Wealth Build Australia, Asset financial services, DJM Accounting

These sort of "seminars" are predatory & immoral IMO.

What type of person would you need to be to do such a thing.... it may "currently" be legal but I question their character & integrity.

Wolves preying on sheep....

 

Wow!! Im supposed to attend a seminar on Monday night. The only thing I was interested in, was finding out how to pay my mortgage off in 7 yrs but I already know now and the free tablet lol. I dont feel comfortable with this so Ill do it the normal way. Just pay more off the mortgage etc. Thanks for the warning

 

Yes
You match the mortgage payment to the rent/income so the loan is repaid efficiently
From then on earn as much as you can repay as much as you can

 

Well not completely free tablet. ..it cost $99!

 

I'm not paying $99 to anyone. Whats the $99 for? It's says the tablet is free just for showing up to the seminar

 

Reminds me of the free dvd player from the time share presentation. ...had to put up with an hour and half of high pressure sales talk ....never again ..! You may have to put up with a hour long pressure too!

 

So just to be clear.... Nobody has private ruling on this?
which means either get one or avoid it....

 

There are plenty of private rulings saying that capitalising interest is deductible. But also many that say it is not.

 

So hubby really wanted to go to this seminar, so we attended last night. The room was full. Everybody made an appointment for the next stage and all received their tablet (lol).
They do 2-4 seminars a week 48 weeks a year. It makes me wonder how many people make it to the last appointment and have an IP set up this way.
The carrot being dangled was the 'pay your home off in 7 yrs'.
Just out of curiosity, does anyone know how much it actually costs for the brokers to set one of these up.
I already knew that we weren't going to be doing anything like this before the seminar. Hubby on the other hand, almost fell for it. It makes me wonder how many others have been roped in. Thank goodness hubby has me lol....

 

Free with most brokers. You just need your accountant or lawyer to sign off on it from a tax angle.

 

Its a carrot on a stick. Same as car yards offering 1% finance and home builders saying you dont need a deposit. It fills the sales pipeline and they will hopefully funnel through enough punters and cross sell to stay in business.

 

Typically these types promote the scheme and argue the ATO cant beat it. Its just like those ads on TV for those renovator paint rollers - Ever seen a professional painter use one ? These guys are either the ONLY smart guys in the room or there is a problem. You think thousands of others havent thought this stuff through. Its just how its sold.

Promoters always tell you they have taken on the ATO more than once and always are winners - But never provide real evidence - Its just air. If I had something like this and it was bullet proff I would take out double page spreads in every major news media. Reason they dont is the ATO would destroy them. Then when the ATO hit them with a s264 notice and audit the clients the concerns become reality. NOBODY suggests they are going to object for you and win at their cost. Nobody said that you get a binding private ruling and I bet there isnt one and certainly no product ruling etc....

This is the standard approach of all tax driven schemes. Everything is promised and NOTHING is guaranteed. Their advice may constitute tax advice if its a tax driven strategy and if they dont have qualifications its a concern.

Ask them if they will provide a copy of a binding private ruling AND a copy of the application. Wont happen. Sometimes they pull out a opinion from a lawyer that says a whole lot of nothing about general tax law and pass it off as a permissive view.

I may argue there could be misleading and deceptive conduct. Reduce your mortgage by borrowing more.....Huh that not a lower debt. If a financial adviser said that in writing they could get struck off.

 

$99 for a AUDIOSONIC BLACK 7" Tablet with Camera android OS 4.1 Google Play Wi-fi Email | eBay
And you had to listen to their speil
LMFAO

 

Here's a method of paying off your home loan that I 100% guarantee will work !!!

It will save you a huge amount of interest and cut years off your home loan. The ATO has no problem with this technique at all, there's no need for a private ruling of any type. The only real looser in this technique is the banks as they make less money from your loan!

And since I'm such a generous sole, I'm going to share it with everyone, completely free of charge. It's so simple that almost anyone can do it...




Here it is:

*** Make extra payments on your loan. As much as you can, as often as you can. ***

 

I want a Craptastic brand tablet

 

https://www.google.com.au/?gfe_rd=cr&ei=qvjuWLuQF-rc8wfe8qOgBg#q=constipation+natural+cure

 

This is the whole rationale behind purchasing cash cows. They generate 8,9,10K surplus income after all expenses, and you put that money against your mortgage. Mortgage gone fast. Equity created fast. Borrowing capacity improved. Property retained. Rental Income retained. Repeat. Repeat. Repeat. Passive income for life

In the share market they call it a dividend reinvestment plan. It made those who use it, very wealthy. In the resi property market its called swimming against the tide - because just about everyone tells you capital growth/equity is what creates borrowing capacity. They are unfortunately, wrong. They used to be right, in the pre APRA era. But not any more.

I paid my PPOR off in 2 years, and retired 2 million of debt in the 2 years after that, just in case you are wondering whether it works But I went pretty hard at it, and own a lot of properties with substantial after tax surpluses.... so not everyone can do what I have done.

But what just about anyone can do - even those with relatively modest incomes and borrowing capacity, is pay their PPOR off in @ 10 years with just 3 cash cows... or @ 15 16 years with 2 cash cows..... and retain the properties , and the 2 rental incomes from each of those properties, and build a passive income for life within 20 years, very easily . It can be done much faster by those with more generous income/capacity, but what Ive outlined is entirely realistic for someone with modest income/capacity.

No need to buy 5,6,7 or even 10 weak yielding single dwellings and employ interest capitalisation strategies that the ATO may ping you for. Just simple dual occs, generating enough extra income to pay your PPOR off fast, while maintaining very ATO friendly P&I repayments on the PPOR, and very ATO friendly I/O repayments on the Dual occs.

