I am a broker and do a fair few loans with ANZ. The broker has a toolkit which will tell us who the valuer is for a particular area. There may be 2 or more sometimes.

But when the valuation is ordered it is automaticly assigned. ie the broker cannot choose. The broker also will not contact the broker directly. If contact has to be made it is…[Read more]

FMS wrote:
LOC has the same benifits as an SVR (standard variable rate) from my understanding. Only difference I can think of is the ability to capitilise interest. You would want to get specialist tax advice from an accountant if you where to consider this.

Colin, one major difference is the ability to have a cheque book on the loan account.…[Read more]

Line of credit.

Subdivision itself won't be a CGT event. If you don't sell then no tax payble.

if you sell then it would be dependant on a few things – including sale price.

westnblue wrote:
@Terry

This was the reason to do cash out instead of cross collateralizing, both seem to have pitfalls. Although crossing properties is the worst option.

It was probably already crossed.

Best to let it all settle and then fix the problem asap.

Jade12 wrote:
Hi Terryw, 

Thanks for the link. My solicitor said that secondary dwelling is not considered a main building and should have no problem. Would you agree?

Jade

Wouldn't like to comment as this is not my area.

Google "black v garnock"

It is not to stop them transferring to someones else but to stop others from gaining priority.

If Black about 30min before settlement someone who the vendor owed money to was able to record a writ on the title to the property. This meant that this person took the property to satisfy the debt and the purchaser was left…[Read more]

Yes it would.

Ignoring the fact that you live in it
If you sell for a $40k gain CGT would be at most $10.
First you take off all associated costs. say $6k
Reduces the gain to $34k
apply 50% discount = $17,000
This is added to your other income.

If you didn't have any or earned about $3k, tax could be nil
If you were on $180k pa the tax would be…[Read more]

Jezelle wrote:
Is this the same if the company owns all the money and properties, wouldn't you then go on company tax for the lot anyway?

Yes, the same principals apply. A company can only claim expenses related to the production of income or business under s8-1 ITAA97. Not all expenses would be deductible, just like a person.

In this case…[Read more]

westnblue wrote:
OK i understand now.

What if i had an unencumbered property and the value was 100k and drew out 80k against it. Would it still be in the same position – aka the entire loan interest not being tax deductible?

From your question I don't think you do understand the concept.

Same principals apply no matter what the security is.…[Read more]

spearsy wrote:
What Terry is trying to say is that, the purpose of the funds determines whether or not the interest will be deductible. By depositing the funds into your offset account, the initial purpose is not to pay the deposit. Ideally, the deposit should be paid directly from the loan draw down, not via your offset account. 

Thanks…[Read more]

westnblue wrote:
I cant see your angle….  Im drawing equity to pay for more property for the SAME company.

And if you say thats wrong, well cross collateralizing is the same thing just more risky. How many people have drawn equity to go and buy more property – Nearly everyone I know.

The same laws apply no matter who the borrower…[Read more]

As a tax lawyer i disagree.

westnblue wrote:
Im only parking it until i find a new property usually under 4 weeks, for every 100k im only paying $420 for a months interest (even less with offset).

With 100k cash i can pay deposits on 5 regional properties, which in turn will make more equity if bought right

I stand by my comments!
Doesn't matter if it was one…[Read more]

westnblue wrote:

I locate a property with at least 40k usable equity and do a cash out equity draw up to 80% LVR.  So what happens ill draw 40k from one property and place the cash into an offset account until used, that reduces the loan somewhat until used. This cash can be then used to pay cash 20% deposits on new purchases or buy…[Read more]

Sounds like a covenant
http://www.austlii.edu.au/au/legis/nsw/consol_act/ca1919141/s88b.html

wilko1 wrote:
Terry, Wont the bank want to look at the new director to see if they can service the previous loans of the company ?

and what happens if the past director of the company has given a personal guarantee. (as mostly standard these days). Are the absolved of their responsibilities if made not a director anymore.

Wilko, I was…[Read more]

a business name is just that – a name. It doesn't matter what you call a trust as that doesn't change things. Where you are giving a personal guarantee this will limit your borrowing capacity as if you had that loan yourself.

If you have hit the serviceability wall you could possibly more forward by having others take the position of director of…[Read more]

Will Skelly wrote:
And may I ask is anyone aware of the fees involved with Connective?

My company, The Loan Experts Pty Ltd, is with connective. $680 per month plus $110 per month per loan writer plus GST.