It will be interesting to see what happens post the floods in Brisbane.  I have heard some talk about a change in what they rank as important.  Will this include devaluing the "materialism" value that you talk about.The perceived value you talk about is not just about the physical construction.  What has affected us at Graceville after the fl…[Read more]

HiIt doesn't matter what industry, there will always be shonks.  That's life.The issue is that often there is more than one legislative area that needs to be covered – a mortgage broker should not necessarily be giving advice on property ownership or structuring – unless of course they have extra qualifications.Often there is a combination of…[Read more]

Terryw wrote:
You may get things wrong if you go alone with the trust – eg if you put a relative as appointor you could get into trouble as the appointor can never benefit from the trust.

New trusts do not have appointors they have principals – the principal can also be trustee and beneficiary.  Just make sure you don't have default…[Read more]

Hi$2000 to provide a solid risk managment structure is a reasonably cheap amount.There are a number of clauses in both the company constitution and the trust deed that if not done right can cause all sorts of issues going forwards.If you are serious about SUSTAINABLE wealth creation be prepared to pay for good structuring.You say nothing of what…[Read more]

s michie wrote:
But in the mean time I do not want to be in idle mode.Any suggestion?

If the interest rates down trend you will gradually gain more cashflow to be used elsewhere.Maybe it is time to diversify into other asset classes (shares etc) or property in other states.Need to ensure that any changed income situations don't blow a hole in…[Read more]

HiIt seems that the interest etc paid to date is likely to be considered a capital cost rather than an expense to offset other income.If selling the block doesn't provide enough to payout the loan it is very unlikely future costs will be offset against income they are likely to increase the Capital Loss on Sale of the land.Remember Capital loss…[Read more]

ankitjain wrote:
Also  I had paid off my residential property – I have recently extracted the entire amount to buy property overseas.

What is the purpose of the property overseas (india I assume) ?  Will you be receiving income on it.  If you become a non resident for tax purposes this Income  will be taxed in India and any deduction for inter…[Read more]

kezzah62 wrote:
Hi all – the latest newbie here.  I am currently living in a (cheapie) home I purchased just over a year ago.  Current value around $280k with a $235k mortgage – fixed for another 30 months.  Looking at moving in with boyfriend who owns his house outright.  I have an income around $85k.  Anyone able to give me advice on what…[Read more]

HiI'm 35 and my wife is 34 – 3 kids 7 and under.Our short term goal 12 months is to finish some renovations on our current PPOR (already renovated and sold one to help finance my business start up).Short term business goal is to access 2 quality clients every week, thereby increasing business income to fund other goals.  Doing this by providing q…[Read more]

Hi KylaA bit late on the scene with this one, just remember that in the end it as about accumulating NET wealth in the most efficient way based on YOUR situation.  Over time it is about reducing reliance on your personal exertion (work) income to fund the lifestyle you desire.When borrowing to invest be careful not to become a slave to the a…[Read more]

duckster wrote:
This makes sure that security is not tied together — avoid it – known as colaterisation across two properties so you lose both houses if things go wrong.

Whether it is listed as security or not the first property would still be accessable to the courts if it went as far as bankruptcy.  The only difference of not having it li…[Read more]

chrisb57 wrote:
I have also just inherited a unit which is fully owned by myself and my sister value around $265,000Both are Metro Melbourne, with the inhertited prpoerty my sister is also open to perhaps using this to purchase more prpoerty.

Hi ChrisOne thing to be aware of is what stages of life yourself and your sister are at and what might…[Read more]

HiAs a guide there are 2 ways one is valuation at date of change of use – must be realistic, then if it has increased since then any gain will be taxable – if you can prove that it was an IP for over 12 months then only 50% of gain is taxable at your marginal rate.second is to get the gain from original purchase to final sale and apportinate the…[Read more]

HiSometimes we can focus too much on the tax side of things and it can take away from the end goal most would have of accumulating net wealth that can provide a passive income to replace our personal exertion income (or at least give us choices).Initially it all comes down to cashflow and what you are trying to achieve through making the…[Read more]

Scamp wrote:
Erik, You realize that the real-estate in Japan has been crashing for decades already ?Are you ready to invest your money into something that will keep going down every year , costs you a LOT of money per month ( negative gearing ) and on top of that have 10% inflation ?Everything looked similar in Japan 20 years ago to Australia…[Read more]

Hi JohkI think Scott has put it quite clearly – if you are keen to live on a knifes edge and are prepared to lose the lot – go ahead.What I find interesting is the the townhouse based on your figures would have a value of around $550K yet you feel you can get a bigger single house for $500K.  Must be making some sacrifices on quality or state of…[Read more]

HiGetting a uni degree is about providing choice in the future.  I have a client with net worth over $3 million who is frustrated by the fact that he never did get a degree.  It shows commitment – and helps lateral thinking.I worked three jobs when I did my undergrad full time.You can do it if you have the motivation – get a law degree and do y…[Read more]

HiUnless there is a reason to move eg: need a bigger house etc, why do it.  Just make sure you are paying as much equity into the PPOR as possible so that if needed you can then redraw it to help purchase an investment property.We still drive past our first house (that we renovated and sold) wondering how it is going.That is something about…[Read more]

Hi funkstaI also am a Licensed Financial Planner like Richard.  This sounds very much like something I have been approached by developers to assist the sale of their properties.And yes they offered real estate commission if I found a buyer.I of course have not done this.  However if it is Lowood you are talking about the area does seem like it h…[Read more]

HiThe issue is what property the banks are willing to take as security and cross over legal issues.I have a client who is a tax resident of Japan who was able to borrow Yen loan for properties but that was because he was on a working visa there and had some Japanese land as security.You would have to have people that know you well in the foreign…[Read more]