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  1. M

    best structure - hybrid trust?

    And if negative gearing was abolished where does this leave hybrid discretionary trusts? I presume the income units would be redeemed and the trust would operate as a normal discretionary trust with no chink in the trust armour?
  2. M

    Are you happy to retire by "living out of capital"?

    Talk about confusing - I've been talking about spending the income and living off the capital as per the title of this thread: Are you happy to retire by "living out of capital"?
  3. M

    Are you happy to retire by "living out of capital"?

    Hi Steve, what would this actually be achieving? Isn't the aim to live off the capital/Cashbond? By servicing the interest and paying down the loan each year then I assume you must be paying the $85,126 purely to increase serviceability in the eyes of the banks? Therefore equity in excess of the...
  4. M

    Are you happy to retire by "living out of capital"?

    I've been running through a few examples on paper to gain a better understanding of Cashbonds. Let's use an example where you had a property portfolio of $2 million and interest rates reached 10%. If you borrowed $240,000 to buy a 5 year Cashbond you would receive a tax free income of...
  5. M

    Steve Navras Rental Reality

    What is the best way of obtaining the 5 YEAR YIELD AVERAGE? I contacted the REINSW who told me about a report they have called Property Focus for $65: "A summary of the major property and economic indicators for Sydney, NSW and selected Australian comparisons for example, finance approvals...
  6. M

    Steve Navras Rental Reality

    With long term rental yields consistently decreasing and reaching historical lows in most places is anyone out there successfully using Steve Navras Rental Reality when purchasing properties? Using this as a guide to property values it appears most properties around today are overvalued and have...
  7. M

    Nation of landlords

    This article is a few months old now so I apologize if it has been posted by someone else already- http://www.smh.com.au/articles/2003/11/25/1069522601981.html To let: a nation of landlords with long-term views The average Australian is convinced that you can't go wrong with bricks and...
  8. M

    Finance and construction

    What I didn't completely understand is how a contract of sale would mean the difference between a finance company being prepared to finance or not. When large developers get a certain amount of pre-sales for their units do they still need to show serviceability or is the lender prepared to...
  9. M

    Finance and construction

    Hello all. I need some help in getting a better understanding of construction finance or selling off the plan. Say you take some vacant land and apply for basic construction finance with the view of keeping the house and renting it out. The bank would take into account the expected rental return...
  10. M

    Making an offer

    What is the best way to make an offer on a property not advertised for sale? If the owner agrees to sell their property to you do you sit back and wait for them to prepare a contract of sale or would you organise this yourself to save time? Mick.
  11. M

    Protecting assets held in own name

    So in a nutshell what are we saying here? YES - keep your privately owned property geared to the hilt with mortgage continually drawn down. NO - best not to use the $2 company method with second mortgage over the property UNLESS the company is controlled by an unrelated third party (may be...
  12. M

    LOC Interest?

    Hi Alan H, I am in the same position as you and remember reading (can't remember where!) that unless you had sub-accounts set up on your LOC up front to separate the tax-deductible and non tax-deductible draw-downs, then any repayments to the LOC need to be split proportionally across the...
  13. M

    Tricks of The Rich and Infamous

    For some people (eg- lower income earners) it does have to be one or the other. By choosing to spend money on expensive cars and 'material wealth' now it may leave nothing left over for investing, so is worth waiting for these things.
  14. M

    ATO has a Draft Tax Ruling.

    Check out this discussion: http://www.somersoft.com/forums/showthread.php?postid=31776#post31776 Mick.
  15. M

    Copying your trust deeds to set up a 2nd trust

    I am surprised to see once you have a set of trust deeds you can set up a second trust for $10 at the Office of State Revenue with no further involvement from your solicitor or accountant - http://www.somersoft.com/forums/showthread.php?postid=22830#post22830 Is this legal? It would be...
  16. M

    do any of u guys own cars?

    My story is similar to others.... Bought a 4WD for $10,000, spent another $10,000 over the next few years doing it up with all the latest off-road accessories and constant repairs while forking out the rest of my pay in fuel to run it! (V8 Chev). Woke up one day when I discovered investing...
  17. M

    Options

    I'm interested in doing something similar myself should I find a suitable development site. Thanks for sharing that with us Simon, the willingness of people to share their experiences makes this such a great forum.
  18. M

    Options

    Hi Simon, Any chance you could give us all a quick run-down of the option and how you negotiated the deal, via the forum? Mick.
  19. M

    hybrid discretionary trust

    Well put Kevin, it will be interesting to see if anyone can clear this up. Kris, are you talking from personal experience?
  20. M

    Empty bushland

    Thanks Mark.
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