Forum Replies Created
They are a property wealth group probably should not name them here,but what they showed and said is fine but has flaws in the proposal.
I just told someone else that apart from that said above,the banks will stop it into the 3rd property possibly or the next because of the negative gearing. They push factor of depreciation etc the tax advantages .Some people are chasing that sort of thing but dont realize later implications.It is a nice idea new property and virtually nothing to worry about from faraway in Perth for maintenance.
IanI have now put $$$$ 60,000 in .Thanks Steve . Got the info I was after at the Perth seminar . Any type of investing requires research if it suits your personal situation .Make sure it is $$$ spread well ,and you hedge yourselves by what investment types have been chosen within portfolios , varying types .
There are plenty of newsletters around to get onto and then have some ideas of how a spread could be set up , example "The Daily Reckoning" , buy some gold , some shares ,property direct , property listed or unlisted ,and manage the risk or get someone to mange the risk. Or speak to a financial planner who is not just an insurance broker turned planner, but someone who really understands investing in various market types.
Anyway research it folks ,if it's your thing then go,go,go for it . We need to get in quick, get it started before our dollar may drop too much or the currency exchange will undermine us a bit to start with .
COME ON HURRY UP !
Have not put any more in just yet as am considering another property here . A "PPOR" .
Ian
Perth Western Australia.
In addition to this I think at our Perth seminar ,Steve was asked a question , I or someone said what about the overseas money crisis .Cannot remember exact word for word , but answer was if USA goes down the shute big time, we are all
going to be "in so many words " in big poopoo trouble . ( those are my words in place .)
.
I have now put $$$$ 60,000 in .Thanks Steve . Got the info I was after at the Perth seminar . Any type of investing requires research if it suits your personal situation .Make sure it is $$$ spread well ,and you hedge yourselves by what investment types have been chosen within portfolios , varying types .
There are plenty of newsletters around to get onto and then have some ideas of how a spread could be set up , example "The Daily Reckoning" , buy some gold , some shares ,property direct , property listed or unlisted ,and manage the risk or get someone to mange the risk. Or speak to a financial planner who is not just an insurance broker turned planner, but someone who really understands investing in various market types.
Anyway research it folks ,if it's your thing then go,go,go for it . We need to get in quick, get it started before our dollar may drop too much or the currency exchange will undermine us a bit to start with .
COME ON HURRY UP !
Have not put any more in just yet as am considering another property here . A "PPOR" .
Ian
Perth Western Australia.
Thanks Terry , My gut feeling is to stay with what I know using normal PI loans and the collateral I have to help me into the
next properties .The investors club broker I went to see advised Loc and encourage people to use equity to fund retirement with. Not a good idea to me .risky if market drops same problem as people with only super to retire on if markets fall so does income.
Ian
Perth
Sorry NEWJO steering off your subject a little ,but thought the queries might help answer some of your situation.
Hi folks ,
I have 3 properties , 2 owned outright and 1 repaying PI loan and have been told before by a broker I should convert it all to
Line of Credit setups , before buying any further properties .
Just thought I would throw that into the ring .
Ian
Perth Western Australia
This has been a fantastic insight into the USA market and examples of what can happen .
Thankyou for these posts .
Ian
Perth Western Australia
Thankyou very much folks .I'll checkout those weblinks when I get home .
cheers .
Thanks guys , I have a bit more research to do .This broker has suggested I get a LOC setup as then will have theoretically
a higher amount of loans with Combank which then I would qualify for wealth package loan rates .
I have aleady got a business line of credit from a previous time $50,000 . Which were to use for deposits where needed .
So it has been suggested to get another against my other property ,so I will have 2 . 1 is for deposits the other for expenses related to property . Put the majority of all monies into the larger one I think to keep interest down .It were something like that
arrangement .Terry ,
above you mention paying off the LOC but then say not to put other money in only pay interest .
It sounds slightly confusing .would'nt we want to pay off the LOC asap because of high interest rates ? As it will be like having two loans running ie the LOC for the deposit and the separate actual main loan ,for the new property .Great topics ,I have just been tracing information myself for possible restructuring .
I have found the same a few property groups I went to see , have been full on into tax benefits not interested at all about any positive gearing as it will attract tax .Although we do need to be tax effective in our property portfolios.
But as I think Steve and others have mentioned before , If we make money we pay tax and the reverse is also true if we are paying tax we are making money , which is good .Could someone comment on Lines of Credit ,a bit concerned on these, never used before and a broker has suggested I convert my current loan to this and my accounts I have at other banks .Take out a line of credit on a property I own outright to release equity, to get ready for buying more property.I am used to having my pays go into one account and also take all expenses out of there , then rent money from 3 properties goes into a high interest internet account for saving for my next property deposit .I know one other way would have been to just get a MISA account going for property I owe on and put everything into that .
Any comments Thanks .Thanks Jamie .
I am a bit concerned at the strategies some of the groups offer as anything to do with using excessive amounts of equity for funding multiple properties has got me worried .I have only ever used my own deposits .
Some are telling me I shouldn't even bother with commercial property ,I have one already an industrial factory unit .I was looking at a second ,and were told they hope I hadn't gotten it yet .Thanks for all the comments , and yes Angel, I thought I would share the findings after my meeting them separate from the seminar . I was a little concerned at 1st and thought I better check with others 1st . It all depends how hands on one wants others to be in journey to the goal .
I am going to see Destiny today and see what they have on offer .Then of course there is always Steve's mentoring team , but which all is based in Melbourne and I am in Perth , so would require travel to get involved ,if I am away with work cannot attend the weekend workshops .
