Hi all, and may say I feel priveledged to be in such company.
I have been looking at investing in property (or related area) for a little while now and just seem to be confusing myself further each time. We were going to attend an NII seminar, but decided the $15k could be better spent else where, so are now going through the books and topic areas such as this one.
I’ve had a look round the site and have a couple of questions…
1. Is Wealth Guardian available, or ideas on how best to structure before purchasing? I’ve read Leighs note on his meeting but other books say different things…
2. Does anyone invest in the Mezzanine funds?
3. Does anyone use Equity Leases (tennant signs up for 5 years, pays a little more rent and gets 20% of the increase in the properties value…)
4. Any other suggestions on how I should look at investing.My background is:
Engaged, total combined income $100k, no existing property, total debt of $38k, cash of $80k, like my job but want to be able to retire in under 10yrs if I want to…Any suggestions would be great[
]Hi
I’ll address the last part, this is in no particular order
i Read all the posts in this forum
ii Get rid of the $38k ASAP; ie develop great financial fundamantals which lookks like you are on your way in any case, ie your ability to save $80k
iii Read as many books as possible on property, investing etc
iv Ask any questions you have on this forum, there are plenty of people who are willing to help
That’s my lot.
I’m sure others will have some additional input
Cheers
David U
Hey there Al,
Welcome to the gang.
My thoughts are very similar to David. You need to get rid of that debt and start looking for how you are going to grow that extra cash reserve you have in property. There are a thousand ways to make money from property and you need to find the one that suits you. Read, read , read. Go back through the posts here and see what you can learn. Unfortunately Steve’s seminar is sold out but maybe it’s worth putting your name on the waiting list ?? It is a great smorgasboard of opportunity. Before that though write down what you want to achieve and when. Decide on the goasl you have short, medium and long term and all the while start researching real estate.
Any questions fire away as we are starting to build a good network of experience on the site (not just monkeys like me) and people love to share with others.
Remember that if it’s going to be then it’s up to me.
Balls in your Court AL. Congrats on the first step.Enjoy
AD [:0)]
(Andrew)“”Imagination is more important than knowledge. Knowledge is limited. Imagination encircles the world.”
Albert EinsteinThanks for the advise guys. The main concern I have as far as paying off the initial $36k from my $80k is that it will take a while to make myself save that much (it came from a trust fund) the debt is for a car and student loan, so is coming out monthly and will be gone in 3 yrs without my thinking about it.
I have been reading and searching and want to start on things. The first thing I want to sort out is the structure that will be best for me.
Can I structure it so I have a holding company, purchase two properties under the companies name, one that is positively geared, so I have a surplus, and one that is negatively geared, but has a higher CG. Then the surplus would be off-set by the -ve, and the total result would be either a slight loss or even,
Is this structure possible?
Has anyone done something like this?Also, with the mazzinne investments, these seem to be a way to make very good returns, but I’m worried about the level of risk. I know a bit about due diligence, but even so… have you had any experience in these?
Hi aliases,
Firstly, congratulations on not spending $15k on a seminar. That sort of money is a decent deposit on a property and much better spent elsewhere other than a seminar. You can buy a lot of books for that sort of money and you’re probably also feeling a bit better about your decision if you saw 4 Corners on Monday night.I’ve been told various things about the use of a trust and/or company structure to invest through. I guess one of the main things is that a company is not a good structure to buy assets in because they are not eligible for the 50% CGT discount you get if the asset is held for more than 12 months. However individuals and trusts are, so you’d be better off buying through a trust.
If you’re looking at negative gearing, a hybrid trust with a company acting as trustee is a good compromise.Apparently you can buy something called the “Wealth Guardian” which is a product of Steve’s that he sells. It’s unfortunate that he is an accountant and has also set up this site, but will not give any advice to people on the forum about investment vehicles. If you do ask, he will tell you to buy his products to get the information.
If you really want an answer to your questions, i’d suggest you head over to the Jan Somers forum at:
http://www.somersoft.com/forums/
and post your question under “Accounting & Tax” which is moderated by one of Australia’s most knowledgeable accountants on property matters as well as other experienced professionals…and you will not be told to buy something!In regards to mezzanine finance, have a look at this post which explains a bit about it as well offering an investment opportunity:
http://www.somersoft.com/forums/showthread.php?s=&threadid=7749Do a search on Jan Somers site, and you’ll find a lot of info on mezzanine financing as well as trust and company structures.
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