AMP dont allow LMI cap above 90%.

From your figures it sounds like you have some money in your redraw when you refinanced?

Regards
Michael

Sounds like your getting mixed up with usable equity and what something else….not to sure where your getting most of your numbers from??

1.What value did the AMP valuation come up with?
2. Wat was your loan amount with CBA ( refinance amount)
3. How much was your LMI?

Regards
Michael

Could be a number of factors – you should have asked your accountant this question, but generally speaking;

1. Company- can’t pass on -ve gearing or any lost ( this may be the reason for the 70k buffer..- are you making a lost right now?)
2. No land tax threshold
3. No CGT discounting.
4. The company 29/30% tax rate – i have a feeling this is the…[Read more]

CeeKay wrote:
Thanks MichaelI think an SMSF would be a more expensive way to go than holding company and discretionary trust.  I did discuss this with my accountant today.I'll have a look at the investment bond.What a great forum this is.Thanks againCarole

No problem Carole.
Set up:

SMSF – cost is around $3,000- $4,500
Trust – $2,000 -…[Read more]

Also one more thing you may want to discuses with your financial planner ( if she/he haven’t told you yet) is to change your Superannuation account to a Account based pension account. It means you start to draw on your Superannuation on a regular basis…but

1. You no longer pay the 15% tax
2. You no longer pay the 10% capital gain tax

And if…[Read more]

Never to late; as long as it’s really want you want + it meets the goal you want to achieve. Some issues you may face are;

1. Serviceability- instead of servicing a loan on 30 years…you may have to service it on a reduce term OR have a set realistic exit strategy
2. Time – Like most investment it required time for it to grow…so it depends if…[Read more]

Terryw wrote:
When I was younger I went to as many free seminars as I could afford to . I think it is a good way to learn. I still do go to free seminars whenever I can – went to a recent one by the ATO on SMSFs (they didn't try to sell me anything which was strange).

I love the ATO talks

Out of date info.

Having a trust does NOT increase your borrowing capacity.

Regards
Michael

Not sure what your asking???

It sounds like you bought the place already with LMI? and now you want a refund?????

Regards
Michael

Even if you put it into a family trust; your still a guarantor of that loan and beneficiary of the trust.

You still need to declare to the bank every loan your a guarantor of- and the liabilities and income of it will be used in the serviceability based on ownership.

Your best to sit down with a broker/ financial planner and go throught the…[Read more]

It will come down to serviceability… if you can service the extra increase and loan.

Regards
Michael

That be around right; 30k wage single…roughly around the $70-$120k mark depending on lender, product type and LVR.

And yes, drawing out equity later is a valid option; but how much you can draw out will depend on.
1. Your income then
2. Valuation
3. REASON for the draw out + banks approval.

The bank may not let you draw out the funds and just…[Read more]

Personally i would advise against new purchase purely for the $8k benefit..

1. You can’t see what your buying- being your first buy this can be a costly mistake
2. Builders tend to add a larger profit margin on top considering there is a grant as well
3. 70% of new build i have seen do not meet customers expectation …especially investors- ok…[Read more]

yea i could see that loophole happening.

But most kids online savers are like 1% if that….so didn’t see much benefit using the loophole if the rate of return is so low.

5 star cannex award system is not customer service driven or how “safe is their rates and company” …it’s purely based on HOW CHEAP ARE THEY COMPARED TO XXXX

wow 6.22%- ok you get an award

+ you know these company AFTER they win the award pay Cannex and another award “system” magazine/website a advertising fee to advertise their banner + if…[Read more]

Terryw wrote:
Kids can only earn around $416 in passive income and then they are taxed at penalty rates.

dame…didn’t know that- that sort of sucks…$416 is nothing

P.s option 3 is pointless….your paying weekly rent to share a place with someone – you might a well go with option 2 and buy the place ( mortgaged) and share it that way; The advantage being;

1. You gain potential capital gain
2. Dont have to worry about moving and land lord
3. Tax benefit
4. Rent increase is controlled by you.
5. Sub-leasing…[Read more]

DMB wrote:
1) Buy a home (likely around $400-500k) and pay off ASAP to reduce the interest. Then after I own it, I can start looking at investment property. I don't think I would be able to sustain the interest in buying a home and investment property at the same time.- Things to note, Initially I won't want to live by myself so would be getting…[Read more]

I dont think tax is payable for any of the kids/youth saving accounts….

Regards
Michael

Mac bank during the GFC- shut it’s doors and business literally – increase the rates + no new leading and was really hard to exit and refinance out of them. If this happened with any of the more well known brands or the big 4 it would be all over the news and a big out cry + the company would go out of business for sure….but smaller banks can…[Read more]