Mate, why leave it until the day of exchange?

Some of your questions are minor, such as insurance, but some will have major ramifications for the next 30 years. e.g name on the title. You need to decide this before you enter into the contract. You will need tax and legal advice to properly decide on this issue.

Yes, best to get IO and make sure…[Read more]

st81hp79 wrote:
Thanks Terry, for adding the link.I googled and studied on Cumins case, and it was interesting… That means I have to get legal advice before going ahead with the transfer.

Most definitely. Many issues to consider.

Steve,possibly as you are only refinancing the cc loan with the LOC loan. But to be effective you would have to have only properties expenses on the cc otherwise your payment to the cc would need to be apportioned between the private and investment expenses.

Once the LOC runs out it is up to you to keep paying the interest on it. You would have 2 choices:1. use cash2. use further borrowingsCash could be wages and rent or savings in your offset.further borrowings could be an increased LOC or a new LOC.

If it is an undervalued transaction then under the bankruptcy act, s120 it could be clawed back for up to 5 yearshttp://www.austlii.edu.au/au/legis/cth/consol_act/ba1966142/s120.htmlIf the transfer was done to defeat creditors ie to make the property unavailable to pay creditors then indefinite under…[Read more]

You will have to be very careful as the ATO could deny deductibility.have you seen TD 2011/D8http://law.ato.gov.au/atolaw/view.htm?docid=%22DXT%2FTD2011D8%2FNAT%2FATO%2F00001%22

You should probably see a lawyer asap. Do you see any way out with cashflow? any money expected to come in?You may have to appoint an administrator to the company.If you are trading while insolvent then you could be personally liable – the directors could be personally liable.

What is your reason for using the LOC to pay interest on your investment loan?

Hi JohannSounds like you are in a bit of trouble.Are you running this through a company or sole traders? It sounds like you may not meet the test for solvency as you cannot meet debts when they are due and payable. You should be very careful now that you do not commit any illegal acts such as trading while insolvent.Do you have any equity in the…[Read more]

Do you mean you are taking the IP repayments from the LOC?Have you had advice on this or taken out a private ruling?If you keep going the limit will be hit on the LOC, then you will hopefully have paid down your PPOR loan by an equal or higher amount and may be able to get a new LOC or increase the existing one.

Am,Do you meant the LOC will slowly be used up and the funds available will be diminishing?That would be the case. But even then there would be no reason to pay down the LOC. You would just want to pay the interest each month. If you do start paying it down you would be diverting cash which you could otherwise use to pay down personal debt = more…[Read more]

hi STAt the end of the day it is bankruptcy which you are really trying to protect yourself from. If you are sued and lose then the other party will have a judgment against you for an amount of money. They can then try and get this money out of you by using a few different methods such as garnishing bank accounts, forcing the sale of properties…[Read more]

AM,You misunderstand a bit here.There are costs which you can claim and then there are interest on money borrowed to pay these costs which can be claimed.Borrowing costs such as LMI can be claimed over 5 years or the term of the loan, whatever is shorter.Interest on money borrowed to pay these costs can be claimed at long as it is incurred. If you…[Read more]

A conveyancer is trained only in property and a bit of legal areas related to property. Lawyers = solicitors and barristers and they are trained much more extensively in property and a much wider area of law.Sometimes conveyancers are more knowledgeable than lawyers on doing the process of settlement and changing titles etc. This is virtually all…[Read more]

Here it is https://www.propertyinvesting.com/forums/property-investing/general-property/4337829I replied on that thread and he copied and pasted an answer from that to this.I am not so mad after all.

btw, having a corporate trustee won't assist in the claw back provisions. But it would assist if the trust is sued.

Yes, sounds like your accountant has cost you thousands!Asset protection is weakened by transferring assets. If you were to go bankrupt then transfers can be reversed under the Bankruptcy Act. To reduce the risk you need to consider transferring for market value with full payment and the sooner the better. The farther in the past the transfer the…[Read more]

cashflow would be one.

It has to be for a reason other than for saving tax!

You could still manage it:1. Sell the existing house and have the LOC kept open by keeping some of the proceeds from the sale in a term deposit and using this as temporary security for the loan. Banks and brokers won't like doing this and will say it is easier to just pay out the loan and get a new one, but they are not taking tax deductibility…[Read more]