Today I was shopping in PC World and I saw the words "Identity Theft" next to a display of shredding machines. This problem must be world-wide. Apparently fraudsters go through our garbage looking for utility bills, bank and credit card statements. I keep all my financial statements but dump old utility and telephone bills into the paper bin which is recycled by the council. Time to invest in a shredder, methinks.
The 10 most common mistakes made by property investors.
- Thread starter Mike
- Start date
Mike,
I'd agree re. a paper shredder.
I bought a smallish one for under $200 (probably spare change in London
), 'cause I started to wonder about the advisability of simply throwing some of the stuff I had out with the garbage - you know, credit card slips, financial things...
Now I put absolutely everything through the shredder. Plus, I can then use the nifty little paper thingies in the compost bin, so I have the double pleasure of also recycling all that paper stuff, including all the *&^%$#@! junk mail they send.
I'd agree re. a paper shredder.
I bought a smallish one for under $200 (probably spare change in London
), 'cause I started to wonder about the advisability of simply throwing some of the stuff I had out with the garbage - you know, credit card slips, financial things...Now I put absolutely everything through the shredder. Plus, I can then use the nifty little paper thingies in the compost bin, so I have the double pleasure of also recycling all that paper stuff, including all the *&^%$#@! junk mail they send.
HI
I have a friend in Sydney who become a victim of this identity theft.
ATO send him a refund cheque via his accountant. The accountant then forwarded the cheque to his address. The cheque got lost in transit from the accountant to him.
They traced the cheque which was deposit then withdrawn on the same day in a bank.
It was deposited in a new account under the same name as my friend. My friend has a very common name.
The culprit apparently presented IDs to open an account. And his name is similar to my friends name.
The person that openned the account was a tourist who has left the country.
The cheque as about $8K.
The police doesn't want to know, the bank doesn't want to know, his solicitor doesn't want to know --- too small amount to pursue thru legal battle.
My friend lost $8K and is running out of option. Jocker10
I have a friend in Sydney who become a victim of this identity theft.
ATO send him a refund cheque via his accountant. The accountant then forwarded the cheque to his address. The cheque got lost in transit from the accountant to him.
They traced the cheque which was deposit then withdrawn on the same day in a bank.
It was deposited in a new account under the same name as my friend. My friend has a very common name.
The culprit apparently presented IDs to open an account. And his name is similar to my friends name.
The person that openned the account was a tourist who has left the country.
The cheque as about $8K.
The police doesn't want to know, the bank doesn't want to know, his solicitor doesn't want to know --- too small amount to pursue thru legal battle.
My friend lost $8K and is running out of option. Jocker10
Jocker10
It is the bank's responsibility
A side issue is that the 100 points system has been in place for years.
So the ATO would be interested in the bank's sloppy identification processes.
The banking ombudsman would be the place for your friend to pursue this situation.
Good luck
Kristine
PS
Your friend should request a copy from the bank of the cleared cheque. The bank must then provide this on request. Do not be brushed off, this is a serious matter and if not early satisfaction your friend should contact the fraud squad and also their local member of federal parliament who could and should ask a question in parliament question time regarding this shoddy treatment.
All correspondence from this time forward with the bank or anyone else should be in writing, detailing dates, phone calls, responses etc
It's amazing what flexing the political muscles can do. Above all, your friend should not let the matter rest.
It IS the bank's responsibility.
It is the bank's responsibility
A side issue is that the 100 points system has been in place for years.
So the ATO would be interested in the bank's sloppy identification processes.
The banking ombudsman would be the place for your friend to pursue this situation.
Good luck
Kristine
PS
Your friend should request a copy from the bank of the cleared cheque. The bank must then provide this on request. Do not be brushed off, this is a serious matter and if not early satisfaction your friend should contact the fraud squad and also their local member of federal parliament who could and should ask a question in parliament question time regarding this shoddy treatment.
All correspondence from this time forward with the bank or anyone else should be in writing, detailing dates, phone calls, responses etc
It's amazing what flexing the political muscles can do. Above all, your friend should not let the matter rest.
It IS the bank's responsibility.
Gunna,
The cheque was deposited into an account, and then the money withdrawn.
The problem was that the account was opened- presumably using fake ID- the amount deposited and then withdrawn.
I'm surprised, and disappointed, that police did not invetigate. That should be taken up by a localpolitician.
The cheque was deposited into an account, and then the money withdrawn.
The problem was that the account was opened- presumably using fake ID- the amount deposited and then withdrawn.
I'm surprised, and disappointed, that police did not invetigate. That should be taken up by a localpolitician.
Hello
Ooopps , I think we are moving away from the original topic "10 Common Mistake ", sorry. But let me just add a bit more to my friend's story.
The culprit presented the bank a genuine ID. But his name is the same as my friend's name. ( Example: Culprit name is David Smith, my friend name is David Smith too. ) So it wasn't a fake ID and the bank did the 100 point system.
The police can't do anything because the culprit has left the country. He was a foreign national -- with foreign passport.
