Ossi89 wrote:
Hey, I am confident have equity in my ip as I bought it well below market value. I have a very simple question, do I now contact my lender to have the property revalued in order to.determine the available equity or is there some other method? Also, what does a valuation usually cost? Can the result be disputed? Cheers,…[Read more]

biltongboer wrote:
OK, so what exactly does this mean:"The worst thing you can do is cross collaterise your home with your investment property"I have no idea what this guy just said? 

Use two properties as security for one loan.

Since you have exchanged contracts, then I beleive the control is probably binding on them, the purchaser. You could terminate the contract at any time until the deposit is paid, but they are locked in (NSW contracts anyway). But, they may still be able to exercise their cooling off period rights (unless they have waived this). Really you cannot…[Read more]

Bacchu,You should dig out a copy of the contract you entered with the agent and see if this fee is listed and if authorised. If not then you can object to it. Maybe tell them of your intention to move elsewhere and they may change their minds.

When you say "our tax returns" who do you mean owes the tax? If it is a company, then who are the directors?You would need a binding financial agreement (BFA) signed under the Family Law Act (ie a prenup or postnup in this case). This will allow you to decide on the split of the assets without going to court and it should be binding if done…[Read more]

PaulYou should also have a contract of sale attached to the option too I think. Otherwise the terms of the sale will be unclear.

Oz,Where are you based? There are a few brokers on this forum.

I don't think your trust would need one if just investing in residential property but your trust probably should have one. It takes 5 min to get and doesn't cost anything. If dealing with other businesses the ABN needs to be quoted.You could probably draw up your own loan agreement.Div 7A would only apply, I think, if the company is lending you…

It doesn't appear that the settlement date has changed. The settlement date was dependent on the date of the plan of sub-division.

Anita, You are in a binding contract and you agreed to the terms of the contract. There was always a possibility that they would settle early.So I don't see a way out, unless the vendor has slipped up in the preparation of the contract and it was incomplete. Or the plan has been changed greater than the accepted amount, or the contract wasn't…[Read more]

Very common with off the plan as the completion date is uncertain when entering the contract.

Colin,It probably says something like settlement will take place within 21 days days of XXX. With XXX being registration of strata plan etc.

Only solicitors can prepare legal documents for others such as contracts. You could do it yourself, but you are running a huge risk. Imagine if you get everything in place and then go to exercise your option only to find the otherside doesn't have to honor it because it of a gaping big loophole which you were aware of.

It would be a good idea to change the loan to Interest Only with a 100% offset account. But as you are only going to be absent for 2 years this is not so essential – but still a good idea in general.Its very unfortunate that you had all income deposited into your loan. The interest on the whole loan will now not be deductible. You would need to…[Read more]

You should read the whole contract and see if they have complied. They probably notified your lawyer in writing that the settlement is due.

ritchieThe ATO may not even require a loan agreement between spouses. She incurs the interest, but you claim it. yo could go and draw up a loan agreement though.Jsut check with your accountant.

Generally 80% of the rent is taken into account.

You would need a binding loan agreement to make it all commercial. You could possibly prepare it yourself, or get a solicitor.The getting the money and using it is hte tricky part, you would need to consult an accountant, but I would think you could get the lender to pay the money on behalf of the trust. If the lender just gives the money to the…[Read more]

I would see a lawyer first, and work out the legal issues.Then I would suggest you work out the investment issues. This is the hard part and you should do you own research as well as talking to various professionals such as tax accountants, lawyers, mortgage brokers and financial planners.

In that case it is probably an expense incurring in producing the rental income