Jacqui-I can confirm that everything Terryw has explained is absolutely correct, you have just been given a very good lesson in finance. I see comments written all over this website that hold an element of truth in parts and a sales pitch in others. I can honestly say you have just received a very good lesson in finance matters from someone who…[Read more]

It is about opportunity cost, the shorter the loan term, the less money in your pocket. This means you have reduced the available money for further acquisitions. Wealth is created by the collection of assets, and the payment of assets is merely incidental to wealth creation. In summary: The longer the better……http://www.birchcorp.com.au

In agreement and further to Terry's comment : Interest can be claimed on the cost of funds borrowed for maintenance, renovations, and depreciating assets (e.g furniture).This is the introduction to some real strategies to indirectly reduce debt on your PPOR.Discuss this with your accountant to ensure this is facilitated well.http://www.birchcorp.com.au

Refer to sub-topic "LoC loan against IP" under the topic of FINANCE. There is some useful information here.http://www.birchcorp.com.au

And that my friend, is the difference between retiring at 33 and 63. As much as I try, I cannot help everyone.http://www.birchcorp.com.au

-Pleiades- wrote:
OP, I'm glad you've asked this, I was going to ask the same thing as I'm confused on the benefits of a interest only loan.Number 8, in regards to point 5 in your post you say "Your money made in property is not from what you pay down but how the asset grows in value, the more assets you own the wealthier you will become, this…[Read more]

Ryan, has contributed well to this site and I mean no disrespect, but, the above comment confirms the risk of taking advice from this site or others like it……There is no CGT on selling the family home…..http://www.birchcorp.com.au

I always say the person who cares the most about your money is you, do some real footwork and compare recent sales. There are many many factors that go into a decision, sitting down with and expert can also help. You should be able to find a clever broker in your area. It may mean you sit down with 3-4 people until you find the right person,…[Read more]

The tax implications would be that while you pay down a debt you reduce your ability for a tax deduction. This argument is raised often, but I can still see no reason to pay down a debt when you have the ability to use an offset account:Reasons for i/o include:1. Keeping the full/initial drawdown amount in tact. (A Better tax deduction is…[Read more]

You need to provide more information.What is your income?What are your goals?Where do you want to be in ten years, twenty and thirty?Do you have children?What are your career aspirations?etcYour question is very dangerous for an open forum. To get the right answer you need to provide a lot of personal detail. For that, I would recommend sitting…[Read more]

You can claim the loss for the time it was available for rent, evidence such as realestate.com receipts and bank statements for your current lease would be evidence. Alternatively, you may move into the unit and not claim the loss- make your repayments i/o so as not to reduce your tax deduction in future years.http://www.birchcorp.com

I will tell you it is not allowable in the eyes of the ATO, if they allowed this, although you are legitimate, the ATO will open up a large tax loop hole for everyone in the country. i.e. everyone could set the rent above the market price and/or turn away perspective tenants.You may live in the property, but there is no allowable tax deduction.…[Read more]

I would say you are on the money…….I have just completed a $350 purchase for a client with $25k deposit (NSW)….Include FHOG and stamp duty relief and the $15k would do for a $200k purchase.As long as your income is suitable for lending purposes, you would be in with a shot. As you mentioned moving back home would further improve this deal…[Read more]

Suncorp is one of the few banks….  Bankwest also claim this as their niche….http://www.birchcorp.com.au

There are many, and I would say,  more opportunities to create wealth legitimately. I have many clients that come to me that do not pay tax. My response is always the same….. Where you save a dollar in tax, you lose hundreds of thousands in loan capacity. Loan capacity creates wealth. Without the ability to leverage, wealth creation is…[Read more]

They are well within their rights to negative gear this property, the big mistake I see is that people try to claim an increased loan amount- this is where the ATO will crack down on your friend. i.e. the max. allowable tax deduction is on the original amount drawn down. This is why most of my clients are on i/o for their PPOR whilst pouring money…[Read more]

If you have an offset account, it does not matter when your repayments are made, pay them monthly or weekly for your own convenience. There is no benefit or lose either way.  http://www.birchcorp.com.au

As above, lease packs are purchased from the news-agents or a post office.http://www.birchcorp.com.au

god_of_money wrote:
Go for the lowest rate with low LVR…why wasting money with 0.2-0.3% interest rateI wish they can do 50%LVR with 6% interest rate

 I have always worked on the premise, the money you will make from property p.a is so much more than a small difference in an interest rate. Property is long term, the 0.3% is very little when yo…[Read more]

Bare trusts are used, whereby, you can keep the your identity from the vendor. In this regard you may use an agent to approach the perspective vendor.http://www.birchcorp.com.au