Cheryl,

Here is how to do both.

Buy a property using a 20% deposit (to avoid LMI) deposit the remainder of the cash into an offset account which will virtually reduce the loan.

If you choose to buy again use the offset money for the next deposit – this avoids cross collaterising the two properties.

All the best,

Simon Macks
Mortgage…[Read more]

Can I ask what your motivation is to wrap the property?

You already have the perfect tenants. By wrapping you will limit your growth potential for a marginally higher cashflow.

I am not suggesting that it is a bad idea – just genuinely curious as to why you are considering this path.

Regards,

Simon Macks
Mortgage…[Read more]

On this information you have a possibility of finance. I really need more info to give you a better idea.

With this sort of deal you really need to talk it over with a mortgage professional.

Good luck,

Simon Macks
Mortgage Broker
mortgagehunter@iinet.net.au
0425 228 985

Comments may not be relevant to individual circumstances. If you intend…[Read more]

Assuming you never lived in this property you will be up for CGT on the profit you made after buying, selling and reno costs are taken into account.

If you hold the place for more than 12 months the CGT is halved.

If you have occupied it as your home you may be exempt from paying CGT – see your accountant for more detail.

Cheers,

Simon…[Read more]

Most people choose either for personal preferences. The only real time I would strongly recommend anything is as follows:

If you have a PPOR debt and an IP debt then the IP debt should be IO until the PPOR is paid out. Reason – the IP interest is tax deductible whereas the PPOR isn’t.

Hope this helps.

Simon Macks
Mortgage…[Read more]

Remember that most IO facilities are only five years with a few being longer. A LOC is IO for the term.

The average person with their 5 year IO term will still pay off the loan but enjoy lower repayments for the first five years – poss when cash is tightest!

It really isn’t a huge difference and is very much a personal choice…[Read more]

One idea to consider is a high growth property – even negative geared.

This will give you some tax deductions whilst enjoying strong growth.

Waterfront property up this way sells for around the $1M mark and has a solid history of strong growth.

Double this in ten years and enjoy some deductions along the way would be the aim!

Food for…[Read more]

Usually worked out as follows.

rent x 52 divided by purchase price x 100

ie

$200pw x 52 divided by $200 000 x 100 = 5.2%

Useful to compare properties when inspecting with a calculator in hand []

Cheers,

Simon Macks
Mortgage Broker
mortgagehunter@iinet.net.au
0425 228 985

Comments may not be relevant to individual circumstances. If you…[Read more]

mmmm me neither

try http://www.osr.nsw.gov.au and follow the links to land tax.

Cheers,

Simon Macks
Mortgage Broker
mortgagehunter@iinet.net.au
0425 228 985

Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.

Check out

http://www.osr.nsw.gov.au/portal/page?_pageid=33,63650&_dad=portal&_schema=OSRPTLT

Cheers,

Simon Macks
Mortgage Broker
mortgagehunter@iinet.net.au
0425 228 985

Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.

All true, up to 80% is relatively easy and with LMI 95% can be achieved – even 97%in some cases.

If you have additional security then more is possible – alternatively the reno money could be borrowed privately and then refinanced once the reno is complete and the valuation reflects the new value.

Cheers,

Simon Macks
Mortgage…[Read more]

Jason,

They are very similar advice.

We both suggested they sell the property to shift the equity to the new property.

Richard suggested buying different properties whereas I described a way to retain the existing property.

The course they choose will be up to them. If they want to keep the property then my idea would be worth exploring with…[Read more]

The last post is spot on.

At any time the property produces income then the cost of incurring that income is deductible.

All the best,

Simon Macks
Mortgage Broker
mortgagehunter@iinet.net.au
0425 228 985

Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should…[Read more]

You can get it back but it isn’t a simple application.

BIO is the Banking Ombudsman and I agree that a mention of him usually helps get things moving.

Good luck,

Simon Macks
Mortgage Broker
mortgagehunter@iinet.net.au
0425 228 985

Comments may not be relevant to individual circumstances. If you intend making any investment, financial or…[Read more]

Gavin,

This type of finance isn’t packaged up and sold like residential loans. What I mean is that a rate cannot be advised until the deal is put together and submitted to a lender.

I would strongly recommend you use an appropriate business finance broker to put this deal together for you. I have seen many people try to do it on their own only…[Read more]

Neo,

I have only ever submitted it with a loan application and it has always been available for settlement.

I am sure that if you lodge it yourself it should only take a few weeks.

Why don’t you give them a call?

Simon Macks
Mortgage Broker
mortgagehunter@iinet.net.au
0425 228 985

Comments may not be relevant to individual circumstances. If…[Read more]

Jason,

The friend is wrong. Any property can be used as an IP. Unfortunately your parents structure will not be tax effective.

They need to see an accountant. One idea might be to sell the property to a trust for a good price, pay the stamp duty and exercise the CGT exemption – no tax is paid on any profit.

Borrow 100% plus costs and use the…[Read more]

Blossom,

Thats quite correct. You may buy an IP and still have access to the FHOG for your home.

As to the original question about a weekend – I would be very cautious proceeding in this manner. The FHOG is for your home and to claim it for what is not your home is fraudulent.

Whilst the rules may seem flexible I am advised that the audit…[Read more]

Some lenders will not lend above 80% in towns with less than 10 000 population size. This is a LMI issue.

There are mainstream lenders who will go up to 90% and offer you normal loan rates to do so.

Cheers,

Simon Macks
Mortgage Broker
mortgagehunter@iinet.net.au
0425 228 985

Comments may not be relevant to individual circumstances. If you…[Read more]

There are many investors here in Newcastle who operate these properties very successfully.

I own a property with 5 bedrooms which is currently returning $420 per week and after a reno in the NY I expect it to be closer to $500. This is clearly cashflow positive and in a good solid capital growth area too.

I have medical students keen to get…[Read more]