Forum Replies Created
Great info as always Anthony! Thanks!
Well said emptyvessel. It does seem that all the negative thinking bears want to do is stand on their corner soapbox and become pompous, pious, pontificating 'I know everything' preaching buffoons because most simply are jealous they haven't the balls to do it themselves. Cutting down tall poppies will always be the preferred route of the weak and fearful.
G'day Kate
I worked for Premium Finance Services as an In Home Consultant for 14 months up to the end of Oct last year. The simple answer is this: we were trained to talk about the "Knowledge is Power" we'll give you a "Financial Health Check", do the Retirement Planning, and so on. You would have filled in a signed Assets & Liabilities sheet, a "Booking Confirmation Form" with usually a $295 "Comittment Fee along with Credit Card details, Chq or Cash and finally, a "Statement of Understanding". OK, I think you can see I know what i am talking about. We were flown all around the country to basically tell people nothing but reassure them they would obtain the knowledge at the office in Brisbane or Melbourne.
Here is the bottom line: ABC will fly you to Melbourne, make you more uncomfortable than the In Home Consultant did as far as how bad off you are and how much you need their help. They will convince you that investing into property is a good thing (which it is!) and then flog you one of their properties. As far as I know ABC is not into blatantly ripping people off but I also know they make an average minimum gross profit per settled property of around $40,000.
Have a look at their website – it basically does what the In Home Consultant does and tells you nothing other than we'll explore ways to minimise your tax (depreciation and tax variation), pay off your home loan faster (by using your varied tax dollars usually through a restructured home loan in an offset/redraw type of account) and retirement planning. The kicker is you will have to sign up for the supposed "Client for Life" program which will cost you upwards of $4-5000 but will be buried in your loan restructuring.
Go to Melbourne on ABC, let them explore ways to improve your financial position, but be resolute and strong. Do not commit to purchase on the day. Exercise your freewill to do your own homework in your time. If you should buckle under the weight of pressure to buy, remember you can simpy "cool off" as VIC has a mandatory min 3 day cooling off period.
I hope this has been enlightening!
CHEERS!
TCLearn how, then learn about the risks, then learn how to manage the risks, then invest with confidence. Great read!
Exactly what this forum needs sometimes – a bit of optimism!
Great read ALF1I like it! Broken down in 14 simple steps. You don't have to agree exactly with all the rules but you can't argue with the logic behind the fundamentals!
KNOWLEDGE FOLKS, KNOWLEDGE! That is why we come to forums like these.
We export primary products more so than secondary. Certain countries like the USA may have a downturn in the Car Industry (Secondary) but there will always be other countries that will still manufacture cars and need our steel and iron (Primary).
WOW! Great read ALF1
RICH DAD, POOR DAD Correct Knowledge is the KEY and the DIFFERENCE between the two.
Gee Property Investor1, if I didn't know any better i'd think you were PennyBaker's brother. Again, pretty over-the-top with 'glowing praises' considering this is your first post. Like Penny, most people will read your post with a grain of salt.
Hi JPR.
It sounds all too familiar – a typical "wealth creation" company that disguises some minor good works through the finance re-structuring but their sole goal is to flog you one of their investment properties. Perhaps if you have a look at this link and look at the very last page with my comments, you might be enlightened!https://www.propertyinvesting.com/forums/community/heads-up/22554
CHEERS!
TCG'day Stuart.
I know a little about investing in the US of A and know that there is presently NO double dipping on the tax obligations. You either pay the 30% taxation in the US or you pay it in Australia – NOT both! It may help to have a look at a collegue of mine's website at http://www.investuspropertygroup.com.au you may get your answers there.
CHEERS!
TCWhat the ? I thought guyser's were found in parks like Yellowstone
CHEERS!
TCI'm with Jamie and Catalyst.
This forum is not about coming in and flogging your wears. We all like to make money and some of the people who contribute regularly to this forum are professionals who give their knowledge and advice freely without the need to blow their own trumpet. Give before you ask to receive and you might find people will swamp you with enquiries because they know your intentions are honorable to the genuine advancement in knowledge for ALL investors! Swings and round-a-bouts, swings and round-a-bouts…
CHEERS!
