goodenergy wrote:
I currently owe $50,000 on my family home and own outright a small investment property which is in my name.I don't understand what a trust structure is? Can anyone explain it to me please? Is there a difference between personal trusts and or unit trusts?Discretionary Family Trust – ambigous ownership of assets – determined by…[Read more]

HiObviously the intent isn't clear as you haven't decided – doesn't matter anyway unless you are in the business of property developing.  If the property is to be a rental – can't claim any interest or rates until the property is completed available for rent, anything before this date is capitalised to the cost of the property.Hope it goes/went…

mpertile wrote:
Sorry, I meant corporate beneficiary (or if the capital gain is distributed to the corp beneficiary) – 7.33pm is obviously too late for my brain to function properly… 

The corporate trustee is for risk managment reasons – as individual trustee you can be sued if anyone gets injured on the properties – somtimes public liabi…[Read more]

Be very careful and get a very good lawyer to provide advice on what risks are involved etc.If you enter into a contract now and settle later – the property risk is yours – liability for any injuries sustained on the property, maintenance of the property, insurance of the property. There are many issues – buying debt free?, not PPOR – i…[Read more]

mixedup wrote:
thanks Terry – this is all making sense What have you/others found is better to do re the question of whether you have:(a) one sub-account for all of your IPs (i.e. all rents, all expenses come to/from this one sub-account) versus(b) one sub-account per property (i.e. for rent and expenses)(c) some other arrangement: perhaps all…[Read more]

Qlds007 wrote:
Hi PKYou can certainly access the available equity in your IP but the interest will not be tax deductible as it fails the ATO "Purpose Test"One consideration would be to look to sell your IP into a Trust structure borrowing the total loan amount and therefore using the sale proceeds less the existing debt as deposit for your non d…[Read more]

elkam wrote:

JamesandHannah wrote:
I've decided that paying off our 15k car loan first is the way to go.The second stage would be to 1. Pay down as much on our home loan as possible to create more equityor2. Save up cash in the bank for a depositor3. A bit of bothOf the options above what is better for us?Paying off the car loan asap first is…[Read more]

JamesandHannah wrote:
"First step is to have your PPOR revalued to see how much it's really worth (your bank will do that) and see if you can borrow against that value."How much does it cost to have my property valued, I understand that a bank can appoint one on there behalf or I could get a private valuer, is this correct? if so which is better…[Read more]

HiThe difficulty now is there has been a lot more renos going on in the investment property game – the original purchase price on the official records – department of natural resources – doesn't take into account the capital invested in renos prior to sale of the properties so whilst sometimes it may look like the prices didn't drop – from a true…[Read more]

Hi To be a full time property investor – and survive – that is have money to eat and have a house to live in you would need a property portfolio worth over at least $2 million with no debt.  As net residential property returns are about 2% this means you would get about $40000 from such a portfolio – hence you probaly need a much bigger debt free…[Read more]

If you are buying land and not developing as they have said it does not produce income so any costs of purchase and maintenance, land tax, rates, insruance and interest if bought with debt has to be capitalised – added to the purchase price to offset the sale value when sold – it cannot be offset against your other income.There may be one way but…[Read more]

This is a complex area of law.Firstly, are you buying the property outright – or borrowing to purchase?  If borrowing is involved there are very specific rules – you need to use a property warrant and the current ones available probably would not cover rural property.  Also there is significant equity required at least 30% some 50%.Secondly, u…[Read more]

Haven't heard of it here but it seems like the old "vulture fund" approach where people with the money look for companies that have a good product but have been run poorly and swoop in when they are in difficulty and buy them out – smarten up management and list the company for investors to buy them out.The difficulty with the property arrangement…[Read more]

troyhunt wrote:
You also didn't mention the leverage factor which is important if comparing rates of return.

I didn't get into the specific detail of return calculation, but when looking at investment opportunities one has to compare apples with apples and ensure they take into account not just gross return, but expenses, tax and other related…[Read more]

yarpos wrote:
you appear to be saying stay out of residential property unless you get commercial type returns , say 8% +.  Is that a fair summary?

No, not at all, just these things should be part of the consideration in what rent to charge as well.Residential property can be a great forced savings plan – which is what many need – without the…[Read more]

Hi NonnieDon't worry there are plenty of procrastinators out there! Nothing to be ashamed of.  There are many opportunities out there – hard to make decisions – causes procrastination.In the end I can guarantee one thing – do nothing and your future will not improve from a financial security point off view, do something and you can at least say -…[Read more]

The first thing to remember is that you are dealing with a group of people.  With people come opinions, requirements and generally differing reasons for investing.Beware of any Financial Services Reform Act legislation when considering these sort of things – as the promoter you may well be seen to be giving advice – to do this you need to be…[Read more]

What is good value?  The issue is often one doesn't see the results straight away, most sustainable wealth accumulation takes time and coughing up a big amount up front can be a  big ask.We have developed a different process for our clients who understand that they don't know what they don't know.Our service is like a gym membership – a joining f…[Read more]

Hi NonnieIf you are still out there I would be interested in knowing what path you took.  Did you use Destiny Financial Solutions and/or did you seek the advice of a financial adviser that can advise on all investment opportunities not just one?Being a financial adviser myself I am always interested in knowing why or why not potential investors…[Read more]

Beware of short selling – anything.The idea is that you "borrow" someone elses asset to sell it now at todays price and then buy it at a cheaper price in the future – an arse about way of speculating on prices going down rather than up.If you are into punting and don't mind getting stuck with a lemon – refer share short selling like happened with…[Read more]