With a company title as opposed to a normal strata/torrens title, you don't actually hold any certificate of title to the real estate. You own a set number of shares or units within a "company" that owns the complete building, which gives you the right to occupy an area of the building (i.e. your apartment).

Due to the restrictions encountered…[Read more]

I know the building you are talking about. It's been there a few years and is close to VUT. The pocket the building is located within isn't exactly the greatest area either. Personally think there are better places and property types to invest in, as others have mentioned, capital growth would be very limited with so many apartments within that…[Read more]

Agree with Joe. Point Cook would be a no go for me.

How do you travel to work? Public transport, car? Would you consider Hallam and Narre Warren too far to commute to the city every day for work?

What area are you renting in at the moment? Do you like it there?

Cheers

Tom

I've had a fair few of these come to me to refinance the last few months. It seems that a lot of people at the end of 2007 and early 2008 were scared of the high interest rates at the time and expecting rates to increase further decided to lock them into long term fixed rates.

Fast forward 5 years, the GFC and record low interest rates, all these…[Read more]

As Derek mentioned, google to find the applicable stamp duty for your state. Some have discounts depending on whether its for a PPOR, first home buyer, so it will vary.

There's also other costs such as conveyancing fees, adjustment of rates, mortgage registration, title search, etc which can be a few thousand.

Most people use 5% of the purchase…[Read more]

You need to live in the property first for the 6 year CGT exemption to apply in any fashion. If you rent out the property first, you will be liable for CGT in some way down the track.

Cheers

Tom

As Shahin mentioned, it all depends on how aggressive you want to be with your saved funds. Depending on your risk tolerance, you might want to use it on the one property, or could have the option of using some funds on a second IP if using higher LVR's.

Also need to factor in what plans you have for any future PPOR's to consider funding…[Read more]

Hi Carson, as Derek mentioned, if you have enough equity in the property you can go to 100% finance of the new property plus stamp duty, etc. You say you have paid the place off, so it seems you should be fine on this point.

The deposit/costs would be taken out as a separate LOC/term loan on the exisitng property, with the remainder taken out on…[Read more]

I agree to some point on what you say. Sometimes the client doesn't even know they have a default, and then when they apply for a loan, it comes out but it's too late then. Hence why I always recommend they acquire a copy of the credit file beforehand so there are no nasty surprises. 

In the case of the OP, it seems that they knew about the…[Read more]

As you rented the property out first and then lived in it, to calculate CGT you need to work out the percentage of the time it was an IP and use that with the total gain to work out what will form part of your taxable return. 

Say using your example, total gain was $500K-$127K = $373K, and your IP percentage is 6/12 = 50%, then your CG which is…[Read more]

Yep, anytime a loan application is made (approved or not), it finds it way onto your credit file. Most people don't realise this when they go to lender after lender seeing what they can do, and then all of sudden their credit rating has been tarnished.

Cheers

Tom

Qlds007 wrote:

Cheers Nigel Yes 33 degree days and 85% humidity aren't fun at the best of time.

And that is the reason I couldn't live up north. Humidity and I aren't exactly the best of friends.

Good to hear things are okay and slowly getting back to normal.

Cheers

Tom

Hi Weetbix,

Northcote is a great area, good access to public transport, reasonably close to the city, High St shopping and eateries, borders with some high value suburbs, a lot of things going for it. Only just with your budget, you might be limited to apartments or a smallish unit. Not that it is a bad thing, it just might not suit what you're…[Read more]

As a spouse, you can sign on as a co-borrower even though the title is only in your wife's name.

However as Shahin mentioned, what are the reasons behind being knocked back twice already? Need to ascertain what is wrong.

Cheers

Tom

As was seen with Keating when he tried abolishing it the first time around, the market would collapse, prices would fall dramatically as supply outweighs demand which means plenty of family homes are worth way less than what they were bought for.

Would be political suicide for any government to introduce.

Cheers

Tom

I thought that the minimum 6 months continuous residency can commence anytime within the 12 month period, even in the last month if you wanted? At least that is how it is in Victoria.

Cheers

Tom

In that case if you are looking to improve cashflow by consolidating the credit card debt with the other two loans, it would be something like this (assuming LVR is acceptable) .

Security: PPOR
Loan 1 – Consolidation of original mortgage and renovation loans (as long as the reno loan wasn't used for any personal related expenses). Setup as…[Read more]

Hi Boshie,

Just to clarify with the investment loans, are they for 2 different IP's, or something else?

Cheers

Tom

As per what Jamie said.

Being an IP, it's a business decision and you shouldn't ever get emotionally attached to a property where you end up paying over the odds. Do your research and come up with a figure that you're comfortable with.

It doesn't also hurt to come in with an initial lowball offer either. You may be surprised at what may be…[Read more]

Hi S0805,

Are you sure you're not confusing IO with a fixed rate loan? IO loans are normally setup with extra payments allowed as per Jamie's comment above.

Cheers

Tom