Can you help?

Hi

I would like to see the following:

1) At what point should asset protection be a serious consideration. Some say before you start your portfolio others say a few in your own name then look at trusts etc.

2) The different types of Trusts and there Pros and Cons.

3) How to interpret info whilst doing the research. eg indicators that a momentum may be starting in price rises.

Cheers
SG

Hey Steve,
Firstly – am enjoying trying to digest the knowledge of your members & preparing my investment plan / strategy

Newsletter item for novices like me :-
1. How about some websites to get key FREE info like auction clearance rates, unemployment figures, avearge population growth, infrastructure projects.
2. Some basics reagarding best way to structure finances eg Trust vs property in your / partners name vs company

Hi there, I’ve been lurking for a short while & love this board so far . Please excuse the following essay/ignorance of my youth.

I’m nearly 19, and have a great interest in investing – particularly property. As yet I don’t own any properties (only $$$ in the stockmarket), & I was wondering if a strategy for young people ‘starting out’ would be a possibility in an upcoming newsletter? My apologies if this kind of material has been in a past issue, I just think it’s pertinent to my generation of investors who are looking around with blank expressions – trying to figure out where to put their money & how to go about it. Perhaps from a different angle altogether, to aid parents in educating their kids on the topic of property investing in this day & age.

For example what kind of income you’d need, what lenders would be looking at differently because of age, type of property to invest in etc.

As a personal personal example, whether joint-mortgaging a less-expensive residential property would be the go (combining two youth incomes to gain an advantage)? Just another idea I’ve been toying with.

I realise one could pen an entire book on this topic (ie. Rich Kid, Smart Kid by Kiyosaki), but a rough guide to youth investing in Oz would be fantastic…as well as one on how to construct a semi-intelligent post
/end rant

Regards,
Richard

C2, I can answer number 3 quickly for you…

Ask your lender if they will separate securities. If they will you will not need to refinance. If they won’t, you can refinance within the same lender or find another lender. You need to split your loans so the LVR on each property is at acceptable levels to be able to stand alone. It is not a difficult task.

Example of cross-collateralisation…

4 x properties worth 250k each
1 x loan at 800k

Example of stand alone properties…

4 x properties worth 250k each
4 x loans at 200k each

TMA

Depending on the lender and what is needed, it can be anything from $0 to $1,000. Other factors may pose a problem – eg: if you have a fixed rate.

TMA

Steve,

I would like to ask what an investor does when there is a down turn in a rural property market due to a mine closure??? The houses become cheaper and it is harder to rent due to the houses becoming so cheap

Spider

Hi
I would be interested in some discussion on the role of a Mentor. For people who have never seen a mentor-protoge relationship up close, what does/should it involve?
Is a mentor like a parent, teacher, private tutor, wise old sage, hollywood style martial arts master, Godfather figure?
Should a mentor be an investing partner?

It just seems to me that the majority of “normal” people never have or talk about mentors, but succussful “going places” people always seem to have mentors. So from a previously “normal” person, what’s it all about?

Hi Steve
A topic I would be interested in and I believe others as well is the subject of self employed borrowers funding properties that do not fall in the mortgage insurers post code areas. the prospect of using up all the equity in the first couple of purchases I believe must be a problem for many of us. I know there is a solution I have just not discovered it yet.

laurel proposch

Hi Steve
I would really like to see information and advice for young people starting out, like richo. Teachng the kids finacial literacy is something we should be passionate about. My 12 year old now knows the difference between good and bad debt. I shall teach them as much as I can about investing but it would be great to see someone like yourself taking this on
cheers
Toni

Hi Steve

I have read the other posts and of those i would support are the following:

will appreciate your thoughts and views on the recently updated book “The Dollar Crisis” by R. Duncan. Also your thoughts on the The Economist ‘s recent themes on the ‘worldwide property market bubble’.

To tell you the truth I am interested in seeing what you think of the next two decades, especially with so much going on (baby boomers retiring, pension situation, etc)… The opinion of even experts varies amazingly, from total depression to not much happening at all. It would be nice to hear from an investor view point, rather than from the screaming headlines of newspapers (and even the cover of books too!).

Also perhaps some strategies of what investors can do to reduce their risk (perhaps a mixture of non property and property related).

So to put it down into two ‘tags’: trends and risk control

I’m interesrted in the long-term macro economics especially given the NZ trade defeict.

On a more pragmatic note:

1. Why America: You mentioned you were doing this in your seminar. i would be interested in why. Is it because NZ is dryoing up.

2. Is NZ drying up: From my perspective commercial is great at the momment but I see only one area of NZ that is left for good yeilds and even then you will be lucky as it will last for a few months or so.

BTW: Since the seminar confirmed on two, one during the seminar both meeting the 11sec rule! Have also driven to and through all the areas of NZ I had never been to get a feel for it. So I’m pleased to stay stickn to the goals, sad to say that even small town NZ has done a dash (yes, there are always the odd bargin but when rural NZ is at 5% you got to ask questions).

Which leads me to my final question: Do you think Oz and US are better now just due to sheer size which allows for more undiscovered or untapped markets. With the Aussies coming over here and NZ buying it is pretty easy to see how it can get swamped fairly easy. The ripple effect in NZ only needs to go three or four towns and you hit another city.