Hi everyone
This is my fist time here ,Ive been reading everything I just love it ,I have a passion for realestate but know one to share it with exept my disinterested children, so this is a revalation for me, but I could use a bit of guidence, my situation it this, Im a single mum with 2 dependant children ,I own my own home valued at approx 350-400k
I recently purchased an IP ,2 br Unit for $106,000 which I am renting out for $150 pw the repayments om my Int+CAP loan is $175pw +rates ect the problem is that Im on a Sole parents pension and I need to know if my IP is considered an asset? I borrowed the full amount .I really want to purchase another one but Im worried that I’ll lose my pension .The next properety I want is a home split into two br flats the price is 265k and the return in rent is $330pw but Im not sure what to do ,Also do you think a trust of sorts would be the way to go ?at the moment its all in my name. Please Help.I want to keep moving but Im at a stalemate[confused2]Hi there.
That’s really encouraging to see that you’re taking action! In regards to the property and what you want to do, is that you have to ask yourself firstly why are you purchasing Investment properties? When you know why you are doing it, then you can begin to structure your portfolio to what you want to achieve.
In regards to setting up trusts, this is really a question to discuss with an accountant or a professional advisor who would be able to help you with your current situation. There are plenty of books out there to help you and one I would recommed reading is the Reno Kings Book which has a true story of a single mum whose done a lot of renovations and property Investing herself. That I think will give you some inspiration and maybe give you some more ideas.
Have a great day![biggrin]
Tyrone
Tyrone | Property Investory
https://propertyinvestory.com
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Hi Neak,
Can I suggest you phone centrelink and ask what their rules and criteria are for income producing assets – they are pretty helpful. There is usually a sliding scale that reduces your pension when you have assets over a certain value.
In relation to trusts, as fas as I know you are required to declare any benefit you are receiveing form a trust distribution, so I really dont think it makes any difference.
CathThanks guys.
?Hi Neak,
Ditto Xena’s comment. Given the Centrelink campaign to ‘catch cheats’ it is best you do clarify these matters with people that are in the know.
You can also drop into http://www.centrelink.gov.au/internet/internet.nsf/payments/pay_iat.htm
and have a look around for yourself. Mind you my vague understanding is that you will no longer qualify for the pensioon now based on your current assets.Having said that, if your goal is distracted by the need to retain the pension I wonder if you are inadvertently placing unnecessary shackles on yourself. Wouldn’t you be better to make sure you can earn an income from something other than the pension.
Now I know that may seem harsh (and it isn’t meant to be) but the retain the pension thought has limited your thinking. Remove that restraint and the world becomes your oyster.
If you continue to make good investment decisions then you will be able to fund yourself through property investing. Others have done it and so can you.
Financing shouldn’t be a problem – no doc loans are a possibility at the very worst. But I am not a broker so you will need to run this past someone suitably qualified.
Just a thought – and something different to consider.
Derek
[email protected]
http://www.pis.theinvestorsclub.com.au
0409 882 958I really want to purchase another one but Im worried that I’ll lose my pension.Excellent Derek, those were my thoughts as well when I read the initial post.
My medium term goal would be to acquire enough income producing assets to happily ditch the pension.
I don’t know one successful ‘in control’ person who aspires to receive the pension. The thought of having to sit there cap in hand declaring all of your assets and income to some dis-interested beauracrat (sp??) who then threatens to reduce your pension because you’ve worked hard and had some successes makes absolutely no sense to me whatsoever.
Good luck with your IP journey – unshackle yourself from the Centrelink chains and begin to soar….you are in a great position to do so.
Cheers.
Thanks for your comments, of course my goals are to get off the pension ,but in the mean time I need to feed the kids, Derek I really am looking for informed info, As the paperwork had just gone through on my first investment I thought a bit of feedback from you guys would be quicker than waiting 30 min on hold to centrelink which of course I plan to do in the next few days, I am still none the wiser ,but I will be soon, thought there might be someone out there in a similar position as myself , Thanks for your email Alistair I appreciated it.
Regards Neak
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