better seek the advice of a specialist lawyer too or you could get yourself into some trouble. eg. imagine if you have the shares of the company owned by yourself. you are sued and go bankrupt – the shares of the company are property which can be seized by the trustee.

Mortgages are registered at the land titles office. You would probably need a…[Read more]

It would be hard to answer without knowing the circumstances.

I think it boils down to would the tax payable by family A be more than 30%?

If the loan of family A is paid they will have less deductions and therefore pay more tax.

If the company loan is paid down then the company will have less deductions and therefore more profit and more…[Read more]

Funny IP!

I think you will need a bit more than $10k these days – unless buying a really cheap property (and then you may not qualify because of the location!).

You will generally be required to have 5 to 10% (more likely) deposit and money for costs.

If you will need to borrow more you will need to re-qualify for the loan again. Even if the loan is portable – i think probably most are, in theory, though in practice it is just as easy to discharge the loan and start again. Hope you are not with one of those non-bank lenders – exit fees can be high and things messy.

Hi Penny

I would suggest you look at setting up a LOC on your current home. You can then use this as 20% deposit on the new house and borrow the remaining 80% as a separate loan.

You can also pay expenses from the LOC – both initial purchase costs such as stamp duty, legals etc and on gong costs such as rates.

Then you will free up more money…[Read more]

Since you are going to move out of the house and rent it, you should not pay PI or any extra into the loan. Best to use a 100% offset account with an IO loan – and use your point generating credit cards as much as possible.

i agree with the offset. LOCs should only ever be used for borrowing investment expenses. If you stay putting money in and out of a loan you will create a tax timebomb.

These things can happen. What you need to do is to gather evidence of comparable sales – actual properties that have settled, not just for sale. Maybe your realestate friends can help here. Make a list and give it to your bank to pass on to the valuer. They will sit on it for a few days and if you are lucky they may amend the valuation. If not, it…[Read more]

yep, see s 68 Duties Act (NSW)

wisepearl wrote:
noisuf – i am in a similar position, with a IP (ex-PPOR within 6 year CG rule) which thanks to crazy perth property boom now has around $200k equity in it. Its an awesome apartment, with great positive cashflow and all in all a terrific IP. I will be looking at purchasing PPOR in say 2 years time, after purchasing hopefuly IP 2…[Read more]

Whatever you do, don't buy a property in the same trust that is running a business – otherwise if your business fails you could lose the property.Selling your house to a trust is certainly possible. Trusts can deduct interest etc like an individual can, but you cannot negative gear against your own personal income. But if you have a business this…[Read more]

i think in QLD it is possible to transfer title from one spouse to both spouses for no stamp duty – but only if the house is the main residence/

If I was you I would immediately change to an interest only loan. 100% offset would be good, but not essential as you will be buying a new PPOR and should have the offset against this loan to save non deductible interest.

Daniel W wrote:
Hi just so I understand, is it legal to get a credit card and move 10k for instance into a LOC to reduce interest?  (moving back to credit card before repayment is due of course)

Its legal, but wouldn't work practically. Banks charge interest from day 1 for cash withdrawals. So you would be paying 20% to receive a 5% deduction!

Hiif you are going to sell you should focus on exit costs more than rate – some of the cheap rate loans have huge exit fees. I would suggest IO for any loan, and having an offset account would be good too.You would need to look at structuring the ownership of the property – do you use a trust or individual names etc. You should talk about this…[Read more]

Hi KarenYou could be making a big mess if you are withdrawing from your investment loan to pay private expenses. A way better way would be to use a 100% offset account.

Sounds strange to me – and maybe you have misheard your accountant?If you currently have a loan on a property which you are living in, the interest is not deductible as the funds were borrowed to buy a private asset. But if you were to move out of that property and rent it the interest on the existing loan would be deductible as the asset is now…[Read more]

Basically all you need is the income! Try earning as much as possible. Put your rents up as high as possible. and keep credit card and other debts as low as possible. And then shop around.Some lenders allow interest to be added back when calculating borrowing capacity – some allow depreciation for existing properties as well.This is really all you can do.

JulitoIf you are an investor I would bite the bullet and get out now. Otherwise you are going to be hit with this problem everytime you want to increase your loan – no matter what the LVR you will have to pass the LMI hurdles.

I think MQ can increase existing loans – but will not take any new ones.But do have a look at the rates with the major banks. Don't worry too much about paying an annual fee of $300 to $400 if this is saving you money on the interest rates. I just got someone a 1% discount on the standard variable rate for the life of the loan with a major bank -…[Read more]