I am told Rick Otton’s wrap pack is informative.

Rick Otton’s Wrap Pack

I am still waiting to hear back on how it comparies to Steve’s wrap kit which I hear is pretty good.

Steve McKnight’s Wrap Kit

Also, I would love to hear more about Rick Otton’s teachings!

The Mortgage Adviser

http://www.themortgageadviser.com.au

Essential Links Website

I am with Steve. The 50k would be deductible but not the interest on the 50k.

Also not an Accountant.

The Mortgage Adviser

http://www.themortgageadviser.com.au

Essential Links Website

You should check out if you can do the covered calls on the US Stock Market with Aussie super funds. It is much easier and the blocks are smaller. There is also a wider diversity of stocks to select from and more movement. You can always do the covered puts as well!

The Mortgage Adviser

http://www.themortgageadviser.com.au

Essential Links Website

Me three. The boys know what they are talking about!!!

The Mortgage Adviser

http://www.themortgageadviser.com.au

Essential Links Website

Thanks.

When can I come sailing? I tend to have a lot of free time these days! I will bring the meat for the BBQ and beers (for you as I do not drink!).

Leave the women at home!!! ))

The Mortgage Adviser

http://www.themortgageadviser.com.au

Essential Links Website

That is right Terry. You started the other one didn’t you?

I posted my lengthy response here to Michael’s comments after being asked in your thread by John why I didn’t respond to Micahel in the same manner that I did to you. I had not read Michael’s earlier comments about living off equity so I went back, read them and responded.

I hope you,…[Read more]

Originally posted by Still in School:
* Buy Writes (cover calls) but only on the following stocks. OST, LHG, SRP, QAN (reason being, is that they are under $3.50)…

I don’t understand why you would restrict yourself to a low ‘dollar value per share’ stock group. It is all relative to company performance regardless of stock price.

For…[Read more]

SIS, when I say property, I do include property-related investments like MBS.

If you are referring to self-managed super, I think you will find it difficult to invest in the higher return – higher risk type investments. It is very restrictive what you can and cannot invest in.

The Mortgage Adviser

http://www.themortgageadviser.com.au

Essential…[Read more]

I am very interested in hearing what people think of Rick Otton and his reputation in general. I have heard that he presents much of the same material and in much the same way as Steve McKnight.

Does he have a good or bad reputation?

The Mortgage Adviser

http://www.themortgageadviser.com.au

Essential Links Website

Originally posted by Terryw:
So a couple could get up to $2mil in No Doc loans fairly easiy – if they had the equity and proper structure.

So if they wanted $100,000 a year each to live well, are you suggesting they can only live for 10 years?

People also have the option of increasing or obtaining LOCs while they are still working.

This would…[Read more]

Now that sounds reasonable to me. I just don’t see the value in paying thousands of dollars to hear ‘anyone’ speak!!!

What sort of strategies does he advocate? Please do not say ‘living off equity’!

The Mortgage Adviser

http://www.themortgageadviser.com.au

Essential Links Website

SIS, I thought you were joking.

There is no simple answer. You would invest the funds in assets which produce income and capital growth. I thought it was obvious.

I would look at property and/or shares/managed funds. They tend to be the most consistent and should continue to do so. You would definately need to use dividend reinvestment and…[Read more]

Originally posted by Terryw:
It is great to see someone actually living off equity.

Who is living off equity? I saw a person who used it for one year and used most of the funds to invest in additional income producing assets. I do not consider this ‘living’ off equity.

Rob, you say someone big enough for this should be able to live on their…[Read more]

I would most likely buy a smaller property and keep my debt levels low. It sounds like you would be in mortgage insurance territory if you only have $60k in cash and are looking to buy something for $420k. I am not a fan of blowing thousands of dollars on mortgage insurance.

Also, buying something smaller may leave you with the funds you need to…[Read more]

Jason, one of my main objections to living off equity stems from financing it. For those who understand finance and how lenders operate, it is not reality to think that a retired person can continue borrowing while not working regardless of their rental income.

For most people with a portfolio large enough to be able to live off equity, they just…[Read more]

It is not an issue. It is the ‘purpose’ of the funds that determines deductibility. It doesn’t matter which property is used to secure the money against.

It is strongly recommended that you do not mix up deductible and non-deductible expenditure as it will cause difficulty at tax time.

Also, on your PPOR, I would recommend using an offset…[Read more]

Originally posted by Dazzling:
Having read your very long spiel tearing Michael’s thread to pieces, I’ve got to say I totally disagree with you, and agree fully with what Michael has put forth.

No problem. I hope it works for you.

This might upset you as well, but despite my opposition to the IC club – which you know about – many of the senior…[Read more]

Originally posted by MichaelYardney:
What do you do when you eventually own a significant protfolio of proeprties. Whether they are cash flow positive or not one day you may want to slow down and use your properties for the reason you bought them.

Use them on other investments that generate a positive cashflow and capital growth. Enjoy the money…[Read more]

And as Kay so clearly pointed out in another thread, the tax on $100,000, even after taking super out, would be much less than the figure used as tax in both Michael’s and my examples.

Robert Bou-Hamdan
Mortgage Adviser

http://www.mortgagepackaging.com.au

Investor Links

So you will own both properties. It sounds like an admin error to me. If they cannot fix it, the only alternative is look elsewhere or use a broker.

By the way, 60% of completion value can sometimes be enough. You certainly should not need more than 80% so you would avoid mortgage insurance.

Robert Bou-Hamdan
Mortgage…[Read more]