Hi Andrew and Richard, thanks for the repliesI have done 6 wraps myself, many years ago now, and that was my main reason for thinking they are not worth the bother. The properties I purchased and then wrapped made me small weekly incomes and smallish capital gains when cashed out, but then you factor in stamp duty and all the other costs and it…[Read more]

mortgagedetective wrote:
And finally for you Terry. I can't see what is indecent about a business that is willing to give the borrower a better deal than the broker up the road. It seems a simple matter of how much a broker values commission over the interests of the borrower.

Maybe not indecent, but would any decent broker do it? Maybe someone…[Read more]

I think you would have to be crazy to buy a property in an inferior area with little growth prospects. There would be no point, in my opinion, even if you were making positive cashflow.These days good properties in Sydney or other capital cities would be close to cashflow positive – some even positive. Rents will grow as well, so if there is a…[Read more]

i haven't really been following this discussion, but was wondering why would any decent broker rebate commission? it doesn't make sense.

Hi AndrewWhen someone is bankrupted they have a debt which they cannot or will not pay. The creditor usually has a judgment against the debtor and once they have this they can get a court order to sell any of the person's property and recover the debt that way. A bank will have no say in the issue. What you are talking about is if the person were…[Read more]

Do a search on the Centrelink site. It should be all there on how much the pension will reduce by  etc. I had a look a few months ago for my grandfather, but he was under the limit so I didn't do any further enquiries.

Rudiga wrote:
what is the difference between; – Discretionary Trust – Unit Trust – Family Trust or are they all the same?

A discretionary trust is one where the trustee has discretion on how to distribute profits. usually the beneficiaries are very wide.A unit trust is one where the beneficiaries are fixed. each as a unit or units so the…[Read more]

Your accountant is correct.Intent doens't really matter in this case. It is what the borrowed funds are used for that counts.If you increase your existing loan you are actually borrowing again. Taking money out of a loan account = borrowing.So if you borrow $250,000 extra the ATO will look at what this $250,000 is used for. If you use it for the…[Read more]

BTW, the above is for NSW only, but other states would be very similar

I would suggest you never pay down any of the loans. Keep saving into a 100% offset account – if you don't have one, you need at least one.Keep saving like mad, work on ways to improve rent and to improve your income from work and be patient. Write out a plan and stick to it. Don't get sidetracked into other areas you don't understand, just focus…[Read more]

Spouse is defined as defacto you are living with FIRST HOME OWNER GRANT ACT 2000 – SECT 6 Spouses 6 Spouses

(1) A person is the "spouse" of another person if, on the commencement date of the eligible transaction:

(a) they are legally married, or

(b) they are living together as a couple in a de facto relationship within the meaning of the Pr…

[Read more]

seeThe date is from the date of absence.http://www.austlii.edu.au/au/legis/cth/consol_act/itaa1997240/s118.145.htmlThere is not minimum lengh listing in the legislation. Seems as long as it is your main residence and you are absent, then the rule can apply.

american concepts don't always work in Australia.You could buy using a company, but this would result in more tax being paid and offer little or no asset protection.If you have no property now, i would suggest you look at buying one in your own name, live in it initially (maybe get the FHOG and stamp duty concessions) and then move out again.…[Read more]

Sorry can't help with the fist query – maybe give the office of state revenue a call.but as for defacto, you should probably look at the FHOG Act in WA this will state what the definition is for defacto – you may be referred to another Act. in NSW it is defined in the Property (Relationships) Act – and the definition is broad. Should be similar in WA

i have had a few of these sorts of problems – makes you want to invest in shares!

I don't know of any, but a search under 'credit repair' mayb turn up some.But, your blemish is small and usually wouldn't pose a problem so if Richard can get you the loan anyway it may not be worth removing at that cost.

His income is about $15,000 pa. That means rough borrowing cap would only be approx $90,000. Can't accept gurantors from non-spouses (parents maybe ok).

I would suggest IO too. but it won't really work out the same if yu pay $360 pw extra as  your loan will progressively be decreasing so the interest will be decreasing. if you want to pay it off like a PI loan you should pay the same $1610.46 each month.But, a better way would be to use the 100% offset and put your money in there. This should…[Read more]

I have heard of this in the USA . Could you please explain how it would work in Australia

You may also be able to get the blemish removed from your credit report – there are many companies offering this service.