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Episode 291 | The Property Loophole: Recognising A Pipe Dream From The Real Deal

The Property “Loophole”… is it a myth?!

If you’re interested in investing in property, at some point or another you’re probably going to run into someone who tells you about some “secret loophole” – whether it be about property, tax, SMSFs… you name it – that you can use to, ahh, exploit the system.

Well, folks… let’s just call it out, shall we?

Because there’s a MASSIVE difference between a Pipe Dream and the Real Deal. And we can assure you, the price you’ll pay if you get the two wrong is no small fee!!

Here’s the deal… during the week we reached out to folks on our Facebook Page and asked them what questions they had on their mind right now… and we received some eye-opening comments that made us go…

“Whoa. Hang on a sec…”

And so, of course, this episode was born!

You can check out the exact questions further below, but here’s a quick scope on what we cover:

 

The Free Stuff

 

 

The Questions

Question about Buying Off The Plan from Angivin:
Guys we are very clear that you aren’t fans of buying Off The Plan, however can you please provide insight when this strategy has/could work please? 

 

Question about The Pipe Dream & Its Consequences from Kieren:
Is turning your super into a SMSF to borrow and build property a good idea? My mate at work got sold the pipe dream by his brother in law to do this. He tells me he is building dual key units and that it’s eventually going to net him $300,000 per year based on rental growth forecasts! I have told him this is not believable. Turns out his brother in law who convinced him to do this is getting $60k in kickbacks and is going to split it with him. He also tells me his interest rate is 5.7% because apparently no one lends to trusts cheaper than this? He also pays some bird $3k per year who will “sort any issues he has” on top of the property manager. And there is a snake “finance broker (as he referred to it)” in there somewhere who I reckon stitched him up on the interest rate. What happens when all this falls over and the money you put into your super each year doesn’t keep up with repayments? There is a $25k limit on how much super you can put in without big tax $$ so what then?

 

Question about How Much of A Buffer You Need from Toui
Hi TPC team, loving the Money SMARTS system! Question: when you talk about 3 to 6 months of living expenses, do you typically recommend that calculation on Essential spend? Or both Essential and Discretionary?

 

Question about The Pros & Cons Of Interest Only Versus Principle and Interest from Matthew
Hey guys! What is your opinion on the pros and cons of paying interest only vs principle? I am learning the ins and outs and have seen people succeed in either.

 

Question about The COVID-19 Recovery Across Specific States from Adam
Do you think any state will emerge from the covid storm quicker or better off than other states? And if so, will this translate in their property prices?

 

Question about Mortgage Payments On First Investment Property from Shannon
Suggestions on looking into P&I loan for first investment property if little difference in mortgage payment compared to interest only+ offset?

 

 

 

 

 

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