Forum Replies Created
Nope, no stamp duty on deposit.
I was re-imbursed my deposit by the new purchaser. I provided my receipt as proof of deposit.
I did pay ~$85 for the conveyancer to handle my capital gain and post my cheque.BEAR1964
I’m sure it does vary from state to state. I am in SA tho’.
There wasn’t any stamp duty.
CheersAs a professionals Investor, you would be considered self-employed, therefor needing 2 years minimum financials that show your income able to substantiate your living expenses and your loans.
ie. replace your income with investment income.For a trading company, you would need the same financials showing good incomes for 2 years minimum, the same scenario as above, but in a company format. You would be the directors, I assume. The bank would need to see drawings to cover your own living expenses, with enough retained profit to continue trading and service debts. They will still require you to provide Directors Guarantees.
Of course they will load interest rates and reduce the rent to be used in serviceability.Perhaps an accountant or another mortgage broker would also care to comment.
Michael O’Brien
Adelaide Mortgage ProfessionalsThe NAB will accept 100% of rental income if there is a rent agreement in place. Only 60% on proposed rent for a purchase tho’. If you are buying, get a tennant prior to purchase or valuation at least. (The valuer will determine the proposed rent.)
Homeside Lending (a division of the NAB) has same policy as NAB, and can be accessed easily via a broker.IMB – 90%
Adelaide Bank – 80%
AMP Banking – 80%
BankSA / St George – 80%
BankWest – 80%
Citibank – 80%
ING – 80%
Macquarie – 80%
The Rock BS – 80%( – the benefits of using a mortgage broker!)
I would recemmend using a broker, not just because I am one, but because we have fancy software that can take into account different banks interest rate loading on existing loans as well as % of rent used on new finance.
All the best,
Michael O’Brien
Adelaide Mortgage ProfessionalsI’m sorry I didn’t follow all of your question.
If you have a Home Loan and IP Loan, then the scenario below could be profitable.
It sounds like your going to rent out your current home and buy a new home, is that right? If so, you may want to check with your accountant about the deductibility of your interest. I have heard that deductions may not apply unless your previous home (now rented) is in a positive cashflow position.It is possible to “convert” your Non-Deductible debt (Home Loan) to Deductible over a short period of time.
Open a new LOC facility secured preferrably over your Owner Occupied property (is this what PPOR stand for?) This is strictly for investment use. Use this to pay your repayments on your IP.Take your rent from your IP and add it to your mortgage payments on your Home Loan.
Net effect: You will pay off your Home Loan much more quickly, saving tens of thousands in non-deductible interest, while accruing deductible interest in your LOC.
Crucial Factors:
Make sure you pay the Interest Only repayments on your LOC. The ATO does not like us capitalising interest with these split loan facilities. (Harts case up before the High Court)The Prime reason for seting up this facility would need to be debt reduction on your Home Loan rather than tax deductions. To achieve this, you will need to calculate that your interest savings on your home loan will be greater than the tax-deductions achieved with your LOC. This should happen as a matter of course, but is necessary to to substantiate to argue your case. A good mortgage broker can help you here.
It would be preferrable to have a P&I loan on your PI property. I know MortgageHunter has suggested an I/O loan, but that was not with this facility. Some accountants may let you have an I/O loan and run this facility, but most would prefer a P&I because of the ATO’s arguements and intentions re the afore mentioned Harts case yet to be decided.
Commonly known as a Split-Loan, you need to be aware of the Critical Factors.
I am not a tax advisor. Please seek independent tax advice.
All the best,
Michael O”Brien (MOB)
Adelaide Mortgage ProfessionalsIt is possible to “convert” your Non-Deductible debt (Home Loan) to Deductible over a short period of time.
Open a new LOC facility secured preferrably over your Owner Occupied property (is this what PPOR stand for?) This is strictly for investment use. Use this to pay your repayments on your IP.Take your rent from your IP and add it to your mortgage payments on your Home Loan.
Net effect: You will pay off your Home Loan much more quickly, saving tens of thousands in non-deductible interest, while accruing deductible interest in your LOC.
Crucial Factors:
Make sure you pay the Interest Only repayments on your LOC. The ATO does not like us capitalising interest with these split loan facilities. (Harts case up before the High Court)The Prime reason for seting up this facility would need to be debt reduction on your Home Loan rather than tax deductions. To achieve this, you will need to calculate that your interest savings on your home loan will be greater than the tax-deductions achieved with your LOC. This should happen as a matter of course, but is necessary to to substantiate to argue your case. A good mortgage broker can help you here.
It would be preferrable to have a P&I loan on your PI property. I know MortgageHunter has suggested an I/O loan, but that was not with this facility. Some accountants may let you have an I/O loan and run this facility, but most would prefer a P&I because of the ATO’s arguements and intentions re the afore mentioned Harts case yet to be decided.
Commonly known as a Split-Loan, you need to be aware of the Critical Factors.
I am not a tax advisor. Please seek independent tax advice.
All the best,
Michael O”Brien (MOB)
Adelaide Mortgage ProfessionalsPaul,
You said
“I now know of 2 mortgage organisations who are advertising that their underlying funders and mortgage insurers are fully “in the loop” as far as knowing and approving that the house may be on sold using a wrap strategy.”Can you tell me who they might be.
Thank you,
Michael
