[FinSpecMember@finspecJoin Date: 2009Post Count: 137]

June 17, 2009 - 1:43 pm

People buying newly constructed property in NSW valued up to $600k will get a 50% stamp duty cut.

The changes come into force from July 1, 2009 and will be reviewed December 31st.

I'm not sure about other states, but I'll be looking into that in the morning.  For more information on the NSW cuts,, visit:
http://more.nsw.gov.au/articles/50-stamp-duty-cut-new-homes-kick-start-housing

[FinSpecMember@finspecJoin Date: 2009Post Count: 137]

June 17, 2009 - 7:46 am

I've heard the most stupendous things coming out of the mouths of some people at the bank.  Some of them really know what they're talking about, but some of them are just downright dangerous.  Best to be on the safe side and get your "advice" separate to your products. 

I'm with Richard, don't cross collateralise – he's got a good article on his website that you can show your partner (in the downloads section).  That might help with your "presentation".

Best of luck!

[FinSpecMember@finspecJoin Date: 2009Post Count: 137]

June 17, 2009 - 7:36 am

Sure  Richard,

We had a private offer from one of our insto banks that we work with to pick up units in an undervalued property trust which they funded at 60% – the return was actually a little higher than that and took about 3.5 yrs.  It's come back a little since those guys gave us the testimonial, however we managed to pull most of our clients out.  It was the gearing that did it more so than the return.  One of the best investments we've ever recommended.  When I retire, I'm sure I'll look back and remember it as one of my top 10.

That being said, we picked up some undervalued (distressed) commerical for some clients who just walked out of the office about 10 mins ago… they will exit after probably two years with ~$520k from $200k down in Dec last year.

We've got private placement going on the moment that is 35% below the unit price (NTA recently revalued by the bank) – but these are for private consumption and can't be advertised (sorry, no enquiries please).

If only we could do that every time – we anticipated good returns, but sometimes they just blow you away! 

[FinSpecMember@finspecJoin Date: 2009Post Count: 137]

June 17, 2009 - 6:31 am

I would seek legal advice on this one – I believe you may need to appoint them as an "Alternative Director" with ASIC as Directoral issues are distinct from personal duties.   It may not fall under your PoA.

Again, seek legal advice at the time of having a PoA drawn up.

[FinSpecMember@finspecJoin Date: 2009Post Count: 137]

June 17, 2009 - 6:27 am

Ah ha,  yeah.

Amazing grasp of sales statistics you have there.

All I can say is take things at face value, do lots of research, and where possible get an independant point of view. 

I hear all too often that you should never get emotional about your money – listen to the emotions, they might be telling you something.  Listen, but don't be lead.

Another $0.02 worth from me  

[FinSpecMember@finspecJoin Date: 2009Post Count: 137]

June 17, 2009 - 2:47 am

I agree with Terry, I think you should get proper advice on the situation.  There are some complex issues in there that need to be worked through.  Additionally, an hour or so with someone working through all the issues and having them explain the concepts to you will be an invaluable use of your time.

From a financial perspective, you have a one off opportunity to get it all right, and this really will allow you to take things to a different level, so get some good independant advice (don't let a financial adviser talk you into investing into a product) and really take your time on this one.

Rather than thinking what you can do with your house or the money or the other property, try and ascertain where you want your life to go – and then work out a way that your assets and situation can be structured to suit where you want your life to go.  It's a more top down approach, but I find that works well.

Best of luck!

[FinSpecMember@finspecJoin Date: 2009Post Count: 137]

June 17, 2009 - 2:36 am

Banks will typically go off the historic purchase price, so if you paid $350k for it, in their eyes that's what it is worth, and they will say you have no equity. 

However, your true equity in the property is it's current valuation minus what you owe on it.  For starters, you can get an agent in the area to give you an appraisal (usually free) which will give you some idea as to what it coudl be worth. 

If they give you a number considerably higher than you paid for it, you can get the bank to revalue the property and potentially increase your credit limit (subject to approval criteria). 

[FinSpecMember@finspecJoin Date: 2009Post Count: 137]

June 17, 2009 - 2:32 am

80%  loan with a 100% offset account can be found with pretty much every major – you'll find it hard to get a true offset account with a mortgage manager.

Main issues I believe you should look at would be the specific structure, rate, fees and processing time (if timing is an issue).  Different banks will have better pricing than others depending on what is happening in their treasury departments at the time.

[FinSpecMember@finspecJoin Date: 2009Post Count: 137]

June 15, 2009 - 3:43 am

I’m over the whole “my car is flashier than yours” – so I ride a scooter now and pass all the Mercs & Porches on the way into the office while they’re sitting still in traffic