I would buy whichever had the most potential to increase in value. That is the hard part -working out which, and it is not necessarily just land content that determines this.

They can lend the money to you from their redraw or LOC.It will be difficult for you to get a loan by mortgaging their property as you are not the owner. It may also be easier and less messy to just use a credit card for such an amount and not involve the parents.

Sounds like you need a loan agreement. You should be able to get a solicitor to draw one up for a few hundred $$ or you could get one from an online legal document supplier such as lawcentral.com.au

It doesn't matter what you declare or what you say is happening, if you are renting your house out it is rented. If you are receving an income from it you must declare it – it is the owner that must declare it in their tax return and unless you own it as trustee for your borther then that will be you. You would be considered as gifting the money…[Read more]

hiSince your loan on the property is $90,000 the interest on this amount would be deductible, normally, if you moved out and rented the property. The interest on hte $142,000 reborrowed will only be deductible if this is used for investment purposes – which you won't be doing if you use this money for the new PPOR.It doesn't matter if you wait 12…[Read more]

Just make sure you plan carefully as it is rare for things to go smoothly.  Assume the worse case. One of my friends has just lost $500,000 on a development of around 6 townhouses – and he is a broker too.

There are a few QS guys who hang around here. depreciator.com.au is one of them.

Keeping on buying more may be one way to tackle the problem, but the is only so far that you can go and eventually you will be left with a huge income/capital gains with no flexibility. If you had used a discretionary trust you could give up to $16,000 pa to each kid if they are over 18 and not working (eg maybe while they are at uni) or $3,600 pa…[Read more]

Accountants are not qualified to guess building costs and the ATO won't accept their estimates – hopefully he has under estimated and your QS may help you claim more. You should also discuss with the QS your situation as you may only need one report and it may be better to wait until the reno is done.

hi JackSince you have a high income you should be able to knock that PPOR loan debt off in 1 to 2 years. After that you should have considerable cash available so I think you should seriously consider a discretionary trust. You can start gifting cash to the trust and park it in a 100% offset account and this will quickly reduce any losses. it will…[Read more]

hmm, how did you determine building value?I would suggest you contact a QS and get them to give you a schedule with the values as they would have been back on 07 when it first became an IP – and then maybe again once you do a reno. Maybe you should ring and tell them what you are doing as it may be better to have 2 done if you are replacing items…[Read more]

There are 2 ways to do it. 1. Both of you take out another loan on the existing property, such as a LOC, and then you borrow this and use as deposit for the new one. If you do this the new loan will be totally separate and if you default the only risk to your ex is losing the money from the LOC.2. Use the existing property as security for the new…[Read more]

The finance costs won't be cheap – there may not be much left if it blows out.

Thanks EmmaI read so many posts that I don't remember what the intial post was sometimes.I would still try not to maximise borrowings and not to use the cash if possible – as you will never know when circumstances will change and Amy may decide to buy a place to live in at some stage. If that were to happen then there would be issues with tax as…[Read more]

its best not to go crazy, but one or two hits won't make much difference.

Actually, I think you may not need a valuationsee s118-185 ITAA 1997http://www.austlii.edu.au/au/legis/cth/consol_act/itaa1997240/s118.185.html

You had better discuss all this with your solicitor. correct answers will depend on the wording of the clauses. You may need to show them finance approval and just tell them you are rescinding the contract – but this will depend on the wording. However, your broker should be able to give you a copy of the ANZ finance declined fax if necessary.

Yep, IO is great and not paying down the loan is great. You could use a savings account for spare cash, but it would be so much better with the offset. Maybe you should see a broker and see if there are any other options out there. I wouldn't worry too much about the hits on your ccredit file.

Paying down principle means you are locking your cash up. What if you decided you wanted to buy a PPOR down the track? all your cash would be in the investment loan so if you took it out to use as deposit it the interest on this would not be deductible.I wouldn't use rams myself. It maybe ok if you get a cheap rate and have a loan with an offset…[Read more]

Tell them you are changing banks and see what happens. Ask for a pay out figure on all loans because you are changing to NAB.