Yes the loan will be closed on settlement of the property.

WalterIn answer to your first question you cant. Any Transfer will incur Stamp Duty and in a gain has been made CGT.With regards to the Tax rate payable by a Company. If the Company was deemed to be involved in the business of buying, renovating and then selling property the profit would be consider as Trading stock and Tax would be payable at…[Read more]

Hi SeanNo unfortunately it is not.Loans in the US cannot be cross collateralised (what a good thing) as the loans will be securitised.

D Wolfe no you are more likely to get the loan accepted at 65% lvr with a decent asset base (not talking a $1-2M but a decent asset base $5M + minimum).Steve is referring to his dealings directly with the Business Banking section of the Bank. I for one can confirm that when we were active in the Vendor Finance market the Banks which openly stated…[Read more]

Hi SeanWe have been involved in financing in the US since 1989 when i worked with Chase Manahattan and have seen many changes over 20 years.Up until a year or so we had direct agencies with World Savings, Alliance Bancorp, Indy Mac and WAMU all of who took applications from Foreign Nationals.All 4 lenders are now no longer with us or part of…[Read more]

Sean depending on where in the US you are looking at purchasing finance is possible within the US from a US lender.No Australian lender will take a US property as security so if it is in a State where a Foreign National cannot borrow funds and you still wish to go ahead then you will need to use Australian security.Again not many lenders will…[Read more]

Hence my recommendation to clients where possible keep the loan as Interest only with 100% offset account even though it is your PPOR.

Yes either looking at a share portfolio or increasing income through options is one way.Other way is of course buying a property and have the interest capitalised to a separate Line of Credit.You would need to get specific Tax advice over this.Alternatively, look at using a LOC to pre-pay the interest annual in advance each year and then having…[Read more]

Hi kactusFirstly welcome to the forum and I hope you enjoy your time with us.One point worth bearing in mind and that is if you rent out your place and buy another property the interest will not be Tax deductible even though you are using the investment property as security. The "purpose" of the new funds will be to buy a new PPOR and therefore…[Read more]

Hi JamesNo you need to have your Super in a SMSF as an industry fund wont cater for this.Wont help increase your cash flow at all as the shortfall / surplus will be in your Super fund.Sounds to me like ideally you need to restructure your loans to free up some equity to enable you to go forward.

JacRule of thumb max loan 70% and no dont difficult to get a loan approved but just be prepared for paperwork coming out of your ears and a fair bit of lenders costs.Do them fairly regularly and they dont get any easier.

Lenders work off your Gross income not your net and then work out the Tax and Medicare deductions themselves.Your income and expenses are then adjusted accordingly.

Hi DylanIt doesnt work like that regretfully.Each lender uses a different serviceability model so doesnt suprise me if you have come up again a Bank that says no more.As i mentioned earlier there are varies ways to skin a cat it just depends on what you trying to do and whether you feel you can afford the loan.

Many lenders do add back the Tax adjustment made as a result of the negative gearing effect of the interest cost being greater than your net rent however do not take into consideration any adjustment made for Depreciation or Capital Allowance.Other lenders do not add this back into the equasion.Just a matter of getting the right mix to keep your…[Read more]

Can you afford to support any shortfall in repayments (post negative gearing etc etc) if so there are a couple of lodoc style products at standard interest rates that maybe able to accomadate a situation like yours.Course like anything further information would be required but a loan restructure should get you there.

Hope you have a big deposit as lenders wont be financing them in the same way even with residential zoning.Certainly be tying up your equity.

Dan is bang on.Firstly Stamp Duty will certainly be paid on the purchase and CGT on the assumption the asset had appreciated.I cant think of 2 many lenders who would even touch a PIT or HDT in the current climate and the odd or two that do will not be attractive in terms, conditions or interest rates.

Cant say i know the suburbs but happy to run you a report on any property you find if it helps you.

Steve certainly wouldnt do anything under hand but in realty as Terry mentioned it cant be done.I think there maybe some misinterpretation.

No we have an in-house firm that does all of our installment contract in Qld.