Yes, my friend is still pursuing this with the bank ombudsman, so the saga is continuing. But he has not mentioned about going to the local member of parliament -- I will mention that to him, thanks.
Apparently, the modos operandi by these culprits is to go through the white pages and see if there is a name listed, that is the same as theirs. Then prey on those people's mail boxes.
So I guess if you have a familiar name -- be careful.
My feeling though, is there must be a bit of inside job involved. Because it is just too co-incidental that someone know that there will be a cheque in my friend mailbox.
-----------------------
Anyway folks, lets get back to original topic of "10 most common mistake". -- before Mr/Ms Moderator hit us with cane stick. Thanks Jocker10
Ooopps , I think we are moving away from the original topic "10 Common Mistake ", sorry. But let me just add a bit more to my friend's story.
The culprit presented the bank a genuine ID. But his name is the same as my friend's name. ( Example: Culprit name is David Smith, my friend name is David Smith too. ) So it wasn't a fake ID and the bank did the 100 point system.
The police can't do anything because the culprit has left the country. He was a foreign national -- with foreign passport.
Yes, my friend is still pursuing this with the bank ombudsman, so the saga is continuing. But he has not mentioned about going to the local member of parliament -- I will mention that to him, thanks.
Apparently, the modos operandi by these culprits is to go through the white pages and see if there is a name listed, that is the same as theirs. Then prey on those people's mail boxes.
So I guess if you have a familiar name -- be careful.
My feeling though, is there must be a bit of inside job involved. Because it is just too co-incidental that someone know that there will be a cheque in my friend mailbox.
-----------------------
Anyway folks, lets get back to original topic of "10 most common mistake". -- before Mr/Ms Moderator hit us with cane stick.
Thanks Jocker10Gunna,
Obviously the culprit got around this in some way. It was done, and it must have been done with the consent of the bank.
Presumably the bank has some discretion- a customer can ask for special treatment perhaps.
Or perhaps a cheque can be used as payment against a credit card cash advance (even just endorsed?)
Many years ago, when people trusted people a lot more, I had a freids who used to cash her pay cheque (yes, it was a long time ago) at the local xxx Bank. They used to cash it every week.
One week, they would not cash it. So she asked for aphone call to the yyy branch of the xxx bank. And she specified that she wanted to speak personally to the manager of that branch (where her account was held). The staff confirmed that it was the manager of the branch on the line.
The first thing she said on the phone was,
"Dad ......, "
Ahem
I used to pay my staff by cheque, but 'open' the cheque and write 'please pay cash' and sign the endorsement.
Provided they went to the branch where my account is held, these cheques are cashed over the counter with no delay and no charge to the bearer.
Ditto I recently paid the plasterer and also my apprentice and no problems with the bank.
But - I went in to another branch and needed to draw a bank cheque to pay the interest on one of the loans, and I had to wait while they rang the home branch and verified my identity and authority to draw on the account.
As the cheque mentioned by Jocker was from the Australian Tax Office, do I remember correctly that tax refunds are drawn on the Reserve Bank? Would this not perhaps be regarded as a Bank Cheque and thus capable of being cashed or cleared in a shorter time than usual?
I still maintain that it is the bank's responsibility in the action as described.
And just to keep with the thread -
Mistake # X
Not going to enough 'Open for Inspections' and Auctions to see what people are wanting to buy, wanting to rent, and the latest fashion in presenting properties.
Ten years ago people were putting spa baths in, now they are pulling them out. Carpet is making a comeback in Melbourne. Evaporative cooling is a must. In other words, keeping up with the latest, just as you would in any other business.
Cheers
Kristine
I used to pay my staff by cheque, but 'open' the cheque and write 'please pay cash' and sign the endorsement.
Provided they went to the branch where my account is held, these cheques are cashed over the counter with no delay and no charge to the bearer.
Ditto I recently paid the plasterer and also my apprentice and no problems with the bank.
But - I went in to another branch and needed to draw a bank cheque to pay the interest on one of the loans, and I had to wait while they rang the home branch and verified my identity and authority to draw on the account.
As the cheque mentioned by Jocker was from the Australian Tax Office, do I remember correctly that tax refunds are drawn on the Reserve Bank? Would this not perhaps be regarded as a Bank Cheque and thus capable of being cashed or cleared in a shorter time than usual?
I still maintain that it is the bank's responsibility in the action as described.
And just to keep with the thread -
Mistake # X
Not going to enough 'Open for Inspections' and Auctions to see what people are wanting to buy, wanting to rent, and the latest fashion in presenting properties.
Ten years ago people were putting spa baths in, now they are pulling them out. Carpet is making a comeback in Melbourne. Evaporative cooling is a must. In other words, keeping up with the latest, just as you would in any other business.
Cheers
Kristine
Mortgage mistakes
Mortgagenet Director Kieran Trass believes that there are a number of common mistakes that property investors make with their mortgages.
Sunday, 08 October 2000
By Ann Cunninghame
Mortgagenet Director Kieran Trass believes a common mistake that property investors make is to have all mortgages and security properties with one lender, while another is to mix salaried cashflow with tax deductible debt in a revolving credit account.
