You can't really borrow of a contract for an apartment off the plan.I thought you were meaning something like:A buys the land and A signs a contract with B Pty Ltd to build but with the director and owner of B pty ltd being A. This would probably be treated as owner builder. Doesn't mean you cannot get finance but it will be a bit harder. This is…[Read more]

There are many ways to protect yourself and you need legal advice.Some things to consider – make sure you have:documented loan agreements for any money lent or owingup to date comprehensive willsavoid dating the same person twicecaveats for any property you have an interest in but are not on title etc.

What state are the properties in? You would need to at least consider a trust if you are approaching the land tax threshold.You also need to protect your own interest if your brother were to go bankrupt, die or divorce. In addition you need to plan things to reduce personal liabiity and assist borrowing power.

Many brokers have similar arrangements these days.Claw back of commissions exist for up to 3 years on some products – this means if you sell or refinance within the claw back period then the broker may have to repay all or part of the commission they received. And that means they could not get paid – or even lose money on the deal.Many brokers…[Read more]

Pat007 wrote:
Another option to consider to keep initial costs low and minimise finance borrowed against your family home is this.Only buy / finance the block of land, get plans drafted and approved by council. Then sell based on the plan, i have heard that banks will lend up to 80% on the value of a signed contract ? (please let me know if this…[Read more]

Do you have another job? Or can you provide 2 years financials?You may also want to get a LOC over the existing equity now. Then get 80% based on land value and just construct using the LOC – if enough.

You should really go and see a broker. Because if you own a company you will be considered self employed. If your company is contracting to build your house then they will probably see this as owner builder.

I wouldn't do it like that myself.You would be borrowing to pay the interest on line 1. Although you would be putting the rent into loan 2 there would still be a shortfall – probably.Have a read of TD 2012/1http://law.ato.gov.au/atolaw/view.htm?docid=%22TXD%2FTD20121%2FNAT%2FATO%2F00001%22Get tax advice before you act on your structure.

Think it logically thru.If you take th $60k out of the offset what will happen?A: Your interest on the home loan will increase by about $4,200 per year. This won't be deductible because it relates to non deductible loan expenses.Q: If you were to pay $60k off the loan and then reborrow it?A: If the new borrowings were used for investment purposes…[Read more]

Taking money out of redraw = new borrowings. So the interest on this will only be deductible if the redrawn money was used for investment purposes.

Yep, FHOG would require you live in the place at sometime during the first 12 months and stay for at least 6months.

Hi Nickthis must have been what you were requiring the PI insurance for?? I paid around $800 from memory.Where are you located?

PI Insurance for what? Lawyers pay about $8k plus pa. Mortgage brokers about $800 but it all depends.

When you have money in the offset and are buying your second property you need to reassess at that time.Ideally you would want to keep your money in the offset and borrow the lot to buy the second IP. But you may not have enough equity at that stage. So you could either 1. use the cash in the offset or2. pay down the existing loan and reborrow…[Read more]

Oh, sorry, yes with a SMSF you can restricted and cannot borrow against a property more than once – they can only borrow to acquire a single asset.

Qualifying for finance may be an issue – you may be classed as an owner builder.

1. The legilsation doesn't have a time limit, so basically as long as you can establish that it is your main residence you should qualify.2. Best not to pay off principle but to put extra in the offset. It should save the same interest (unless u r tempted to spend). If you pay down principle then you will be paying more interest if you need to buy…[Read more]

Move in. move out. under s118-145 ITAA 1997 a person can be absent from their main residence yet still count it as their main residence for it to be CGT exempt for up to 6 years. To get the full exemption you need to live in the house initially and establish it as your main residence. You can then rent it out and claim all associated costs – yet…[Read more]

Watch out for finance issues. 

Hi DruWhy not1. Buy a place to live in and then rent it out. You can retain its CGT free status for up to 6 years. CGT could be considerable if you are sucessfull in adding value so it may be worth the hassle of moving in and out.3. Def do the IO with offset. But, you say you want to pay down the principle of the second one – this is not…[Read more]