Disregard whatever value an agent attributes the property for 2 reasons – a) they will exaggerate to get a listing and b) they are not valuers.

I would suggest you get a valuation done.

Not much else you can do.

Seek some tax advice on generating a capital loss and the ability to keep claiming the interest on the loan after the property is gone.

If your other properties are mortgaged to the same bank you have the risk of all monies clauses whereby you would have pledged these as security for all loans with the bank.

Best to…[Read more]

THe trouble you will face is that many if not most lenders will use the same mortgage insurer.

The bank won’t release the mortgage on the property unless what they are owed in full is paid. That will mean you can sell the property but won’t be able to settle unless you can either come up with the shortfall or convince them to lend you the money to pay them back.

Do you own any other assets?

Say your current PPOR loan is $250,000 and you have $150,000 in the offset and need $75,000.
This is what you would do:

Split the current $250,000 loan into 2 portions
a) $175,000
b) $75,000

Once split pay the $75,000 from the offset into loan b). Make sure your lender won’t close the loan though. You might have to leave $100 outstanding.

Then…[Read more]

It is certainly worth considering. There may be arguments for and against fixing though.

If your interest rate is 5% and you use the offset account money you will have to pay an extra $3,750 in interest per year and this would not be deducitble.

If you paid $75k off your main residence debt and reborrowed it you might pay the same interest but would now have an extra $3,750 in deductions each year. that might mean $1,800 extra in…[Read more]

Not enought informaton to answer, but possibly exempt. But the existing house would then be subject to CGT.

I think they should make things harder for those buying their second and subsequent properties. Tighter lending as well as land tax and perhaps scaling back the CGT and negative gearing benefits will help this. Increasing RBA interest rates will too, but this will hurt owner occupiers.

Yeah, I would suggest you put the funds in an offset account attached to the loan used to acquire the land as this interest is not deductible. Don’t pay off the loan just yet, just in case you change your mind.

Actually as you are living in the unit you could also put the money in an offset account on this loan while it is non income producing…[Read more]

Not a grey area Ethan.

Under the common law risk passes on the date of contract. This has been modified in a few states so that risk only passes at settlement. The contract is also relevant. I think in QLD the standard contract has the purchaser agreeing to wear the risk. So if you enter into a contract to buy a house and the house is flooded…[Read more]

Not a grey area Ethan.

Under the common law risk passes on the date of contract. This has been modified in a few states so that risk only passes at settlement. The contract is also relevant. I think in QLD the standard contract has the purchaser agreeing to where the risk. So if you enter into a contract to buy a house and the house is flooded…[Read more]

Corey is right. I have a mate who old me he was waiting for Sydney prices to drop before buying. That was about 20 years ago and he is still waiting.

One potential issue with the budget is the removal of the 50% CGT discount. This could come in from the date of the budget night (Just guessing here) so buying before then may help you (or may not)…[Read more]

Don’t you think it would be a good idea to get some proper legal advice about this matter?

Time is ticking…

Are you serious?

I have helped two separate Aussies who have purchased in Thailand and Indonesia.

Each had their property ‘stolen’ from them.

The guy in Thailand had a company set up to own the land, someone else forged signatures to transfer the shares in the company to someone else and the company then sold the land to an unsuspecting buyer. This guy has been…[Read more]

What does your solicitor advise?

No.

If you mean tax agent then they advise on commonwealth legislation.

Your should seek legal advice from a solicitor.

Ignore what the bank is suggesting they will make things worse.

You need to pay off the loan and reborrow.