Trass considers that, based on actual case studies, there are seven common mistakes that property investors make with their mortgages. As well as the two above, he lists:
Not maximising the opportunity to raise tax deductible debt to replace non-deductible debt
Paying principal and interest on tax deductible debt, while repaying any debt that isn't deductible
Paying principal and interest on all debt
Having all mortgage debt on a floating rate; and
Having all mortgage debt on a fixed rate.
So why does he think it's a mistake just to deal with one mortgage lender? Among the points that Trass makes, he says that if you have several bank/non-bank relationships you can have more choice of products to suit specific circumstances as well as the ability (in some cases) to negotiate for the best price with the best products.
Trass says you may also have the "luck" to be with the right bank when one of them decides to loosen up on their criteria to attract more of your business, plus you'll also be able to access special offers made to clients of each bank.
As for mixing salaried cashflow with tax deductible debt in a revolving credit account, Trass says it's critical to consider the potential tax implications..."and I can't reiterate enough the importance of seeking professional advice for a solution to suit your specific circumstances".
"For example, you may be aware that any repayment of tax deductible debt (over and above any interest cost) is considered a permanent principal reduction.
"So if I have tax deductible debt (ie, funds used to purchase investment property) and I am using rental income through a revolving credit account and I also pay my personal expenses from that account, then the problem is that every time I pay personal expenses from my revolving credit account I am re-defining the purpose of the amount of funds I spend.
"The definition of the purpose of the funds (which I am effectively re-drawing as new loan principal) will obviously not be for the purposes of investment but for personal consumption (so therefore creating non-deductible debt)."
Trass is adding articles to the Mortgagenet website this week relevant to each of the mistakes that he identifies.
[Source: http://www.goodreturns.co.nz/article.php?ArticleID=976485570 ]
"The 9 Common Mortgage Mistakes Made By Property Investors"- By Kieran Trass
An overview and free demo copy of this e-book can be downloaded at:
http://www.mortgagenet.co.nz/ebook.phtml
Mortgagenet Director Kieran Trass believes that there are a number of common mistakes that property investors make with their mortgages.
Sunday, 08 October 2000
By Ann Cunninghame
Mortgagenet Director Kieran Trass believes a common mistake that property investors make is to have all mortgages and security properties with one lender, while another is to mix salaried cashflow with tax deductible debt in a revolving credit account.
Trass considers that, based on actual case studies, there are seven common mistakes that property investors make with their mortgages. As well as the two above, he lists:
Not maximising the opportunity to raise tax deductible debt to replace non-deductible debt
Paying principal and interest on tax deductible debt, while repaying any debt that isn't deductible
Paying principal and interest on all debt
Having all mortgage debt on a floating rate; and
Having all mortgage debt on a fixed rate.
So why does he think it's a mistake just to deal with one mortgage lender? Among the points that Trass makes, he says that if you have several bank/non-bank relationships you can have more choice of products to suit specific circumstances as well as the ability (in some cases) to negotiate for the best price with the best products.
Trass says you may also have the "luck" to be with the right bank when one of them decides to loosen up on their criteria to attract more of your business, plus you'll also be able to access special offers made to clients of each bank.
As for mixing salaried cashflow with tax deductible debt in a revolving credit account, Trass says it's critical to consider the potential tax implications..."and I can't reiterate enough the importance of seeking professional advice for a solution to suit your specific circumstances".
"For example, you may be aware that any repayment of tax deductible debt (over and above any interest cost) is considered a permanent principal reduction.
"So if I have tax deductible debt (ie, funds used to purchase investment property) and I am using rental income through a revolving credit account and I also pay my personal expenses from that account, then the problem is that every time I pay personal expenses from my revolving credit account I am re-defining the purpose of the amount of funds I spend.
"The definition of the purpose of the funds (which I am effectively re-drawing as new loan principal) will obviously not be for the purposes of investment but for personal consumption (so therefore creating non-deductible debt)."
Trass is adding articles to the Mortgagenet website this week relevant to each of the mistakes that he identifies.
[Source: http://www.goodreturns.co.nz/article.php?ArticleID=976485570 ]
"The 9 Common Mortgage Mistakes Made By Property Investors"- By Kieran Trass
An overview and free demo copy of this e-book can be downloaded at:
http://www.mortgagenet.co.nz/ebook.phtml
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I agree with this mentality. You've got to be serious, ruthless, sharp and shrewd. Look after yourself first and stuff everyone else. Of course, be honest and fair at all times.
These are my quick fav tips (I'm a newbie - only two IP's)
1) Research - I won't even bother expanding on this as so many others have before me. Therefore, not enough research would be a common mistake. Know everything there is to know.
2) Not having a contingency plan when things go wrong. By things I mean ANYTHING.
- what if your finance falls through?
- what if you can't get tenants?
- what if Interest Rates rise?
- what if unexpected repairs come up?
Be prepared for anything to arise, that what when it does, you'll be in a position to respond to it without stress or ignorance.
