It might be fair to ask for a small increase, but will the tenant want to pay it?

Qlds007 wrote:
I started doing Deposit Finance in 1996 and it was the foundation stone of our Vendor Finance business (FHOG Pty Ltd).

Still very much alive and kicking some 17 years later.

As long as the lvr is less than 90% you will get around the genuine savings problem with a few lenders / mortgage insurers although 1 of the insurers will…[Read more]

I was knocked back for my first loan by the NAB. I didn't go and see anyone else, I just thought I couldn't get a loan and this delayed me investing for about 2 years. Later after I became a broker I realised I could have easily gotten a loan, even with the bank that knocked me back.

That property has gone up in value about 5 times since then.

The units of the unit trust which are held by the non SMSF entity could be used to raise capital. The units could be charged or used as security, but the SMSF owned units couldn't be mortgaged. But the SMSF could use a bare trust to borrow to acquire the units – but it would be very hard to find a lender willing to lend on this basis.

You shouldn't be offering to pay more than the valuation I think.

You are not legally obliged to continue so treat this as a brand new purchase. You normally wouldn't pay $10k above a valuation price so why do so now – even if you are getting a $9k grant.

What about Nathan Birch's Blink Property?

THat is a big mistake. Very hard to forget about a $10k debt.

Do you have a judgment against you? You can be bankrupted any moment so if someone knocks on your door asking for you by name pretend you are someone else and close the door.

Because you can be bankrupted any moment I think it will be very unlikely you will find finance because no…[Read more]

Yes, if done that way the business aspect may be ok. If you are in Sydney I may be able to advise.

LC888 wrote:
Another issue (never ending!). So, I took the line of credit (LOC) using my fully paid PPOR as the equity. As I was waiting for the line of credit to settle, I needed to pay the 10% deposit on the IP which I was going to use the LOC for. My broker told me that I can just pay it from my own cash and then reimburse myself once the LOC…[Read more]

LC888 wrote:
Another question – is remortgaging the same as having a line of credit using my fully owned home as an equity? 

Mortgaging is a common term used to describe borrowing money (mortgage actually means taking a charge over property).

Obtaining a LOC is a form of borrowing.

LC888 wrote:
Thanks Dan.

I've asked this question to my broker before and she said there's no such thing but today, my boss suggested the same thing again:

– Is it possible to remortgage my fully owned property in SA and use that money to pay for my property in Melbourne that I am currently living in? …which means my IP in SA would be on…[Read more]

If a tenant injures themselves in the property they are likely to sue the owner of the property which will be the trustee. If the trustee gets a judment then they must pay the tenant out of the trust assets if the trust assets are not enough then the trustee's personal assets are at risk. This is why it is best to have a company as trustee.

If…[Read more]

Better be prepared for some legal advice before starting. You would be breaching a few rules possibly if you set it up like that.

You have to look at the sole purpose test – super is supposed to be solely for your retirement. Running a business of development may breach this rule.

You can also only borrow to buy a single acquireable asset. So if…[Read more]

Firewater. Very easy, but cumbersome. Work out how you are going to do it – gift, market value, undermarket value etc and then just fill in the relevant paperwork such as a transfer document from your names to the names of the trustee.

Apply for a new loan, pay stamp duty and then complete the settlement.

If it was your main residence before…[Read more]

50/50 was just an example. Could be other amounts.

It may also be possible to lend the SMSF money unsecured.

or Have a unit trust set up and then you own some units and SMSF own the other. You could lend money to a bare trust of the SMSF and a charge could be taken over the units.Very

complexx and you will need to spend a fair but on advice

JacM wrote:
Hm I had understood a SMSF could not essentially go into business with or joint-own an asset with a related party.  Would the 5% rule apply here then?

No because of the above section I quoted which specificially says a jointly owned asset is not classed as an in house asset.

JacM wrote:
No. Your SMSF is not allowed to jv with a related party

SIS Act section 71(1)(i)
http://www.austlii.edu.au/au/legis/cth/consol_act/sia1993473/s71.html

(1) For the purposes of this Part, an in-house asset of a superannuation fund is an asset of the fund that is a loan to, or an investment in, a related party of the fund, an…[Read more]

JacM wrote:
No. Your SMSF is not allowed to jv with a related party

JacM – any authority to back this up?

I don’t know of any restriction in a SMSF buying property jointly with a related party.

Because of the land tax issues, I would tend to favour buying in your personal names with planning on which names to use first.

If there are asset protection issues then a discretionary trust. If the land is in VIC a personal name should be considered first because of the stamp duty issues on spousal sale strategy, but other states maybe a fixed…[Read more]

Wilko, a trustee of a SMSF cannot borrow money, s67. But s67A allows a trustee to borrow money (wtf?) by introducing an exception. This is to acquire a single acquireable asset.

(incidently you know when legislation has been amended when the numbering jumps out of sync and letters have been inserted such as s67 then s67A s67B etc?

So with your…[Read more]