[CDParticipant@cdJoin Date: 2005Post Count: 24]

June 12, 2012 - 6:33 am

Yay a question I can help with! Give Matt from Opening Doors a call. Google them. Not the government thingo, they had the name first. He is a finance broker who’s a very smart investor himself, very helpful with strategy suggestions and has the knowledge to back them up.

[CDParticipant@cdJoin Date: 2005Post Count: 24]

November 21, 2008 - 2:53 am

Why do you need both your homes as security for your new building? That amount of cross-collateralisation seems a big worry to me. If the bank won't lend you enough on the strength of the security in the 10 acres and new building, why not? Are you overcapitalising?
Is it legal to build two dwellings on one land title in that area?
It seems to me you are proposing jumping in with both feet, hands, ears, boots&all. Couldn't you live together in his house first and think about building an investment property together in a couple of years?
What % growth on the properties are you relying on to own your own home in 7 years? How confident are you of this? Given that property growth has to be ahead of inflation PLUS interest to make money.
Are you sure of being able to make the payments without you and your child going without, especially as you suggest you (now or soon) can't afford your home mortgage?
Sorry some questions are harsh and may be discouraging! Don't give up and do keep thinking… this may well not be the best way but you may find another. Good luck.

[CDParticipant@cdJoin Date: 2005Post Count: 24]

October 21, 2008 - 5:46 am

My wild guess is – just don't charge her the rent that week
Surely decreasing income gives you as much tax benefit as increasing expense
Better ask an accountant though, on the whole

[CDParticipant@cdJoin Date: 2005Post Count: 24]

October 20, 2008 - 6:18 am

Good accountant: Finkelstein Hickmott
Good broker: Loan Focus

Q 1,2,3,4 – see 6

As far as I know, if you buy property in any kind of business or trust structure, you can't get tax breaks off personal income.

[CDParticipant@cdJoin Date: 2005Post Count: 24]

October 20, 2008 - 6:09 am

Yes tax benefits apply and (very rough guess) may halve your 9k input per year.
If you can, put as much deposit down as you can to avoid spending thousands on mortgage insurance.
Get an offset account to the loan so that you can all store your $1200pm in there, reducing the loan interest, while having it easily available for future investment.
I can't comment on good/bad buy long/short term as I know absolutely nothing about the area. There are always good buys, the question is what and where.

[CDParticipant@cdJoin Date: 2005Post Count: 24]

October 20, 2008 - 6:02 am

The WA office of state revenue has a dire warning up about cancelled and re-signed contracts. Not sure if the threat has any teeth but read & consider.

[CDParticipant@cdJoin Date: 2005Post Count: 24]

October 20, 2008 - 5:55 am

I am an investor and, currently, also a FHB with a nice freshly signed land contract.
So my view: eeeeeeexcellenttttt

[CDParticipant@cdJoin Date: 2005Post Count: 24]

August 21, 2008 - 5:04 am

My guess would be that it'd been on the market for a while and the owners decided they weren't going to get the $ they wanted for it in this market. Ask the agent if the owners might change their mind if you offered their asking price. He oughta jump at the chance to get his commission after all. Assuming you are willing to offer the asking price

[CDParticipant@cdJoin Date: 2005Post Count: 24]

August 19, 2008 - 5:28 am

I went to a seminar or two of theirs and that got me started on PI in the first place. They have a lot of very good information available during the seminar and seem a whole lot more honest than most. Nevertheless, after a little research I felt I could find properties that met their own criteria better than the ones they had on offer and decided to save myself the money.

The only thing I would suggest you beware of is that they present ONE investing strategy, heavily negative geared, hopefully high growth property. Visit any good bookshop and read these forums to give yourself an idea of what else is possible before you decide.

[CDParticipant@cdJoin Date: 2005Post Count: 24]

July 22, 2008 - 9:44 am

1) is the unit worth what they are asking for it
2) is the rent worth what they are quoting (beware unrealistic quotes and even unrealistic rental guarantees that will leave you short after expiring)
3) is there plenty of demand for units to rent in that area
4) is there any chance that demand for housing could go sharply down in that area eg town's main industry closing down
otherwise, sounds good.