Here's how you would do it

Dual Occ #1 530K. Deploy 70K towards 12% deposit and construction interest. Borrow 90% - 471K This will generate 8-10K CF+ depending on your personal marginal tax rate

Dual Occ #2 530K Deploy 70K towards 12% deposit and construction interest. Borrow 90% - 471K This will generate 8-10K CF+ depending on your personal marginal tax rate

Dual Occ #3 530K Deploy 70K towards 12% deposit and construction interest. Borrow 90% - 471K This will generate 8-10K CF+ depending on your personal marginal tax rate

With between 24 and 30K of eaxtra cash flow being generated, you are capable of paying between 2K and 2.5K extra per month towards your PPOR mortgage.

For a 300K mortgage @ 4.2% P&I - here's what happens when you pay 2K extra per month. Mortgage gone in less than 10 years!


Same mortgage, but 2.5K per month extra repayments . Just over 9 years to pay of the mortgage!




Here's 400K @ 4.2% P&I . 2K extra repayment. Mortgage gone in 11 years and 3 months



400K @ 4.2% P&I 2.5K extra . Gone in less than 10 years




Now , imagine you are the 300K mortgagee. Fast forward 10 years, and the $1500 per month ( 18K per year) that you would otherwise still have been paying on the PPOR P&I mortgage for 20 more years, is no longer required for that purpose. Its yours to use for other things!

By now ( year 10) the rental yields on your dual occ will have grown by lets say 50% . So you would be 12K CF+ -15K . Or 36K- 45K CF+ across the 3 x dual occs.

So you'd have 54K-63K of income available to you. 18K freed up from the PPOR mortgage, and 36K-45K surplus from the 3 x dual occ's.

You could pay down the first Dual Occ loan of 471K within 7- 8 years. And that assumes no pay rises, by the way.

So you are now at year 18 or 19, and you have a debt free PPOR, and a debt free Dual Occ.

If the other 2 x dual occ's have taken 20 years to double in value - sell one of them and pay the other off. You now own 2 x dual occ's outright.

If their rental income is $620 per week today, its very realistic to believe it would double in 20 years to $1200 +. Thats over 62K per annum. x 2. Thats over 124K income.

And that assumes 20 years for rents to double, and 20 years for prices to double...

Simple as that for anyone who can add 1 = 1 together. No mythical tax tricks. No dodgy ATO tricks... just a PPOR debt free in less than 10 years, and 100K + passive income within 20 years. Check the maths. Its right.

Or you could just spend the next 2 decades trying to find a way to buy 5,6,7,8 properties because pwople who havent retired from property tell you that's how to retire from peoperty, and then be paralysed by the analysis of trying to get it right each time, and end up procrastinating and getting nowhere fast - which is what most people end up doing. Always remember, over the last 30 years, when borrowing was as easy as could be, when credit was a loose and open and generous as it has ever been, only 3% of investors ever got past 3 properties and even fewer have retired from resi. Even on these forums there arent many with 100K passive incomes after 20 years of investing.

The lending world has changed- big time. You can do things the hard way and try to replicate a model ( capital growth ) that even at the best and easiest of times didnt produce great results for the majority who tried it (3% of investors get past 3 properties) , or you can swim against the tide , recognise that the CF+ numbers above add up and do deliver the outcome everyone says they want- a 100K passive income for life. Everyone always loves to say- the numbers dont lie. Well, I have laid out a 20 year plan as plainly as can be. Thats literally a step by step instructional on how to do what everyoine says they want to do... yet instead of doing it, most keep pursuing short term growth goals in spite of the 1 in a million chance of it working for them. ......

They say the definition of insanity is doing the same thing over and over, expecting s different result... when such a small percentage of investors succeeded in the 20 years pre APRA, what do you think the percentage will be post APRA?

#cashflowisKING.

 

We recently had a client decline from implementing an investment strategy, specifically due to grossly inaccurate and general misguided beliefs of posters on this thread

Asset Finance Services have been operating for over 20 years and have serviced over 30,000 clients within this time. Furthermore the strategies that we implement for our clients have been available to tax paying Australians for over 30 years!

The resistance we regularly face is partly due to the lack of support banks and the government provide. Furthermore threads like this and or family / friends who often believe they are specialists give their unqualified opinions.

We do charge fees for our professional services (everyone needs to eat,) however ask yourself this - When was the last time your bank showed you how to pay off your home loan faster. After 10 years of paying your mortgage and paying tens of thousands of dollars in interest, what contact and support have they provided to assist you with your home loan, cash flow structures, budgeting, retirement planning to name a few?

We found it interesting that the last post on this thread by euro73 hasn't been responded to (until now.) Euro73's explanation of his strategy is one of few that we may implement for a client. Keep in mind what works for one person does not mean it will work for all. However euro73's mindset is right on point. Below are some excerpts, we in the office can relate to and often have to convince the masses of. Especially the last phrase!

 

I like to think so

Yes, its a constant case of "swimming against the tide" when I speak to clients... they are almost always absolutely convinced they will get rich only by purchasing low yielding/high growth properties.... they are also almost always either unaware of the mathematical reality of the APRA changes , or they believe they understand the changes but usually do not ... I spend a good deal of time helping clients understand the servicing calculator changes, and how they will shape future growth cycles... because unlike the last 20 years where everyone could borrow more money tomorrow than they could borrow today, no one is immune from being able to borrow less money tomorrow than they can today. And thats why debt reduction is so key now.

As I have said many times on the forum, its a matter of being realistic and coming to terms with the fact you cant bake the same cake using different ingredients

 

Sorry a bit of a newbie here, are you saying the Wealth Build strategy works?

How about starting off with a $200k property as the first cash cow?

I am really interested but I get a little confused with the technical aspects of the plan.