mcollins, I think that depends on whether or not you ever did live in the house. I would check it out with either an accountant, or the ATO.

Cheers
Mel

Peter G

There are only better tax advantages for individuals if you are negative gearing!! Sooner or later those properties will become positive, and then there are NO tax advantages.

Although you can still use trusts for negative gearing. A newer ‘type’ of trust is a Hybrid Discretionary Trust, and in this you can take advantage of negative…[Read more]

Aw Josh, you’re a sweetie[]

Cheers
Mel

Sooshie,

quote:Ooops…before we get carried away….
I suggested the party…then Westan suggested Steve pay…
I thought I’d clarify that Steve hasn’t made mention of a party… Y

I know, but I thought a game of ‘chinese whispers’ might be a good way to get Steve in[]

Muppet, I’ll chip in to help you get over here for the party!![] Although,…[Read more]

Hi Huey, long time no post!

Watch out for sis – you might need to chaperone him!!!![]

As for age group, I guess it depends on who your daughter gets along with best. SIS would be a really good example of somebody her own age achieving so much in a short space of time, as long as her starting place is also similar. Or if not, it depends how he…[Read more]

As most US stocks do not pay dividends, there is no income stream from their ‘investment’. So when they draw down their 401k, they are cashing in, and using that money to live on. they are retired, so there are no wages.

And I disagree that the Boomer population is not the same proportion as Australia.

Cheers
Mel

Sorry Westan, I went back and found that post, and you’re right, Muppet didn’t say you were Santa. But I’m sure he said something somewhere, and you got upset as you felt that your credibility as the ‘forum hunk’ had been dashed[]

Top idea re Steve putting on a party. I’ll be there[]

Cheers
Mel

From what I remember of Margaret Lomas’ structure, she cross collateralises everything, and has one big LOC, with many sub accounts for each mortgage.

I prefer to have separate loans for my IPs, and one single LOC where I deposit all rent money etc., and have all expenses taken from. As i don’t have a PPOR, this LOC is a 2nd mortgage against one…[Read more]

I reckon it takes that long to type it![]

Cheers
Mel

Hey Richard, don’t blame me, maximus spilled the beans first.

Besides, I read your post as you were offering the odds that there would be a rate rise in January, which is what I was willing to bet on.

Cheers
Mel

I did see that one sis, but I thought I’d already got you in the other post, so didn’t need to offer again![]

Cheers
Mel

Marty, you spoiled the fun!! I did have that in my post, but then I thought I would ‘mess’ with sis a little bit.

Sis, read maximus’s post. We are only talking about the ‘official’ cash rate. There will be NO rate rise in January. The RBA board meets on the first Tuesday of every month, except for January. Any rate rise is announced on the…[Read more]

sis, when in January do you think the rates will go up?

Cheers
Mel

Hi Grant and welcome

The best advice I can give to you is to read back through a lot of the posts on this forum. This has been discussed any number of times, and you’ll find you get some valuable information.

Cheers
Mel

I’ll bet a million bucks that there will be no rate increase in January!![]

Now, February, I won’t take you up on that one!!

Cheers
Mel

Peter G, if you sell your family home, where will you live? I’m assuming that everything you have is in your own names at the moment?

One option for you is to turn the family home into an investment by creating, and then selling to, a family trust. It will borrow the money to buy it from you, and then you will rent from the trust (pay market…[Read more]

quote:Unfortunately you can end up being double taxed doing it this way as the compnay pays 30% and then the person receiving the money pays at their marginal rate.

This is true, but the company can then choose when it wishes to distribute this money. It can wait until there is no income for any of the shareholders (which may be on retirement),…[Read more]

itsamoorey, if you do wish to buy this way, ensure that you do research on the town, population, industry, vacancy rate etc. etc.

Also, you must get building and pest inspections!!

Cheers
Mel

Peter G, refinancing is in fact borrowing more money, so if your aim is to reduce your debt, than that is not a good plan for you.

If you use a LOC as part of your refinance, the bank has just given you a big ‘credit card’ up to the loan limit.

If you use a standard loan where the whole thing is redrawn, then yes, you get cash. But you will…[Read more]

David

I don’t think there really is any other way other than to borrow money.

Your strategy sounds quite conservative (in factoring in your payments based on higher rates[]) and so I don’t see a huge problem for you in investing in this manner.

Personally, if I have any loans, I will never have ‘spare cash’ as it will be working to reduce my…[Read more]