Also Custodian Wealthbuilders are into a bit of using negative gearing for tax , which is not really a good thing either having to top up the difference for repayments ,I already have one which is this way I am slowly getting rent up on it to market value over a long period , a bit each year .
Thanks .
I have just been for a meeting with them and yes they make their money from resale of property and encourage house /land deals ,the new houses giving depreciation advantages . They will pay 75% of rent lost if not built on time or if the tenant not found in time will pay 75% of the rent lost for the period .Their fee is 3% of purchase price of 1st property and 2% for them thereafter for each . they apparently do a lot of research for due diligence before of course to protect themselves as well for the parcel of land location etc .
Their idea of diversified portfolios is having houses in different states of course according to the current economic climates in each ,to gain full advantage of capital growths as they occur .which is quite normal .they don't advise to touch commercial property at all . They are very heavily into using highest amount of equity available to keep compounding the property buy ups ,all the way till the end .
Using mortgage insurance and going for 90% borrowings . so there is the risky bits .
I have so far not been pressured in any way to join ,although 2 company people were present whilst discussing how they operate . So need to decide if this is for me or not , I think it is mainly for people who are time poor or are not inclined to find properties themselves . They do encourage to go over and look at the property on offer , and have regular meetings with clients
for guidanceThanks folks, I may shift this topic to another spot see if any further comments .
Cory-kerr , beware some financial planning companies are actually only insurance companies offering an extra service .
Although things have tightened up over the last few years , they must attend a specific amount of seminars/courses each year , as do accountants , to keep abreast of new laws ,etc .
Previously I have found some just spruik their insurance investment portfolios and knew little about structuring an actual property portfolio .
Their fees vary a lot one of the big banks advisor quoted me 2 years ago about $ 2,500.00 initially plus small % each year they get off insurance policies .. trailing fees . I did'nt do it just got quotes . A friend of mine had been charged $6,000.00 .for his setup and is using him to control all his finances , my sister had a firm up near Joondalup to do her family a setup , that was
$ 8,000.00 initial fees.
So ask questions what services and products they can offer and what are the fees initially and any further trailing charges .
It is then up to you to weigh up if the $$$ add up ,to the piece of mind it will give having things structured right .
Some good accountants can do this nowadays .,but an independant view certaintly does'nt hurt.The one my friend uses in West Perth , has accountants within the firm and could do his tax also if he required that . for extra $$$ .They have also setup and manage a dividend producing share portfolio for him , he had never owned shares in his life before .
Good Luck .
Thanks for your input Terry , more than likely I will leave it as an investment property .When split up done sell all of it .
Definitely see or call bank first , also see CBA website some calculators there very handy to get a ballpark idea . Have a listen to the webinar that was presented this week on Tuesday .
Do your own self test and add up how much you spend on food , bills ,car expenses , fuel etc., and annual bills divide them down to the week or month , and see how much it really costs you to live on a weeekly basis It is a good start to see what is left of your pay to invest with . Some of these questions the bank or alternative lender will ask anyway , and require copies of pay slips . Good luck on your journey .
duckster wrote:Right click on Start icon at left bottom corner of windows
Select Explore with a left click of mouse
Select Tools from tabs at top of windows explorer window that came up
From the pull down menu select folder options and click left mouse button
left click the mouse with the pointer over the file types tab.
go down to ASF file type it will state it opens with VCL
click on edit and change the program to open with windows media player
go down the list and change each video file type to open with media player.Cheers Duckster , this worked a treat . Not the other method .The drop down boxes usually gave 2 choices for files , but some gave only the one choice as a recommended one , and other choices below ; I reckoned that better to stick to windows recommended ones , in case it caused instabilities to file types .
Thanks heaps .
Hi I am in Perth ,
If you check back on some previous articles , use the search above ,you will find there is a group someone has formed
meeting at Burswood , once a month I have not contacted them myself , ( Put Perth investors into search crieria and see comments on 15th May 2008 . )I have 1x commercial property and 2x houses rented out . I am hanging off and waiting , watching , these are uncertain times
Do not give up on the research either internet , and checking Wednesday and Saturday and Sunday real estate pages , we just never know what might turn up for the right price and something that might only need a little T L C , to fix and add value .Depends on what fits your criteria , price range etc, for example go to the commercial real estate section at the back and
practice at working out the $$ per square metre , then the rental return for the $$ put in .Check out the to let columns to see
what some investments are returning in rent .
Commecial properties are great because the tenant pays all outgoings , rates etc , including strata fees , in a block of factory units.
Something I spotted a while ago but left till too late ( kicking myself now , dum, dum, dum. ) A country pub for sale , I ummed and ummed for for a while and 2 weeks was still in the paper , curious , never tried this type investment before ,
Steve bought one a while back he had noted on a news letter .
I phoned the realestate finally but it was about to be signed up , he told me hotels are the same as other commercial propety , if you are buying only the freehold building and it is leased out they are 10 to 15 year leases , they pay all outgoings and internal
parts , painting , repairs carpets , etc so basically the business and license is theirs , and they lease the building .
It was said to be earning 8 % .Interesting I thought , so there you go , get ino it and start calling agents and ask , go and check out a few properties , to see
just what people are offering for the value asked on some properties . Don't have to buy yet , just get a feel for what is out there .Hope that gives a little insight , Bacon , good luck .
Thankyou very much for the input so far folks ,
especially factoring bank interestalthough is tax deductible, intially I
have to pay it .
I am surrounded by a very negative thinking
family , makes clear thinking difficult .
Cheers .
