A very wealthy Australian who has since passed on was doing this.You can reduce tax to the rates you suggested by buying fully franked dividend paying shares on the stock exchange.As these shares have the tax paid at 29% already so if you were on say a 40% tax rate then you pay 11% taxas the tax on share earnings has already been taxed at 29%.

It may be better to try and work with the bank before going bankrupt.The bank may let her sell the property and then let her pay off any remaining debt after the proceeds are used to pay off the most of the debt.

You need to know if the other $7000 fee was based on a fixed term bank loan as this will push the exit fees up.Some people have mentioned that the no exit fee needs to be across all banks and non banks.

Churches like to have modern facilities. If you can offer an alternative close location with a newly built church building that has a hall,kitchen, meeting rooms,  worship chapel and good parking and close by housing for the minister / priest you might have an appealing negotiation offer.

Your Lawyer has a point !You should not risk doing renovations until the settlement occurs. Unless you have a contract that has terms of wording that any improvements done by you before settlement will be paid for by the vendor in the event that settlement doesn't occur and the Vendor agrees to it.However you could have wording that access be…[Read more]

ummester wrote:

duckster wrote:
The rental market is a supply and demand situation. If supply is less than demand the rent price increases.

To a point this is true. The rental market is also confined by real wages, unlike buying, which is only confined by credit availability. In some instances around the country, people are paying more than…[Read more]

If you are renting the $435,000 house out then the (interest on $435,000+ council rates + insurance+ water rates) – rent  is claimable against other income but pro rata for 6/12 of any yearly costs / income as 6 months.of renting out.The construction costs and interest on the construction costs get added to the cost base to reduce CGT when you…[Read more]

If you are doing renovations and not doing what the ATO terms as substantial renovations then CGT will apply only.If the renovation is deemed substantial then GST is also involved.I am mentioning renovations because you may have meant this form of active investing as a type of development but on a small scale. (it is not really development but…[Read more]

What I would try if I was buying this is suggesting a payment plan over the twenty years so that they get regular cash flow and possibly a cash down payment to cover their immediate cash requirements.

George, it depends on what you earn. What is your marginal tax rate?If it is an old house depreciation on the building costs may not be claimable which could have increased the negative gearing without you incurring a cash outlay in expenses.As Terry pointed out it may not make commercial sense.If you are on say as an example a 30% marginal tax…[Read more]

Also the CGT exemption have a closer look as you are not renting the whole house out just a room.http://www.ato.gov.au/individuals/content.asp?doc=/content/36910.htm

Also did you claim a part of your expenses against the income you declared !

If you are going to lose part of your CGT exemption you might as well claim part percentage of the…[Read more]

Also the CGT exemption have a closer look as you are not renting the whole house out just a room.http://www.ato.gov.au/individuals/content.asp?doc=/content/36910.htmAlso did you claim a part of your expenses against the income you declared !If you are going to lose part of your CGT exemption you might as well claim part percentage of the…[Read more]

One factor is that a construction loan is lent out in stages. So say for example you had $800,000 in construction costs then the interest is not charged on the total $800,000 for the 12 months of construction time.Also there is a saying that the profit is made when you purchase the property at a discount. Some developers buy a block of land and…[Read more]

Have you thought about using a mortgage broker as an option ?

What you might like to look into is splitting the mortgage upAs an example10% Variable – this allows you to make extra repayments 30% fixed for 1 year30% fixed for 2 years30% fixed for 3 yearsThis allows you in one years time to fix 30% for one year , two years, three years or have it variablein two years time you can fix 30% for one year, two…[Read more]

It really depends on the hidden damage to the house. I have a concrete and steel house and termites. As the structural supports are steel the termites have eaten the timber skirtings around windows and at the base of the concrete walls instead. Termites live in a nest in my case in old tree trunks in the back yard so for $1800 I am getting a…[Read more]

You need to factor in $1000 extra for  costs in the purchase of this property to cover Stamp duty,Solicitors fees, Title transfer fees.

If you look at the last two posts they are advertising there businesses at the end of their postings which can be set up under the profile tab. Then click on edit and put your business details in the signature section of your profile.This is allowed as long as you are sharing your knowledge at the same time or advising others via posting.

http://www.lawcentral.com.au/CreateDoc/createlink.asp?DocId=28Does your private lender have a credit provider license as lodging this above type of contract will flag ASIC to check if the lender is licensed.http://www.asic.gov.au/asic/asic.nsf/byheadline/Credit+homepage?openDocumentNot sure on books as the new Credit regime / Laws changes the way…[Read more]

Ben Kelleher wrote:
this is going to sound stupid, but would you please tell me what LOC is?

LOC = Line of Credithttp://www.investorwords.com/5606/home_equity_line_of_credit.htmlUsually up to 80% LVR (loan to Value Ratio) can be borrowed. A line of Credit is a loan limit set up on a facility that lets you borrow money up to the limit – on call…[Read more]