[CDParticipant@cdJoin Date: 2005Post Count: 24]

July 4, 2008 - 4:06 am

Yes. Don't ever live on the property, just rent it out. That way you don't get the FHOG on this property but you can still get the FHOG later on a property you buy to live in.

[CDParticipant@cdJoin Date: 2005Post Count: 24]

June 17, 2008 - 8:41 am

I liked his book, I found it very inspiring.
I took it with a good handful of salt, like I do anything I read

[CDParticipant@cdJoin Date: 2005Post Count: 24]

April 4, 2008 - 6:49 am

Yep – correct – I actually phoned 'em up and confirmed it.

[CDParticipant@cdJoin Date: 2005Post Count: 24]

April 4, 2008 - 6:47 am

I also believe that the only wrong way is doing nothing. I suggest that you look into exactly what you would do if you sold your current property before you think about selling. You may find that the alternatives make your current situation look quite good after all…!

[CDParticipant@cdJoin Date: 2005Post Count: 24]

March 20, 2008 - 2:20 am

Hi – I realise I am resurrecting this thread from a while ago – but if you have not yet found a job consider moving to Perth. We are screaming out for engineers of all disciplines/levels!

[CDParticipant@cdJoin Date: 2005Post Count: 24]

January 30, 2008 - 1:15 am

Well I bet you feel better having got that off your chest

My mortgage broker refuses point blank to deal with one of the major banks because he says their incompetence is not worth the commission. He refuses to give any juicy details but I'm sure he has a story or two like yours!

[CDParticipant@cdJoin Date: 2005Post Count: 24]

January 9, 2007 - 5:48 am

I am in WA and researched this question before buying anything. Here, if you buy an investment property and never live in it, you cannot claim FHOG on that property but can still claim it later for your first PPOR. Ask your state revenue department to confirm this. WA’s is at http://www.dtf.wa.gov.au/cms/osr_content.asp?ID=344.

[CDParticipant@cdJoin Date: 2005Post Count: 24]

April 6, 2006 - 6:19 am

I agree, they can do much better than the pension. How about a no doc mortgage on the property, increasing the amount each year. On a fully owned $1m property, growing in value at a very conservative 5% they can borrow $50k in the first year to live off, tax free. The property is then worth 1m + 5% = 1,050,000 so they still have their 1m equity. In the second year, they borrow say $55,000; 50 to live off and 5 to pay the interest on the loan. Now the property is worth about 1,105,000 so they still have $1m equity. And so on.

Given that it’s likely to increase at much more than 5% they should still end up with more than they started with, and have a much much better lifestyle than if they were on the pension. When they pass on, you can either sell or take on the loan. Good luck. [rambo2]

[CDParticipant@cdJoin Date: 2005Post Count: 24]

April 6, 2006 - 5:57 am

Yes. For me. The ~$10000 basically gets you research on what they think is the best area to invest in and a guarantee on building time. Most of the rest you can get from builders anyway, for similar or lower cost, depending on how much you’re willing to shop around. And after the time I’d spent checking up on their research to see if they had done it to my satisfaction (and I did disagree with a couple of points), I realised I’d done it myself, and it didn’t take very long. So I decided that I’d rather spend a couple of hours of my time and allow some money for a possible blowout in building time or delay finding a tenant than spend $10000 up-front.

If you want a negative geared investment but don’t want to put any of your own time in, by all means go with CWB. However there are a lot of other options, depending on how much of your own time you want to spend. The more time you put in, the more money you will make – you will find your $/hour much better than your current job [biggrin]

[CDParticipant@cdJoin Date: 2005Post Count: 24]

April 5, 2006 - 6:13 am

Anyone thought about this possibility?

Reasons people don’t invest in property: requires a large amount of money, can’t get out of it quickly, everyone else’s horror tenant stories.
Reasons people don’t invest in shares: perceived to be riskier, have to continually monitor, not willing to borrow for ‘riskier’ investment, can’t borrow over 50% (I’m no expert here, just some common perceptions?).

Now if you were to offer higher LVRs (80%) for investment in “safe as houses” residential property, that people can feel comfortable about borrowing for, but you don’t have to deal with too many 000s, you can get out of tomorrow, and have model tenants, plus you can save tax which “everyone knows” is A Good Thing….?? [baaa]

I smell a niche marketing opportunity…. [rambo2]