Alex

O & A – Offer and Acceptance

NCCP = National Consumer Credit Protection (think the acronym is wrong)

LOC = Line of Credit

IO = Interest Only

I am currently away on holiday so will keep the response fairly brief.

Terry is correct in the US 100 shares make up 1 option Contract and with some
stocks you get 2 expiry dates in the same month.
BP & C (citibank) are 2 examples of such stocks

Back to Australia have you considered a long dated instalment warrant.
In the US try a LEAP.

Dont want to appear rude but i would check those figures yourself as i cant think of any property where you would loose $25,000 clear after Tax.

I am not doubting your Accountant but even if the purchase price was $600,000 and you were only getting $250 / week the loss would be nowhere near that.

If it is draining your savings by $25K per annum post Tax and you dont think the property will ever go up over the coming years then i guess selling it is an option.

Still cant get my head around those figures.

I have 1 or 2 properties in Brissie and not one of mine has falled in value since 2008.

Using an interest only loan with 100% offset even though you have no current PPOR gives you flexibility so if you decide to purchase a property for your own occupation in future years you are not having to pay interest on non deductible debt.

You would merely utilise the funds in the offset account and either use this as deposit or gear against the savings themselves.

This strategy just gives you maximum flexibility.

Hi Jack

If the property is negatively geared and you need to claim the negative gearing each pay period then 99% shares would go to the highest marginal Tax payer and 1% to the other owner.

Course downside is that one day when the property becomes positvely geared then 99% of the income gets allocated to you and also if the property is sold then 99% of the Capital Gain also gets added to your Taxable income for the applicable year.

A Discretionary Family Trust gives you flexibility when it comes to income distribution however you are unable to claim the tax losses in Trust so if this is important probably not the way to go.

There are some excellent no frills style investment loans at the moment so splitting the loan like you have suggested is a good idea and a recommended strategy.

If someone else takes out the loan then they will want to be (and the lender will insist) on Title.

This then means it is not your PPOR and could be an IP for them.

They and you loose the Stamp duty concession, may incur CGT and also Land tax depending on the land value etc.

I would do a search on Sydication and read up on some of the problems involved and also ensure you are fully compliant when it comes to advertising for funds.

If you are prepared to give up some of the potential capital growth a shared equity scheme could be an option.

Max lvr is 90% so you would to have a deposit but we are starting to see more and more of these loans evolve.

You might take out a 90% lvr and you make repayments on say 70% with 20% being interest and repayment free.
The lender then takes 40% of the capital growth.

Either a way of buying what you want and reducing your repayments or being able to set you repayment and affording something in a higher price bracket than you expected.

Jess as long as you can produce last 2 Year Tax returns for your husbands business you will be treated exactly the same as anyone in PAYG employment.

Lenders however take your Net Taxable Income for serviceability.

If not the number of lenders reduces but again not unsummountable depending on what documentation you can provide and whether husband is in the same line of work.

Sash you shouldnt have to ask your Broker.

If he knows his onions he should be telling you that CBA will do it standing on your head.