Have you been claiming anything on the investment? Like interest on the deposit monies etc? Actually, it probably doesn't matter even if you have. If you move in it can be your main residence during this period – and you cannot claim anything at this time, but can after when it is rented. You will also have no CGT during this period. Not sure…[Read more]

Yes,  there are no taxes on borrowed money. Well no income taxes.

This is basically a clause that the property you are mortgaging can be used for all debts owed to the bank. So not just the loan for the property but other loans or debts. This may include credit cards or even other housing loans with other people. You can attempt to negotiate this out of the contract, but it is a standard term and they will not…[Read more]

well that is probably a way to proceed. Get your dad involved. Maybe a trust will work well too. Both can guarantee the loan and both incomes taken into account together with rent.

Is your dad on a good income? if not then his equity won't help. You will need to demonstrate serviceability. You probably could do it on your income. What about another family member working with little or no debt?

There is not much you can do to help really. You could buy a house and offer it to her to rent at a reduced rate – but you say you don't have much cashflow. You could wrap a property to her, that is you buy it and sell it to her on an installment plan. She pays you off over 25 years with a margin on the interest rate so you make a small profit.…[Read more]

Oh, and I wouldn't make the IP loan PI but leave it as IO with an offset. park your $300k in there without paying the loan down in case you move again.

dirty sanchez wrote:
Here’s the scenario ;Current PPOR value $600K , loan #1 mortagae $300K with $300K cash in offset account, in both mine and wifes names.IP purchased for $500KLoan #2 80% $400K interest only loan in my name.Loan #3 20% +costs ~$150K interest only loan  secured against PPOR in  my name only  via security guarantee from the wife…[Read more]

The sales person may not care about whether you can afford it or not, they may just want their commission. Be careful.

Normally you would wait till your have paid off the loan on your main residence and then you could start paying PI on the investment loans. But I would still suggest IO with offset is better. You will get equity by the increase in value of the property and the increase in the savings in the offset account. You can use this at any time to pay down…[Read more]

blackaroma wrote:
Hi, Can anyone tell me is a am liable for stamp duty if a want to buy my parents house in Victoria.  Would I be exemp under Duties Act 2000 – SECT 32W???

I don't think so. it says 'subsequent purchaser who obtains a transfer right from the first purchaser'. I think this means if a person sign a contract and then later adds…[Read more]

These days 10 year interest only is readily available. Either way, I would suggest you extend the IO period another 10 years – or the maximum. You won't pay more interest overall if you keep saving in an offset. You will if you squander the money.I would never have a PI for a loan. even owner occupied.

Different states have different procedures. If the other party has your contract just make sure you put it writing that your offer is still subject to finance. You should be using a solicitor for all this otherwise you may get locked into the contract.

Yep, sounds like a good strategy, but…The only potential problem is you are paying down tax deductible debt. Say you put an extra $100,000 into the loans and then later decided you wanted to buy a place to live in. That would mean you would have all your money tied up in the investments and you would have to borrow another $100,000. that is…[Read more]

Although real estate agents are allowed to fill in the details on a contract you should get your solciitor to do that. Never trust an agent is my policy. You will need to get an extension. whatever you do don't exchange contracts in case the finance is knocked back – or you could lose your deposit and be sued.

Sounds like your scared of making money??Put the rent up as high as you can. thats what it is all about.

ToWhomItMayInterest wrote:

doogs1357 wrote:
So if I'm making an annual reportable income from the profit from these projects will the bank take this income into account when assessing me for a loan?

 I think you need a track record of 2years to be recognized for Traditional funding

yes

There are plenty of +ve proeprties out there, but ususally they are in 'bad' areas and suffer from lack of capital growth. These are not worth touching.ideally you will find one in a major city or other area with growth prospects. There are still some around in Sydney for example – but maybe not for long with the rate rises.

chrisb123 wrote:
I was told that banks only use equity in your property to fund another purchase if the loan is with the same bank. Eg this friend had a loan on a unit through ANZ, and had a small amount of equity in the property (estimated value – loan amount). They wanted to purchase a second property with another lender, but was told they…[Read more]

get the rent paid into your offset account attached to your home loan, not the investment (unless you home is paid off). This will save you non-deductible interest. From there you can get the repayments on a direct debit. make sure you investment is interest only too.