According to your latest figures, if you retired, you could live very comfortably until about 2 pm tomorrow. It is clearly obvious those who don’t want to be living on the poverty line in the future, need to be making sound financial decisions in order to...
Frightening Statistics It is now a common realisation that Australians have to plan for their own future and retirement as our economic situation is not going to handle the explosion of ‘Baby Boomers’ hitting the pension market. In the 1950’s and 60’s there were eighteen taxpayers...
Accumulating your GST in a credit facility If you accumulate your GST and pay it every three months, put your GST money in there. Loan it in. Put it in your line of credit facility so you’ve got less money owed on that nondeductible debt for...
Where does the money flow? If your money’s all over the place and it’s sitting in bank accounts maybe in one where the rent’s come in, and another one, which is a savings account, where does your money actually flow? What you want to do is...
Tax deductions on your investment properties Other things that you might like to look at from a cash flow perspective is your tax deduction on your investment properties. If your investment property through depreciation and perhaps negativity on a cash flow basis, means that that property...
Keeping your cash flow Let’s say you’ve got a number of investments, and one in particular’s on interest only, and then you’ve got another one that you’re looking to buy. You have also got your PPR. It’s on a P&I loan and it’s got a small...
The higher the debt, the lower the LVR The higher the debt you get, the lower the LVR, or the lower percentage they will lend you. At the beginning you might start at 80%. But if you start getting up above $1 million they might be only...
Having control It’s about you having control too. If you’ve got nine different properties with one bank, it’s the bank manager who’s controlling you not the other way around. They’re determining whether you can go and do an investment or not, or whether a particular type of...
Cross securitising even in trusts Regarding the nine houses and nine banks, if you’ve got each of those investment properties in their own trust then how can they cross securitise between two different entities? They can. You are the guarantor as you’re guaranteeing this one, you’re guaranteeing...
How much should your safety buffer be? How much this buffer should be will depend on your circumstances - what you do, the security of what you do, how much income you have coming in, what’s the likelihood of that income ever stopping, whether you have...