The Age from Melbourne, Victoria, Australia • Page 43

IMloimey INVESTMENT 'Owning a home pays dividends in terms of lifestyle and free rent." State Trustees' unclaimed Victorian deceased estates A From page ESTATES UNDER $1.000 9 Noel Whittaker Falkov, Fecla $27,566 Fern, John William $27,546 Fielding, Harold Reginald Frayne, Lewis $25,584 French, Elsie May $21,885 Fry, George Henry $23,737 Gill, Norman $23,910 Gillam, Arthur Thomas $29,287 Gollob; Ludmila $29,451 Gray, Margaret $21,852 Green, Allen Sedgwick $20,24 1 Hall, Thomas $29,841 Hatzichristodoulou, Evangelia $22,552 Hynam, Olive Jane $21,175 Inglis, Edith Joan $26,984 Jurewicz, Leo $28,920 Keegan, James $20,165 Kerr, Moses Cummin $28,669 Lawson, Charles Frederick $29,742 Lee, Clara Victoria $25,906 Massev, Alexander Paul $23,647 Newman, Lillian Violet $25,522 Rade, Janis $29,515 Sharp, Norman $22,735 Sorrell, Irene Mav $22,827 Williams, Harold Francis $28,745 mm liitfi if tgm3 BmILw i lae unemployment -He owns a house with a- value of $300,000 and has cash of around $100,000. For this current situation, could you advise him what kind of investment can generate income and be a good Investment 1 as well. His monthly cost of living is $2000. I A. The best he can hope for frqm an interest- paying account is about $400 a month, so he is well short of his anticipated expenditure.

I suggest he contacts a financial adviser to find out if there is any possibility of getting some government assistance, but in the meantime he should start cutting back on his expenses he is Ijving way beyond his at the moment. Q. I did not understand one section of the GST proposal put forward by the coalltion.They. said 1 -that you would pay GST on property If it was purchased from a company. I could not get an answer to my query from my accountant and so I hope you can help.

I live in a strata-title unit that was purchased on my behalf by a superannuation fund, The fund is a registered'. company. I pay rent on the unit to the company and I have an ESTATES OVER $30,000 Q.We have a Joint monthly Income after tax of $5500 and own $500 of NSW TAB Ltd shares and $28,000 of NAB shares. We have a home loan on a flat for $85,000 and no other outstanding debts-The unit is valued at $145,000. We are paying $3,000 off the home loan a month, and $2500 is absorbed In expenses.

We are living In the flat and our goal is to buy a home early in 1998. We are weighing up two options.The first is to keep the flat and rent It out, using the NAB shares for a home deposit. The second option Is to sell the flat, pay off the mortgage, use the balance of the sale price as a home deposit and keep the NAB shares. We plan to sell the TAB shares around the time of purchasing a house to help with cashflow. I would appreciate if you could offer some advice on what pros and cons we should be reviewing in deciding.

