If your trust provides services, then the assets held in the trust can be claimed should the trust b sued for any reason. This is generally not recommended for this asset protection reason.Why not set up a second trust that provides the services to provide better protection for your assets?Cheers,Luke

I am also after a RP data report for Bankstown NSW if anyone can help.Cheers,Luke

Make it I/O with an offset account from the start. Do not pay extra money into the loan and redraw later- this will save you and your accountant so many headaches in the future.Cheers,Luke

sorry, in the my first paragraph I meant to say "I am now in a position where I am looking at an IP with my partner using a LOC secured against my apartment as a deposit.Luke

JayDee,I was in pretty much exactly the same position as you a few years ago. I was new to Sydney, graduated uni about 18 months ago and wanted to buy my first property. I bought a one bedroom apartment for $315k in a good area and it has acheived about 20% growth since. I am not in a position where I am looking at an IP with my partner using a…[Read more]

Agree with Richard.Get a loan secured against your PPOR to fund the 20% deposit + costs and a second loan secured against the new IP for the remaining 80% for maximum tax deductability.Luke.

What a wonderful country we live in when even a 21 year old labourer and his 20 year old partner (a hairdressing apprentice) can afford their own dream home!!!You will always need to make sacrifices to buy your first home- I talk to an older guy at my work who managed to scrounge together $35k to buy his first home in Sydney in the early 80's and…[Read more]

Corie,

Not all lenders are the same- some lenders take 75 percent of rental income into account when determining servicability, some take 80-85 percent and some take 100 percent. Of course this all depends on the individual property and the risk profile of the lender. But I am certain that if you shop around and use a good broker you will find…[Read more]

If you can get finance with CBA and you are having trouble elsewhere then I would suggest going with CBA. You could then look to refinance in a couple of years once your new house in build on the new block. At least this way you will be able to settle.Cheers,Luke

You can only claim one main residence at a time- That is if you were living in a house that you owned, you can not claim another house as your PPOR as you can only live in one house at a time. If you move into a house that you owned, that house must be your designated PPOR.If you do move out into your new house, you will only be able to claim…[Read more]

Serviced apartments are more of a commercial property investment and so the capital growth is tied to rental yield- as such the value will likely only rise in line with rental increases, which in turn will be in line with CPI. There is also nothing you can do to increase the value of your investment outside of these gains which is an opportunity…[Read more]

Martha- you can set your account up so it automatically subscribes to threads you comment on. But seeing as you have not set that up you may not be subscribed to this thread so won't see my message!!Just go to 'My Account on the right toolbar, then under the 'Edit' tab check the Auto Subscribe box which is right at the bottom of the…[Read more]

Interest rates are not the only things you need to look at when signing up for a loan.Perhaps more importantly are any deferred loan establishment fees, break fees, early payment fees, loan establishment fees, valuation fees, loan portability, offset accounts (although you already have an offset acocunt on one propoerty so probaly no need for…[Read more]

Limted Recourse- I agree with you. I also feel that a home is a liability as it is not income producing. Even though it does increase in value over time (hopefully!!!), it does not put cash in your pocket while at the same time draining your hip pocket with mortgage repayments. But lets not argue on semantics.In regards to the original…[Read more]

How about starting/acquiring another Lotto shop if the one you currently have is doing really well?? Why settle for only an extyra $250 per week??Cheers,Luke

I would also like to know how people have gone purchasing tax leins and/or deeds. I have just recently finished watching the Tax Lein and Deed Workshop vidoes and would like to know if anyone is making anything from it!!!I am very keen to have a crack at this from the beginning of next year, it seems like a fantastic opportunity.Cheers,Luke

There are a lot of companies selling foreclosure homes from the USA to Australian investors. To be successful I think that you need to either be on the ground in the USA or have a business partner on the ground in the USA. Without being there and sourcing the deals yourself then it is hard to see how you could provide deals that people would be…[Read more]

Just realised that my number add up to $410k for the total costs- I am still dubious of whether this will be able to make enough of a profit though.Cheers,Luke

I doubt that this property will be suitable for a buy, renovate and resell strategy.It sounds like the rough numbers on this property are:Purchase Price: $330kStamp Duty/Legals: $12k-$15kRenovation Costs: $35k (based on suggested 10% of purchase price- this may be a bit light though)Holding Costs for 6 months at 7%: $12k (I have included 100% of…[Read more]

If you are going to make your current PPOR an investment property in the future, then do not pay off this loan. You are better off switching this loan to an interest only loan and then put all of your money into an offset account attached to the loan for your new PPOR to minimise non tax deductable debt.What else you do depends on the value of…[Read more]