Jason Penna at PropertyBooks.com.au Interviews Noel Whittaker

PropertyBooks.com.au ask Noel a number of questions on how to build wealth and achieve financial freedom.

Here are the questions;

  1. I guess to kick us off we would really like to get and understanding of your investment background, where did you start and what gave you your passion for investment.
  2. When you were starting out, what did you find the major hurdles were, was it access to information, raising capital? finding quality assets to purchase?
  3. How complicated do you believe people’s investment strategies need to be these days?  Can people really still build wealth with just the typical residential buy and hold property investment strategy?
  4. Does fear play a big part in peoples mindset’s when it comes to building their wealth? is there an amount of fear that you would consider healthy?
  5. Who should people really be listening to when it comes to getting good advice around building their wealth?
  6. So talking about different property investment strategies, can you talk a little bit about where you see Positive Gearing and Negative Gearing and how those strategies fit into a portfolio and also how those strategies differ from Positive and Negative Cashflow.
  7. So lets talk about Negative Equity at the moment, where someone might have purchased a property for 1 million dollars and it is now worth say 800 thousand dollars what are your general thoughts.
  8. Buying Property in Super, do you see this as a good long term strategy? what are the impacts of negative gearing in super where it is a low tax environment


Be wary of SMSF property spruikers

Quantum Financial TV expert Claire Mackay advises be wary of SMSF property spruikers. Also featured are SMH’s Noel Whittaker & property expert Neil Jenman. A great example of how seeking independent SMSF property advice is essential for investors.

Ask Noel

The Age – Money

Successful property investments can offer capital growth, ongoing rental return and tax benefits.

Q: I have two super accounts. One is an accumulation fund with $160,000 and the other is a transition-to-retirement pension with $210,000. I also have $30,000 in savings in a bank account. Now that I’ve retired and turn 65 in few months’ time, how can I maximise my capacity to obtain the full aged pension, taking into account the asset and income tests applied by Centrelink?

A. The point at which the full aged pension starts to taper is $265,000 for a home-owner couple and $186,750 for a home-owner single. Therefore, you are unlikely to receive the full pension unless you run down your assets on expenditure such as travel or renovating your home. Take comfort in the knowledge that the extra assets you have give you a better standard of living than if you received the full pension. Also, most of the benefits available to a full pensioner are available to a part pensioner.

Q. I owe $89,000 on my unit, which is valued at $210,000. I’m also looking at investing in property. My mortgage broker tells me I can borrow up to $220,000 for the investment property but I don’t understand how he came to this amount. I’ve used online calculators to determine my borrowing capacity and made inquiries via other banks and they have given me a lesser figure.

A. You are the person who should decide how much you want to borrow, not the mortgage broker’s computer. Do a personal budget and factor in contingencies such as vacancies, repairs and interest-rate rises. You will then know how much you can afford to repay and not be out of your depth.


From: https://www.theage.com.au/money/planning/ask-noel-20111205-1oe3a.html#ixzz3IuIQGhxi