I would think it best to pay the debt off first. You are unlikely to get a loan if you have $120,000 in credit cars as they will assess this as a $3,600 per month expenses.

I have written a few posts about this.Once a lender give you a LOC you can use it as you please. But you had better be careful about the ATO considering this is a scheme set up to avoid tax. You need a good accountant to set it up for you and you need to be doing it for a reason other than saving tax. probabaly best to get a private ruling.

Did you see that agent on TV last night – today tonite or ACA.He had a property on his books with an asking price of $300,000+. It was slow to sell and so he offered to buy it himself. He paid $240,000. The same day he resold it for $280,000 to another of his clients.

Look at the website of the Tenants Union in your states – these are for tenants, but are a good source of info on what you can and can't do.Maybe you could increase the rent by $50 pw every 6 months until it catches up. Do it slowly (so they won't notice!).

Yes you need to see an accountant or lawyer.I can see no point in having 2 directors though – it just doubles the risk without any benefit.

yes, a trust needs an ABN as well as a separate TFN. not exactly sure why, but the ABN needs to be listed on tax return etc.

What about finance. THese units are very small so you will probably need a large deposit of maybe 30 to 40%.Low capital growth too. one of my friends had one there and was trying to sell about 10 years ago for $130,000.

You are crazy running a partnership. Best to run your business through a company so that if something goes wrong it is the company that is sued. Shareholders of a company have no liability. Directors can sometimes go down with a company if they have done something illegal, but even they are usually safe if the company is sued. it is best to have…[Read more]

can't see how an agent could claim a commission from an offer.Just because someone makes a verbal offer doesn't mean the person will buy the place. The person making the offer may not even have finance for all you know.

All loans should be interest only. A separate loan should be added on the first one to access any equity. Not so efficient to use redraws. try to borrow the 20% deposit and costs from the 2nd loan an then get a stand alone loan for the remaining 80%.

Some points:- you can only claim 1 property at one time (except for a 6 month overlap period) as your main residence- No time limit is listed in the legislation.So as long as it is your main residence you should be ok. The ATO has put out a TD on what they look for to establish if a property is a main residence. TD 51.If you are buying and selling…[Read more]

Yes, it probably is a breach of the mortgage agreement. Technically you may require the written consent of the lender to lease the property. You cannot do anything without breaching!

Sounds like you have a mess there.You should keep investment loans and private loans totally separate. Ideally never take money from a private loan for an investment loan. It doesn't matter where your loans are, as long as you have a good rate etc. Just make sure the investment is interest only and you are paying any extra money into your private…[Read more]

Interest deductibility depends on what the borrowed funds are used for. In your case they were used to purchase a property which is now being rented so you should be ok. Original intention doesn't matter in this case.

I would suggest you look at not paying any extra off the investment property. Change the loan to IO and get a 100% offset account. By paying extra you are decreasing tax deductions and tying up your money which you will not be able to use (without tax consequences) for your new home – if you want one.

You could borrow up to 90% of both properties. So (add up the value of the current one and the future one) x 90%, then minus the existing loan and that is the extra amount you could borrow – subject to serviceability.Some banks may allow existing customers to got o 95% too.

Maybe Doogs needs to do a few and see how you go. Then build it up, get your financials showing good profits and then quit your job. Another possibility may be to do it with a partner – preferably someone on a high income who could help qualify for finance while you do all the work

I had a mate who had one or 2 ATMs in his shop, think he was getting around $180pw for them. So it can add a bit to the income received – but you will need somewhere to put them, good location etc.

Its not a bad idea to pay off debt, but better to pay off non-deductible debt first.Imagine if you still had a home loan and had 2 properties paid off. You would be paying high interest on the home loan – which you could not claim a tax deduction for. And you would be getting $500 rent with not much to offset this (deductions). So you will earn an…[Read more]

Holding costs is a problem. You will be paying interest and rates etc but not getting any income in. This all adds up.