I’d make it a family trust. Then the security could be offered, with contracts to protect the trust etc. etc.

Sounds like it could work, and if Mum and Dad are selling anyway, why not sell to the trust and keep it protected from then on.

Cheers
Mel

Bear, I think the major problem will be in the CBDs, and for Melbourne – the Docklands, and Sydney, Green Square and Zetland.

Other well selected apartments should still fare ok.

Cheers
Mel

Thanks Muppet

I’m a bit in the same situation, so I bought the Cashflow 101 e game. Now I play against the computer, and have learnt heaps that way. It’s also quicker too!!

I’ll have to look into Kieran’s game.

Cheers
Mel

Shirley, if you are buying for your son in ACT, then a point to note is that stamp duty for investment properties is tax deductible, but not for PPORs. Also, land tax is payable on every IP – if you look at allhomes.com.au it will tell you what the land tax is for any block in the ACT.

Loss of CGT exemption is fine for both of you if you don’t…[Read more]

Towlie, how come? My friend has a property with them, and hasn’t had any problems?

Cheers
Mel

I’m currently answering a nice little questionnaire from the tax office in regards to some courses I did in 2001/02.

A ‘work related’ expense, but they’re asking me how many properties/shares did I own, and how many have I bought/sold since. It’s going to be a nightmare, and annoying, as the course had nothing to do with property!!![]

Cheers
Mel

kay, if you’re making these improvements, you’re not necessarily doing it while you have a tenant, and upping their rent. If you do it on settlement, or between tenants, then you can ask a higher rent, so effectively your tenants ARE going to that place that has all the ‘features’ to begin with.

I agree that there’s only so much you can squeeze…[Read more]

Hiya Muppet, have you played Kieran’s game? Is it any good?

Merry Christmas all (or Happy Holidays if that’s how you play it)[]

Cheers
Mel

The Investors Club is a good place to learn from – although again they are focussed on negative gearing, perhaps moving a little more towards neutral now – but they also ‘sell’ their own properties. Everything they do is ‘free’ until you see the big chunk of cash they get at settlement from the developer.

They also have lots of good stories…[Read more]

Thomas J. Stanley I believe.

I have seen both it, and the Millionaire Next Door (first book by the same author with Danko) in Dymocks and Collins.

Cheers
Mel

Michael R

Thanks for your info. I was not suggesting that anybody who earns AUD buys in the US, merely that toystory consider it as he/she must be earning USD and living in the US.

If I were to invest overseas, it would be NZ, and it would have been 3 years ago, but I was chicken then, and still a bit chicken now to broaden my horizons.

Cheers
Mel

Redwing, $6000 at 10% is $600 per year, so in 25 years, it’s only $15000!! Which becomes ‘tomorrows’ dollars, and therefore worth less than today! Not much at all really.

As for the carport, if there were two identical properties for rent, and one had a carport and one didn’t, and the extra money wasn’t an issue with the tenant, I’m sure you…[Read more]

Gmh454 you are right. I apologise. The trust will in fact profit, as there are no interest costs for it to pay. So it will distribute the profit (rent-all expenses) to the unit holder, who will then claim both his interest costs, and the income, and will in fact come up with a loss (if a negative geared property – I can’t see why you would use…[Read more]

JB, in Dale GG’s manual Trust Magic, he says that a hybrid trust can in fact distribute losses if a person borrows the money from the bank and buys the units (similar to unit trust I think). Then at a later point, the trust can borrow the money itself, rebuy the units, and revert to a discretionary trust. So all income (- or +) is distributed to…[Read more]

mopsy, the land tax is calculated on the land value only of the IPs. I’m thinking your friend must have quite a few to be hit with that high a fee.

To understand it, would be best to check out the state gov’s website which should explain it better than I can not having had that problem.

Cheers
Mel

Happytrace, for a plain english explanation of trusts and how best to use them, check out http://www.gatherumgoss.com and look at the ‘Trust Magic’ manual. It is excellent value.

Cheers
Mel

SIS, I don’t think that the government will push the banks to do this. The banks would certainly tell the gov to get back to governing, and leave them to banking.

It has to come down to the bosses at the banks assessing the commercial viability. At the moment, I think they’re still quite happy to take bigger payments earlier, rather than spread…[Read more]

Absolutely Matt. You can change from variable to fixed at any time. The other way around is where you could cop the fees to get out of it.

Cheers
Mel

SIS, Dolf de Roos said it at his seminar a couple of weeks back, so I guess it is.

I doubt Aust will follow suit in a hurry. We don’t offer fixed loans for 25 years, so haven’t caught up to them in that respect yet.[]

Cheers
Mel

Thanks for your ‘educated’ viewpoint JB. If the ATO is going to look that closely at trusts, why do they not look that closely at individuals who do the same thing?

I’ll go with Dale GG’s ‘educated’ viewpoint on this one, but thank you for sharing another investment accountant’s opinion. More knowledge makes for better decisions.

Cheers
Mel