McCarthy Group

W

WebBoard

Guest
From: Andrew Parsons


Hi all,

We've never IP'd but have been considering it since we're only a 1 income family and we don't have anything to reduce the amount of tax I pay (in the order of $45,000 pa).

We don't have lots of extra dollars to pay with our current lifestyle, but from what I can gather if you work an IP right, you don't need a whole lot of dollars, if the rent and the impact on your tax work well.

Before I go on, please correct me if I'm misunderstanding here.

Now, we've met with McCarthy Group for a consultation and it's a very soft sell. The thing is, it's not just an IP, but a whole package (Called their Master Mortgage Program).

Has anyone been involved with this company and can give us feedback? The numbers look fairly accurate, and while the properties they put up front are in Qld, they're willing to offer us Sydney properties too.

I understand the general warnings and "buyer beware" messages, but it would be great to know if anyone has been screwed by this company?
 
Last edited by a moderator:
Reply: 1
From: Paul Zagoridis


I earn the revenue in our family but Nella generates the leads and contracts. Some people think we are a one income family, we don't define it that way.

You understand the negative gearing process correctly. Just remember the tax refund is occurring because you are making a loss every month. This only works if you are going for enough capital growth to offset those losses. I consider it a risky play.

I understand you don't like paying tax of $45K p.a. Don't let that blind you into making a poor investment. Never invest for the tax implications alone. The government can always change the rules on you.

I didn't like it when my tax bill hit $16K for the first time. I said to myself, "Self, this will not do".

I now buy at significant discounts from motivated sellers or otherwise insist on positive cash flow from rent.

I haven't dealt with this or any particular marketing company. So I can't answer the second part of your question.

Dreamspinner
 
Last edited by a moderator:
Reply: 2
From: Pamela Fransen-Taylor


Hi Andrew

I'm guessing you are Sydney based and like me, nervous about buying outside of your comfort zone? (see my post "Concerns about broker")

I have just read "Seven Steps to Wealth" by John Fitzgerald. Have you read it? Highly recommended.

What type of property are the trying to sell you? Unit, townhouse, duplex or house?

Someone correct me if I'm wrong but it seems the most important thing is land value and you don't get a lot of land if you buy a high rise unit - you just get air! If that is what they are selling I wouldn't go for it.

Cheers
Pamela
 
Last edited by a moderator:
Reply: 2.1
From: Andrew Parsons


I did reply to this but it must have been lost in the internet aether...

The properties that McCarthy Group are interested in selling are houses, because the land value is the most important component.

Also, they only do new houses because of the depreciation and other aspects.

These guys seem to be honest and up front. yes, they're using PIA software that seems remarkably close to Somerset's so I'm looking forward to being able to change a couple of numbers to be a bit more conservative to see what I'm comfortable with.

They have also listed all of the costs, including their management fee, and the money they make if we buy one of their properties.

However, my wife and I are busy people and have our own lifestyle/work to get on with. If we're willing to pay someone else to do something that they excel in, is that really wrong? Just like I'm perfectly happy to pay a painter to paint my house - it's going to take him a shorter time, do it more professionally, and my time is worth more than his, why can't I do it with someone like this?

This doesn't mean I'm going in with eyes closed. If the deal's dodgy I want to know about it and steer clear of it. But, if the deal is real, then why not?

Yes, my wife and I COULD do our own shopping around, finding the right property and so cutting out these things, but is it really WRONG to go the other way?
 
Last edited by a moderator:
Reply: 2.1.1
From: Jude H


Hi Andrew,

If you like the deal and it sits well with you then there is absolutely no reason why you should not use this method.

Most of the people on this forum actively invest but that does not mean your way is not right, it means it's not right for them.

Buy your house Andrew, then another and another. I'll meet you at the Country Club when we're both millionaires!

Cheers
Jude
 
Last edited by a moderator:
Back
Top