Forum Replies Created
- god_of_money wrote:Go for the lowest rate with low LVR…
why wasting money with 0.2-0.3% interest rateI wish they can do 50%LVR with 6% interest rate
I have always worked on the premise, the money you will make from property p.a is so much more than a small difference in an interest rate. Property is long term, the 0.3% is very little when you are making 10% on a Million dollar property. e.g Buying a property today of value = $500k, in 20 years the property value will be a conservative $1.5Mil, At that point, 8% growth pa equals $120,000, now the 0.3% on the original loan of $500k (cost equals $1500pa) is starting to look very lean. To become wealthy you need to think like a business. All businesses have expenses. Interest rates are just an expense of your business. No expense, No house, No business. I would never throw away $120,000 pa for an interest rate savings of $1500.
By saving 0.2-0.3% in interest your opportunity cost is another house. Please remember, the original post asked to secure money in the future.
Further, If making money was about the interest rate, the entire population would be wealthy…..
Bare trusts are used, whereby, you can keep the your identity from the vendor. In this regard you may use an agent to approach the perspective vendor.
Sorry, but I think you need to keep it real……. when a tool can feel the serenity, or see the opportunity, or research a highway going through your backyard, then entire population will be wealthy. Property and wealth creation is for those that are willing to get a little dirty, meaning that you will put in the hard yards. Property has way too many variables for your little phone………
Could you narrow that down a little, what is any area?
I'm not sure about Paul, but you asking the question on this site must represent something….. When I find the perfect property or the best accountant (with fair value, I am still looking for him/her). I will know. You will also know when you find the right coach. I participated in triathlon for 15 years at a high level. You will know very quickly when your mentor/coach caters for your personality, strengths and weaknesses.
What is the definition of a coach,
A couple of points that come to mind:
1. Completely transparent.
2. A role model.
3. Their happiness is directly correlated to your success.
4. A coach is very generous of their time to watch you succeed.
5. Open minded, will play with many ideas and concepts.How do the above five points relate to you?
1. What does your coach stand to gain?
2. Has your coach got a property portfolio from a tested past record (inheritance or like is not included).
3. This speaks for itself.
4. We all know time is money, will your coach watch the clock or charge you by the hour?
5. Does your coach believe there are many ways to increase your wealth, as a single focus on positive geared properties may not be for you, further, it is not the only way to create wealth.I understand there are many points around, "what is a coach"……..but, I think you get the drift.
Here's a thought, Why not use three or even five coaches. The opportunity cost of using one coach could be huge……..
Qlds007 wrote:You can stil get 6.45% (post May rate increase) with No application / valuation / lenders legals fees.
No monthly or any ongoing fees.
I would not encourage many people to throw a 35% deposit at a house……. This is a waste of equity? This would be considered inefficient investing, particularly as the original post by "thek" was concerned with securing more money in the future…….
Keep it simple, track your netbank…. refer to the bottom line. if the balance increases- invest more. When the net balance decreases, cut back on coffee, take out, beer, holidays or like. Alternatively, I make decisions to increase tax deductions and increase real cashflow that will then increase the balance as opposed to cutting back on lifestyle choices.
Please call at your discretion. My wealth was created from property, so you know where my focus will be……
As nice a guy you are Richard, you only give the people on this site half the answer…. tell "thek" the name of the bank you are suggesting.
Nil, if you place an advertisement in the local paper (approximately $80) and manage yourself. Rental packs are purchased from the newsagents. Just an alternative that has worked very well for me………
Suncorp do one of the better Low-doc loans, more personal detail is required but from first look it may meet your needs.
I have had two children (well, not me personally). As you are doing, plan for this period. There are many ways to survive the children years, such as drawing down equity. i.e. improve your cashflow, and hold on to the properties where possible. While you own property you have a passive income….. When you sell, you join the rest of Australia investing in Lotto or like….
Please note: you have already done the hard work…..
Those advisers that are good will survive, I see this as a very good thing for the industry. Those that are good can explain to their clients the fee they are charging, and feel confident the client will pay. The dodgy ones, a very large portion, now have to explain those hidden trails…….. I have clients walking through my door all the time unaware they are paying a trail to a planner. And others that have been told to sell their well performed IP's only to put the monies into a comm's based managed fund or super plan…….
I had one client in the other day that was moved from there existing AMP super into another AMP super fund product with the reason being to reduce management costs- they were charged a fee of approximately $7000 for this privilege. Even with the comm's scrapped we will not be able to sort out these gangsters. I have found this to be the case many, many occasion's….. Financial planners need to be regulated as the work is not very client focused. The more compliance the better, actually I think the compliance hits the wrong people, Why not set up a body to investigate these gangsters. Not like COSL (as decisions take over a 1 year and they forward the real cases to the courts at this point- a large waste of time and money), but a real mediator with real authority that Mum and Dad investors can access……..
Jeffro, you must look outside the box here. You require the personal debt to be much smaller or else you will end with sharks charging you ridiculous rates and fees. Outside the box means family support and the like. Consolidating your debt with a house loan through the bravery of your parents and receiving a family pledge loan. This is not the only way but you have to think, utilising the network of people around you.
Your deposit is not enough?
If you really want to do this, you can set up an on-loan agreement, this beats adding cash that will be lost to your super fund for most of your life. This will improve the LVR from the banks perspective.
Most regular banks are on this now, as with every loan product, the banks also have thier own niches with super products.
I worked with a company that pumps out many of these structures and deeds each year. I can honestly say SMSF is for the limited few. There are much easier ways to structure your retirement plans. i.e. Super with low cost industry funds invested in the stock market and keeping your property investments external to super due to the flexibility. Property inside super should be utilised if you have both a lot of time, require the purchase for business premises and are in tune with the complexities of the superannuation regulations (it is much cheaper to organise reidential property external to super and you can access the money to further invest and use at call – before retirement age). I would suggest investing in property via a superannuation vehicle to astute investors that are already savy in investment properties. Too many companies see this as means to make money from investors without the concern of the ongoing administration and technical nature of the acquisition. This does not mean I would never reccommend the Instalement warrant structure to invest in property, but working inside a company that was only selling this as a product I was able to see it was good for the limited few. Consider other, sometimes more relevant options.
We require more information to guide you on this one, How many children? How much property do you own (value)? What are your outstanding liabilities? There are a lot of variables that must be addressed before a reasonable response may be posted…..
What I am trying to do is use capital growth of an investment for non investment purposes and still claim deductions on the interest. Essentially, this is the same concept (and consequently – flaw) as Living Off Equity.
I have noted the above quote, YES it is possible as you learn the principles of capitalising interest.
Oh! and by the way, I just happen to be running a seminar that would really suit you…….. LOL
Where there is a will (you know the rest), although legal, I would still like to represent this idea privately, drop me a line/ email.
