All Topics / The Treasure Chest / How should I start and expand?

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  • Profile photo of MikeTheBikeMikeTheBike
    Member
    @mikethebike
    Join Date: 2003
    Post Count: 3
    August 12, 2003 - 10:12 pm

    Hi All & Steve McKnight,

    In about 6 weeks I’ll receive at least $65,000 from an accident compensation claim. I have over $17,000 in my Investment loan offset account and owe $88,343 on the loan for a property in the Eungella ranges which was purchased for $125,000 in 2000. Payments are $717.87 per month.
    http://users.tpg.com.au/mh1283/escape.html

    Finding work has been sketchy over the last couple of years. I’m a Database Developer. Almost finished a contract and don’t know yet where I’ll get my next job or contract.

    I’ll be putting the compenstion into my offset account but want to use some of it to start my path to financial freedom.

    Should I start with 1 or 2 properties? How can I keep expanding if I can’t find work for a while? How will any future claim for the dole be affected? Should I sell my Rainforest retreat if it is has made a good capital gain?

    I look forward to your comments and advice.

    Regards Michael Holberton

    Profile photo of golfergolfer
    Member
    @golfer
    Join Date: 2002
    Post Count: 27
    August 13, 2003 - 12:36 am

    Dear Mike

    Rather than put all your eggs in one basked why dont you consider wrapping cheaper properties which will give you a higher return over the long term. Whilst im not a representative for the Qld Tourist Board the State has many areas which are lower priced. You could use a Lodoc loan to obtain finance to fund the first few purchases and use the positive cash flow to live on or discharge the loan balance to create increased cash flow long term. If you need any more infomation feel free to shot me an email [email protected]

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213
    August 13, 2003 - 12:53 am

    I agree with Golfer. You should be eligible for a low doc loan as you are self employed.

    When applying for the centrelink payments you will have to declare your income etc. There are now strict rules regarding companies and trusts, whereby even if you purchase in a company or trust the income will be attributed to you personally if you control the entity (ie are a director, trustee or appointer). So there is no real way to avoid this. for more info check out their web site.

    Terryw
    [email protected]

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of MikeTheBikeMikeTheBike
    Member
    @mikethebike
    Join Date: 2003
    Post Count: 3
    August 13, 2003 - 11:05 am

    Hi Golfer and TerryW,

    Thanks for the info. Will contact you soon Golfer.

    What’s a Lodoc loan?

    Regards Michael

    quote:

    Dear Mike

    You could use a Lodoc loan to obtain finance to fund the first few purchases and use the

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