HiSounds like a good job. Yes you can use the equity in the first property to buy the second, and third, and 4th etc.Also did you know you can continue to claim the first property as your main residence, even though you are not living in it, for up to 6 years and it will be CGT exempt.

It all depends on whether you are going to live in it and class it as your main residence (and not claim interest).Put all your money against your main residence to save interest which is non-deductible and maximise investment loans.So it if will be your main residence consider putting it all into the property. But I would still suggest you try to…[Read more]

Property valued at $100,000 1 year ago. Now valued at $110,000The growth would be $10,000 so annual growth would be 10% ($10,000/$100,000)But don't forget these figures for annual growth no not include improvements done to a property, so they can be misleading. eg. in the above property the owner could have put in a $20,000 pool and a $5,000…[Read more]

Hi SonyaYes you can put a caveat on any property you own a share of or have an interest in (even if you are not on title, such as a property in a spouse's name). This is called a caveat and costs about $90 to lodge. Once it is on there the property cannot be transfered or mortgaged etc until it is removed.

Marriage is the main one, that I have found.Another major factor to think of is bankruptcy.

i can't see the point in investing in carparks. There are a few older threads here you may want to look at too.

The biggest problem I have seen is when one partner wants out. Plan for it.

hi BradYep that is pretty much it.You can try to reduce the use of the loan 2 as much as possible by borrowing 90 or 95% for the 2nd ip, but you will need some more equity to keep going. You can only get this in 2 ways  -capital growth or repaying the loan (make sure it is the non-deductible loan).

Not much you can do really. Did they put anything in writing? If so it may be a breach of the employment contract.

Always citically analyse the bank's suggestions cause they are usually not ideal.I would get a separate loan for $60,000 from the existing property. This should be IO (loan 2) and secured against your PPOR only. Since your other loan (loan 1) is fixed you may as well set up an offset against this loan. Move the offset to loan 1 as soon as…[Read more]

You had better ask your solicitor as if you get it wrong you could be locked in when you want to get out. Laws vary from state to state too.

There is no point in investing without capital growth. Repairs will eat all of your measly profits.

Maybe you should look at using a discretionary trust to own the property as there are more oppotunities to reduce tax.my take on the tax is this (haven't read the above)Profit = sales price – costs (costs include purchase price, stamp duty, agents fees and reno etc)Depending on how long you hold it there may be a 50% discount on this profit if it…[Read more]

Yes I think it is tresspassing if they are in your property without your permission. You should have done an inspection before settlement and refused to settle. It can be a pain to try to get them out if they refuse to move, so better try to keep on good terms.

FHOG varies from state to state, but in NSW I think you must commence building within 6 months of exchange of contracts.

zac_moose wrote:
So, in my case we will have about 180k io loan, with no offset account. so we would be better off just paying the min and then pumping any extra cash into some other avenue than paying it down?With your example above what if the you redraw 40k for an ip or other investment (not a boat)?

Why not just get an offset?If you invest…[Read more]

You shouldn't have any issues on using a split for the new loan. This is good practice if you need to aportion interest for eg.IO for PPOR loans is possible. Don't think banks have any issues with this

Redraw is totally different to IO+offset in terms of tax. Redraw should be avoided in most cases because of the potential tax problems.eg. You have a $100,000 loan and pay it down to $60,000 and then redraw $40,000 to buy a boat. You then move out of the house and keep it as an investment. Your total loan is $100,000 but the interest is only…[Read more]

and stamp duty, legals etc

what about the 30% deposit required?