What do you mean by vendor finance?If you are talking about only giving the owner part of the amount upfront and the rest later then this is essentially the vendor lending you money. Your purchase price will be the full amount agreed upon. Title will transfer at settlement and the vendor will be liable for CGT then in the tax return for that…[Read more]

nope.Talk to your accountant about tax issue, but i htink you can just claim the interest yourself.

A post mortum sub division?

I would take out a LOC on the existing house and just use that as the 20% deposit. Use an IO loan?for the remainder with a 100% offset attached.Whatever you do don:t go and get wages etc placed into the LOC as this will make problems later.When the new property has increased in value you can get it revalued and repay the deposit used from the LOC.

Dont take tax advice from a broker! Lucky you know he is wrong, but I wonder how many other people have been scared off by him!!I feel the same about the market. It seems overheated – but Sydney will always be growing in poplulation over the short term at least.

How are you going to develop it if they still have the title?Anyway, I think starting construction on the property will remove the CGT exemption by shifting the cost base to current value.Paying them too much for the other house they will still be assessed at market rates for CGT and Stamp Duty purposes.If they moved into the rental now then it…[Read more]

zeph34 wrote:
If I get an IO loan, and pay only interest, but put the extra part of the repayments into the offset account, the end repayments would be the same (obviously they would drop considerably if I put more than just the "standard" repayments into the offset)?

This would be correct in terms of interest payable – in Theory. You will end…[Read more]

No sure why you would want to double your risk and add your wife to the loan/guarantee. If the investment doesn:t work you both sink with the ship then. It also will hurt further borrowing capacity. It may be necessary for the LOC as both names are on title, but not for the investment.

Deductions?will depend on what the money is used for and who is the owner of the asset being purchased.eg if you buy a property in your name only you will claim the deductions. If you use a wife as guarantor it won:t matter for the claiming of deductions, you will still g et all the deductions and profits/losses.

KeikoNot sure, I stopped broking a while back. It was pretty near impossible to get a loan at 95% a while ago.

Sounds good, but why a LOC for the IP? you can get into trouble using these

That sounds a bit drastic – to transfer a house and incur stamp duty just because of fears of PSI. I think there are probably other ways around it and transferrign the house probably wont resolve the problems anyway. Maybe get a second and third opinion.

Sounds dangerous to me. eg. what happens if the hot water system needs replacing??Your?Positive geared property suddenly becomes negative and you have no potential of growth – so whats the point?What are the rates, repairs etc all adding up to?

i AM IN?jAPAN ATM AND HAVING?PRobs with keyboard!First should ask?What is the purpose you are trying?To achieve?by?trAnsfering to a trust?

You probably need to get the surveyors in to do the final inspection (assuming it is finished). They will sign off on it and tell council.

Stamp duty is the major cost and this will vary from state to state with some states charging more for investment properties. The next major cost may be LMI which will vary depending on the loan LVR and the amount, IO/PI, bank etc.Banks will only lend on the lesser of valuation or price. So you could add the costs to the price adn get the seller…[Read more]

Market value is by definition what the market is willing to pay for something. So if a property can only be sold for $300,000 then it must be worth $300,000. Your greatest problem, if you are able to find these things, will be valuations. It would be extremely unlikely for you to buy a house for $300,000 and then the value to come in at $400,000…[Read more]

estimate 4% to 5%

If you can buy if for $300,000 is it really worth $400,000? Thats how they may see it.What is a OTP Addendum? Off the plan?

Yes, that is a way around it. Pay for cash, reno and revalue. The only problem is convincing the valuer.