CT

I appreciate your take, coming from an old hand, on the situation at hand.

From my lack of experience, you seem to be unemotional about the current housing woe facing some of us. One necessary skill I have yet to master. I guess taking ownership to make the first step, and learning from doing, make anyone with the desire a stronger…[Read more]

Must return here sometime as I thought we’ve lost you for good. Your take on Mr M’s comments is provocative because you scratch beyond the surface to find the truth… sometimes it’s a hard pill to swallow.

Thanks for the follow up here on the thread. I do agree Mr M need to better qualify his comments as people like me may…[Read more]

Just quoting Michael McNamara from latest Home Price Guide regading Melbourne properties in general:

… Whilst any growth in new housing remains stunted, there will be growing pressure on rental markets. Strong migration patterns have brought over 100,000 new migrants per annum to Australia in 9 out of the last 10 years. Simply, new…[Read more]

Congratulations on getting the message across here for an open discussion. I am still a newby threading property investing gingerly. I’m a fan of Noel Whittaker, Dale Gillham, Alan Kohler but not so sure about Paul Clitheroe. I suspect they probably own properties as part of their portfolio amongst other assets … to create…[Read more]

CT

You have the wisdom to ask and those before me have given you their honest opinions. I do believe now property investing is for the long haul, sell only as a last resort. Revisit your goal and affirm your plan to wipe out negative noices around.

For…[Read more]

I’ve asked myself this very question – shares vs property, about a year ago. Thanks to books and forum contributors, I now know better they are different asset classes worthy in anyone’s portfolio.

This is strictly because of their different characteristics and often complement one another in any business cycle. I don’t hear…[Read more]

Seen my accountant but have sceduled to see another. This one walks the talk. The practical bit that no uni can prepare undergraduates with. I guess that the difference.

Wish me luck the accountant doesn’t cash in on his ‘expertise’. [hmm]

CT

Quote:
[They don’t have PMs as such. A PM will find a tenant for you but ongoing rent collection is your responsibility.
/quote]

The situations are changing on PM; there are…[Read more]

Most replies you’ve got here are precise and hit the nail on the head. The legitimate question arises when we face with 2 or 3 bedroom in the outer suburbs or a one bedder in the inner suburbs for around same price. This is even more pertinent when one is trying to get a foothold into the property…[Read more]

I’m not an expert in shares but a self paced student. If you are serious about shares investing (although your endeavour sounded more like speculating to me), I’d recommend doing free online courses with the ASX, you’ll have the answers ….. and more. [wink2]

Cheers
CT

I’d recommend a good reference book – Warm House Cool House by Nick Hollo (Choice Books) is available at most good libraries. It’s a basic guide to Australian designs for low energy housing for comfort year round. It contains clever designs…[Read more]

I’m wondering if you’re aware Malaysia has a two-tier market when it comes to purchasing properties generally (and other social issues I won’t go into here). So it’s highly probable you pay market price to get in if you’re not a Malay by descendent, while the generous concession is allowed to the others.

Also, there is no Small…[Read more]

CT

The normal structure we establish for our clients depending on the circumstances is:

1) Interest only home loan linked to a 100% offset account.
2) LOC against the PPOR to 80% LVR to be access solely for investment purposes i.e deposits and acquisition costs.
3) Interest only loan – stand alone against the security of the IP.
held…[Read more]

Just came across a great comprehensive website Understanding Money.

http://www.understandingmoney.gov.au/content/default.aspx

It has a useful budget planner, a financial calculator, and suggestions and links to help manage money better at any stage in our life cycle.

It is unbiased and educational. For me, it’s time to set things in…[Read more]

With the added flexibility in HDT, as mentioned in your reply, it’s definitely well worth the initial outlay of legal and finance setup fees.

I must admit I have difficulty coming to grips with HDT and is cautious venturing down this path. My fear of failure is so great it can stop me…[Read more]

Oops, I see that Jan’s book didn’t say if it was HDT, presumably a normal family trust.

With HDT, if structured correctly, the individual lend the borrowed sum to the trust (company trustee) by buying units in the trust. So he is entitled to negative gearing while the trust benefitted from rent revenue and claim full expenses (other than…[Read more]

There are those of us newbies trying to read and keep abreast of changes in the finance market for investment purposes. Asking a few questions to satisfy curiosity is hardly a crime. The ‘stupid’ thing to do is to act with…[Read more]

Been to see a FP last month, she highly recommended using one from her referral soources. At this stage we haven’t done a complete figure on what we need, but glad to know you’re able to help.

Now I really show my true ignorance here – can you offer pointers on how work out a list of…[Read more]

brc, do you have any good sources as to which brokers?

I suppose the industry super fund can help at good rate – we’ve life and TPD insurances through an…[Read more]

I cannot underestimate MB opinions. Loan features are constantly changing as well as the rigid tax compliance issue to boot. Where do you turn Kjs? Reading this thread alone said a lot…

Afterall MBs…[Read more]

It is a undeniable risk that the loan provider do not want to spell out in bold print….., I’d like buyers to heed the warning here and make suitable adjustments to justify the risks taken on. The promoter of these loan prey on those that can least afford this type of ‘cheap’ loans by…[Read more]

1. No change on deductibility of interest, for that matter, interest on interest. (It was implied that normal business with overdraft…[Read more]

Interesting read and good to toss this around for opinions.