Apps, Olive $42,465 Aug. Hersch $47,653 Bowman, Hubert Edward $45,673 Cox, Henry $34,058 French, Lawrence $34,399 Hales, Gerald $44,583 Hallev, Mary Evelvn $31,159 Haves, Thomas $33,068 I k-gedus, Maria $32,514 Iloltman, Mary $32,654 Hunt, Cyril $33,364 Kartanas, Michael $42,874 Kienast, Franz $39,270 Koper, Henrvk 14,088 Margieson, Ernest Svlvester $40,931 Newman, Charles $44,790 Wilson, Samuel $47,775 Wybranowski, Edward $33,896 ESTATES OVER $50,000 Benson, Eugene $55,305 Jacobson. Anna $65,600 King, Florence $66,377 Mcandrew, Irene Catherine Annette $50,542 Philpot, Walter llayliss $50,250 Unstcad, Ernest Edwin $57,339 White, John $52,313 ESTATES OVER $70,000 Crook, Lawrence Henry Norman $9,448 Currie, Ernest Eugene $8,600 Davis, Anne Marie $6,689 Davis, Leslie $7,575 Duffin, Eleanor Isobel Bertha $5,989 Edwards, John Leslie $9,117 Epstein, Jan $9,091 Foster, George Edward $7,494 Fracas, Umberto $7,764 Gascoyne, Nora Peace $8,907 Gee, James Albert $5,229 Gray.Lydia $7,584 Hall, Rubina $7,336 Hilszczanski, Michael $9,455 Holbach, Harry $7,811 Hough, Anne Shirley $9,580 Jarrett, Austen Harry $7,848 Jarrett, William $9,533 Jaworski, Konstatine $9,038 Jones, George Ernest $8,273 Klebert, Doris Anne $8,754 Lloyd, Sydney Frances $6,088 McCarthy, Winifred Jane $5,636 Mc Pherson, Michael John $9,502 Medcraft, Neville Terrence $6,965 Miller, Reginald Alexander $6,969 Mitchell, Nellie Veronica $5,589 Nikitin, George $5,452 O'Loughlin, Eileen Veronica $8,537 Papisz, Iwan $7,993 Pirrie, Rita $6,218 Priekulis.Vitaljis $7,008 Richardson, Thomas William $8,891 Riders, Sigfrids $5,548 Robinson, Mervyn John $5,900 Savides, Demetrius Theodore $7,169 Siainie, Serveno $8,077 Steinberger, Egon $5,199 Stephens, Sidney Robert $8,071 Sutherland, Catherine $9,347 Sutherland, Daphne Muriel $5,416 Thompson, John Charles $6,376 Urbano, Francesco $7,571 Wachmeta.Wikter $6,323 Williams, Mollie $6,838 ESTATES OVER $10,000 Arhipov, Mike $10,535 Bytheway, Thomas $10,255 Chandler, Frances Albert $13,076 Cohen, Grace Ann $12,520 Crozier, Mary Alice $12,501 Eastwood, Shirley May $10,982 Edwards, William Ernest $11,753 Griffiths, Norman Arthur $11,729 Harvey, Stanley Reginald $10,597 Judd, Eleanor Frances $14,171 Luckman, Herbert Hartley $1 1 ,698 Macdonald, Jack $11,442 Margetts, Earl $10,372 Mason, Ann $14,577 Myers, Veronica Josephine $1 1,277 Nash, Laura $14,279 Parker, Florence Jane $10,568 Pinko, Ivan $13,768 Rankin, William $12,562 Reynolds, William $10,320 Rice, Ivan $13,613 Roberts, William Andrew $10,671 Sleher, John $10,894 Smith, George Roland $12,313 Szymon, Kamienny $11,572 Turner, Friedel $12,509 Watson, Leslie Gordon $10,620 Wilson, Ronald George $12,664 ESTATES OVER $15,000 Devine, Vincent Merton $16,461 Duggan, John Gerard $17,976 Gilbert, Peter Gordon $15,370 Hislop, Winifred Elsie $19,895 Hollis, Ethel Aka Ethel Pegla $15,023 Klebert, Francis Joseph $17,509 Mercer, Lionel Augustus $16,586 Mullinder, John Walter Colin $15,880 Peach, George John $19,715 Pearce, Ernest William $15,482 Rogers, Alma May $17,504 Spence, Herbert Leslie $18,241 $16,135 Tran.ThaiVan $19,366 Vincent, Sylvia $17,334 Vitols, Hugo $16,000 Walther.Wilhelm $17,604 Xhafer, Muharem $19,647 ESTATES OVER $20,000 Anderson, Norma Pauline $21,378 Basten, Stanley Keith $24,555 Burgess, Edwin Charles $26,289 Dabrowski.WieslawTadeusz $26,824 Keep investments in Australia while working temporarily overseas. option to buy the unit when I want to. If I choose Bisdee, Athol Howard $536 Brooks, John $846 Carter, William George Albert $600 Casey, Kevin Joseph $905 Chisholm, Eva $701 Comb, Sydney Satchwell $997 Crimmins, Joseph $851 Edwards, Allan $696 Flack, Maisie $601 Fletcher, Albert Edward $684 Gilliam, Ivy Mary $844 Hamilton, Ivy $534 Hickey, Ruby Edith Aileen $735 Holder, Charles $684 Hurley, Mabel May $873 Janetzki, Robert Morton $593 Kelada, Ayad $542 Icheta, Hersz $831 Lacount, Leslie James $589 Lambert, Lyle Lena $608 Linton, Cecil $722 Lomax, Dennis $745 Mc Grath, James Thomas $680 Morgan, Howard $644 O'Connor, Ivy $675 O'Mallev, William Clifford $799 Parker, Myrtle Gladys $677 Podolak, Stefan $849 Robertson, Frederick Donald $721 Singleton, Ivy Ann $852 Strathern, Thomas Hugh $502 Wallace, Mollie $523 Ward, Frances May $707 White, Florence May $829 Williamson, Joseph Patrick $804 Zwins, Joseph $642 ESTATES OVER $1,000 Ackland, Edna $1,618 Anderson, Flora Emma $2,766 Angwin, Elizabeth Ann $1,008 Barfoot, George Frederick $2,887 Bell, Leah $3,873 Bilder's, Janis Valdermars $3,229 Bissell, Donald Thomas $3,308 Boudanon, Michael $3,812 Broderick, Reginald Alan $3,156 Brogan, John Francis 1 1 63 Burton, Jessie Elizabeth 1 ,23 1 Byrne, Catherine Johanna $2,241 Caddick, Henry Edward $4,418 Cameron, Edith Kathleen $4,675 Cariss, Deborah May $4,135 Carter, Sidney Kenneth $2, 1 04 Caudry, Laura $4,151 Cole, Elsie $3,614 Coughtrey, Gladys $1,615 Cunningham, Eva Hilda $4,673 Davey, Alfred Ernest $3,551 Davis, Ronald James $3,853 Day, Miriam $3,283 Domieniuk, Roman $2,135 Dwyer, Maurice $2,191 Edge, Kevin $2,533 Edwards, Florence Louise $4,262 Edwards, James $1,798 Ehlers, Henry $1,930 Evans, Kevin $3,019 Fisher, Patricia Helen $4,324 Foster, Warren Ross $3,782 Galvin, Arnold David $3,204 Ghisalberti, Armando $2,280 Hall, Mary Ellen $3,890 Halls, Alice Maud $2,735 Hancock, Arthur David $4,103 Hannah, Archibald $3,988 Harrison, John Lewis 1 ,750 Hill, Daryl Gene $4,807 Honorowy, Mieczyslaw $1,554 Jarret, Reginald $3,935 Jeans, Winifred Barbara $3,909 Jenkins, Margaret Jane $3,284 Kirk, Freda $1,190 Knezevic, Lazar $4,844 Kowalik, Stefan Joseph $4,28 1 Lamb, George William $4,558 Larson, John $1,513 Long, Nellie $2,643 Mc Cafferty, James $4,876 Mc Conachy, Rees $1,502 Mc Guinness, John Clifford $1,157 Murie, Keith Flockhart $2,990 Murphy, Jack.

