i would only use a LOC secured on your current house and then use this as deposits with the main loans for each new property being IO loans.With that approach all the securities would be cross collateralised which is not good.

jmsrachel wrote:
Correct me if I'm wrong but I think you have to pay land tax on any land worth $200k or more. The more its worth the more you pay. Dead money really.

Not so!In NSW it is more like $396,000 – the main residence is usually exempt and doesn't count to the threshold.

Hi PaulExcellent answer from Tony Cordato.I suppose you could also fax is a discharge request with a settlement date of 14 June 2042.

Mayuran wrote:
I have variable interest only loan . how do I pre pay the interest ? just transfer extra money into home loan ? or is there a special procedure with the bank? Thanks Mayuran

Transferring extra money into a loan will result in the repayment of principle.You have to change your loan to a 1 year fixed and pay the interest up front.…[Read more]

One idea (or 2) behind using IO is to use as little cash as possible for investments so that:1. You can pay off your own home sooner, and/or2. Invest in more properties.

Keep in mind if you sell a property with an existing mortgage you will probably be breaching the standard loan agreement you have with the lender.

Have yous considered  if you dont fix and prepay again next june you will have a higher tax bill next year. ie you will have rental income but not much in deductions.Also most are suggesting rates may fall again in the near future.

No, it was supposed to drop to 29% next financial year, but this was scrapped in the recent budget so I don't see them going to 25% anytime soon

Its probably CGT exempt then.

If its an investment loan and you have private non deductible debt then it is more beneficiarial to keep paying down the personal debt first – hence IO on the investment to free up cash.

Did you have another residence at the same time as this one?

I plan to spend every last cent and then get the pension at age 67.

Thats ok, thanks for the info.

In NSW only someone with an equitable interest in the property (land) can lodge a caveat. It can't be lodged for a debt unless you have let the lodger charge your property – such as some builders and lawyers do by including clauses in their contracts.From what I know so far, which is little, I can't see how this would work because it seems like a…[Read more]

Thanks KateDoesn't really make sense to me.The trust may have an interest in the property but what happens if the property grows in value.eg.$100,000 property$80,000 loan with Bank west$20,000 interest via the trust having an equitable claim – not sure whatYou may be able to say the person owns 80% and the trust 20%After 10 years,$200,000…[Read more]

KateWhat do you mean by "The trust that goes on the caveat"?

Austlii is the most common website used by lawyers to check legislation. It may not be 100% as up to date as the commonwealth Govt one but it is much easier to use.In this instance it is up to date and contains the same wording as the one you linked to, which wasn't the actual Regulation, but the update to it.Now I get what you are saying: Govt is…[Read more]

Michael.Lee wrote:
Gidday gibbo1,Also note my post linked to the actual current legislation SLI 2011 No. 40 rather than the resource linked by Terryw which carries an all care, no responsibility disclaimer.You can also view the complaint to the Commonwealth Ombudsman on Exit Fees here which I encourage you to do if you would like to research the…[Read more]

HiRefinancing won't affect deductibility, increasing the loan won't either unless the extra borrowed is invested.New tax free thresholds mean you can each earn about $20,400 next financial year and pay no tax.Can't comment on the proposed fraud aspects!Look at the 6 year rule under s118-145 ITAA 97 which will allow you to rent out the property…[Read more]

Nope, never heard of that ruling.