I Don't Pay Tax

[Monopoly]

Well, is there going to be some bottom kissing or not?
And will the pictures be posted on the forum?

Sorry to disappoint, but no there will be no "butt kissing" as I am not totally convinced that all the info provided is complete, and more importantly is far from crystal clear IMO. Although I am happy to admit I may have misunderstood some aspects of Tasii's (Malcolm's) set of circumstances, and bearing in mind I am not a "numbers" person, it still has too many gaps in the equation for me to figure that humble pie is the order of the day on today's menu, hence I will keep my butt in check until I am clearly satisfied that all the finer details are on the up and up!!!

Can someone please tell me, how on earth do you repay 33K of interest repayments on an "invisible" income of 30K.....it just doesn't make sense to me!!! AM I THE ONLY ONE WHO IS MISSING THE PICTURE HERE??? Yeah yeah I know, Malcolm is setting aside the interest repayments out of his super, which is all well and good, but somehow I just can't see the banks being all sweet with that kind of arrangement, not when "serviceability" is virtually non existant, oops correction "invisible"!!!!

BTW Malcolm (Tasii), thank you for the personal emails in which you aim to clarify your situation. The ONLY thing that is clear to me is that I am not comprehending your situation fully, and not being financially savvy (I leave that to my accountants) I am obviously interpreting your financial endeavours as risky to say the least.

Nonetheless, I wish you well and hope you achieve your investment goals.

Cheers,

Jo

 

[Merovingian]

Looks like some forumites, jumped the gun a bit too quickly in appraising your situation. I'm guessing you can have the last laugh now.

I was one of those who jumped the gun. Having done so, and read your clarification tasii, I apologise.

 

[Monopoly]

I was one of those who jumped the gun. Having done so, and read your clarification tasii, I apologise.

Well Tasii, I may be seen as one of those who "jumped the gun" but what the hell did you expect with the brevity of information provided??? Come to think of it, did you make it any clearer the second time round??? Obviously to most YES hence the forthcoming apologies.
Me personally, my only apology is to say I'm sorry but I STILL don't get it. But hey, we can't all be brilliant now can we??? Anyway, as I said earlier, all the best.

Cheers,

A very blonde Monopoly!!

 

[Francesco]

We want to watch the full moons ... all together ... why are we waiting...

Latern festival is urshered in at the appearance of the bright orb in the night sky...

Anyway, Tassi has the money to pay the bank interest from his super as it is not quarantined. He can access it since age 55. Having a lot of assets is not a problem to qualifying for Newstart, or Age Pension later on . The equity assets in the PPOR is exempt from the Centrelink assets test.

F

 

[quintets]

ooooooo....

Well Tasii, I may be seen as one of those who "jumped the gun" but what the hell did you expect with the brevity of information provided??? <snip>
A very blonde Monopoly!!

Oooooo Mono....that just sounds like a cop out. You're claiming blondeness protects your from understanding fully. But I'm sure the folks at HomeLoans Ltd would be more than willing to explain it fully (on)to your delicate little heiney whilst processing your loan application. mmmmmMwah!!

But seriously, isn't an asset(in this case land) purchased by money in Super locked into the Super. How can a bank take security on something that's supposed to be "untouchable" in Super? Did the bank make a mistake?

Hmmm...

Jireh

 

[andymack]

Hi Malcom

you have to be very careful what you post on these forums as most are far too quick to react.

 

[Monopoly]

Oooooo Mono....that just sounds like a cop out. You're claiming blondeness protects your from understanding fully. But I'm sure the folks at HomeLoans Ltd would be more than willing to explain it fully (on)to your delicate little heiney whilst processing your loan application. mmmmmMwah!!

Hey Quiney (long time no see/read)

Cop out??? O contraire cheerie, it is pure sarcasm at its best!!! I make no bones about the fact that it is beyond my comprehension as to HOW any lending institution would hand over 475K to someone (who YES YES YES has the equity) but is unable to prove serviceability. And before we go there again, YES I KNOW.....he is putting money aside for the 12 months repayments out of his super, fantastic...I UNDERSTAND THIS TOO....admirable yes, practical NO....I can't see how any bank will accept this as a feasible means of servicing a loan!!!

