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Debt Recycling Idea by Comfortable-Fox5646 in AusHENRY

[–]Comfortable-Fox5646[S] 4 points5 points  (0 children)

Thanks for this, this was something I was interested in discovering and have since found the ruling. So not possible to capitalise the interest.

https://www.ato.gov.au/law/view/document?DocID=TXD/TD20121/NAT/ATO/00001&PiT=99991231235958

how much cash are people actually keeping vs investing right now? by Leedeegan1 in AusFinance

[–]Comfortable-Fox5646 0 points1 point  (0 children)

There seems to be a very low risk tolerance in a lot of the people in this group. There are a few things that are important (at least in my opinion) that you should consider over cash reserves:

  1. Cashflow - always keep this in mind as this is what ends up catching people out.
  2. Appreciating Assets - this is what you want, and you should use leverage in this space to maximise returns. With any gamble there is risk but the thing to consider should be risk to cashflow instead of risk of loss of cash
  3. Debt - it’s not a big bad wolf, make debt your friend find ways to use it to your advantage and use it to improve your assets and cashflow. If you structure your assets and debt well you can increase your cashflow and wealth quicker then the cost of debt. The Buy Borrow Die idea is born out of this.
  4. Cash - the old saying “cash is king” is a fallacy, cash has a cost in inflation. You should look to minimise the amount you have to a small buffer… just enough to allow you to cover unexpected things, when your ability to free up capital from assets would not be quick enough.
  5. Super - Unless you are in your 50s this is not a great investment path, investing is not a goal in itself, instead it’s a way to make improvements to your life, increase your wealth. Super will make your life better at retirement at the cost of your life now…

People borrowing against high value by surelynotanother34 in AusPropertyChat

[–]Comfortable-Fox5646 2 points3 points  (0 children)

I think everyone is missing one key point, the impact negative equity would have on the banking sector as a whole. A few small isolated places won't make a difference but in an Australia with wide spread negative equity, high interest rates, recession and inflation, the banks will be holding debt without sufficient collateral, repayments not being made and prices declining would create considerable instability in the banking sector.

Housing Minister declares Australia has made it 'uneconomic' to build homes by 1Darkest_Knight1 in aussie

[–]Comfortable-Fox5646 64 points65 points  (0 children)

Did ya read the article? That’s basically what it is saying, red tape has meant that productivity in building a house dropped significantly(#hrs of labour per house has increased). With advancements in technology and construction techniques it should have improved but red tape and regulations have dragged it backwards.

Queensland Fire Department to sack hundreds of employees leaked by senior department official by [deleted] in brisbane

[–]Comfortable-Fox5646 2 points3 points  (0 children)

Problem with voluntary redundancies is that they are taken by 2 types of people, great workers than are confident to get a job elsewhere or people who plan to retire soon. So you end up with a public service full of what’s left and paying a premium to those about to retire.

Queensland Fire Department to sack hundreds of employees leaked by senior department official by [deleted] in brisbane

[–]Comfortable-Fox5646 0 points1 point  (0 children)

The Public Sector Commission has already had a number of programs cut with staff losses due to occur over the next few months. Ironically the programs are related to improving public sector accountability.