Are you sure you are not exemption from land taxsee LAND TAX MANAGEMENT ACT 1956 – SCHEDULE 1Ahttp://www.austlii.edu.au/au/legis/nsw/consol_act/ltma1956173/sch1a.html

Personal loans are usually short terms like 5 or 7 years max. That means the repayments are very high and this will affect serviceability much greater than a home loan of the same amount.

Hi KimmyI suppose it depends on the wording of your contract. If you say subject to approval with westpac bank for an amount of not less than $320,000 than i think a pre-approval will not make the contract binding as it is not approved yet. But if you were to tell the agent or the vendor the loan was approved when it wasn't then you are…[Read more]

A client of mine paid the deposit and then his finance wasn't approved. I would wait rather than risk it. Don't sign with the builder until the bank approves it.

In Thailand a foreigner cannot legally own land. But there are a few ways in which you can get around things.1. Form a company. The company must have a majority of Thai shareholders, some say 51% otthers 61%. You will need 6 Thais and yourself in there. It is best to try to get 6 people who do not know each other so it is harder for them to plot…[Read more]

Status of residency for tax is different to that of immigration. So you may find that you could have been an Australian resident for tax purposes at least part of the time you were absent from Australia. There are also double tax agreements between UK and Australia. So you may be been required to declare the Australian income from here over there…[Read more]

Just tell the agent you will be taking the contract to your solicitor and then get hold of one, write in your clauses and give it back. If they refuse, insist or go straight to the vendor and tell them the agent refused this offer.

bator.h wrote:
I'm also interested in what is required as I am about to rent out my first IP.If I have a property manager managing the apartment, do I still need to take out landlord insurance?

It may still be a good idea as you can be covered for things like damage to the property or loss of rent if the tenants skip out etc.

Good ideas Euro. Only problem is these days getting cashout of a loan is hard. So may have to set it up as you suggest but borrow 90%, don't pay cash. Then immediately pay down the loans to $0 or $1 and have the money available.Sounds stupid, but banks don't want to give people access to large amounts of cash these days. $10k is often the limit.

You don't pay tax on borrowed money. But what you are saying you will do is really just shifting the loan from property B to A. Tax deductibility depends on the purpose of the borrowing and what the funds are used for. You are borrowing to pay down personal debt. So the extra interest on the increase won't be deductible.What you could do though is…[Read more]

Yes, i think you should be able to. The agent is your ágent' which means that they are acting as if you. so what they have is really yours.

Its not that simple because you will also be able to take into account the rental income from the new purchase too. WIll depend on how many kids you have, credit card limits, car leases etc. Each bank is different too.As a rough guide you can borrow, in total, approx 5 to 6 times the annual incomes – including rents.

Simple stuff really. There are not too many forumlas – not enough for a book anyway.Yield is return divded by cost. so $5000 rent pa from a $100,000 property is 5%.GST doesn't apply to residential property, only to new. 10% of sale price.You may also be able claim inputs too.

Since they notified you that the finance was approved it is probably a binding contract. So you can issue a notice to complete and keep the deposit if they cannot – but then you have to resell it again. Or you could give them an extension. I would suggest issuing the notice to compete to get them moving faster and then holding off at the last min…[Read more]

If you rent out part of your home that part will no longer be CGT exempt. Saving a few hundred in tax could cost you thousands later on.

When you say you have mortgage insurance – this may not be correct. If you are referring to the mortgage insurance that you pay when you get the loan, then this only covers the bank if you default and there is a shortfall. You will still be liable and will be pursued by the insurance company to cough up the rest.If you have mortgage protection…[Read more]

chrisb123 wrote:
Thanks very much for the feedback, i am starting to get my head around it now.. Only thing i'm still not quite sure about is..Once the 10 year interest only period finishes, all of a sudden my repayments shoot up through the roof??? With 4,5,6 properties or more, how do i service the loans?

Some options/points- By this time…[Read more]

Yes, probably right Richard. One way to avoid it is to use different banks. But in the end if you get a behind and the bank gets a judgment against you for a shortfall after repossession then they can come after all property you own.

I liked peter spann's book on property. But generally the forums are the best place to read.

Yes I think cashflow postive is the rent exceeds all costsPostive cashflow may be negative geared, but after tax deductions it makes a cashflow profit (due to high depreciation usually)