You could always start at 80% and increase later – but harder to cash out later.

You don’t want to incur LMI unnecessarily. What if it takes you a full 12 months to buy the 4 properties? There could be growth in the meantime, which might have meant less LMI if you had waited.

Also there is a question about the deductibility of LMI when you are…[Read more]

Some more things to consider:
. Which will result in the greater amount of cash released?
. Which will result in the least amount of cgt?
. Any land tax differences?
. both owned by same persons?
. What loans are they securing?
. Could you keep one of the loans open and substitute securities?
. Instead of selling could you borrow somehow?…[Read more]

Overseas rental income is taken into account here.

One example of how you could structure it is
Ian owns 90%
Dad owns 10%
Tenants in common
Both incomes used for servicing

Later Ian’s income increases.
Ian buys Dad’s 10% for market value. CGT and stamp duty will be minimal as just on the 10% portion.

A ‘joint venture’ with someone else that does have serviceability may be another option. This could be a temporary measure until you can service or a long term thing.

Banks don’t care what you pay yourself from a company which you own as they will look at the company financials as well. If you are being paid from a company which you do not own then this is employment income possibly.

Banks must follow the laws in lending and they won’t lend to you if they think you cannot afford to pay it back.

Self employed operating trusts and companies.

What sort of investments? Many banks will lend on dividend income but it won’t be easy without a job.

And I should point out the best solution and that is a term loan which allows payment directly from the loan account. Westpac Roket loans for example.

I answered this above

I didn’t say either was a bad idea. There are only 2 products you could choose from – the LOC or the term loan.

One strategy may be to use a LOC and then immediately convert it to a term loan after settlement.

May not be a good idea to have just one loan as it would then be a mixed purpose loan which can create tax issues, especially if one purpose is not deductible.

What I am trying to say is by taking the borrowed funds on a detour you a muddying the waters of interest deductibility. It is not clear if the interest on the $80k loan would be deductible. However to improve your chances I would suggest just before using that $80k you should pay it back into the loan and then reborrow it.

Did you use borrowed money to invest or cash from the offset account?

Consider the tax issues.

Interest is deductible if you borrow to invest.

With the offset account strategy you are borrowing to place money in a savings account. At some later date you may invest the money. Can you save you have borrowed to invest?

You may say you can trace the borrowings to the loan. But what happens if you put cash into…[Read more]

How much money did you chip in when you purchased the property? Imagine you used this money to buy shares instead. How much better or worse off would you have been.

I must admit to being the best but I am so good that I charge an upfront fee of $660.

State legislation. You would have to find the relevant act.

I suspect you might only be able to do this if raising money for a ’cause’.

Seek legal advice

Yes – provided you meet relevant laws

What has your solicitor advised?