$3,536 Murray, John $2,806 Murray, William $3,804 Neeson, Sylvia Margaret $3,088 Oliver, Thomas Alfred $1,126 Pennington, Allan Maxwell 1 ,643 Pilgrim, Dorothy Glenny $2,613 Podluzny, Dyaty 1 ,869 Price, Archibald Frederick $2,952 Purvey, Ercel Charles $4,126 Richards, Frank $1,810 Roberts, William John $3,299 Robinson, Alfred James $1,591 Rofe, Eric $1,247 Ryan, Gladys Muriel $4,115 Sauvarin, Gabrielle Elizabeth $3,434 Schoner, Victor $3,482 Shannon, Margaret Ellen $2,365 Sheridan, Charles $4,412 Smith, Charles Vincent $4,723 Smollnski, Heronim $4,668 Stankovic, Miladin $2,409 Stone, Erna Anne $4,399 Sutton, Glayds Eugene $4,791 Sutton, Stanley Earle $2,913 Taylor, Frank $4,550 Taylor, Herbert $2,940 Taylor, Lilian Olive $1,635 Tomic, Mladen $1,300 Turner, Joseph John $3,724 Tzaros, Fortini $2,017 Walton, Lawrence $1,978 Watson, William Frank $3,312 Wilson, June $1,750 Witt, Horst $2,564 Woodward, Grace $1,928 ESTATES OVER $5.000 Banic, Frank $6,780 Behan, Dorothy Phyllis $6,259 Bourke, James $5,324 Boyle, Nance $8,397 Byrnes, Eric Charles $6,454 Coles, Phlllppa Myra $5,440 Cooke, Ulllan $9,779 Crawford, Alfred $5,658 to purchase the unit, I am effectively buying it from a company. Will this purchase attract the GST as the proposal sits at present? A. The fine details are still being worked out, hut as far as I am aware GST applies only to the sale of new residential properties not pre-owned ones. My wife and I are aged 29 and 32 and are about to head off overseas for three years to work in the US. Our combined income will be We own an inner-city apartment, valued at $200,000 with a mortgage of $160,000 and 20 years left, which we will be out for $866 per calendar month.The current repayment is $650 per fortnight at an interest rate of 6.15 My wife has a half share in another inner-city apartment, valued at $90,000 with a mortgage of $58,000 and 16 years left, which Is currently rented for $525 per calendar month.

The current repayment is $289 a fortnight at an interest rate of 9.9 per cent, which is fixed for another two years, and it will cost around $4000 to break the loan. We have $7000 in a share portfolio and $10,000 cash in a cheque account, half of which we are taking overseas. There is also an 1 8,000 personal loan at 9.95 per cent, with payments set at $425 per month. We plan to pay it out within the next 1 2 months. While in the US, I expect to save a substantial sum, with the view of using this as a deposit for a house I' "$500,000) when we eventually return home.

