Don’t give up on it though. It is still possible to do, you just need to plan carefully how you structure it and the reasons for doing it.

My reading of that TD is that the ATO can apply Part IVA of the Tax Act and deny the deduction if the dominant purpose is to pay the home loan off sooner.

This doesn’t necessarily mean it cannot be done. There is another ruling which says capitalised interest retains the character of the underlying loan, so if the base loan is deductible the…[Read more]

A lot of people don't honestly tell the broker information. So the broker would possibly be wasting their time if you exaggerated or left out some important bits – on purpose or unintentionally.

I have never done so myself, but have been caught out a few times when clients forget about that limit on the LOC.

Jact, Sounds good in theory, but have you read TD 2011/D8 or sought advice on this?

And, why would not a 'normal' LOC work?

Why do you want such a product?

Possibly the St George Portfolio loan. The sub account limts can be adjusted I beleive.

Ralph Z wrote:
Hi Terry:
    no, as far as i know, they will just give you all the options, you decide what to do, and you would then need to speak to accountant and lawyers etc.
     cheers

Gee that is fairly costly then.

Yesterday I did some financial planning training. Now I am a solicitor and chartered tax advisor and a mortgage broker.…[Read more]

Wonder who the lender is? Probably a mortgage manager

This is one of the problems with using a conveyancer. Did you get legal advice on the release of the deposit?

It is the bank’s money so they can make up the rules. Complaining may or may not help. Its like you asking me to lend you money and I say I will if you do x. There may be no legal requirement to do x, but that doesn’t mean I have to lend…[Read more]

Bridging loans complicates things…

Terryw wrote:

Ralph Z wrote:
Hi Terry:
      First meeting is free for all the advisers, I think that's the norm in the industry now. Once you've decided to go with them, they will charge 2000-6000 for the Statement of advice, and another 4000-8000 for ongoing management. The one I decided to go is around 3000+6000, the one with more…[Read more]

Ralph Z wrote:
Hi Terry:
      First meeting is free for all the advisers, I think that's the norm in the industry now. Once you've decided to go with them, they will charge 2000-6000 for the Statement of advice, and another 4000-8000 for ongoing management. The one I decided to go is around 3000+6000, the one with more experience charges about…[Read more]

aussieguy2000 wrote:
Someone above mentioned that a financial adviser just tries to sell you their product, I thought they were regulating this and changing the industry as of July this year? Is this the case or has this not changed yet?

I think it has been extended to July 2013

Aussie Guy

A conditional contract is usually only a few weeks at most. What we probably have here is a finance fully approved and a delay in settlement (prob because of christmas).

You exaggerate about the penalty interest. It is usually about 10 to 15% pa. daily not much, and not much considering you would not be paying 6% to the bank this time…[Read more]

That is still a long way off. What is the problem?

And what state is the property in?

Is she already your ex? If so you may have stamp duty and CGT to consider.
If you are going through a separation then the transfer could be exempt of stamp duty and CGT could be rolled over – but watch out for CGT pregant transfers as you will inherit the tax liability.

Process would be
1. Get a pre-approval to make sure it is theoretically…[Read more]

Ralph Z wrote:
Hi all:
  Just in case you guys see this thread again, I've talked to 4 advisers now, and I've narrowed down to two advisers to choose from: one is very nice to talk to and with good background, the other is a little bit harsh but with more experience. Please advice, struggling at the moment
  cheers
   Ralph

Hi Ralph,

I would…[Read more]

Ralph Z wrote:
Hi Terry:
  Thanks for your comments, I talked to two financial advisers today: one is from MLC, he's basically recommending MLC management funds; the other one is an independent adviser, he is more genuine and basically set a strategic financial plan for me, but i will need to pay for further details. I will talk to two more…[Read more]

In NSW if you had used a fixed trust to own land then:
1. Ability to transfer units to a SMSF at a later date
2. Access to the refinancing principal
3. slightly greater asset protection.
4. ability to access the land tax free threshold, and
5. stamp duty savings on the transfer of untis – due to be abolished July 1 too.

None of these are…[Read more]

Hi Richard,

I just checked my emails and have one from NAB in Nov this year – max $2.5mil at 95% LVR they were saying then.

I am writing such a book. Got to think of a different title though.
I am not sure if I will publish it as too many trade secrets.