Personally i am in favour of having the loans and securities separate.It doesnt matter on what property you secure the loan (Usually when you are borrowing 100% + costs you will need to offer additional security or take out a loan on another security to cover the 20% + costs) as long as the loans are not crossed.Whilst this may not cause an…[Read more]

Why not try my Accountant and forum member Steve Hodgkinson on 5532 2855.Steve is the senior partner at the Gold Business Group based in Southport and is an expert in Property Trusts.Tell him i referred you as most good Accountants are not taking on new clients.

No Marc I am a lot better looking !!!!!

Tax agent wont be much help you need a Quantity Surveyor.Try someone like http://www.depro.com.au.

Sounds like an absolute bargain. I dont even charge that for a 100 page financial plan.

IssacNo the interest they receive will be taxable income offset by the interest they are being charged by their Bank but the repayment of the loan will be of a capital nature and not taxable.If you paid them back say $120,000 then the $20,000 would be Taxable

Hi ThomasCapital Works Allowance, (i.e. Building Allowance) is based on the actual construction cost of the building calculated from the date of construction. The building allowance is either 2.5% or 4% depending on the date of construction or type of building (residential, industrial, retail, commercial). Therefore a building has either a…[Read more]

The Big C is quiet liberal on their serviceability so if he has maxed his borrowing with them then maybe he can't afford it.Full details would be needed to make a responsbile comment.

Are the loans cross collateralised and what is the details of the other IP.Do you own the land outright ?Is any of the PPOR loan tax deductible or was the entire loan used to purchase the property.

Why not switch it to Interest only and then link it to a 100% offset account.Deposit the $5000 into the 100% offset account and be charged interest on the net balance.

Dont necessarily dispair.As long as you have good income a 90% loan would appear to be satisfactory dependant on what you are looking to purchase.A couple of lenders will go upto 100% on an IP on a standalone basis and without additional security.All you would need to find is the acquisition costs.

PeterYes certainly given the equity in your current properties securing a new IP for 400K should not be a problem. Given your current marginal tax rates you may want to explore the option of purchasing it in Trust as the deductions will be limited so iniitially will end up costing you each week but the added bonus of the Asset protection and the…[Read more]

To utilise the 50% of profit (for CGT purposes) from the sale of the Port Elliot land, we have to wait 12 months from settlement on purchase which was in January this year.   We’re sure it’s in our interest to quit this block to free up funds for deposit(s) on IP, but are unsure whether to sell now and quit any loss or wait till after Jan 2008.…[Read more]

Peter, A couple of answers for youQ) “All loans should be IO” and the mechanics/thinking behind  “a 100% offset account on one loan”A) An interest only loan will maximise your borrowing capacity (Although some lenders will still assess your borrowing capacity on a principal & interest basis) and give you more disposable income each month.  A…[Read more]

Hi JosephYes correct however just be careful in doing a redraw  to esnure the interest is deductible if you are using the funds for investment. 

MattDifficult if not impossible to get 3 different lenders to lend against the units when they are on a single title.There are many reasons why you wopuld not wish to strata title the block but as Alistair mentioned a 90% loan on the 3 units on 1 title should be easily achieveable.

Thankfully i see his membership has been blocked – at last.

I disagree.The credit crunch has little to do with full doc loans. You certainly would get more than 60% LVR on a 3 pack of units subject to income and valuation.

I agree with Wealth.I use my SMSF to undertake a lot of good cash flow ventures, whether it be wrapping, buying instalment warrants or land subdivisions.

Just to add to V8's comment the other thing you need to bear in mind is the clawback period.With some lenders the entire amount of the commission received by your broker can be clawed back if you repay your loan within the first 18 months.Some lenders phase the commission period in from Month 1 to 18 months others take back the lot.Not sure of too…[Read more]