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The pitfalls of commercial property

Discussion in 'Commercial Property' started by Scott No Mates, 20th Feb, 2016.

  1. Scott No Mates

    Scott No Mates Well-Known Member

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    Sydney or NSW or Australia
    moyjos and Tyler Durden like this.
  2. Blacky

    Blacky Well-Known Member

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    Bali
    I remember those days.
    Previously the super rules allowed you to push an unlimited amount of funds into super, pre-tax. Thus for those with uneven income streams you significantly reduce this years income - and delay/reduce income taxes.
    This rule was modifid effective June 2007 if my memory serves me correctly.

    That year - just prior to June 30 - the banks couldnt process loans quickly enough. It was crazy. Financial advisers were advising to draw down as much as possible - push the funds into super investments with the 'plan' to repay the loans from future dividends.

    By the end of 2008 - thanks to the GFC - many punters were sitting with 50% of their original investment while still paying 100% of their loan interest (or not). It was a mess.

    Sounds like this couple was just one of many.

    Blacky
     
  3. Omnidragon

    Omnidragon Well-Known Member

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    Victoria
    What a long article - I don't even understand what the dispute is about. The only advice I take from this is:

    - always read your loan docs carefully, and read them twice;
    - would you blindly trust a customer or supplier in business dealing? Nope. If not, why would you blindly trust a bank or financial advisor;
    - mortgage brokers (sorry guys), financial advisors and bank managers are at first instance there to make a living, there's obviously a place for them in society, but this isn't a charity;
    - don't stretch if you don't have to.
     
  4. Chilliblue

    Chilliblue Well-Known Member

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    Add if looks to good to true than it isn't.