Michael,

You really need an accountants advice. I think the issue might be that of market value and a transaction at arms length should you be audited.

cheers,

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

I can’t see any advantage in taking it beforehand. I would appreciate any insights by anyone else on this.

I would take it all at once with the same lender. It will certainly be more attractive to that lender to do the whole deal.

cheers,

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

If the floor size is less than 50sqm you will also have some additional problems obtaining finance.

Not impossible, just harder.

Cheers,

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

Spot on Andrew.

It is the purpose of the borrowing that determines deductability.

That is whether it was used for investments returning an income (even neg). This precluds investment such as bare land which is not rented. Although the interest component can be accrued and deducted from any capital gain before CGT is applied.

Simon…[Read more]

Check that your bank will accept two people on title but one on loan – some don’t.

Another idea might be to have him place a caveat on the title. A caveat means that someone else has an interest and the property cannot be sold unless it is withdrawn by the person with the interest.

I am sure your solicitor know best but check it fits with your…[Read more]

Suncorp Metway and St George have lower priced LODOCs.

But most good ones reduce to normal variable rates after two years.

Cheers,

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

Well done.

Another good idea is to split the PPOR loan to show the different amounts seperate.

Makes your accountants life easier!

Cheers,

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

Sorry Kittee,

Slipped into some broker jargon there.

x-colled is cross collaterised which is when the properties are secured against each other. This tends to be the banks preference and is OK for an investor who just wants one or two IPs with a buy and hold approach. As an investor gets a little more sophisticated then it is better to avoid…[Read more]

Gemmagirl,

IO is best if you still have a PPOR debt. This PPOR should be paid off before you start to reduce any of your IP debt.

Best for tax effectiveness.

As far as best mortgage goes we don’t really know enough about you to advise. There are some great pro packages available and also some good fixed rates atm.

All the best,

Simon…[Read more]

Mel is spot on and will be a great asset on any investors team.

Just to add a tiny bit. One idea could be to pull a 20% deposit from your PPOR loan if possible. Then buy an IP with an 80% lend.

Now the properties are not x-colled and the loan is structured to avoid LMI.

The entire 100% interest bill will be tax deductable if the property is…[Read more]

Apparently this was found to be the worlds funniest joke by an English University.

Two hunters are out in the woods when one of them collapses. He doesn’t seem to be breathing and his eyes are glazed. The other guy takes out his phone and calls the emergency services.

He gasps: “My friend is dead! What can I do?” The operator says: “Calm down,…[Read more]

Crashy,

I think you have over simplified this argument to suit your viewpoint.

There are advantages in negative gearing and I can point you to people who make very substantial profits from buying and holding prime growth real estate with no likelihood of positive cashflow.

You are very correct about the follies of buying with the sole aim of…[Read more]

A bus carrying only ugly people crashes into an oncoming truck and everyone inside dies. They then get to meet their maker and because of the grief they have experienced, he decides to grant them one wish each before they enter Paradise. They’re all lined up and God asks the first one what the wish is. “I want to be gorgeous”, and so God snaps His…[Read more]

Perhaps he needs to consider a negative geared portfolio of growth assets.

Negative gearing with the sole aim of making a tax loss is not a recipe for success, however, negative gearing using assets especially selected for growth potential can be very lucrative.

This might be property, shares or a combination of both. This portfolio may also…[Read more]

Thistles,

There must have been a reason.

What is your income and what sort of land is it? A residential or industrial building block, rural land etc?

Cheers,

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

http://www.emex.com.au

Check them out – I am.

Cheers,

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

In the past I have been reluctant to advise fixing for all but the most security minded clients. My reasoning is that it is like going to the casino. Most folks end up worse than if they hadn’t gone but it is the stories from those who win that make us go back! I also believe that you are betting against the bank expert in working out whether…[Read more]

Get a quanty surveyor in to do the whole deal. The house, fixtures and fittings and furniture.

My clients recommend Deppro.

http://www.deppro.com

Cheers,

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

Just a few tips from a painting amateur.

Minimogul is spot on about preperation.

I might also add not to go cheap…buy good quality brushes and rollers. Cheap ones leave marks and the bloody bristles keep coming out in the paint. Whilst you can pick them out there is always one you don’t find until it’s dry []

I would also recommend a more…[Read more]

12 months is a common belief.

However, there is no set minimun in the legislation.

There has been considerable discussion of this point in other threads.

I would recommend anyone contemplating moving in for a period to gain use of the FHOG to buy an IP call the OSR and seek clarification.

Simon Macks
Mortgage…[Read more]