TheFinanceShop wrote:
No lender will accept capital gains as taxable income for servicing unless (and this is a maybe not a certainty) you can seriously show that the capital gains is repetitive. By this I mean you need to show the lender a history (minimum of 2 years) capital gains income, you need to show that you are full time in this…[Read more]

If you or a related entity is declaring profits on capital account it is likely to be treated one off. Even when using a discretionary trust the income would flow thru as a capital gain usually.

If you are trading or treating the sales on the revenue account then you are unlikely to be treated as a residential customer and more likely to be a…[Read more]

Sounds like you have borrowed money to invest in a non interest bearing savings account. Dangerous

I agree with richard and alistair above. Must have enough income in the trust and remaining directors to service and thrn get the loan redone. Income of trust can be taken into account. But if it is one off capital gains from the sale of property then this is unlikely to be considered income for loan servicing.

Qlds007 wrote:
No gets better Terry they had the 2 properties crossed but they told him that even though he had 110% borrowings the loans wouldn't be crossed going forward.

Must be magic.

Cheers

Yours in Finance

 bet they regret it already

it depends on what state the property is in. i am a solicitor and sold a property in tasmania last year, the agent did most of the contract. before i knew it he had a contract prepared and a signature on it so i just countersigned and that was it.

and they probably have kept their loans crossed too:-)

yes this is nothing new. a lot of forum members used to waste the time of brokers trying to work out which lender and how to structure their loans and then trot off to a refund broker. not the sort of client you would want to have anyway.

 this part of the reason why i now charge clients to do their first loan. the other reason is because i also…[Read more]

s0805 wrote:

Terryw wrote:

s0805 wrote:

Hi Terry,

I had identical situation and had just settled on my first IP. I need your opinion to understand if I've done this right or not. Bank allowed me to borrow $90K as equity of my PPOR as separate loan, when I was settling on $90K loan I advised bank to open new offset account and link it to…[Read more]

s0805 wrote:

Terryw wrote:

jmsrachel wrote:

kat13 wrote:
We pulled out the equity on our house – 90K which got paid into cash into our offset account until we were ready to get something…but we are also using 30K for personal improvements which is maybe why it was done that way????

We are currently waiting on preapproval for the rest…[Read more]

buying with the intention of selling for a profit would not fall under cgt provisions but just ordinary income tax.

Hi

You will need a contract of sale drawn up before the agent can start marketting the property. But I would first talk to some agents to get a feel for the market and what price rhey could achieve. Take 10% off whatever they tell you too.

One of my goals is to be legally able to offer advice on 4 main areas of investing
1 law
2 financial planning
3 finance
4 taxation.

I plan to open my own law firm and a separate company for financial planning. Aim is first half of 2013

There are heaps of legal issues with using your parents equity. Most people dont consider but wjat woulf happen if either or both parties:
Died
Divorced
Went bankrupt
On centrelink benefits
Etc

The property cannot be used as security for any loan. But the smsf could possibly borrow from a member without offering security. But legal advice would be needed as any stuff up could mean tjose funds could count as a contributiin.

Same with buying stuff for the project. The smsf must buy it and jave the trustees name on any invoices. Otherwise…[Read more]

My point iz that small thi gs lime this can escalate way beyond expectations. So if one is contemplating court action you should thi k carefully a d get legal advice first.

Freckle wrote:
New South Wales Consolidated Acts

LOCAL COURT ACT 2007 – SECT 39

Appeals as of right
39 Appeals as of right

(cf LCA 1982, section 73)

(1) A party to proceedings before the Court sitting in its General Division who is dissatisfied with a judgment or order of the Court may appeal to the Supreme Court, but only on a question of…[Read more]

Jak. Bit hard to read on my phone but that looks like the one.

Dirdt link
law.ato.gov.au/atolaw/view.htm?Docid=SFR/SMSFR20121/NAT/ATO/00001&PiT=99991231235958

I recall that the ato has put out a comprehensive ruling out on what can and cannot be done with property in a smsf. I am in japan now so dont have the reference handy.

Freckle wrote:
Can only appeal on lack of jurisdiction or denial of procedural fairness not judgments. Appeals are rare.

I disagree again with the first part. Of course there must be grounds for appeal. A party cannot appeal just because they dont like the decisions but there are many other reasons why an appeal could be made. Eg.mistake of…[Read more]