You will need to approach council and the body corporate about adding a loft. You will definitely need body corporate approval and you may also need a DA from council to make the changes. Also check fire rating requirements, egress routes in a fire, structural certification of the loft structure, BCA requirements for balustrades and stairs- there…[Read more]

Hi Spiz,I don't think it is a question of ethics in regards to the agent getting commission on the sale- I am pretty sure it is the law (in NSW at least it is). If the agent has introduced the property to you (i.e. by all the advertising he did prior to the auction), then he is entitled to his comission whether it turns out to be a private sale or…[Read more]

Michael- I thought it depended largely on what your occupation is (i.e. whether it is a stable industry with a skills shortage or an industry with an oversupply of workers) or am I wrong???Cheers,Luke

If that is the case then I would say that the highest valuation the lender will use is the purchase price minus the stamp duty.Cheers,Luke

Heres a question for the lending gurus- Is there a legal requirement to disclose to the lender that the vendor is paying the stamp duty?Cheers,Luke

If you have totally paid off the loan on your current PPOR and then redraw that money to buy a new PPOR the interest on the loan will not be tax deductable. It is the purpose of the loan that determines whether it is tax deductable of not, and redrawing money from a loan counts as new borrowings. Because the purpose of these new borrowings is to…[Read more]

I would think that an average real estate agent wouldnt make much, but a good real estate agent would make a killing. Same with most professions I suppose.Cheers,Luke

In Dolf de Roos' book "Commercial Property Investing" he talks about air space a bit- is this where the idea came from as he talks about using it to prevent future development on sites where the visibility of prominent billboards may be affected. Not sure how you would really go about it though, a lawyer who specialises in commercial property…[Read more]

You would best to speak to a civil engineer or a hydraulics engineer as this is their area. It can be done by pumping to the main stormwater system or by using a sump in the rear of the block, depending on soil conditions and council rules. Either way, it is an expensive excersise and probably the reason why a developer hasn;t bought the block.Cheers,Luke

Hi Tamster- I tried to contact you but your PM is turned off. If you are still interested in getting a copy of the program, shoot me a private message as I have a copy.Cheers,Luke

Yes, I believe you will. You probably should get a loan agreement drawn up so it is fully tracable, but you could probably do one yourself as long as you trust each other.Bear in mind that she will have to pay tax in the interest that she receieves.Cheers,Luke

You could always set up an LOC secured against your existing home to fund the deposit for your new home. The LOC would then be paid back when you sell your current home, which could be after settlement happens on your new home.Of course you need to be able to service both the loans at the same time. And you also run the risk of not being able to…[Read more]

NSW2011- I just sent you a PM.Cheers,Luke

Also can I ask what state the building is in? I am a structural engineer and the organsiation I work for does building condition reports all the time, and $20k sounds way too much to be paying for a report.Cheers,Luke

Hi,Just a word of caution- dont listen to everything the real estate agent says. He is just trying to make a sale, and if you dont buy the apartment he will not get a comission. So of course he will tell you that there are no probelms with the apartment because if you dont buy it he doesnt get paid!!!!One thing you should consider is how many…[Read more]

I imagine there are, and a good accountant/lawyer will definitely be able to give you the right advice!!!A lazy lunch time on the forums Terry? This website is taking up a good portion of my work breaks recently!!Luke.

Terry I agree, but untill you decide that you want to purchase another investment you should leave this in an offset account. I have recently done exactly as you said (organised a $30k subloan on my PPOR loan, paid it down in full using money from my offset account and then redrew the money to use towards a deposit on a property). But I think you…[Read more]

I just had a look at the Pat IVA. It appears that you would not be allowed to purely 'stream' your parters income through a trust and distribute it to yourself to save tax. From the Part IVA document:In the absence of unusual features, therefore, Part IV A would notapply to such husband and wife partnerships. The sort of unusualfeatures that could…[Read more]

I would say an offset account is ALWAYS better than a redraw.

Hi Glenn,You should put your extra money into an offset account instead of a redraw facility. Obviously if you have non-deductable debt then you should pay this off, or put money into a offset account attached to your PPOR. For threads on redraw vs offset account and the tax implications-…[Read more]