No Docs are still around. But there are not many and the rates and conditions are terrible.

Peter, I am confused. I can see no reason why you would have to cross collateralise or to use a term deposit as it is now. Also can't see why you would pay LMI.What you can do is to take the $216,000 in the offset account and use that as deposit on the new one. This will leave your existing house (which will be an investment) with a loan of…[Read more]

If you were to use your cash that would mean you have a lower investment loan and a higher PPOR loan (as the cash could have been used to pay this down).This means less tax deductions.

Good info.There is also a lot of identy fraud going around. One of my clients had some mail stolen and someone changed his address with the bank and submitted a credit card application in his name. He luckily had signed up for that credit alert so he found out via sms as soon as the bank did the credit check. He then was able to contact them and…[Read more]

Yes, it is very hard to get finance approved these days. Very painful unless you are a average person – 1 house 80% lend, paye for x years etc etc

Don't forget the company is only the trustee. You can easily pass control of the trustee on by transferring shares in it. Ownership is in 2 forms – legal and beneficial. The trustee is the legal owner. Changing shareholders won't affect the legal ownership. You should also be able to change the legal owner without stamp duty, or just nominal stamp…[Read more]

The rocket is a good product. Having an IO shouldn't make things more difficult in the future.BTW, you should never pay down an investment loan while you have a nonductible home loan or other debt. Otherwise you will be losing tax deductions.

in some states there is no stamp duty on transfers between spouses – usually, but not always it is exempt only for the main residence. You should look up the legilsation in your state – probably its the Duty Act or Stamp Duty Act.

Just read the sample http://www.tte.com.au/tax_tips_sample.pdfIt has some excellent tips. I didn't know you could depreciate dogs!

It can be done indirectly and over time but borrowing to pay all investment related expenses and diverting cash to the new place.

I beleive you can keep rolling them forward until you have a profit which can offset them.

You can. But what if it is not enough, and you have equity in the old PPOR. This will mean you are paying more interest on the PPOR with this not being deductible. So you need a way to squeeze out some equity from the old PPOR without compromising tax deductibility of it.

ankitjain wrote:
This just seems to be really bad time to change lending criteria. I, for example, was thinking about using funds of upto 80% (increase borrowings from my current level of 70%) of my property valuations to fund other investments . Some options being considered include…A)     Invest in mutual fund      A property purchase o…[Read more]

Be careful about borrowing money and putting it in an offset account before using it to invest. You could be breaking the connection between borrowing and investing.

I doubt you would get an interest free loan! If you mean interest only, then I think you should just go for the maximum period available. You should also get the 100% offset attached. You can always pay extra off the IO loan if and when you like -usually without penalty.

You may also be able to borrow a bit extra to use to fund the payments.

Brokers, unlike other people, never lie!

I know someone who borrowed up to $500,000 from a private investor at 15% for a number of properties. He has now done a runner, not paying any loans for ages. Banks are repossessing his properties and the private investor is unlikely to get anything back.

There are some good strategies out there involving SMSF and property, but I would still hesitate for a few reasons:1. Equity can't be accessed. ie once growth kicks in you cannot increase the loan.2. Its complex using a SMSF to buy property3. Establishment costs are high4. Rates are high5. LVRs are lowish6. Its a good idea to diversify and invest…[Read more]

One of my clients owned half the town down there. Its a different sought of world down there. -There is only one or 2 agents so little choice. – Cheap houses are falling down, – banks are not keen to lend down there,- high rates compared to value- mines closing- hard to find a builderI have another client who did 2 renos there. He is a builder and…[Read more]