[showmethemoneyParticipant@showmethemoney-2Join Date: 2003Post Count: 103]

December 23, 2003 - 7:58 am

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many many years[/i] back when i was working on the boats up North (WA)

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Redwing

Boats up North? Are you referring to offshore supply boats, stateships or the grey funnel line?

I also remember now how Noel was very enthusiastic about a new product from Citibank called Mortgagepower (I think?) which was a line of credit.

Clive

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December 23, 2003 - 7:44 am

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And Clive, will definately look into that financial calculator thing, are they hard to use?

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Guccigal

Not hard to use at all. You basically enter 3 variables and it solves for the fourth.

Clive

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December 23, 2003 - 7:41 am

Hi all

Still on the topic of company funds.
How would a loan from one’s wife’s company to myself for the purpose of investing be set up?
Must a market rate of interest be paid?
I was thinking I would rather pay her 7% than the bank, and she would be getting a superior return than from the bank as well.

Regards

Clive

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December 23, 2003 - 7:27 am

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SHOWMETHEMONEY $ AND RYANMEL

How do you find this system ?

Preferable to waiting untill the end of the financial year and recieving it as a ‘lump sum’ ?

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Redwing

The way I look at is I would rather have the money to use now than effectively loan it to the ATO for 12 to 18 months interest free. A dollar today is worth more than a dollar tomorrow.
The effect for you in paying down your home loan would be worth the extra paperwork and accountants fee I am sure.

Clive

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December 23, 2003 - 7:22 am

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Unit trusts still cannot distribute losses. I beleive that a way around this is for the unit holder to borrow to buy units and claim the expense that way against their personal income. In this situation, you could probably a variation of your tax.

Terryw
Discover Home Loans
North Sydney
[email protected]

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Yes, that’s the way.

[showmethemoneyParticipant@showmethemoney-2Join Date: 2003Post Count: 103]

December 22, 2003 - 9:11 am

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Has anyone used the Jan Somer’s softwares? She has the personal one, and the professional one, do both of them have the graph function?

Has anyone used the Richmastery one, does that have any graphs?

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Fullout

I use the Personal Professional and I think it is great. It does have graphs but I haven’t used them. I used to have the personal PIA, an older version (5 years ago?) and it had no graph functions.
You can try free downloads I believe at the Somersoft website to get a feel.

Clive

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December 22, 2003 - 9:07 am

Ahhh Noel baby!

The first financial book I ever read while working in PNG was Money Made Simple. I immediately demonstrated my new found financial acumen by losing $50000 in Estate Mortgage.
Not Noel’s fault of course, he would have said “If it looks too good to be true it probably is”…………and it was![]
I have a lot of respect for his books and advice. If I have one niggle it is his (and most financial planners) bias for managed funds. But that’s just me, I have always felt that I can lose my money as well as anyone, so why pay someone else to do it?

Clive

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December 22, 2003 - 8:56 am

Hi GG

You could try Excel if you have it.
My favourite is actually a financial calculator like the HP11C or similar. Saves firing up a pc. So quick and take it anywhere, well except scuba diving!

Clive

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December 22, 2003 - 8:52 am

Yep

A hybrid trust is the combination of a discretionary and a unit trust.

Clive

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December 22, 2003 - 8:49 am

I reckon by the time Cedar Woods, Multiplex and Mirvac have finished in Perth we will truly know the meaning of overkill.
They have a lot of stock coming onto the market now and for the next few years (3000 dwellings in Burswood alone). The thing is, these guys are experts who do a lot of research. They must be fairly confident of selling them.
Out of curiosity I enquired about apartments in the new Raffles development when it was initially marketed. There were 3 apartments left starting at $920000! We were going to get one but there was nowhere to put my box trailer[]

Clive

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December 22, 2003 - 8:08 am

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showmethemoney

On night shift at the moment, log on every so often and catch up on the forum ( it moves pretty fast ) finding it ‘very’ informative and keeps me thinking and awake

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Redwing

What a coincidence, I am also on nightshift, well midnight to midday actually. Only 2 weeks to go.

