Hi AnthonyMany of them do but normally this just nulifies the motor vehicle expense they use as part of the living allowance.

Hi LinarI think one of the biggest issues is being unable to prove your income and wanting to live of equity.Lodoc loans to 80% with an unlimited amount of cash out have probably been and gone for the time being however full doc loans are still very much available to 90%.I think it will still be a year or two before the mortgage insurers go back…[Read more]

KeikoMaths was never my best subject at school but it comes to a lot more than $50K !!!!And my figures are very generous.

BenNAB Commercial loan goes to 70% LVR on residential property and the interest rate is 6.74% variable.The set up costs including the Bear Trust and new Pty Ltd Company come to around $6000 with the right Solicitor.I have done 7 of these deals to date and admitedly they are not straight forward I would certainly recommend it to a client looking to…[Read more]

I have purchased and own a number of properties within my SMSF.There are numourous pros and depending ON WHAT YOU are after very little cons.Tax on the sale is based on 15% or if the Asset is held for more than 365 days on 10%.Obviously you need to have sufficient funds in the SMSF to make it worthwhile.

Hi Anthony This question gets asked fairly regularly so do a search on the topic and you will see what has been writeen previously.In a nutshell a lender takes your net taxable income and adds to this an percentage of your assumed rents (both current and future). From this Gross figure they deduct an amount equating to a living allowance (varies…[Read more]

Personally I will be adding further wraps to my portfolio this coming year as i just love the + cash flow.

What great opening post from a topic which was last raised nearly 6 months ago.It is always interesting to look at a Companies website and see the bits that are currently "under construction" or "not currently work". On the WAG website interesting to see the Question under the FAQ about "How do you make your money?" is currently blank.Also…[Read more]

Band RDont want to appear negative but i think your figures are a little out there.Firstly the Stamp Duty on the property when you purchased it would have been around $8000. If you financed the deal you could have added another $3000. If the property only had a BA then the title, surveying and Dept of Nat Resources fees let alone the Council…[Read more]

Thats one reason why C & N are getting less and less popular and other quality Accountants from the forum here are atracting more business.

Many non structured brokers offer say 0.25% rebate off their upfront.Usually you have to sign to say that you will repay this in the event that the commission is clawed back in the first 18 months.

Wow must admit if i adopted Bens logic i would have 45 separate Trusts.Thankfully my Accountant of 12 years seems think 5 DFT's is the way to go and sufficient.

Sorry to take a while to come back to you but try Anthony Heslop as an Agent down in the Beenleigh / Eagleby area.Anthony's mobile number is 0407 594 168.Tell him i said g'day.

Away from the validity of the scheme I would be more concerned that as Terry mentioned that your mortgage broker has given you advice on everything from an Offset Account to Tax minimisation which unless he is Licensed to do he cannot provide any advice in regards to such products.

BenI think you may actually find they are challenging the validity of the Deferred Establishment Fees or Early Repayment Fees and not the Fixed Rate Break costs.

JamesProbably covered a lot of them in the above post. You would want to think about restructuring the loans from the start to keep them nice and clean and if so i would definately use an offset account. This can be linked to the personal debt if you have any but if not your IP loan.Not many institutions will offer a fixed rate on the LOC but…[Read more]

Yes in a nutshell you have it.I assume your current loans are with SGB who are known for charging at every turn. Their Professional package also makes it a condition of the loan that all loans are cross collateralises so looking elsewhere for a standalone IP property is not a bad idea.There are some good deals around at the moment so you should be…[Read more]

Hi TomThey are correct it is not a simple straight forward calculation and each lenders terms and conditions will differ.Normally it would be based on the economic cost of the Bank having to relend the same funds in todays climate and the shortfall.Assuming that the variable rate comes down to 5.45% then this would be a 3% saving to your current…[Read more]

Whilst i normal agree with my learned colleague i must say that if the current security for these loans is another family members property i think I would start by doing a security switch to the properties themselves.If you lender is wanting to charge $1000 per property and you feel that they are not as competitive as you would like I would be…[Read more]

Following on from what Scott mentioned you could always look to sell your current PPOR into a Trust structure with you as the Unit holders. Look to borrow 100% of the current market valuation and the entire amount of the new loan to the Trust will be deductible.Admitedly you will incur Stamp Duty on the Transfer but the depending on your…[Read more]