[Jimmy86Participant@jimmy86Join Date: 2013Post Count: 46]

December 2, 2013 - 11:40 pm

Interesting.

It's very difficult to speculate on the future of digital currency like bitcoins. Any currency that is decentralized from any government, not attached to any intrinsic value and 100% digital will make people (and governments) uncomfortable. many baby boomers don't even trust 100% online bank accounts offered by the big 4.

your guess is as good as anyones with Bitcoins… will we be financial planning on bitcoins in the future…? will we be offering payment in bitcoins…? probably not. haha.

It's interesting to read that the FBI is one of the largest holder of bitcoins with multiple seizures of shady websites like Silk Road.

The currency's biggest benefit is anonymity… doubt this is going be a 'popular feature' in the near future… who knows…

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December 2, 2013 - 1:54 am

It's funny how 'they know' they will get you a 100% return… 

Letter to Santa:

Please give me the Crystal Ball this company has so I can know what returns I will get in the future.

… sorry already getting smashed with xmas music in the shops…. im already loosing it.

Personally I would only invest if i knew the area like the back of my hand. It's funny they are marketing to you (I assume your not in WA) for property in WA. Just something to think about. 

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December 2, 2013 - 1:42 am

No worries Tommy. 

There are a few good options to build up some good cash in a 12 months period to get closer to that required balance to look at property investment.

Also Richard is right, you will most likely be looking at non-bank lenders, but this comes with possible higher interest rates which could negate any gains you make from the property. 

Personally, I saw early teens growth in 2012/13 with Equity Lever, and based on a geared balance (so inflated returns on my original balance).

Best of luck!

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November 29, 2013 - 5:47 am

yeah agreed Terry. but we outsource this to solicitors, or the client's solicitor sets this up

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November 29, 2013 - 5:37 am

Terry, Nope. A dangerous financial planner.

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November 29, 2013 - 5:20 am

Hi Creasy23,

firstly, $7k is far too steep for set up. We are closer to the $2,200 mark for property set up with limited recourse borrowing ability, legals and fees.

Your super balance is not the final decider We have both set up SMSF's and helped people invest in property for less. From a lending point of view the bank will take into consideration your (and partners) age, employment, wages and more importantly super contributions. Also the rental appraisals you get done on the potential property to see if it is viable.

Someone with $70k in super could look at property in SMSF if they earn $150k+, can salary sacrifice and choose a high rental yield property.

with a low balance in play you almost need to work backwards from finding the property, to then satisfying the lending criteria. If that makes sense. (where as outside of super you might go to the bank, find out how much you can borrow, then go find your investment… you need to find your investment property, get the rental appraisal and then look at finance).

as a guide:

At $90k balance with an average income (2 partners working/contributing) I would be looking at low end townhouses possibly… $300 – $320k.

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November 28, 2013 - 6:03 am

Any of the finance guys can correct me if I'm wrong, but getting any finance with $50k is going to be tricky. take into account legals, stamps and loan fees your already eating into that 50. not to mention SMSF set up fees ($0 – $3,000), your first years audit (good to have set aside – $500+) + insurances. 

And good luck finding a lender that will lend (limited recourse) on something that small…. again, open to be corrected by someone with more finance knowledge.

You may be better off looking into income producing shares for a period while you build closer to the $75-100k mark. (personally this is what I am doing, even though i loath the share market and want to buy prop with my super).

There is a Macquarie SMSF product that allows you to gear into shares. Think the min balance is $40k.

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November 19, 2013 - 5:44 am

Thanks Richard,

I'm wondering if it the growth and reflection in housing prices will be sustained after the games are over?

Would be interesting to hear from someone that saw the Sydney Olympics come and go.

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November 18, 2013 - 5:22 am

The ol' Gen Y career shift!

From personal experience, you would need to be crushing sales and earning good comm. to hit 6 figures as a payg mortgage broker. Self-employed would be a different story.

There are a few companies that offer financial planning internships (that have an AFSL) but you would be taking a 50% pay cut on your 6 figures. Most of them pay for your DFP and RG146 compliance.

That I know there is, AMP Horizons program , Macquarie's program for experienced applicants, Dixon's internship program and we take on 20 new recruits per Qtr with the Future Assist Focus program.

With all of these companies you would end up qualified and along the road you described, and all would give you significant mortgage experience, however that elusive 6 figures is going to be your problem I think. (and starting out in any new career). 

I know a lot of people pass through grad programs (ours included) that just get their DFP/RG146 and move on to work for banks or even look at buying their own business/book. It would be a matter of whether or not you could afford to take the pay cut for 6 months while you study.

Good Luck!

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November 18, 2013 - 4:42 am

Not wanting to slag anyone off… (and biting my tong over their name)

You can quite effectively utilise sites like 'on the house' and real estate dot com for their search filter Australia-wide to suss out your own potential investment suburbs. 

• Make a list of your top 10 suburbs (Australia-wide or state-wide) and then Pro and con each. 
• Go to each's local council and state gov website and find out planned infrastructure, new schools, shopping centres, hospitals etc… Even ring local burocrats, they love it. the do nothing anyway. Narrow it down further.
• Research that suburb. Visit it. it may only cost $200 for a return flight and $50 car hire to fly their for a day and suss it out yourself. (minimal considering what your investing and could potentially lose).
• Talk to local real estate agents. They love to talk  

If they have 'Integrity', essentially this is all they are doing on your behalf. If they are not integrous … they are just flogging excess stock under the guise of 'mentors' like N@than said ^

Either way it pays to do your own research

Good luck!

