Thanks Richmond. I hate my name misspelt as well.

By the way, an introduction would be more than appreciated.

Cheers

Stu

Property & Finance News
at http://www.prosolution.com.au

Marty – no money offered on my part. It doesn’t appeal to everyone. For example, one high profile business person very happy and another not so obliging.

If you respect and admire the person then why not go and speak to them (and learn from them)? Some people on my list are Steve Vizard (but not responsive), Eddie Maguire, etc.

They were all…[Read more]

Hi Peter

Millionaires… this forum, read the papers and get names from there, ask around. If you look hard enough you’ll find one. It might take a couple of goes. The first one you contact might not be the right one.

Where to look. If you know the principal then you should know how to spot an undervalued area. Search the Internet…[Read more]

My best advice is find a mentor. Someone that you can bounce ideas off. Someone that is already a millionaire (anything less is not good enough). Pick someone out and get in contact with him or her. You will be surprised how willing some people are to help new starters.

I have done the same with my business. Called up a high profile and…[Read more]

1) Can’t help with this one.

2) The CGT event occurred when you sold the properties and crystallised the profit. It is at this time when you have incurred the tax liability.

3) Yes, I agree do some research to make yourself more comfortable. If you are investing for the long term then timing is of less importance. Remember any change in the…[Read more]

Yes – if you positive gear you can have unlimited borrowing capacity… if your yield is over 11%!

Yes – purchasing under fair market value = unlimited borrowing capacity. Very hard to lend against value. Bank normally take contract price. You would also need to consistently purchase at least 25% fair market value… good luck.

DO NOT put…[Read more]

I agree with Harold in part.

– You don’t need a line of credit.
– Negotiate on fees but also pay just as much (if not more) attention to the interest rate. Lenders may also discount interest rates.
– No cannot have a fixed rate line of credit (only variable)

Cheers

Stu

Property & Finance News
at http://www.prosolution.com.au

What you want to do is find a loan with the lowest ongoing cost. If you can avoid break fees then that’s good also.

The MACU product will NOT give you the lowest ongoing cost. The comparison rate is 6.46%.

The ANZ Money Saver is getting better. Its comparison rate is 6.13%

How about something like Heritage Building Society Value Plus loan…[Read more]

The only 110% loan that I know of is offered by Liberty. Conditions that must be fulfilled are:

1. 3 years in the same job.
2. Clear credit.
3. Income must be $60,000+.
4. Owner occupied ONLY
5. Metro capacity cities only.

Interest rates are around 9.5%. Borrowers have to make accelerated repayments for the first 2 – 3 years to reduce the…[Read more]

Most variable rate interest only loans allow principal repayments. Some products specify a minimum payment (e.g. minimum principal repayment of $1,000). Best to check with the lender/broker/loan documents.

I often recommend investors to elect to repay interest only even though they may want to repay P&I. This way they can make regular P&I…[Read more]

I would NEVER use a financial planner for tax advice! I would only use a CA or CPA (accountant).

Just my advice.

CFP’s (financial planners) only do one subject/topic of study on tax – not enough education.

Cheers

Stu

Property & Finance News
at http://www.prosolution.com.au

The ENJOLady – don’t think he can do this – would trigger CGT event.

Cheers

Stu

Property & Finance News
at http://www.prosolution.com.au

A trustee (which can be a corporate trustee – i.e. a company) normally holds the assets in trust for (ITF) the trust. The trust is still the owner.

This is not really going to help you at the moment. However, if you decided to establish a trust you could have your company act as trustee for furture investments.

Re: accessing equity – BDM is…[Read more]

One downside is that companies are not eligible for the 50% CGT exemption. This is only available to individuals and trusts. (I.e. individuals and trusts are only taxed on 50% of the taxable capital gain)

What can you do? Not much. It’s likely that you will trigger a CGT event if you move it outside of the company.

Will it affect you? No. Only…[Read more]

From Steve’s last newletter:

=====================================
Which Loan Is Best For Me – Principal and Interest or Interest Only?
An issue investors must continually re-examine is trying to decide the best way to set up their finances. For example, you need to think about:

What percentage loan-to-valuation ratio (LVR) do you seek?

Do…[Read more]

Chris’s stuff has been discussed before. See https://www.propertyinvesting.com/forum/topic.asp?TOPIC_ID=1706

Cheers

Stu

Property & Finance News
at http://www.prosolution.com.au

As you have owned the property for 2 years you would be required to pay CGT on the taxable gain. Reinvesting the money in another property will not help (perhaps the RE agent should stick to selling property!).

Consider the opportunity cost of selling. Consider:

1. What is the likely rental yield?
2. What is the future capital growth going to be…[Read more]

I don’t think he has a very balanced view. He certainly has a conflict of interest as G-Man alluded to.

Personally, I wouldn’t listen to him.

Cheers

Stu

Property & Finance News
at http://www.prosolution.com.au

There is an excellent article in the current issue of Australian Property Investor magazine. I suggest you have a read. I have a copy if you can’t get your hands on one. If you email me (stuart@prosolution.com.au) I will scan it and email it to you.

Cheers

Stu

Property & Finance News
at http://www.prosolution.com.au

This loan is offerred by Liberty finance (www.libfin.com.au). There are a few conditions that a borrower needs to meet (mostly to do with stable employment). It might be worth considering.

Cheers

Stu

Property & Finance News
at http://www.prosolution.com.au