I never fix any of my loans anymore. I want the flexibility to move from bank to bank or sell and avoid the exit fees.

FPs have to be conservative to protect themselves. Just do your own calculations and analysis and see if you can handle a large rate rise and still survive. If you do get into trouble you could always sell a property or go back to work early.

Depends. If you use the option method then you are selling before settlement and you won't need a loan. If you need to settle you will need a loan and there will be entry fees and exit fees which vary from lender and between products.

Yep, that is about it. You make sure the option is assignable and your assign the option to the new purchaser so you don't have to settle – unless you can't find someone. In NSW I beleive the stamp duty is only on the option amount, $3000 in your eg. Not sure of the other states, but think it may be different in QLD.

An option is an agreement which give you the right, but not the obligation to purchase a property. With the purchase you sign a call option agreement. The agreement will state that the owner must sell to you if you wish to buy at a later date. If you don't then you do not need to proceed. There is an option fee, and time limit etc.The seller may…[Read more]

I think you will probably be a non-resident for tax purposes so you will be assessed in Canada on your income. You will probably have to declare the rent over there. You will also need a lodge a tax return here, but would get an offset for any tax paid over there. Besides, your income from the property may be close to nil anyway with the positive…[Read more]

Yes you can do it, in theory, but you will be assess on stamp duty as will the new owner. You may be able to minimise stamp duty by using options

Yes banks will include future rent of the property you are buying when considering serviceability

Yes you will need to declare the debt of the trust when you go for future loans. The same with loans you have guaranteed for a company as well.

hi JOf course you can still apply for loans separately even if you are married (if your wife lets you). You are still individuals not a combined unit so it is possible, for example, for 1 person of a marriage to go bankrupt with the other still solvent.Aparently this is different in some countries. I hear this is the case in japan, though I…[Read more]

Sounds like you don't have any other property if you are talking about the FHOG so probably best to get in your own names. If you buy in a trust you won't be able to get the FHOG and won't get a main residence CGT exemption either.If you buy with parents you could only get the grant if it is they qualify too – ie their first property. All people…[Read more]

Best to use a lawyer to protect yourself by doing it all properly too.

If you don't own any other property you may be able to obtain the main residence CGT exemption on the property initially and the remaining part after sub-division.Depending on your incomes you may want to buy a larger percentage in the lower income earners name (also depending on when you intend to sell) so that less CGT is payable when the split…[Read more]

saving a little bit in tax now could cost a fortune later in CGT.

There are stamp duty exemptions for transfering from trusts to individuals – but not sure of the other way around. And they wouldn't apply in most situations relevant to investments. eg trust set up to own property for a minor and then the property transferred to the individual when they reach 18.PI the recent case of Bamford has shown that trust…[Read more]

why have 2 directors? you are just doubling the risk.Both must sign and both will be required to apply for the loan and act as guarantors.

HiNot sure exactly what you are getting at, but if the couple are married/defacto then the title can be in one name and the loan in 2. If 2 names are on title, then both have to be on the loan as well.

knownothing wrote:
After reading further in this forum, I got the impression that many posters agree that a LOC is practically the same as having a IO loan with offset, so am I correct is saying that if I do end up refinancing with a LOC (to get equity out of property) this in effect means my current loan needs to be increased to put that money…[Read more]

Yeah doing that many you are probably operating a business of developing. You will be selling new houses so will need to charge GST for them as you will be turning over $75k you will need to register for GST.Developers don't necessarily pay 30% tax. This would be the tax rate for a company, but if you are doing it in personal names then you may…[Read more]

You generally can't get a guarantee from someone for income or servicing purposes, unless from a spouse. There are issues with lending to people if they cannot demonstrate how they will pay the loan. If the person is a part owner of the property then it is ok – maybe a trustee or beneficiary of a trust for eg.Guarantees for the equity part are…[Read more]