Vincent8 wrote:
Many thanks for your advice, Terry.

I will definitely stress to my mortgage broker to avoid cross collateralisation if this is what he had planned. Will also mention the LOC you advise of and see what he has to say.

I realise I sound like a complete amateur when I post this, but I am new to this and my mortgage broker sounds…[Read more]

Yes it is normal these days. But I don't charge anything at the moment. I have been meaning to implement something to stop the time wasters but haven't got around to it – not that I get many.

You need to look at the foreign investment rules if your Singaporean friend is a non permanent resident. Depends on her/his visa.

Beware – sounds like he is going to cross collateralise your properties. THis is dangerous and unnecessary.

Basically there are 2 ways to do this

Values
$500,000 PPOR
$300,000 IP

$800,000

Loans
$200,000 PPOR
$300,000 IP

$500,000

LVR = 500/800 = 62%

The security for the IP will be the IP and also the PPOR = No…[Read more]

Don't put it in the loan as that will create tax problems. Deposit = repayment and withdrawal = new loan, so you could ruin deductibily of the interest once you withdraw the money.

A look at 100% offset accounts would be the way to go

Whats a dummy company? A company is a separate legal person so you could rent to a company which you controlled. But what are you trying to achieve here? Income from the work the company performs will be taxed. For the company to claim the interest on any loan used to buy the premises market interest would need to be charged. The rate would be…[Read more]

You can't do it without stamp duty, usually. You enter into a contract to purhcase and then quickly sell the same property. At settlement you organise it to all happen simultatenously. It will be a crowded table with cheques being handed around but at the end of it you should have a cheque left in your hands but no property or loan. However if the…[Read more]

Nue1 wrote:
Hi all,

First of all, thanks for all the inputs.

The reason why I want to start now and don't want to (well I can at the same time) reduce my debt is, I plan to buy my first IP, then after considerable amount of time of holding (1-2 years), I can benefit from capital gain (not negative gearing, aiming at positive gearing or…[Read more]

jer29e wrote:

Hi

I would appreciate it if you could advise me on my situation. I have some equity in my PPOR and the property is in my name. I am about to start a rather high risk business and do not want to risk losing the equity if I get sued.

Are there any way to protect my equity?
i heard that there is an equity bank trust (EBT) in which…[Read more]

Any non deductible debt?

What if you sold the one with the most equity and paid off your non deductible debt (if any) and then parked the rest in the offset account attached to an investment property?
How would that effect cashflow?

or

What if you sold the one which will result in the least amount of CGT – how would that work out?

I would suggest you consider to buy under friend's name only. You can set up structures which will cost money and result in cashflow issues or just keep it simple. Joint names would mean you on title too – that may be possible or may not considering your debts. If it won't hold you back then both names, if it will then friend only with you…[Read more]

r.m.investment wrote:
I just built an investment property in QLD and it’s now rented out. I used a national buyer’s agent to set the deal up, as I’m in Vic. I was expecting the rental income to be just over $400pw, but they ended up rented it for $445pw on a 2 year lease in the first two…[Read more]

Yes that is correct. Prior year capital losses could offset capital gains – with the same person. You should seek advice though to make sure your losses are captial and have been carried forward.

RouiRoui wrote:
Hi,

Just wondering if tis is an option or makes sense?

thought about greeting a loan with a line of credit.  It is for our home not an investment.

we have enough money to deposit into the lin of credit for it to be a zero balance from the get go.

is this a sensible option, are we missing anything, or is their anything else we…[Read more]

By capacity, I meant mental capacity.

There are plenty of ways your mum could lose her money, so to protect her and yourself you each should see separate lawyers and nut this out. It is doable but should be done properly as there are so many issues involved.

BomberRoui wrote:
Morning,

I'm wondering now whether setting up an 100% offset is perhaps the best path?

Would the benefit be in paying all my income into the variable loan and then using a 40 day interest free credit card for daily purchases.

Then from the offset account paying the credit card?

or paying all income into the offset, and then…[Read more]

BomberRoui wrote:
Thanks Terry,

I agree, at least with what you have outlined I still have flexibility and options and can come back to the LOC option when and if required.

I appreciate you insight.  Cheers.

Several

1. You could end up with a mixed purpose loan = messy and more tax
2. If you ever moved out and rented the property it would…[Read more]

Yes. You cannot settle on the sale under you settle on the purchase. Stamp duty and income tax would apply.

Make sure the loan is secured or mum could lose her money. You also have to consider capacity issues because of her age and be careful of 'elder abuse' allegations – possibly by other family members. You and her should have separate solicitors and she should instruct her solicitor directly without your involvment.
She should make sure her will is…[Read more]

Probably. An agent is not going to walk about from money that easy.

Is there a cooling off period? A notice period?

BomberRoui wrote:
Morning All,

I have come away from an appointment with a lender and I'm still trying to get my head around a Home Equity Loan with a Line of Credit for a new PPR (currently renting).

This is the working example:

Property Value: $400,000
Deposit: $80,000
Balance: $320,000

Now this is where the confusion sets in, I'm lead to…[Read more]