[Wct01Participant@gavin1111Join Date: 2015Post Count: 19]

September 3, 2016 - 1:53 pm

Here is some information I got from DG on her Master Wealth Control. Would be interested to hear anyone’s (TerryW in particular) thoughts on this:

The purpose of the asset protection documentation is obviously to protect your assets from creditor’s claims. The protection comes from mortgaging your equity in ownership of your assets to a trust. Everything that you own or have an interest in is your equity. Ownership equals equity. Assets that you hold that are not subject to debt provide you with 100% equity. Assets that you hold carrying debt still give you equity on the basis that it is highly likely that the loan to value ratio is less than 100%. If you buy a house on an 80% loan, then you have a 20% equity in it.
There is no transfer or change of ownership involved in this, it involves you mortgaging your equity to a trust so that everything that you own is 100% under finance. Because your equity in your assets is mortgaged, or subject to a charge in favour of a lender (being your trust), then creditors cannot seize your assets to satisfy their claims. The debt claimed will not disappear, liability for payment will still remain, but it puts you in control of how to handle creditors rather than the creditors having unlimited choice on what to do with you to recover payment.

<edited by Moderator to remove Copyrighted information>

• This reply was modified 7 years, 7 months ago by  Benny. Reason: Remove copyrighted materials while establishing poster's authority to present it

[Wct01Participant@gavin1111Join Date: 2015Post Count: 19]

July 2, 2016 - 11:50 pm

Hi,
I’m also in the same situation as you. I have come across a site that has the potential to build 5 units. I’m looking for help to do a detailed financial feasibility to forecast a conservative resale price. I need to make an offer soon.

[Wct01Participant@gavin1111Join Date: 2015Post Count: 19]

May 13, 2016 - 9:52 am

Does that mean we should not invest in property in a declining/flat market?

[Wct01Participant@gavin1111Join Date: 2015Post Count: 19]

May 12, 2016 - 8:38 am

If the market is flat or declining, how does an investor get beyond their first property and on to the next? In times when prices were going up, investors would buy a property, wait for prices to increase, have it revalued and borrow on the increased equity to fund their next property purchase – and they just keep repeating this process based on rising equity. If the property market is flat or declining, how does one go from their first property to their second and to their third and so on?

[Wct01Participant@gavin1111Join Date: 2015Post Count: 19]

September 17, 2015 - 8:22 am

Thanks Corey Batt. If one was to renovate and retain to release the equity, how does this strategy translate to wealth creation? At some point, the banks will say enough is enough because I woud have reached my serviceablity and LVR limit.

[Wct01Participant@gavin1111Join Date: 2015Post Count: 19]

September 7, 2015 - 9:08 pm

I subscribe to RPData mainly. Also use the free stuft such as the back of property magazies and DSR Data, I don’t like the ABS because they only collect stats every 5 years.