Hey Simon, absolutely good advice – for a vendor!

As a purchaser I would definitely push them to accept a lower deposit – and in fact have never paid more than 5%.

As a vendor, it depends how keen I am to sell if I will accept less than 10%. I haven’t yet accepted less than 5% though – not on a property that went on to exchange anyway.

Cheers
Mel

Canberra (NOT Queanbeyan)[]

Cheers
Mel

James, trusts don’t actually pay tax. You can reduce the tax payable by distributing to beneficiaries on lower brackets.

There are heaps of advantages for trusts, tax minimisation and asset protection wise. For a really good, plain english explanation, get Dale GG’s Tax Battles and Trust Magic.

As has been stated, a disadvantage is that trusts…[Read more]

Sure it is Paul. I can understand you being a bit cranky, after all you are a race car driver!!!

The more you post, the more I see that you have lots of money that I could spend, so that’s got to be a good thing (for me anyway!).

Cheers
Mel

Shaun, Dolf has never had a job in his life, so no income to offset from wages.

If you concentrate on places with lots of depreciation, you can turn what is a positively geared property before tax into a negative one after tax. This means $$$ in your pocket, and no tax to pay. This could also help to offset other $$ positive places where there…[Read more]

Hey Shaun, it’s Dolf!!

Castle Dreamer, you can leave your PPOR for up to 6 years, and claim it as in IP, and depreciate and all that stuff that you’d do for a normal IP.

The beauty is that if you move back in within 6 years, there is no CGT, even on the depreciation that you claimed!! Beautiful.

I just finished reading Dale GG’s Trust Magic,…[Read more]

When I have signed contracts with $1000 deposit, balance is payable on settlement.

I think there is some clause in the contract that says ‘Should you fall over and the contract does not complete, you owe the remainder of the 10% as a debt to the vendor’ (of course, these are not the exact words, but you get the picture).

A deposit can be…[Read more]

Hey gazzaa

You forgot to turn caps lock off after PPOR!!

If you plan to sell one of the PPORs, I would definitely as a first point pay off the remaining loan on the other one. This is non deductible debt, and should be vanquished!!!

Then you have the choices to find +ve properties that will offset your -ve ones, or pay some off the IPs. If…[Read more]

Kat, all valid points on LVRs etc, but there’s no way I would recommend cross collateralising for many reasons that have been discussed on these boards previously.

Instead, a LOC/Second mortgage (same bank as PPOR loan and at standard rates) against the PPOR to use as the deposit. This will mean that there are two separate loans for the IP, but…[Read more]

Shaun, if you delay longer in selling your IP to the trust, chances are it will go up in value, and you will pay more CGT. And more stamp duty on a more expensive property. something to be very aware of.

As for your PPOR, that’s not a huge issue CGT wise, but is for stamp duty, and is if you are looking at renting it from yourself.

Just to…[Read more]

Thanks for the explanations guys, but my point was that I found some cheap properties really easily, not that I want to buy any. I’m in Canberra, so not quite ready to venture North yet. I’ve got good friends who live in Yeppoon, and they won’t even give me helpful advice about Rocky, except that ‘it’s a hole’!!

A mutual friend did buy there,…[Read more]

Hi Stephen

Talk to all the agents in the town to check out the rental demand.

Also, I know that Steve’s book focussed on properties under $100K, but it’s my experience (and I spoke with a few agents this weekend in country towns – Gunnedah/Boggabri especially), and their opinion (and mine too now that I’ve seen some of these places) is that they…[Read more]

I would recommend as a first point of call visiting http://www.gatherumgoss.com and purchasing both the ‘Tax Battles’ and ‘Trust Magic’ manuals written by Dale Gatherum Goss. I rec’d them on Friday, and read them in two sittings.

Absolute must read for those wishing to use a trust structure, and also wishing to invest with other people also using trust…[Read more]

Steve, you would definitely be wise to get the permission of the owner, or else you’re still up for all damages etc. etc. etc.

Why do you want to sub lease anyway? Are you planning on charging a higher rent, or do you just want out?

Cheers
Mel

Tony Robbins has made a heck of a lot of money doing other things. He runs about 9 different companies (I think), and took one public in the last few years, making $400 million in one day, as just one example.

Cheers
Mel

Now Paul, I’m wondering what you are suggesting here!!![]

ShaunWalker is from Queanbeyan, so he would be a good one to ask on the talent out there.

Personally I wouldn’t do my shopping there…..[:X]

Cheers
Mel

What’s that one where they wear pyjamas?

Oh yeah, the cricket world cup, and also that one for where they play the game over lots of days and wear white? Test Matches, I think they call them?

Cheers
Mel

If it was something like a TV that was easily ‘removable’ and had a definite shelf life, I would include it as a ‘gift’ to the tenant if they stayed for say, 2 years, paying an extra $20 or so per week. If it’s included in the house, I believe that you can depreciate it, so you also cover some of your costs this way.

Cheers
Mel

Don’t worry Cornel, I’m in the same boat – except I found out this morning that my loans have been declined – and were in fact declined LAST MONTH!!

Soooooooo not happy Jan!!

Simon, I’ve got Jason on the case, so I think I’ll be right – thanks for putting me on to him![]

Cheers
Mel

Cornel, I can definitely recommend dropping Simon an email with your details. He’s got a lot of information that he shares for free, and it’s better for you offline than on here open to the world.

Cheers
Mel