I ALSO UNDERSTAND the asset criteria of Centrelink, and as long as Malcolm/Tasii's assets (excluding the family home) does not exceed $X he will still be eligible for the aged pension/Newstart, but REMEMBER he said HomeLoan (whoever) "IGNORED" his Centrelink income!!!!

Are you people telling me, that I can go to this HomeLoan whatsits, and take out a loan for half a million dollars, secured against say (half) my house, claim to receive no income (except for Centrelink payments, which btw I don't but let's ASSUME for the sake of the exercise) and they will hand it over, no questions asked because it is a low doc loan??? Oh and I forgot, I do volunteer work too!!!

Still bewildered, but would love to hear there really is a Santa Claus......

Jo

 

[andymack]

Malcom

The question that should be asked is "what is your objective?"

You could keep on turning over real estate to create additional income (capital gains) or you could work on creating your own neutral to positive geared portfolio.

Others are correct in saying that if you keep moving every 12 months and selling the old home will get you labelled a developer (or trader) and it can incur tax. Get good professional advise. I beleive the ATO have pinged some who have done this.

 

[Spectre]

Mono this may assist you in your interest & servicing query
With bridging finance the bank doesnt necessarily care what the repayments are during the peak period they are focused more on what it will be post bridging, so if you've got the equity during bridging then generally you are laughing. I've seen seniors on $20k pensions be approved for $300k+ on bridging as their end debt will be nil (that deal was a case of their old place was worth $400k and the new one was $240k so the sale of the existing PPR cleared the debt quite easily). Thus if his end debt after all of the sales of houses and land or he uses his super to clear the loans etc and the debts get to say $20k (just as a figure) then the bank works servicing on the end debt thus on his pension/c'link $30k pa services this quite easily. Hope that helps.

 

[Monopoly]

Mono this may assist you in your interest & servicing query
With bridging finance the bank doesnt necessarily care what the repayments are during the peak period they are focused more on what it will be post bridging, so if you've got the equity during bridging then generally you are laughing. I've seen seniors on $20k pensions be approved for $300k+ on bridging as their end debt will be nil (that deal was a case of their old place was worth $400k and the new one was $240k so the sale of the existing PPR cleared the debt quite easily). Thus if his end debt after all of the sales of houses and land or he uses his super to clear the loans etc and the debts get to say $20k (just as a figure) then the bank works servicing on the end debt thus on his pension/c'link $30k pa services this quite easily. Hope that helps.

Well lukentel,

Thank you, it seems there really is a Santa Claus!!!

Yes I understand "bridging" loans, and may I add they are at an extremely high rate, but nonetheless I can see how this would work.

Malcolm did not mention taking out a bridging loan, not in his post nor in his private messages to me personally. Thus his information was misleading by omission IMO!!! And explains why it generated so many comments implying he is operating as a "trader" turning over properties every 12 months or so.

If that is what he is doing, then I fully understand how a lender would gladly (no, EAGERLY) cough up the moolah, and so (as Quintents put it) my "heiney" is safe from exposure (on this occasion)!!!

Cheers,

Jo

P.S. I can't believe it took 4 pages and 10 posts before I ACTUALLY GOT A STRAIGHT ANSWER and it wasn't even from the originator!!!

 

[Spectre]

Mono I may have missed the bridging loan bit somewhere too but I'm pretty sure thats how he did it - i must have gotten it from somewhere in the posting. Ideally I dont think most banks would have looked at it which is probably if he did get it non bridging it was through an originator. While most normal banks charge higher interest on bridging there are a few that do it on normal honeymoon rates too - that and combined with their packaging makes them a preference... It may be feasible that he does it non bridging as well but I think the lender would be looking for a principal reduction pretty quickly as they wont allow that level of debt to continue for a long time, and it also looks like that is not Tasii's intent. rant rant rant rant.... I think I've had enough of this post and am now, its not really going anywhere for me and if I keep going I'll dig myself a bigger hole than I do usually, and I can only shovel so much "poo" at a time

 

[Monopoly]

I think I've had enough of this post and am now, its not really going anywhere for me

My sentiments exactly!!! I'm personally tired of "ASSUMING" what Tasii is or isn't proposing to do, and above all find it laughable that it has dragged out this long with so much ambiguity!!! Thanks again for clarifying it for me lukentel!!!

Over and out!!!

