The banks rely on the incomes of the guarantors, usually the directors of the company. If the company has any income such as rent from exisiting properties or the property being purchased then this can be taken into account too.Many banks will not lend to trading companies because of the risks they attract and you should never buy in a company…[Read more]

You could terminate the contract if you wanted to. If you want the property then you would have to wait or accept it with the tenants (and the problem of getting themout).You probably can't claim any damages as you haven't really suffered a loss, just a delay. But talk to your solicitor about this. Maybe you will be charged extra legal fees for…[Read more]

These days they tax you on how you tell them. So it depends on how you want to do it. You will have to back up your decision if they challenge you. Operating in a professional business like manner of building and selling will mean you are more likely a developer. If you do the odd house occaisionally you may not be. Maybe also GST registration is…[Read more]

Living off equity is a great strategy. Borrowing for living expenses is not deductible, but things can be structured so that you are borrowing to pay loans and then living on rents, so it can be deductible. The trouble is not bank will likely lend to you these days unless you have a good reason for needing the money. Borrowing to pay interest or…[Read more]

Yes death too needs to bne considered.. Depending on how the purchase is set up one person may leave their share to someone you don't like (tenants in common). What happens then!If you have the ownership as joint tenants then the property doesn't form part of the person's will at all, so if one person dies their share goes to the remaining 3. That…[Read more]

Hi LukeWhy not apply for the FHOG? For tax purposes you can't claim a place as your main residence until after you live in it. If you lived in it for 6 months you could rent it out and retain it as your main residence and it will be CGT exempt for up to 6 years. You can also get the stamp duty concessions and FHOG.If may be a bit disruptive to…[Read more]

herehttps://www.propertyinvesting.com/forums/property-investing/help-needed/4329871?#comment-198359

Yes the best way is to set up a separate loan on the PPOR and then use this as deposit for the new one. No use in using savings if you had it as you should be paying your PPOR loan down first. The separate loan doesn't have to be a LOC (usually a higher interest rate), it can be a straight IO loan with redraw. Most banks offer these.

Depends if you mean you are relying on an increase in value or if you borrowed a low amount and wish to access equity based on purchase price. For the first one it is usually 3 months if LMI are involved unless you can justify why the place has increased in value (eg you may have renovated). If not LMI then usually anytime. , for the second one it…[Read more]

You should seek legal advise asap. Usually finance clauses have an expiry date well before settlement. If you haven't notified them that finance was not approved then you may be locked in to the purchase. Depending on which state you are in you may have just 14 days to settle if they issue a notice to complete. If you don't settle in the time they…[Read more]

You can have one big loan or 4 little ones – It doesn't really matter to the bank. Just be aware that if the other 3 people don't pay the 4th one must. each is liable for the whole debt – which is risky legally. It will also affect future borrowings as when going for a new loan the bank will asses each person as owing the full debt.Also consider…[Read more]

anie wrote:
LT Act mentions 6 y exemption if: owner lives elsewhere and does not own other property, and does not rent out more than 6 months a year for reasonable rent. The property is of the nature to interest families and no good tenant wants to rent for only 6 months in a year, nor I could afford to have it vacant other 6 months. Other 6…[Read more]

A deposit bond won't help at all. These are only meant to replace the deposit (10%) until settlement. You will still have to come up with the money at settlement. If Ray has bought it already that means he has the initial deposit sorted anyway.

She can, but there are tax consequences. Non residents have to pay 29%+ tax with no tax free thresholds.It is good to have the option to distribute to them even if you don't as the rules often change and it may be beneficial in the future.

Post a letter to the adress.Do a title search and you can find out their names – but you won't find out where they live.

Council probably

It will be pretty difficult to get a loan to be used as a deposit on a purchase. memberfirst.com.au can do personal loans up to $30,000 at 9.25% but they won't lend for deposits unless you are contributing your own funds too.

HiI think this is the relevant section from the Act linked above, Schedule 1A:

(7) Income may be derived from the use or occupation of the former residence in a tax year if:

(a) the income is derived from a lease, licence or other arrangement under which a person has a right to occupy the former residence and the total period for which any such…

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It can take around 3 weeks to get the actual cash as the bank has to send you documents, you sign, send back, and then settlement booked in etc. maybe 2 weeksAnd did you realise that with building loans the person has to chip in their bit before the bank starts releasing funds. eg. if you have borrowed 90%, then you must pay the first 10% and then…[Read more]

Its a difficult situation. Ideally you could move in for a brief period and then out again to maintain the CGT exemption and then sell later when prices rise again. But you don't want to get to the point where you can't afford it and over stretch it and then have to do a firesale.