We also plan to start a family within one to two years and plan to have two or three children. We also wish to privately educate them. We are unsure about what to do. Should we be selling everything now, or later? Or keep everything as Is? Should we be putting money into a share fund? A. You already have a big chunk of money in the property market and it is probable that the values of what you now own -will keep pace with the property you intend to buy.

Therefore, I would prefer to leave things as they are and to channel any surplus money into Australian share trusts. This will diversify your portfolio. Invest in your wife's name to minimise capital gains tax in the future. A. Always think about tax when formulating a strategy.

The aim is to minimise your non'-tax-deductible interest while maximising your tax-deductible interest, so you should be trying to have a small home loan, coupled with a large investment loan. Provided CGT is not going to take too much of your capital, I suggest you sell assets such as property and shares to provide a very large deposit for your home. You can then borrow to buy investment assets. Q. I am 28 years old.

I have been working for the past five years, with an average gross income of $45,000 a year. I have about $20,000 in a managed Investment master fund and $5,000 in a bank term deposit for an emergency. I live with my girlfriend. Our combined income Is about $75,000 a year. We rent a flat, which costs about 1 1 ,000 a year.

Our lifestyle is modest. I often hear conflicting information from other people about saving and owning accommodation: 1) Money paid on rent is "dead money" you're better off buying a property. 2) If one borrows to buy a property, the interest payment is also dead money. 3) Interest rates on house loans are low, but escalated property prices negate the potential benefit. 4) Investments (as opposed to owning a property) pay.

dividends. My own plan is to save until we have 1 1 50,000, then borrow a small sum to buy a property; however, this may not be the best plan. I am not sure of the best thing to do In my situation, and your advice would be appreciated. A. The problem is that these statements don't give you the whole picture.

For example, rent is not dead money it is the price of shelter. And owning a home pays dividends in terms of lifestyle and free rent while also providing tax-free capital gain. If you are going to buy a house, why not do it sooner rather than later if you are buying in a desirable location, it is going to be cheaper today than in the future. Q. I am querying on behalf of my non-English-speaking friend.

He is unemployed and doesn't receive any Cenimer, Matyas $77,402 Choca, Achwanasij $80,848 Foldi, Frank $86,045 Green, Patrick Anthony Francis $72,155 Kruse, Kenneth Heldur $76,967 O'Farrell, Eileen Margaret Rhone $74,036 Roschkowa.Valentina $75,438 Tschernjajew, Nikolay $96,947 Wruk, Roman $72,495 Zrnich, Djuro $82,189 ESTATES OVER $100,000 Laczko, Joseph $137,263 Mott, Sydney Alfred $106,668 O'Hanlon, Thomas $141,192 Rivano, Silvano $121,562 Rylow, Piotr $142,348 Shaker, Veronica $132,236 Singer, Rachel $106,436 ESTATES OVER $150,000 Downing, Mary $160,036 Freeman, Helena $155,271 Preszburger, Hersz $158,116 ESTATES OVER $200,000 Belokonoff, John $231,640 Champion, John Penberthy $229,150 Manson, John Ungave $207,936 Martynenko, Gregory $288,266 Niedzwiedz, Josef $246,691 Pearce, Beryl $232,31 1 Poulenko, George $217,744 Robinson, Lance $200,746 ESTATES OVER $300,000 Brown, John $325,803 Hogg, Alfred Lewis $334,502 Powell, Gwenneth $358,142 Noel Whktaker is a Brisbane-baled financial adviser and author of Ave books on personal finance. Listen to him on 3AW with Ernie Sigiey at 1pm each Monday. SEND PERSONAL FINANCE QUESTIONS TO: AOE.PO BOX 257C. MELBOURNE 3001, or e-mail them to notltfieata.Wrfax.conuu INVESTORS EARN 9 PA Fully secured by Real Estate, Interest paid monthly 12 months minimum term, mln amount $10,000 Contact: Bailey O'Neill Pty. Ltd.

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A Dvftnot PofM CfdH (talon UitiHttf MMmum Investment 11,000. Interest calculated dee and paid on maturity OeMs of lees, charges, terms and amnions avsseMe on request rates an sunett t) change and cornel al 11110 of rwbecaeM. Effective 4.1.90 i eiiT mcneuen aviMneeT bums arjeeaatiw. Level 1 2a Carpenter Street aMaktem Victoria 31M 7-10 pa Interest, regd 1st mortgages over residential, commercial rural properties. 1446 pa Interest, regd 2nd mortgages over established properties under 75 of valuation.

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