I’m with Terry on this one. I know that in the USA this practice is extensive, but have never heard of it here.

Chris, where is the mention of this in Steve’s book? I’d love it if it were true here, but I don’t believe so.

Cheers
Mel

At about the time my sister and her husband were buying a PPOR, my folks were looking to buy a house on the South Coast – their ‘retirement house’. I tried (in vain) to get my sister and her husband to buy the one down the coast, and my folks to buy the one they wanted up here.

Even did heaps of numbers (i’m a numbers person) for them to show…[Read more]

Hi Nathan

If you are serious about making an offer – get your finance pre approved, and you can make an offer with a quick settlement. Depending on the vendor’s needs, this may entice them to accept a lower offer.

If you live in it for 18 months as a PPOR, will the bank give you finance on an IO basis?

If you then go overseas and the rent =…[Read more]

Hi Richardo, welcome to the forum.

I would suggest that the first thing you do is sit down and write out a plan for yourself. Work out such things as the cashflow you want per week/month etc. Then work out how much equity you want, how much cash etc.

Then start talking to friends/family who might be interested in investing with you.

Cheers
Mel

I think Pinky said ‘boss, we’re moving house on the weekend of ?? Nov, and it’s a real pain, and we’ve got all this stuff to pack and unpack, and, and, and. Would you do me a real favour and …….. absolutely refuse to give me the day off?’ Pause. ‘Thanks boss, I knew I could count on you. Now, can I have that in writing?’

Cheers
Mel

Andrew aka RentMaster

Your apology is accepted[]. I only hope that you have to retract it next weekend.[]

All I can say is – ‘go you good th..’, no, I mean ‘go the southern hemisphere'[]

Cheers
Mel

Hi cornel

The test of whether your property is positive or negatively geared comes from how much you get in rent versus the costs. It won’t matter as to what the value of the place is.

If the one above does sell for $159K that is good for you, but for the banks to value it at that they will want more evidence than just one sale.

The contracts…[Read more]

Yes Pebbles, definitely try to hold for 12 months. If you sell for less than that it’s not acutally CGT, it just gets straight out added to your income. Ouch![]

Cheers
Mel

Hi ansonlau

I found this article where Jenman does give his version of why Wraps are unethical:

http://www.jenman.com/NewsNews1.php?id=120

Other than that, I don’t have any comments on Jenman, except to say that he is indeed similar to John T Reed.

Cheers
Mel

Hi C2

I think that’s where we see the beauty of trusts!![][][}][]

Basically, the Taxman says you owe me $x (or more likely $xxxx[!])! You say – I don’t have it! You do not ‘own’ the assets in the trust, they are held for the beneficiaries (as long as you aren’t the only beneficiary). As the trustee has discretion (discretionary trust only,…[Read more]

So did your friend have to buy the overbid place C2? Or was there somebody out there that wanted it more than him?[]

Cheers
Mel

Hi C2

In regards to the taxman deciding not to sue, and just ‘going away’ I don’t believe that he (it must be a he!) works like that.

The taxman will assess/audit you, and if they say you’ve done the wrong thing, they will impose a penalty. I do not believe that they care whether or not you have the money to pay it back, or if their penalties…[Read more]

Sorry Fudge, I pulled that table from there too, and when answering your query must have had stuck in my head the 43 part of the 43.5% medicare inclusive.[]

Hi C2, I will go and have a look. I had to type that response really quickly as my Dad wanted the computer, and I hoped to be able to come back to it before anybody else read it![]

OK,…[Read more]

Towlie, it depends on what you want to achieve. If you are going to be buying lots of properties, I would seriously consider your structures – ie are trusts going to be good for you etc. etc.

If you have a discretionary or hybrid trust, you can both be beneficiaries, and decide who gets the income at tax time. You can also add any kids as and…[Read more]

Hi C2 – you’re forgiven![] Yep, I did see your post, and I think I did answer your question? Hope so.

Cheers
Mel

Don’t forget yours Muppet – at 259!! And I think the 15 should be 51, or 52 now as Castle has obviously posted again.

You’re right though. It’s quite interesting that only senior (with respect to no of posts, not necessarily knowledge!) people have posted (with the exception of the ‘young at postings’ Shaun and Castle.

Cheers
Mel

Hey Fudge, I bet you’ll find that you keep ‘improving’ your spreadsheet – I know I always do with mine. I’m quite disappointed when I can’t think of anything else to add!

Muppet, I agree, there’s nothing more frustrating than seeing people ignore the instructions people give on how to get hold of something.[]

Cheers
Mel

Hi all

With regard to Foxtel, I would consider paying the ‘install’ fee, which basically allows it to be wired up to your house – and stays with the house, but for the actual subscription – if the tenant wants it they can pay for it.

We have a unit in a block of 119 (actually it’s four blocks with a courtyard in the middle) and the quote from…[Read more]

Hey Luke

I had the same wishful thinking as you!

I am working to reduce my gain that I have realised this year by doing as much tax minimisation as possible – like prepaying interest, claiming max depreciation etc. etc. It also helps that I (when I eventually do my tax return) have a massive negative income from last financial year that will…[Read more]

I’m replying to this one as I haven’t found others that a. I know the answers to or b. the answers haven’t been covered yet. And I was feeling sad that I hadn’t done any posts today at all.[]

So now I’m happy again![]

Cheers
Mel