Can you get the FHOG, move into a property for 6 months and then rent it? Move back with your parents if you can and save even more.By moving into a property and then out again before renting it you can keep it CGT free for up to 6 years.So what you do is to treat one IP as your main residence, keep buying 5 or 6 more and then when you want to…[Read more]

$50,000 pa from 5 properties. That seems a reasonable plan.say they were $200,000 properties. you would need around 10% deposit for the first one = $20,000. How would you save $20,000? Depending on your income you may save $200 pw over 100 weeks or $400 pw over 50. You may already have some saved, so it may be quicker. If you have FHOG it may be…[Read more]

yes, but you could do this with any property. LVRs are lower for super fund lending.

I agree MCAn options agreement is just a basic contract, nothing special. Solicitors do them all the time. But what you need is the technique or strategy on how to use options that is the hard part.

An option is a separate contract. The terms can vary greatly, but you would basically pay a small premium, the option fee, and this would give you the right, but not the obligation to purchase the property during the period of the option. During this time they cannot sell the property to anyone else (you have the right to lodge a caveat too) and…[Read more]

Your offer was accepted by the agent, but what about the seller? Also as GOM mentioned, acceptance doesn't occur until you sign and exchange.

I would work out your budget for now and for the future – ie how much do you think you will need to retire, or reach your goal.Once you know that then you can work out how to get there. ie how many properties would give you that much income. This doesn't necessarily mean they need to be paid off completely either.Once you know roughly how many,…[Read more]

I just had a client this week whose bank (starting with a H) said he couldn't even afford what he had now, let alone getting another 1. Took him to another bank and he is able to borrow another $600,000 on top of what he already has.

Thousands of people form companies/trusts to buy property. I personally never buy property without using a trust. Do some more general reearch and find out some more information before you believe either side.

Sounds like you are jumping into something without enough time to fully understand the implications. I would suggest you try for more time and then see a lawyer and run through it all. stampd duty, CGT and centrelink etc implications

If you sell off the plan you will only get the funds at settlement. ie after the places are built and have occupancy certificates and the buyer settles.

It can be very hard to get residential finance if you declare yourself as a developer. If you intend on doing small projects, 1 or 2 per title, then best not to call yourself a developer.Also it will be difficult to get finance if you sell your existing business as you won't be able to demonstrate serviceability.

maybe they are using low doc loans? Some of these are not available for trusts with corporate trustees.

could be. Make sure only one property secures each loan.

Quote:
= ……sell there developments with an inflated initial capital outlay 

I think you meant to write, 'their' instead of 'there'. But are you saying they charge you more just so you can claim more in depreciation?

Its still possible to claim the interest personally by using a unit trust – but this offers no asset protection and is inflexible.I would also suggest a discretionary trust is probably the way to go.There are also land tax implications to consider. eg. In NSW there is no tax free threshold for land owned in a discretionary trust.

You shouldn't be discussing this with a financial planner/advisor, but a lawyer. It is a legal matter. You may also need some tax advice and lawyers can cover this too.Family law courts have the power to make orders for property in companies or trusts even if the person in the family law matter is not the legal owner. I have heard of a case where…[Read more]

Things have changed to a huge extent.Most lenders will not even give you a LOC, with undrawn equity. You can purchase something and have the LOC as a product, but not generally get a LOC with more than $10,000 undrawn.Remember you will only get one crack at it, so be careful.

Lenders would not like to hear that you will be borrowing to pay interest. They probably wouldn't like to hear you will be using the money for personal use either – such as a holiday etc. Once you spend it it is gone. Whereas if you were to buy shares you would be increasing your net worth.

Just because a property is cashflow postiive doesn't mean it is a good investment. eg. it may be in a mining town with anticipated closure of a mine in the future.