JacM wrote:
Hi acurabot

The short answer is no you cannot get profits out of a SMSF before retirement. 

Also a SMSF cannot borrow money to make improvements to a property.  Even if the borrowings come from you yourself.  So if you gave your smsf money to renovate, it'd be just that.  A donation.  And the profits would belong to the SMSF when…[Read more]

Whole new application I am afraid. Many things to consider too besides the rate.

thejajco wrote:
Nigel
The mortgage is $60k. Will it affect my credit rating here in Australia? I thought they were not international.
Thanks
John

Yes in some instances. It wont show up on your credit file but some lenders specificall ask questions around being in default.

Peanut wrote:
Hi All, thanks for your responses. I haven't read Janmor Nominees yet. I will do so this weekend.
What about expanding on Terry's idea and what about I sell my half of PPOR to my wife now (gift it). Then when we move into the investment property in three years, she can sell 100% of the property back to me, I borrow 80%, then wife…[Read more]

s0805 wrote:

Terryw wrote:
In vic it is possible for one spouse to sell to the other at full market value. So the other spouse could borrow to buy half the property. This would release cash which could be used to pay for the new PPOR.

Hi Terry,

In VIC, does it only applied if both spouses name are on title initially, how about if only one…[Read more]

I've never heard of court orders like that. Do they prevent you from entering bankruptcy, but what about someone else initiating the bankruptcy proceedings?

If you have an option of the property then you will have an equitable interest in that property and could therefore probably be ok – but seek your own legal advice on this.

Anthony K wrote:
Hi MkBonline
Now I am going to upset some people but thats how it is sometimes. Lawyers tell you it's illegal to give legal advice if your not a lawyer – that is simply not true.
The truth is this: – IT IS ONLY ILLEGAL IF YOU CHARGE FOR IT !

This is simply not true.

Only a lawyer with a current practicing certificate can…[Read more]

Anthony K wrote:
Hi Peanut/Catalyst and All

Do not listen to the ATO BS
The last case on this was in 1987 which the ATO LOST !!!!!

Go read Janmor Nominees – this case is still THE LAW.
FEDERAL COURT OF AUSTRALIA
Re: COMMISSIONER OF TAXATION OF THE COMMONWEALTH OF AUSTRALIA
And: JANMOR NOMINEES PTY. LTD. (AS TRUSTEE OF THE J. REDMAN FAMILY…[Read more]

I think JacM of this forum operates in that area as a BA. Jacqui??

Yes, stamp duty, cgt and a new loan would be required.

I don't think it is the money that is the problem it is the acting as an agent without a licence

In vic it is possible for one spouse to sell to the other at full market value. So the other spouse could borrow to buy half the property. This would release cash which could be used to pay for the new PPOR.

Best to get an IO loan with 100% offset and store money in there. It will save you the same amount of interest as if paid into the loan and…[Read more]

I have purchased 10+ properties from buyers agents. I did this without ever seeing any of the properties and all worked out well, except for one which I purchased on the advice of a 'friend'.

That article probably describes exactly what is happening in this situation.

What state is the current PPOR in? In one name or 2 names? Spouses?

You would probably want to borrow 105% of the purchase price of the new investment property, IO with an offset. Don't pay antying off the principal initially. Just savings and rents into the offset.

BrentL wrote:
Terryw, 
Yeah they are around 30m2 and a lot of the ones that I was looking at were serviced.

Ah, it will be very difficult to find a lender for these. Try CBA maybe.

There is a reason why they are cheap – no one can finance them. You have to ask yourself if these are a good investment.

Thanks Darryl,

I have been slowly writing 2 books, 1 on trusts and 1 on asset protection – my two great loves.. But it is a very slow process.

What about taking an option to purchase the property – may be hard to do.

When entering contracts you must consider what will happen if things go wrong. You can set up a corporate trustee for your unit trust and this company will enter the contract. If you cannot settle for whatever reason then the company will be sued, not you. But many vendors…[Read more]

BrentL wrote:
Thanks for that Jamie M
As for the property, I should have specified that I am looking at a student apartment in Brisbane which rents at $270-$300 a week. Without going into all the fees and costs associated too deeply yet it appears that it will be positive cashflow as long as it has a reasonably low vacancy rate

In that case…[Read more]