Ah… the good old days. I also recall Wide Bay Capricorn were good. Probably no longer do small units too.

Taking money out of a loan = borrowing. So if you borrow you have to look at what the money is used for. Putting the money in an offset account won't make the interest deductible I am afraid.Selling would help, but it will be very costly. You will have loan exit fees, RE commission, legals out and into the new house too, stamp duty. You will have…[Read more]

Yes, its a bit of a tricky situation. Ideally you should save your money in a 100% offset account and have an IO loan. But your bank is your parents and they wouldn't offer too many products would they!I am a bit worried about them protecting themselves. You should speak to a lawyer if you haven't already done so. Make sure there is a loan…[Read more]

The trouble is the LMI would kill you (assuming you could find such a bank). About 3% of the loan amount.Have you thought about using a balance transfer on a another credit card. eg. suncorp was offering 2.99% on balances transferred for the life of the balance. This would work out much cheaper.

If you trust your mum you may just need a transfer, and probably a valuation.Just watch out on the finance side as many banks will only lend on the transfer price. You would need to tell them it is a family sale and you are buying under value. Stamp duty would be chargeable on the value too (as would CGT), so it may even work out better if you…[Read more]

St G used to be good at the small stuff.

BenDon't worry too much about the various definitions of postive cashflow/gearing. What you want is a property that does not cost you money. So do some spreadsheets and play around with the numbers:eg. say you had an rental income of $10,000 pa, but expenses out of pocket of $9,000 pa. That would mean it is putting $1000 pa into your pocket – but…[Read more]

JacM wrote:
Hi Terry,Thankyou for your reply.  I'm in the process of purchasing something at present – proposed to be in my name.  The finance is all approved in my name.  Might be a bit tricky to now ask the bank to redirect the finance into the name of a trust?

Not too tricky, it can be done easily. But you may have problems if you have al…[Read more]

Costs from $0 to $10,000 to set up, and running costs from $0 to thousands to run. It all depends on how complex it is. It is another tax return, so a bit extra there, but having 10 properties in your own name v 10 in a trust shouldn't cost much extra in tax agent fees.I forgot to add above that you can only change ownership later at considerable…[Read more]

haiqu wrote:
I'm not particularly au fait with the finer details of trusts, but from reading Dymphna Boholt's "From Virtually Zero to $3.5 Million in My First 18 Months in Real Estate" the impression I was left with was that only a very good accountant could keep track of the complexity of such arrangements, and I've never met an accountant in…[Read more]

hi BBThanks for the informative post.Do you know the situation there with foreigners borrowing money? Can they get loans and what LVRs are available etc – I also presume they must be working in China for qualifying, is this the case?

Do you mean drawing up an option contract by a lawyer? probably would cost around $500 or so.I would be worried about trying to use one standard contract for all situations.

I agree that it is probably best to utilise the PPOR CGT exemption, but disagree on using a company to own property. I cannot see any benefit of a company over a discretionary trust – certainly have a company as trustee, but to buy in a company in its own right would result in no 50% CGT exemption and no tax flexibility. Even if you would be…[Read more]

3 pointsspouses can only have 1 PPOR at anyone time between them- you cannot establish a place as your PPOR until you live in it- debt is only deductible if it was borrowed for an investment or business pupose so loading up your PPOR – will depend on what the borrowed funds are used for.

What is the wording of the finance clause? They may insist on proof that your finance was rejected. If you hadn't listed the lender they may ask you to go elsewhere to try for finance. Or they may just accept a verbal communication from you saying you couldn't get finance. It all depends on the wording and how strict the other party is.Also make…[Read more]

hiyou are fairly highly geared. But many people are. ideally, It is good to have a buffer as Jac says, I think you should sit down and make up some scenario spreadsheets and projections and see how you would go in terms of cashflow.Getting the loan may be possible if you borrow high, and I would suggest you don't use the offset money but to…[Read more]

I had a look at the website and they seem to be setting up self managed super funds. Maybe you misunderstood what they were doing, but it probably involves transferring your super to a fund you set up your self and then that fund investing in property. You are still faces with having your super locked away until retirement, but you can control it more.

Not stamp duty, or legals – they can only be claimed as capital expenses when you sell. Borrowing costs can be claimed over 5 years -this would include LMI and I think maybe registration of title and mortgage – not sure on these.

It is the ownership that is most important, not the names on the loan.  (if both on title both will need to be on the loan anyway, if one on title you could have the loan in one name or both). Changing the loan will not result in any asset protection advantages or tax advantages.Changing ownership from 2 to 1 will no result in any major asset…[Read more]

anelxander wrote:
Hi hangingupsidedown,How did you go with your plan?I found your case really interesting because my partner and I are making up our minds on how to maximise all the existing options as I can see you guys want to do (leverage). In our case we're a gay couple, we're migrants, so we're not getting married anyway, which could be an…[Read more]