Hi DeeNormally 2 years tax returns are required but in saying that if you have 1 year with a couple of Business Activity Statements there are a couple of lenders who will look at the deal.

All depends on your perspective. You dont pay tax on capital growth unless you actually realise that profit.I would rather have a positived geared property with capital growth as well.

Check and see whether the loan is portable as if you are purchasing again you maybe able to merely do a security substitution.Other than that regrefully no way around it.

The fact that that the current property is in Joint names will be the disqualifying factor as it was a PPOR for both of you (irrespective of your relationship).All you would do is convert the existing loan to interest only as it will be an IP and you wish to maximise the deductible interest, remove the offset account and link it to the new PPOR…[Read more]

Matt this is correct but varies from State to State.

Hi JulitoI think Terry link gives you the answer to that one.With regards to the other question Alex raised there is nothing to stop you purchasing another property as an investment whilst your principal place of residence is being constructed. You will probably find accessing the available equity in the property during construction is a bit h…[Read more]

Duplicated Post

Hi CEIf I and another party purchase a home together and it is the first for both of us. Regretfully not you will only receive it once.Obviously if you intend to rent the property long term make sure you structure the loan correctly from day 1 to avoid any issues down the track. Ideally I would be taking out a 95% interest only loan linked to a…[Read more]

Take say a ballpark interest rate of 5.5%.Multiply your loan amount (normally purchase price + costs or say 110% of the purchase price) by 5.5% / 12 to give you the monthly interest payable.Take 100% of the Gross rent and subtract say 8% managing agents costs and 1 1/12th of the annual rates body corporate contributions (if applicable), i…[Read more]

Quiet easilyMinimum 6% ?  How do you know this to be a fact?  They have sold over 100 of my developed properties over the last 14 years and we have always paid a minimum of 6%.The prices for the TIC and the local agent were not the same. In many cases we presented the TIC with a copy of a full valuation report undertaken by a major firm who we us…[Read more]

No payment to the IC however the vendor will pay a minimum of 6% of the purchase price by way of a commission.Certainly from my experience with the TIC usually means the property is overpriced.Conveyance in Qld is easy we have a standard Contract which is subject usually to finance and building & pest inspections and on the due dates you can…[Read more]

Alternatively look at selling the property into Trust at market value and borrow 100% of the valuation of the property.Use the net proceeds after discharge of the existing mortgage as deposit together with your offset funds.This way interest on 100% + of the market valuation becomes deductible.You will incur Stamp Duty on the Transfer but…[Read more]

Sorry Daniel i certainly would not do this Some lenders allow a limited amount of extra repayments when on a fixed loan, so if I can put any money into your PPOR fixed loan, This will contaminate the loan if you redraw on the funds and the purpose is not for investment it will not be tax deductible.

Hi IS I imagine the fixed rate loan is principal & interest loan and probably cannot be varied whilst under the fixed rate.All i would do is when the fixed rate expires switch the entire loan to an interest only loan and link an offset account to the variable portion (You might fix half the loan and keep half variable or a percentage). Reduce the…[Read more]

The interest on your LOC will be Tax deductible if the funds where used for investment.The amount of deduction will vary with marginal tax rates and the interest rate being charged on the loan itself.

As has already been pointed out you wont find any lender offer much more than crica 70% so will need to come up with the deposit from somewhere.Mortgage Insurance is not available for Commercial deals so is not an issue.Rates have fallen a little to what your Broker original quoted but to be honest as the number of Commercial lenders has also…[Read more]

Hi redsunI agree with Michael you wont unfortunately qualify for the First Home Owners Grant due to the defacto relationship with you both living together.I assume you will be renting out your own property and purchasing the new PPOR with a sizeable cash deposit so if the property is in joint names i cant see a real issue.

Stamp Duty would be payable on the transfer value.

If this is so it would be a fair advantage to own your PPOR outright then and just have all deductible debt against other IP's etc. Totally agree but if you think you will move out of the PPOR, rent it out and buy another PPOR you want debt shifted.

No a Offset account does not hiner your borrowing capacity.A lender will take the existing loan balance (or in fact the amount the loan could be redrawn upto) as your liability so if you had a loan of $100K and $50K in the offset account the liability will still be seen as $100K.