I’ve just listened to Steve’s take in the mini-seminar for his Book #3 launch. Sounds like he’s got very conservative in the current change in property trend generally.

Property definitely has its place in one’s overall wealth creation asset selections, albeit the savvy may try…[Read more]

The following is a checklist I’d use for any Mortgage Broker:

1. only use MIAA Accredited Mortgage Consultant (see MIAA website for detail)

2. check the number of lenders on their books (wide choice of lenders available to you maybe a good thing)

3. how do they get paid (you are entitled to have their fee disclosure to minimise…[Read more]

Now, I’m almost tempted to join your line of work. Great job satisfaction for helping people achieving their goals; your integrity will be rewarded beyond the commissions (and trails)….. See, I’m learning.[laughing]

Thanks Terry, I think you have answered my concerns on interest…[Read more]

Thanks John for taking care in replying to my late posts. I’m grateful for the generosity demonstrated by all.

John, I understand the business loan should ideally be independent from personal or investment purpose to follow strict tax compliance guideline.

My last question relates to the cost saving on the loan stamp duty (originally…[Read more]

Following your line of discussion, “..to deny shares or property as a bad investment is to rob yourself of 50% of the boom action each cycle.”

I just want to add that some experts (with some vested interests) would say, “it’s time in the market rather than timing the market” that has a long term winning strategy.

I find myself…[Read more]

I really appreciate you pointing out the split loan trap on claiming interest later. It is definitely something the broker in contact was unaware of the issue here.

Yes, I do recall reading from posts in this forum the Offset is the way to go. But I’m not clear on…[Read more]

Hmmm, it’s all talk for now as I’m waiting for settlement of my other property before doing anything. All the more reason to do my due diligence. [blush2]

CT

Thanks for your input; that’s more like what I thought it feasible. Otherwise it’s a blatant miuse of the ruling and spelled tax avoiding scheme no matter how one looks at it.

Anyway, there are people doing just that and have deep pockets to defend their stakes… The penalties may be slap on the wrists to them, but too much to bear…[Read more]

Why do I need a lawyer for ? [blink]

I haven’t done anything remotely like those cunning devils the case studies; although I’m certainly jealous [jealous] for those in the know who dared to test the unchartered waters to create inconspicuous wealth.

I suppose the lawyers cost them enough to fight their cases in the end.., and I for…[Read more]

It’s all well for learning from the case studies. As a general sweeping statement – the compound or capitalisation of interest is allowed, if there is evidence in subtantiating the purpose test for property (or any other business) investing (using LOC) to generate income.

But is it allowed to generate loss as a result to claim…[Read more]

I understand one is better off getting loan from conventional channel like the banks before looking at these nonbank lenders. There are reasons I look elsewhere. Also LMI is not charged regardless of LVR – are you referring to deferred LMI option?

The Mortgage Originator (MO) I spoke with has a range of…[Read more]

Thank you all for your replies. Now it’s all done, machine works beautifully. I thought the repairer was courteous,…[Read more]

Other HDT benefits are

* the ability for other “lower income bracket” unit holder to buy back the units later for CGT reason,

* and of course, asset…[Read more]

I cringed as I read smoothsatin’s first reply.[wha] I believe everyone is entitled to their opinion, but I would practice tolerance and careful with the racial tone, it’s proving unpopular. As far as Minh Phat breadshops go, they’re one of my favourite customers.

I…[Read more]

I thought Marsden’s was just being curious, not being antangonistic at all, as we’re all here to learn from success stories we found so inspiring.

I’ve talked with people in the…[Read more]

CT

I do not know for sure if our “still new” estate is prone to fluctuations of voltage. There were times when I found our digital time clock flashing in the morning. It seemed that they occurred in the wee hours in the morning.

The repairer might be trying…[Read more]

No idea how one can do it. But the only way I know is with higher deposit for properties in close to CBD. It maybe too restrcitive and concervative for returns on sum invested. Time in the market will make -CF properties positive, boring but true.

To fast track – you may need to check out or search posts here on creative…[Read more]

Honestly, I’ve not completely opted out of the property market in Melbourne; it definitely

* provides an alternative to shares – diversify into a bricks and mortar for solid growth,
* slowly becoming…[Read more]

I’ve got to pick and choose which one I’d go; some are just full of spins. I’d like to add that one needs to ask if:-

* there is a conflict of interest in what they are offering,
* do they empower you to invest and create wealth; or merely preying on your lack of “sophistication”.

Been to a boutique investment…[Read more]

tho looking on this shires development plan there is a heap still in planning stage yet to be developed.

I’m in South Eastern VIC, living in one of those newly developed estates (four in all)…[Read more]

* Structure the business setup of property purchase to maximise wealth
* Buy under market value (getting the market comparables on recent sales prices in a particular area)
* Add value sticking with…[Read more]

there is no more land left (all sold), before
driving scarcity of land to meet ‘pent up’ demand, if any.

A year or two if you’re patient. Maybe looking at the demand of renters would be a good judge.