Hi Yew,

No – I do not need to change my life style for the moment as I still have a full time job. and drawing good pay.

OK, cool !! Then, since Terry has warned about some “gorchas” re selling a PPOR to pay down debt on IP’s, that is an area where you should talk seriously with a Broker around the financing issues. Maybe Terry himself !!…[Read more]

Hi Yew,

Sounds like you are doing well – good for you. Certainly, it sounds like there is a tonne of “lazy Equity” in your PPOR. And yes, it certainly is worth looking at “How best to proceed moving forward”.

The major question in MY mind for you, is “What IS the way forward FOR YOU?” Like, are you looking to consolidate now or are you…[Read more]

Hi Yew,

Sounds like you are doing well – good for you. Certainly, it sounds like there is a tonne of “lazy Equity” in your PPOR. And yes, it certainly is worth looking at “How best to proceed moving forward”.

The major question in MY mind for you, is “What IS the way forward FOR YOU?” Like, are you looking to consolidate now or are you…[Read more]

Hi Yew,

Sounds like you are doing well – good for you. Certainly, it sounds like there is a tonne of “lazy Equity” in your PPOR. And yes, it certainly is worth looking at “How best to proceed moving forward”.

The major question in MY mind for you, is “What IS the way forward FOR YOU?” Like, are you looking to consolidate now or are you…[Read more]

Hi Yew,

Sounds like you are doing well – good for you. Certainly, it sounds like there is a tonne of “lazy Equity” in your PPOR. And yes, it certainly is worth looking at “How best to proceed moving forward”.

The major question in MY mind for you, is “What IS the way forward FOR YOU?” Like, are you looking to consolidate now or are you…[Read more]

Hi Mido,
Congratulations on getting the approval – good work. But now, I start to question you a little bit (for your own benefit!!)

I don’t know how to get loan to build 4 units bcuz I don’t have enough cash to show the bank.

1. Whoa !! OK, finance is an issue – I am sure that can be overcome, but then, do you have the experience to Pro…[Read more]

Hi Mido,

Hey, welcome aboard – you have come to a good place where we discuss a whole bunch of things to do with Real Estate investing.

Re your OTP apartment, you don’t give a lot of info about it, so I guess I can only refer you to a “general idea” kind of answer. In short though, we suggest buying problems and selling solutions. A…[Read more]

Hi Azanatta,

I just happened upon THIS link and figured you might like to contribute to it.
https://www.propertyinvesting.com/topic/5013926-fear-2/

Someone else who was starting out started that thread – they too were hearing lots of “negatives” about property investing. Have a read and get heartened. And maybe add your findings for others…[Read more]

Hi Parky,
Perhaps even more important than “What is the market going to do?” – I would be saying “Are they READY to sell it?”

By that, I mean are they fully aware of the effect this sale will have? Have they spoken to any adviser about it? It sounds like they are not in a rush, and that is good. Maybe steer them toward checking out a few…[Read more]

I guess I need you to describe to me what you think of as a “split loan”. That is the term I have concerns with, not so much the Offset Account per se.

Describe your “Split Loan” to me and let’s see what comes up then….

By the way, there are even right and wrong ways to spend money from an Offset, so do check back re that bit too. I think I…[Read more]

Hi again,

I’m just worried I may not be able to provide evidence/invoice for 40% of the project/work as it will be done by myself and my builder friends via cash in hand.

I wouldn’t be too concerned over that – I am fairly sure a Quantity Surveyor might be able to come up with values that would be suitable for the ATO.

Note that I am “…[Read more]

Hi again,

I’m just worried I may not be able to provide evidence/invoice for 40% of the project/work as it will be done by myself and my builder friends via cash in hand.

I wouldn’t be too concerned over that – I am fairly sure a Quantity Surveyor might be able to come up with values that would be suitable for the ATO.

Note that I am “…[Read more]

Hi again,

I’m just worried I may not be able to provide evidence/invoice for 40% of the project/work as it will be done by myself and my builder friends via cash in hand.

I wouldn’t be too concerned over that – I am fairly sure a Quantity Surveyor might be able to come up with values that would be suitable for the ATO.

Note that I am “…[Read more]

Parky,

Do you think generally the indexation method works out to less CGT then the 50% CGT discount?

The last time I spent any time working things out like that, it was 1999, and I was trying to predict which way I might go if I needed to sell something. I don’t recall my findings from that time, but what I DO recall is that the Indexation…[Read more]

Hi BB,

Most people think 4% home loan rate is normal and will stay that way,

Hmm, I dunno who THEY are !! Wouldn’t be too many on this board that think like that…..

yet not that long ago there were warnings to people borrowing at 6-7% saying factor in at least another 1-2% minimum as a buffer.

Can’t say I have heard of that one either.…[Read more]

Hi Yet,

Re 1. – my first reaction would be to say DO NOT mix the purposes of the loans (i.e. don’t use some of the loan to buy/build a Tax Deductable granny flat, and then use the other half to pay off personal debt – keep investment and personal loans TOTALLY separate).

Re 2 and 3 – talk this through with your accountant. Keep all…[Read more]

Hi Yet,

Re 1. – my first reaction would be to say DO NOT mix the purposes of the loans (i.e. don’t use some to buy/build a Tax Deductable granny flat, and then use the other half to pay off personal debt – keep investment and personal loans TOTALLY separate).

Re 2 and 3 – talk this through with your accountant. Keep all receipts, etc along…[Read more]

Hi Parky,

Thanks everyone for all your answers and I definitely will pass this info onto my parents. I had a bit of a read and their previous PPOR is also eligible for the ‘indexation method’ of calculating the CGT as it was purchased pre September 1999.

That is a VERY important point. I always did think that the Indexation Method was a far mor…[Read more]

Hi Bomberboy,

If you mean bank rates, its already started and will accelerate much quicker in a post Trump world. My semi educated guess is 2-3% increase by end of 2018.

I can only hope you are wrong there – if not, then I foresee a LOT of pain for MANY !!

See, going by current Bank Rates (let’s say 4% right now) then even just a 2%…[Read more]

Hi Azanatta,

Some of the answers that sprang from the linked thread in this post:-
https://www.propertyinvesting.com/topic/4410491-the-big-picture-for-new-readers-especially/page/2/#post-5023378
…. provided some clues re “other asset protection methods”. Check it out.

While in there (the “big picture” thread) do have a look around…[Read more]