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November 15, 2013 - 1:22 am

wow. I honestly thought GDP was on the up. is that global figure distorted by China's slump though?

How do you think this will play on the AU housing market? and Interest rates?

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November 15, 2013 - 12:45 am

Agreed with Mark.

Personally i purchased my first home 9 months ago and opted for a 35+ year old brick and tile place. building and pest came up immaculate. I even had my brother who is a structural engineer laser-level measure the block and the house had moved 4mm in 30 years. We just had the driest winter in a while on the Gold Coast and now im dealing with structural movement in my house + recent down pour pulled off my guttering and discovered cracked tiles. all up a $5k fork out.

luckily it is my PPOR not IP so i can pace myself and space out the work, but with tenants they would be down your neck for repair ASAP.

The upside of NEW (with everything… don't even get me started on my car) is building warranty.

We rented in a new estate before buying our own place and the actual builder had a full time maintenance guy in that area for the first 12 months to fix anything (almost the same day) – no expense to the owner as apart of the build warranty. ie. we had cement and crap clogging up our pipes weeks after moving in and it was fixed the same afternoon we complained about it… and was told no expense to the owner.

But flip side:

we bought in a growing area on a 600sqm block with subdivision ability so long term it will be good for us.

I guess the risk with OLD is cash flow and ability to meet unexpected expenses. 

Good Luck!

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November 13, 2013 - 7:57 am

Don't know the Sydney market too well. but i would definitely only invest in areas you know well.

If it's looking like your salary will not increase in the near future then it may be worth your while to look at purchasing 2 (one unit one house for diversity) higher yielding properties between 300 – 400 and dropping 60k on each. This will put you in a relatively neutral position, but position yourself for any potential capital gains.

If your strategy is to increase from the capital gains (sit and hold) then it is important that you do not eat into your income from a negatively geared property (or 2) as this will tie you up with loan serviceability until you achieve the capital gains. 

I don't know too much more about your situation other than what you've provided above, and just throwing this in the mix for you to consider, but possibly could be good to look at a unit (inner city) and a new house and land investment for the tax benefits (if your income will be growing).

Good Luck!

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November 13, 2013 - 2:09 am

Qlds007 wrote:

Next thing we will be hearing that a SMSF can invest in a luxury car such as a Bugatti Veron and use it on weekends only as long as you clean before it goes back.

Don't laugh @qlds007 we received at least a dozen phone calls over the past 12 months from under 30 year olds with $30k in their super wanting us to set them up an SMSF to purchase the new Toyota 86 with every justification under the sun that 'it's guaranteed to be a good investment'. 'It will definitely go up in value'. 'I promise i wont drive it'. ' can i store it at my house?'… ok how bout my mates house?

SMSF is certainly not the space to 'creatively invest' or push the boundaries of the ATO… especially when they are looking to make examples of people, real estate agents, brokers, accountants and financial planners who are assisting people to do so.

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November 13, 2013 - 1:28 am

Personally I think im going to keep my PPOR loan variable. Ride the wave. But its Clive Palmer's first day in Parliament today. God knows what could happen  

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November 11, 2013 - 7:39 am

From my understanding, yeah your right, I think you would be up for stamps on both 1 and 2. And you would be right with exemption on 1 given its your PPOR and discounted over time on 2.

But perhaps someone with a little more Dev experience could shed some light. I'm keen to follow as personally the wife and I are considering this on our PPOR.

If you dont mind me asking, how big is your block? and what builder are you considering using?

I have seen MASSIVE variances in price and offers from builders here on the Gold Coast. Some offer free demolition with duplex packages. Some offer huge assistance getting council approvals and others nothing at all.

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November 11, 2013 - 6:25 am

You would need to insulate the absolute s#!t out of it. I remember unpacking containers as a part time job while I was at uni and it could reach up to 55 degrees in side when sitting in the sun WITH THE DOOR OPEN. 

You could definitely over charge some hipster/indie uni students to live in it. its 'hip' and not to mention environmentally friendly!

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November 11, 2013 - 5:06 am

No problem.

A good financial adviser would look at your whole situation. Not just try to find you the best loan like a mortgage broker.  

@jamie M – true, however on the flip side, I highly doubt a mortgage broker would ever advise someone not to take out a mortgage… where does their income come from? and a Mortgage broker cannot give any Financial Advice, unless licensed to do so.

It is unfortunate that a lot of people have negative experiences with Financial advisers. I think in a lot of people's minds the negative press and experience with 'property spruikers'  has been misconstrued for 'financial advice' and financial advisers have been caught up in this.

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November 8, 2013 - 7:20 am

Hey Jamie, I was referring to advice prepared in the form of a statement of advice from a AFS licensed adviser. Not Google-advice  

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November 8, 2013 - 4:46 am

Don't discount the benefit of seeking independent financial advice. Have a licensed financial adviser prepare you a statement of advice based on your goals. 

No one would buy a house without a pest and building inspection, but it amazes me how many people invest without seeking licensed financial advice.  – and its about the same price.

Jimmy86 | Future Assist SMSF Specialists - Bris | Melb | Syd
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