Clive

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December 22, 2003 - 8:02 am

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I wouldn’t think so, as losses cannot be distributed from a trust.

Terryw
Discover Home Loans
North Sydney
[email protected]

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Terry and MM

If you invested via a unit trust structure then yes you could offset any losses against income.

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December 20, 2003 - 9:49 pm

Redwing

You’re up early today!

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December 20, 2003 - 9:43 pm

Redwing

Yes I remember reading that a long time ago. When I tried to apply it to my environment it just didn’t stack up.
Anywhere you could throw up a carport for $1000 with council approval and not have a hideous eyesore would generally be an area with older fibro type homes. It is not my experience that you would then 1. get $20 a week more rent 2. revalue the property by 10K based on a cap rate of ten.
A cap rate of ten would be great but residential real estate isn’t valued that way to my knowledge.
A recent example was putting ducted evap a/c in a house in Mt Pleasant after the tenants had complained about the heat the previous summer. After much negotiation they agreed to pay an additional $10 per week, I wanted $20. So now they pay $260 pw. The a/c cost $3900 so that is a 13% ROI. Haven’t revalued so can’t say what, if any, value has been added. The benefit to me is I keep some very good tenants in a very competitive rental market.

Clive

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December 20, 2003 - 9:19 pm

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With one IP under my partners name and the other under mine, and the fact that we’re both PAYG wage earners it may be beneficial, paying extra into the PPOR loan each payday would certainly save money in the long run ( with the benefits of compounding)

IP’s on F.I – I.O for 5 yrs so this would help also i believe as the figures are the same each month ?

My wage is a bit up and down with overtime / extra shifts etc.. but essentially ok..

I’m starting to think of tax time 2003-04 already and planning ahead.. should i see my accountant now ( after Xmas) or wait until the end of financial year as by the time it’s sorted i guess we’ll be there ?

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Redwing

Paying down your PPOR loan with extra money from variation is a good strategy.
Fixed interest only loan makes calcs easier for coming year.
I would do calcs based on base wage without overtime if it is uncertain.
Getting to your accountant earlier rather than later is a good idea. If you wait until end of financial year you may find the accountant is busier than usual and the process will take longer.

Clive

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December 20, 2003 - 7:12 pm

Hello Redwing

Yes I have been using this approach for some years. It’s no longer called 221D but it’s the same thing.
Basically towards the end of each financial year I sit down with the accountant and work out income and expenses for the coming year.
He fills out the booklet and I check it and sign it.
He sends it off and within a month or so my employer receives instructions to deduct an amended amount of tax from my salary.
The ATO get a bit shirty if your variation and actual tax owed are substantially different so it pays to get as close as possible with your estimates. Of course if circumstances change, like you sell/buy another property you can always submit another variation.

Clive

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December 18, 2003 - 8:42 am

So Fibejebe you were one of the many bikes roaring through town and over the bridge on Saturday? It was quite a spectacle, kids loved it? I had brief longings for a bike of my own!

Clive

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December 18, 2003 - 8:18 am

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SMTM – where do you live? I know someone in SE QLD who would be able to advise you.

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Mel

Mandurah WA.

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December 18, 2003 - 4:01 am

Very interesting indeed.

I have been sitting on empty land paying interest for 18 months waiting for 3 townhouses to be built (to keep and rent out). It would cheer me no end if I could claim a deduction for the interest paid during this time.
Any idea of the section, paragraph etc in the tax master where I could direct my accountant to?

Regards

Clive

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December 18, 2003 - 3:54 am

Scott

As you’re in WA you can contact the Valuer General’s Office and get sales evidence for a particular street or streets for $22.00. My contact is Louise Stazzonelli. I usually do it via email bit don’t have her email address handy.

Clive