TCMany thanks Terry. You're absolutely right however, in my humble defence, it was late, I was tired and know that if a mistake is made there will be someone in the forum to rectify! That someone, this time, was you and it is appreciated – particularly for those wanting to learn and needing accuracy!
CHEERS!
TCInflation is not factored in with depreciation as there are very strict guidelines to be followed in making a 10 year depreciation schedule by a Quantity Surveyor. Have a look at BMT's website at http://www.bmtqs.com.au or call on 1300 728 726 for the cost of a local call from anywhere in the country. When in doubt, ask the experts!
CHEERS!
TCG'day Iamsooty.
I worked for Premium Finance Services as an In Home Consultant for 14 months up to the end of Oct last year. The simple answer is this: we were trained to talk about the "Knowledge is Power" we'll give you a "Financial Health Check", do the Retirement Planning, and so on. You would have filled in a signed Assets & Liabilities sheet, a "Booking Confirmation Form" with usually a $295 "Comittment Fee along with Credit Card details, Chq or Cash and finally, a "Statement of Understanding". OK, I think you can see I kinow what i am talking about. We were flown all around the country to basically tell people nothing but reassure them they would obtain the knowledge at the office in BrisVegas.
Here is the bottom line: they will fly you to Brisbane, make you more uncomfortable than the In Home Consultant did as far as how bad off you are and how much you need their help. They will convince you that investing into property is a good thing (which it is!) and then flog you one of their properties. As far as I know PFS is not into blatantly ripping people off but I also know they made an average minimum gross profit per settled property of around $40,000.
Have a look at their website – it basically does what the In Home Consultant does and tells you nothing other than we'll explore ways to minimise your tax (depreciation and tax variation), pay off your home loan faster (by using your varied tax dollars usually through a restructured home loan in an offset/redraw type of account) and retirement planning. The kicker is you will have to sign up for the supposed "Client for Life" program which will cost you upfront of $6600 Incl GST but will be buried in your loan restructuring.
Go to Brisbane on PFS, let them explore ways to improve your financial position, but be resolute and strong. Do not commit to purchase on the day. Exercise your freewill to do your own homework in your time. If you should buckle under the weight of pressure to buy, remember you can simpy "cool off" as QLD has a mandatory min 5 day cooling off period.
I hope this has been enlightening!
CHEERS!
TCA lot depends on access to your existing property – is it a corner allotment because if not, you would probably be looking at a hammerhead with your existing 20m frontage. Next, it would depend on the Lands Title Office as to your titles classification for the land and any provision for further subdivision by the LTO. Your next hurdle will be local Council Regs and what they will or will not allow. As Michael has already said, your questions are too broad to be able to accurately assess and help you.
CHEERS!
TCHi JPR.
OK, settle down young grasshopper.
CGT works on the govt taking 50% of your profits for the financial year you sell the property in and then add this gain onto your earnings for that year. This then gives you a total earnings for that year which is then taxed at the marginal tax rate the total earnings falls into. SO, what does all that mean grasshopper. For an example: You have just sold your IP this financial year 2010-2011 and realised a gross profit of say $100,000. You also earned a gross income of say $70,000. Now the ATO will allow you to be taxed on 50% of your capital gain (or profit) which equals 50% of $100,000 equals $50,000 Capital Gains. Now, the ATO adds this $50,000 to your earnings of $70,000 making your gross earnings for that tax year to $120,000 which you will then be taxed at the current marginal rate of 47c in the dollar. Therefore $120,000 x 47% ($56,400) = $63,600 nett. So in effect you paid $56,000 in combines CGT and Income Tax.
As for your depreciation allowances, if your depreciation schedules are done by a Quantity Surveyor then you do not have to pay back what you have claimed in the 10 years you claimed depreciation. Check out the ATO site for more specific info or simply call a QS such as BMT Tax Depreciation in your Capital City.
I hope this has been of benefit.
CHEERS!
TC
