hi all

terry you have explained what i ment about assett protection, (it is from a legal point).

mel i only have one trust, i should probably start to seperate some of my assetts, but i do have a separate company where i hold some assetts. thanks for reminding me about that because it’s something i wasd thinking about recently but didn’t do anything about.
terry if i was a trustee and had signed all the mortgage documents and the i was replaced as trustee would the banks require the mortages to be redone with the new trustee???
westan

hi mcollins

this is closer to cash positive than the last one (broken hill), but its at mount morgan (in the middle of nowhere)[], just saying this mcollins to warn potential purchasers.

westan

hi Alf and Josh

josh i agree a plan is essential, but it also needs to be flexible and reviewed often, as i said in another post recently, i wrote a retirement plan last year, the plan to retire aged 45 (7 yrs away then). i kept this plan in my mind the whole time and soon realised it was way too conservative. i beefed it up and bought more cash positive properties than i initially thought i could. fortunatly the plan worked in 18 months, so i’ve reached my goal already. now that i will finish work in 23 days[], i need to formulate a new plan.
alf i suppose that answers some of your questions, one mistake i made 6 yrs ago was i purchased a property through a company i owned and should have used my family trust, as all the rest of our properties. the mistake here is i will not get the 50% discount on CGT.[] I’ve made heaps of other mistakes also, but property is very forgiving and haven’t lost money on any property unlike some shares.[]
regards westan

hi lazyboy

your market is hot !

i’ve been buying there and prices have risen every time i get there (every 10 weeks). where abouts are you in NZ. i’m moving to Balclutha (brrr i feel cold just thinking about it) on Dec 31st.
regards westan

hi all

sorry to do this but i disagree with most of the comments, LOC’s are a con, hugely profitable to the bank and the benifits are over estimated. as Namasté discovered there are better options.
Discount loans can be sourced much more cheaply, with lower interest rates (-1%), no application fees, no account fees, no valuation fees, no redraw fees and a very cheap loan discharge fee. in the long run you are way ahead of any LOC i have looked at. Yes a small LOC can be helpful if used correctly (but don’t pay application fees some cost $4000 and more). i have only 1 property in my LOC the rest are with discount mortgages.
regards westan

hi nooneoo

you must do them before the auction, once you buy at auction there is no “out” clause, (ie cooling off period or conditions such as subject to building report). this is where auctions can get expensive if you pay for a reports but don’t buy. where as with a purchase you can sign subject to … then if the report is negative negotiate a lower price or pull out of the purchase.
regards westan

bill

are you happy to cover all loses as well?

fatboy i’d be off to the “land of the long white cloud” while there are still opportunities there. i wouldn’t touch Oz, although interest hasn’t wained in my part of the world (Vic Country) i think prices are still rising, they are certainly selling fast.
westan

hi fullout and melbear

i was thinking about signing “and or nominee”, but the problem would be the purchaser would know what price you paid for the property. so effectively all you would be is a buyers agent. there would be no Capital gains but there would be income tax.
regards westan

fullout

if you don’t want to manage it yourself why don’t you give BJ Bennett a go, and don’t forget to have landlord insurance.

regards westan

hi all

1) What was the prime motivating event in your life that created a focus on the need to invest?the desire to make money to survive while i chose to work in low paid jobs (such as youth work and school chaplaincy).
2) What have you in fact done about it since then, and rate your achievment.
i started investing in shares and did well especially in 1993 when it paid for me to study full time at a Bible College. since theni got into property in 1996 and have purchased about 40 houses and currently own about 26. as far as rating my performance i’m still pinching myself that i am where i am so 9.5 out of 10, sorry if i sound conceited.
3) Based on your current performance, how long will it take to reach financial independence?
i have been working towards a plan for the past 2 yrs hoping to get to financial independance within the next 7 yrs (by the age of 45). i discovered that my goals were way too conservative and beefed them up a bit and realized in July that i could quit work, so gave notice that i would finnish work at the end on Dec.
4) What are you currently doing to improve your plans?
i feel that i’m now at the cross roads, do i go on and try to become very rich (no huge desire), or do something that will enrich my life and those i meet (more interested in this). so next year i’m moving to New Zealand with the family to reflect on life, have fun and continue to invest (which is also fun).
5) What is your ultimate goal; and will it make you happy?
enjoying life and helping others will make me happy.
6) Which is more important: The goal or the journey?
the goal is meaningless without the journey, but it is the goal that starts the journey.

regards westan