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Wealth Build Australia, Asset financial services, DJM Accounting

Discussion in 'General Property Chat' started by MadProps, 10th Feb, 2016.

  1. MadProps

    MadProps Member

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    Anyone heard or come across Wealth Build Australia, Asset financial services or DJM accounting? They claim to have a "rapid mortgage reduction" method that lets you pay off your mortgage in 7 years. I know what your thinking ;)

    Basically it popped up on my FB feed, so thought I'd check it out. Went to a 1hr seminar (free), followed up the next day with a 1.5hr one on one session with their financial planner (free). Am yet to get any info on the "rapid mortgage reduction". He rekons its legit (ofcourse he would) - said the ATO have fought this method 4 times in court and lost. To get the details I have to attend a 3-4hour session with some other financial guy from their org, he will apparantly explain it all. I had to put a $99 deposit down for the booking (refunded on me turning up). No comitments except that.

    Just wondering if anyone has come across this and if they have any feedback?? Def sounds dodge/spruikerish, but I dont mind checking these things out...I will be leaving my cc at home!!
     
  2. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    These sort of schemes often involve charging the client a few thousand dollars and then advising a few genuine strategies and some more controversial ones. There is a thread on here about a similar group that were advising on capitalising interest. I think the thread was around july last year and may be worth a look.
     
  3. Cactus

    Cactus Well-Known Member

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    If it looks like a duck, swims like a duck and quacks like a duck then it's a spriuker!
     
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  4. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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  5. MadProps

    MadProps Member

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    Thanks guys...i can hear quaking ;)

    Found a post on whirlpool, someone gave the run down of what they went through. Basically trying to sell you H&L package somewhere just past rockhampton. They do all the work and charge you about 6K for your efforts, ontop of the trail of commissions your probably not told about.

    Beyond the usually spruiking of new properties, its more the "rapid mortgage reduction" that I was interested in, and from the little crumbs of info I have received so far, it def seems like a capitalising of interest type structure. He basically said in summary "you stop the repayments to the bank, let the interest build up, use the rent to pay down your PPOR...".

    I have not looked into capitalising interest, is this what it entails?
     
  6. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    See my tax tip on capitalising interest. It can work in certain situations but if the purpose is to pay off the home loan sooner the ato may deny the deductions
     
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  7. THX

    THX Well-Known Member

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    There is a legit rapid mortgage reduction method. I'll try to keep it basic. First you hold a one hour seminar free for interested parties, follow it up with a 1.5 hour seminar. Repeat the legit claim and that the ATO is not happy with it but can't stop it. Follow this up with a 3-4 hour session, request at least $99 as a deposit. Rinse and repeat. Profit.

    Use the profit to pay your mortgage down.
     
  8. TMNT

    TMNT Well-Known Member

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    i will give you some free strategies on reducing your mortgage quicker,

    PAY MORE!

    where do I send the $2k invoice to
     
  9. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    Really this is all that can be done
     
  10. TMNT

    TMNT Well-Known Member

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    Im sure you can pay fortnightly instead of monthly and it might reduxe your overall ampunt by something like 500 bucks

    Or put all your income into offset.

    But these arent miraclea. Just a few tips to reduce the amount by a little
     
  11. 274

    274 Member

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    My partner and I went to a wealth build seminar as I wanted to know how they were getting away with capitalising interest. They provide you with a document prepared by Moore Stephens which is supposed to be 100% ATO proof. They said there are two banks that have a suitable loan product - one was Macquarie, can't remember the other.
    They also admitted that they create an oversupply of housing and you might have to accept a lower rent for a while. The real estate agent was super peeved when we told him we weren't buying a property from him
     
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  12. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    Unless each person applies for their own ruling it wont be ato bullet proof.
     
  13. 274

    274 Member

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    They said Moore Stephens guaranteed it, but it sure didn't sit comfortably with us!
     
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  14. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    Did you ask Moore Stephens whether that was correct and if so the details of the guarantee? I would be very surprised if they did provide such a guarantee.
     
  15. 274

    274 Member

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    No, we didn't bother asking. We didn't trust that it was true, and we had no intentions to sign up to anything with this company.
     
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  16. drg86

    drg86 Well-Known Member

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    Went to their seminar this week to see if they could explain how to pay off your mortgage in 7 years...

    Well they won't tell you in the seminar. They just say you can "pause" the mortgage on your investment property and divert all costs and deductions to the PPOR.

    We scored our free dinner and tablet, arranged a time for one of their guys to meet us and go through our scenario.

    Guy comes over to meet, within first few minutes realises I'm an experienced investor and am doing better at 30 than he is at 60. Basically realises he is not going to get us as we don't need any help to buy property or have a fear of investing. Congratulates us on our position, and I then quiz him on the capitalising interest legality. He admits ATO have pounced on them a number of times but their accountants are really good and know their stuff so have not been stopped on this grey area as yet.

    I was never going to sign up for anything, was a bit bored and wanted some entertainment. My partner actually got something out of it, she has a better understanding of why I invest more aggressively and the kind of money we will actually need at retirement.

    So go score a free meal and tablet, but stop there. These guys make their money from selling properties, i.e they sell you overpriced stuff to take a cut. This forum will have all the advice and strategies you need.
     
  17. mikey7

    mikey7 Well-Known Member

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    Sorry to bring up and old thread, but I just got called by these people. They reckoned I signed up for a competition for a free iPhone (bullshhh), and told me about this FREE seminar to pay off my house a lot sooner etc etc.
    The only thing that made me interested in attending the 1 hour thing is the 'free android tablet'. The free tablet would be given to my little girl to watch her nursery rhymes on (so i can have my phone/laptop back).

    What kind of tablet did you get? Was it a known brand or some cheap unknown P.O.S? Was it worth the 1 hr for the tablet? The chick on the phone initially said 'Samsung', but quickly changed to only saying 'android tablet'.

    I certainly won't be signing up to anything they are offering, just want the tablet :)
     
  18. CosmicTrevor

    CosmicTrevor Well-Known Member

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    I got the same call tonight. I think it is one of the exploding Samsung one's. Maybe they will also include one of the Samsung self combusting washing machines as well.
     
  19. drg86

    drg86 Well-Known Member

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    It's just a no name 7" tablet. Works fine and would suit your girl.

    You won't learn anything you don't know from here. They use a dodgy strategy of claiming the interest on your PPOR, bit of a grey area, they will tell you the ATO has challenged them but can't convict of anything.

    Once the dude came around to do a free assessment on our situation he soon realised we were too smart for their business. The look on his face when he asked us what property we own and kept going and going after PPOR, IP1, IP2, IP3, IP4......

    "jeez you guys are doing well for your 20's, you have more than me"

    Their business is holding the hand of people who are too scared to invest and selling them marked up property developed by themselves.
     
  20. mikey7

    mikey7 Well-Known Member

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    Yeh sweet thanks mate. Won't waste my time then if its a no name brand :)