The pitfalls of commercial property

Here's a tale of woes of poor advice on many levels.

'Don't take our home': the real impact of poor financial advice | smh.com.au

It isn't always a bed of roses so seek appropriate advice, question everything, accept nothing that you don't agree with or understand.

 

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

 

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.

 

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