Forum Replies Created
Perth Mint is the place to go.
(P.S. My understanding is that gold etc are non-income producing assets, so if you are borrowing the money to buy them, you can’t claim the interest as a tax deduction).
I agree with Dazzling, there are many things to consider.
My suggestion is to make up a spreadsheet with each of the options and look at the financial information before considering decisions around lifestyle, etc.
Probably best to project out 5-7 years or so – PPOR scenario in one column, and IPs scenario in the other.
I would be sure to factor in effects of CGT, tax issues including your marginal tax rate, expenses for maintaining a PPOR versus multiple IPs, other deductions, etc.
Best of luck with whatever you choose to do.
(P.S. – when I did the above exercise, I ended up going down the PPOR road, then LOC to buy shares & another IP).
I’m very interested to learn more about this stuff….thanks for the very informative posts guys
just boring old property and shares….no complex products, sorry
I would just add that 25% return on cash invested isn’t that impressive considering the risks others have mentioned.
You can achieve a much better return than that, e.g., 60%plus, with far less risk.
Hi AMDS,
As others have mentoned, you are in a fantatsic financial position at your age- congratulations!
I’m not sure if you have any debts from study but if you do, you could put aside some money to cover those debts. Also, if you want to put aside a small amount for holidays or travel, or future commitments like a new car, you could put this small amount in an online savings account to make sure you have this money on hand when you need it.
With the remainder, you could either buy into property or shares. You can afford to take more risks than others at your age. Whatever you choose to do, my advice would be to buy the highest quality asset that you can afford – “you pay for what you get”.
Kind regards,
Jason.If your inlaws built the house and lived in it as their PPOR (or rented within allowable limits), then there should be no CGT. CGT may also depend on what year they purchased the property. Otherwise, there will be CGT to consider.
Transfer fees will probably be waived. You will still probably need to pay stamp duty. I imagine this would be based on a valuers report. The valuers report would also help to establish the cost base for the asset for your CGT purposes (if you ever decide to sell).
There may be implications for pensions etc (even if no money changes hands).
Hi bamute,
The interest would be tax deductible if you set up a separate loan (like a line of credit) and use the money to invest in any income producing assest (e.g., shares).
If you just withdraw the money out of your current home loan (say, through a redraw facility) then effectively the interest will not be deductible.
Kind regards,
Jason.Well really, I think this requires a bit more thought.
first I think your opening comments are highly offensive, not only to Muslims but to Australians as well.
I am Australian, of English decent and was amazed that you actually had the view that all Muslim’s are violent. Do all italians own deli’s? We all know that there are fruitcakes in every race. Take a look around, violence, murder, robbery and even terrorism is not restricted to the muslims. Remember David Hicks? I know and work with quite a few muslims and they are lovely people, as are aussies, greeks, italians, so on so on.
Please dont put all muslims into one basket as I, as an Australian, am offended by that.each to their own opinion I guess…
what if Joe Smith down the road was arrested and sent to jail. If he was the only person in the property, who moves him out?this is an excellent point. I hadn’t considered what happens to the legal status of their property.
does anyone know if there would be a time limit that they have to collect it?
Or, if you sold the property would the furniture, etc become the property of the new owner?
would it prevent you from selling?I’ll ask some barrister mates and see if they know of any case examples & post any relevant comments.
sure…this is a property discussion forum….so
any responses to the actual property issues are welcome.The reason I’m not buying at the moment is because there are far better investment opportunities than property out there at the moment.[juggle]
what do they do with the handbook when someone comes around with a baseball bat…? roll it up & throw it at you…?[dead2][smash]
So if a hypothetical person was to pay IO on their PPOR worth $300K and buy two other places worth $300K they will control $900K of property that doubles in 10 years. Thus having a portfolio worth $1.8M with say $800K in debt. Selling one IP at this point will clear their PPOR debt and most of the remaining IP debt – if they chose to.What would be a realistic example that would apply to Mcubed82 – i.e., income of $69K a year.
Extract from Paul Clitheroe’s, “Make your fortune by 40″….
A very handy rule of thumb to consider when it comes to financial independence is to multiply your desired annual income at the age you want to be independent by the multiple below:
Age_____Multiple
40______25
55______17
60______15
65______13…if at age 40 you want to have an investment income of $200,000 a year, for the rest of you life, linked to inflation, then you will need $200,000 multiplied by 25, or $5 million.
Hope this helps.
yeah…he was on TV recently…apart from his fraudulent & dodgy behaviour, the story exposed the ‘catch’ with land banking – you are buying a promise.
I have friends who have 10 acres or so in an area where the local government/council was recently considering rezoning. I was telling my mother about it & how they would be millionaires. My mother brought me back to earth by telling me that the local council has been saying that since she was a kid – over 50 years & counting!!! And this is an area within the Sth East QLD ‘urban footprint’.
So I think lots of research & lots of prayers are the key.
Best of luck.
ok.
I’ll keep an eye out for the next interest free loan product offering…someone will have to explain it sometime if they are going to offer it as a viable comercial product (insert picture of me not holding my breath).
Cheers,
Jason.So can any of the Derivex advocates confirm that this is the gist of how the system works?
Can anyone clarify the issues regarding risk and the security of the loan?
Hi Rob,
Are you able to say a bit about the management problems? What were they? Any suggestions for strategies to overcome them? I understand if you can’t.
Cheers,
Jason.I know bamkruptcy is a very personal issue but I would like to hear people’s opinions as to whether they would lend money to someone who has:1. …ever been bankrupt?
2. …recently become a discharged bankrupt?
3. …a current bankruptcy?
4. …mitigating circumstances?
5. …placed themselves in a good current position?Would your decision take into account whether that ‘bankrupt’ repaid all their previous debts that were outstanding when they went bankrupt or do you think it is ok to not pay your debts, take a few years break and then start again?
1. under no circumstances
2. under no circumstances
3. under no circumstances
4. refer to answers 1-3
5. n/aTo me it would make no difference whether they repaid the money or not.
Cheers,
Jason.Jason, regarding your comments, let me ask you this…When new inventions come to market, should we all stay right away from them or should a few check it out on behalf of others?
I think checking it out is always worthwhile. Even I tried to check it out but when I couldn’t get a straight answer I knew not to touch it (even with a 40′ pole).
I was refering more to the people who were willing to risk $$$ in the application process & the people who added IFHL to their signature quite quickly at the ‘beginning’ of the spruiking but then removed it just as quickly when it became clear it was going to end the way it has (i can’t remember who these were but regular users would remember).
Cheers,
Jason.
