Thanks Troy and Jay.Incidently, foreign judgments can be enforced in Australia in many circumstances. I think the judgment needs to be obtained over there in a superior court

Yes it would be better to borrow funds for the investment.eg. Imagine you had a $1,000,000 home loan with $200,000 in the offset. This means you pay interest on $800,000.If you took the $200,000 and used it for investment then you would now be paying interest on $1,000,000.None of the interest would be deductible.Instead, if you set up a LOC on…[Read more]

hi DanThanks for that.There are a few groups out there promoting such a 'scheme' and I guess it is getting too popular now.

Money in an offset account is cash.So if you use it to pay for new PPOR then this can be good as it results in a lower non deductible loan.However, if you use cash to pay for an investment then this is not so good if you have non deductible debt. You will end up paying more interest for non deductible debt and less interest on deductible debt =…[Read more]

The price will vary depending on you age, whether you smoke, health etc

exiting the partnership should be easy. The other partners would agree probably if she is just gifting them her 'share'. But the lease and any guarantees will be the hard point.BTW there may also be CGT consequences with this – but she may end up which a capital loss which can be used to offset future capital gains.

Let this be a lesson to others.Never buy a house with a caveat or if you do don't expect an easy settlement. A caveat s a warning that something is wrong.Goodluck shoppingarigas. I think you were planning to move into this one too which makes it more stressful

There is a NZ case, Canterbury Finance Ltd v Sagar Trust Ltd (1997) ANZ ConvR 119, which is given as authority for the view that a mortgagee will not be bound by a contract of sale entered into by a mortgagor, (unless consented). So the vendor's contract with you will probably not be binding on the bank once they take possession after a…[Read more]

For sale by mortgagee in possession see ss 56-66 Real Property Act (RPA) http://www.austlii.edu.au/au/legis/nsw/consol_act/rpa1900178/If the mortgagor is in default then the mortgagee may take possession, s 60.s 61 the right to foreclose.

The case I referred to above is     Kousal v Suncorp-Metway Limited [2011] VSC 312see http://www.commercialcourt.com.au/Lists/News/DispForm.aspx?ID=1671 with the link to the judgment.This is a different sort of matter though. It relates to a judgment debt, not a mortgage, but you may gain some insight into the process.

HII don't have any links. You would have to look into some legal books. Maybe do some google searches on "mortgagee in possession". Find some legal cases.I read a new case today, from VIC or SA where a mortgagee sold a house for $1000 because there was no reserve set at the auction. There is a court order in place preventing settlement at…[Read more]

The bank may be able to lift the guarantee provided by the parents if the LVR falls within their acceptable guidelines. Being 32sqm you may have problems still.

There is another recent thread on here regarding a caveat and settlement problems.The bank will be holding first security so their interest will take priority. What they will do will depend on how much the shortfall is etc. If it is a little bit then they may just allow the sale to proceed and they may try to recover the rest from the owner. If it…[Read more]

You would have to apply for a private ruling. This would take a while though.Another option would be to get some written advice from an accountant.

hi JamesSounds like an idea, but why offer him so much?I think you should have written loan agreements drawn up. You need to worry about divorce, death and insolvency. eg. Dying – imagine if you died with his money in your account. Bank accounts would be frozen until probate is granted which could be 6 months or so. Now imagine if he died with the…[Read more]

Sure will cause problems.If people cannot get finance then it will certainly limit the market and this in turn will limit capital growth. This is why many of the small apartments have high yields

No, doesn't make sense.Guarantees do appear on your personal credit report and subsequent lenders will see them and ask about them.

Troy,I've heard that in America the loans are non-recourse loans and the lender can only take possession of the property if the borrower defaults. They cannot come after the borrower for any short fall.Is that the case with these loans too?

What about the other partners? did they contribute their own funds separately?She needs to see a lawyer, the accountant can only help on the tax side of things.My view is that she will be responsbile for 6 years rent (or the remaining term) for the whole amount, unless the other partners pay it. The partnership could be disolved but the contract…[Read more]

Actually, I should clarrify.A trust could help you borrow more if you can get other people to be trustee or director of the trustee company and share holder with you being only a beneficiary.If you are the person behind the trust as trustee or director of the trustee then each lender will want a personal guarantee. Giving a personal guarantee…[Read more]