Jo

 

[tasii]

tasii

Centrelink themselves run many seminars to explain how self-funded retirees can take advantage of receiving benefits in the way I do.

Previously I too thought that only the “lazy etc” drew benefits but it was Centrelink themselves who suggested the route I followed for self-funded retirees. I do not work as a volunteer for altruistic reasons, I do it simply because Centrelink suggested it to me as a way of retaining full benefits and putting something back into the community. I do at least two full days volunteering per week. I drive a bus taking age pensioners on their weekly outings; I take old infirm people shopping; I do home visits and I am a management committee member for a NFPO providing crisis accommodation.

Centrelink run these seminars and even provide their own financial advisors who are at pains to show how self-funded retirees can continue to receive benefits. Unrestricted non-preserved superannuation is classed as an “invisible asset” by Centrelink. Their view is that this is your money on which you have already paid tax and they do not penalise you by taxing it again unless you take an income stream.

These are just some of the seminars planned in my area:
Malcolm

On Behalf Of [email protected]
Sent: 18 July 2005 09:49
To: tasii
Subject: Re: FW: Wednesday 28th July 2004 - Guildford

Malcolm, we are not running any seminars in Guildford anymore, we will be running them in Midvale, here is a list of seminars, if any are of interest please let us know and i will confirm location details with you.
Thankyou for your enquiry
Centrelink National Seminar Booking Service

Midland (Western Australia) 6

3 : Accomodation Options in Retirement
07/12/2005 6:30pm - 8:30pm Open


3 : Understanding Your Pension
23/11/2005 6:30pm - 8:30pm Open


2 : Income Streams
12/10/2005 6:30pm - 8:30pm Open


2 : Age Pension - all you need to know
28/09/2005 6:30pm - 8:30pm Open


1 : Your Superannuation
10/08/2005 6:30pm - 8:30pm Open


1: Creating Wealth - getting started
27/07/2005 6:30pm - 8:30pm Open

 

[willair]

I drive a bus taking age pensioners on their weekly outings; I take old infirm people shopping; I do home visits and I am a management committee member for a NFPO providing crisis accommodation..

all i can say is well done,at least you have a plan and i think its important
to realise that everybody is different in the ways they invest,some
stereotyped forms of investment dont always work.
good luck with your house..
willair.

 

[thefirstbruce]

Hi Tas

I am still interested to hear how you are making the interest repayments on the loan. I presume you are on a HomeLoans lo doc rate of 7.15%pa.

 

[Janfan]

yeah

As a taxpayer I am horrified - presumably you have non taxable means of support?

 

[luckyone]

Read from the start

yeah

As a taxpayer I am horrified - presumably you have non taxable means of support?

If you read from the start you will see his explanation. It still doesn't sit well with me though!

 

[skater]

I'm sorry, but I am still at a loss as to how the bank would approve a loan. Are you allowed to draw a lump sum from your super to pay for the interest?

 

[Bricks & Mortar]

Putting it all BEHIND us!

If you read from the start you will see his explanation. It still doesn't sit well with me though!

When you claim depreciation on your IP does that sit well with you?
If you have Negative geared properties, and the ATO pays part of your costs does that sit well with you?

Malcolm is a self funded retiree.
He is not a dole bludger!
Centrelink knows of his situation and in fact are providing financial advisers.
He must have payed some substancial taxes to get that super figure in the kiddy.(so his paid his dues) and now his trying to get ahead and seeking some advise. Lets remain positive & provide some information.

Malcolm although Mono and others seems to be preoccupied with what's 'behind' her, she does raise the most current relevant point.... serviceabilty to your loan. Basically it doesn't matter what structure, which bank, what interest rate, what term....What matters is that you CAN MEET those repayments.
Next do a intensive check as to when you would called a trader by the ATO and finally check what you allowed to have and what you are NOT allowed to own when you retire...as benefits might 'drop off' or dry up altogether in a form of a pension at a later date.

good luck

timm

 

[wish-ga]

Hi Malcom

you have to be very careful what you post on these forums as most are far too quick to react.

I fall into this category this time. My smart alec comment (deleted yesterday) now makes me deeply ashamed. I made the comment on the boards so my apology should be public too. I apologise for my flippance. I wish Tasii and everyone attempting to invest all the very best for their ventures.