hi guys
i’ve got an idea i’ll email shaun pretending to be Phil, when i get all the goss i’ll post it on the forum. but you must keep this quiet, i know shaun won’t suspect anything because he doesn’t read the forum very often.[8D]
westan

hi johnny
in regard to your first post. i think you are mistaken in saying that the banks have lifted their variable rates since June, i don’t think there is any change because it is linked to the rate set by the RBA, however they do move fixed up and down depending on the outlook for interest rates so it is possibel for the banks to lower the fixed rate even if the RBA lifts rates.
i haven’t had any of my variable loans altered at all.
westan

sorry one other thing
Port Augusta will be the link between east/west and north /south, i was looking at buying 2 years ago there because of this project but got busy with others. One steel got the steel contract and it was great for there share price. chriso i’ve been using the stategy of following major development both here and overseas and it has worked very well, keep up the reseach. one area i’ve bought in was millicent in SA and Hamilton Vic because of their individual projects but prices have already doubled since i bought, i’m on to some good ones overseas but can’t share sorry. check out my comments about Mildura
regards westan

hi all

yes statistically speaking you would have been better off going with the variable rates. but these statistics were from a time when the rates were comming down. the future may be rising rates then clearly fixed rates will be the BIG winners. How can you go wrong with a fixed rate of 5.85% that is great why wouldn’t you go for it? i’m fixed at 6.19% with some of my mortagages and more than happy. anyway another point is the human element if people are worried take out one of the risks, it is cheap insurance. if you are heavily exposed to the property market why risk financial problems needlessly.
i have a feeling people like cameron and simon will prove to be the clever ones.
bye westan

well done terryw
thanks for the update
westan

hi all

sorry Bill i’m going to answer prop16’s question, i reckon i can do it in more than 12 inches.
but first xyzzy what the heck are you talking about “Congragulations to westan …. he’ll have some charles ash! it WILL be king” i have no idea [?]
there that is 2 inches already,
a bit of space to take up some more room.
OK prop16, it is really very simple but worth knowing. say you buy a property for 100k, which you get 100% finance, a few years later it is worth 180k, so you go to the bank and tell them your property has gone up in value, you get the property revalued at 180k, at 100% finance they will give you a loan in total of 180k. that is 80k more than the existing loan. so you get 80k in your hand that is not taxable (but you will be paying interest on it). Now we come to the part where you put the money back on the loan (hold on it gets exciting). its very simple and straight forward really. all you do it put the 80k back on the loan of 180k so you are not paying interest on it. then when a great opportunity presents itself you already have your cash to move quickly, not finance clause for purchasing. the end result is nearly the same as a LOC but way way cheaper.
hope that explains all please ask if it is unclear, (ask anyway just to upset Bill)[]
bye westan

hi shaun, mel, phil and everone else.

sorry mel for that one about being a chick[], i spend too much time with teenagers.
hey phil what did you want shaun for anyway?
westan

hey mel

this is a bit off the topic (sorry Shaun), i know you are a regular contributor but we haven’t really met, whats your interest in property? where do you own, are you a buyer /seller/holder, whats your investment strategy ?
are you a bloke or a chick? i’m amazed how many girls are into this property stuff. once upon a time it was a males domain, no more.
bye westan

sorry Phil

i couldn’t help myself and had to have a sneak at your private message[]
regards westan

mikeej

no sorry i don’t think you can do that. the cost of the houses would be direct to each house. and i’d assume that the land would be proportional to each house? some accountants might like to confirm.
i just wanted to add to the discussion the advantage of a family trust to the first senario and the disavantage of a company. firstly with a company you don’t get the 50% discount on CGT and pay company tax rates. However with the family trust you get the 50% discount plus the benifit of choosing which benificary to give the profit to. so if you want you can distribute the money to the lowest tax payers. you can give proportions to avoid moving up the next tax bracket. i know someone who will have a 300k CG this financial year. he will only need to pay about 45k tax. this is acheived because he will get the 50% discount (150K tax free) and because he will distribute 100k to three low income adults. they will declare 50K tax each at a 30% tax rate therefore less than 15k each (15 times 3 =45K tax)
regards westan