Can you help?

After accumulating some properties and one is close to retirement i.e. over 50, What strategies would be effective for retirement with IPs.

hrm

C2, I just want to add to TMA’s reply because there’s potentially a trap here that I only became aware of recently… Simply asking the bank to separate securities, or even refinancing with the same institution, will NOT provide you with the necessary separation of your assets to protect them against financial risk.

As far as I’m aware, ALL Australian lending institutions have a clause in all their mortgage documents that is commonly referred to as an “all monies” clause. Effectively what this says is that the bank has the right to pursue any monies that you owe to them from any assets that they have a claim against (eg deposits with that bank, and properties that they hold a mortgage on), irrespective of whether the money you owe to them relates to that property or not. Therefore, all properties that have a mortgage held by the same institution are effectively cross-securitised anyway.

The only way to protect your properties from a claim relating to the debt of another property, is to have the mortgages with different institutions (if the properties are owned by the same entity).

This is only one type of asset protection – you also have to protect your assets against legal risk (eg somebody suing you after a car accident or something) and many others. Asset protection is an enormous subject which I think that most of us would be well advised to learn a lot more about. There are volumes of cases where people have lost everything in cases that could easily have been prevented through appropriate structuring, a valid will, and/or appropriate insurance.

Dymphna Boholt is extremely knowledgeable in this area; see https://www.dymphnaboholt.com/ModCoreFrontEnd/shop.asp I have no affiliation, other than having participating in Dymphna’s “Wildly Wealthy Women” program and been impressed with her knowledge on this topic.

Tracey Bryan
Brisbane

Hey Steve,

I think a section on syndicates and alternative investment options like gross realisation would be of benifit.

Cheers,
Jacob.

‘Stay Happy and you’ll be Perfectly Fine’ – Jack

What about the Importance of Research!

Roy H.
L.R.E.A., Dip FS (FP)
Guardian Property Specialists (GPS)
http://www.gpsnetwork.com.au

Perhaps a little glossory explaining the meanings of all the abbrevated terms, throughout the posts.

Like PPOR, CGT, and others.

Some of us are beginners !

Steve,
As mentioned previously by “Investor in Training” there are some critical considerations required as to whether to take advantage of the first home buyers grant with no stamp duty plus the fact the market has slumped vs renting.
Being a first time investor I personally have reached the conclusion that now is the time for me to buy. Instead of rent. Prospectively i can take the money I have now, buy in to a property below market value to live in, (ensuring i buy intelligently and well under my borrowing potential). I will still be able to invest. With the added bonus of increasing my equity from day one(RULE NO 1:the deal must make money from day one) and not loosing rent money and its all tax free.
I would definitily be interested to hear your views on this in the news letter. As times have changed and i believe it to be a fundamental starting point affecting a large number of first time investors.

Hello Steve.
Thank you for haveing this forum available for all of us to use. I have lots of things that I want to discuss with other investors and this is a great way of doing just that. Thanks.

I have three things that I’d like to hear your thoughts on, and they are

1. Useing Mortgage insurance as a means to make your deposit go further. For instance buy 5 properties instead of 3 or buy in a better area.

2. I use Debt collectors instead of Landlord Insurance. Have you looked into this ?

3.Buying in area’s that you know like the back of your hand and can easily spot a good buy. I just bought a three bedroom house and the agent selling the property for the interstate vendor had only photograghed have the house and makeing it look like a little box. I picked it up for 168,000 while simalar houses on the same street are going for 205,000. 210,000.

Thanks again. John.

What are the pros and cons of having a property manager vs a do it yourself when effectively $$ per week are paid to them for mostly doing nothing.

Advice on how to overcome the perceived (or real) idea that large property investors have blanket orders with real estate.

How do you “sell” the wrap idea to a tenant?

Lee James

Hi Steve,

As a “Not yet investing investor” I would be interested in any simple information on where to start. Perhaps something along the lines of investing for dummies, [blink]with a point form step by step procedure to finding and securing the elusive first positive cashflow property. The step by step pointers could then be expanded on, perhaps by suggesting links to other articles in greater detail.
I have read 0 to 130 and plan on reading it again and again until it sinks in, however I feel that the more simplistic approach for us “Newbies” would be of great benifit.[biggrin]

Cheers Lloyd

Hi
First time user of any forum ever.
1. Quick turn arounds on just land/property investment.[blush2]