone has ever read Kyosaki’s success stories – the numbers at the end for the Aussies don’t always include stamp duty – there isn’t any in the U.S.P
