Another point, at some stage in the future you may also consider fixing your loan – Banks generally have better fixed rates than the non bank lenders.

Also think about the future, in terms of accessing equity etc. Much easier with a major bank.

Partnerships are extremely dangerous.If only NC had some advice when setting up the second business, this could have been quarantined from the first.For the finance it will be hard to qualify for many years. You could get around this by using a family member or a friend to help you out.

You just put it in the special conditions of the contract.Usually they won't agree to reduce the deposit to 5%, but will often accept 5% on exchange and the other 5% at settlement with the other funds. This is so that if you do not complete they can still sue you for the full 10% deposit.

Go as long as possible – as you can always pay extra down the track if you want to.

Thats what you get when you use a non-bank lender.

Another idea behind IO is that you use less money per money which means you can afford more investments.

An offset account would be better as there are tax consequences to redrawing money.

I don't think it is a requirement. You can claim based on the costs where you know them, if you need to rely on an estimate, then only a QS is qualified to give this.I agree with Fredo though – you will end up with the QS finding more items than you had thought of and getting a higher depreciation allowance than if you did it by yourself.

Yes.

You will be basically refinancing one loan into two separate loans. Names on the loans doesn't really matter as it will be X borrowing and then onlending to X and Y to pay out the CBA.

I have been a big fan of IO loans for a long time but you should also consider your psychology. Some people just can't help themselves and will spend every last cent of spare cash lying around – for these sorts of people a PI loan may be better in the end.

A trust only takes half an hour to set up. It is a relationship evidenced via a deed. Some all you need, once you have worked out what roles people will play, is some signatures. After that your deed may need stamping, depending on the State it is established in (QLD never had this requirement in the past, not sure if things have changed). Usually…[Read more]

You will need to pay stamp duty as you are onselling the land.

Good question. Don't know the answer though!I think the purchase price would remain the same with the money for the damages to be classed as income which could then be offset by the cost of the repairs – But I am not sure about this.Was it a large amount? and did you or will you conduct the repairs?

Generally I would recommend only using a LOC to access existing equity. This should only be used for investment expenses – no salary deposited nor any withdrawals for private expenses etc.For the new property I would suggest a IO loan with the deposit coming from the LOC. Have the offset account attached to a PPOR loan as the interest on this…[Read more]

LMI can be a bit like that. Try to keep enquiries to a minimum and just try to explain your way out of this one.

You would be borrowing to pay personal expenses and therefore the interest wouldnt be deductible. Talk to your tax advisor about borrowing to pay interest on investments freeing up cash to use on your PPOR loan.

itsandrew wrote:
hi Terryw,I have been reading about the 6 year thing with CGT but as I am new to this stuff I don't fully understand how it works.  Does it mean you can rent out a property for 6 years and not pay CGT if you have lived in it previously?  Does this mean you can have an alternative PPOR during this time?Andrew

Yes – but you can o…[Read more]

hi HongIt is possible to lease out your home and avoid CGT in certain circumstances. You will need to live in it before leasing it out, and must be less than 6 years etc. It is the temporary absence from main residence rule, s118-145 ITAA