mrproperty.You may have to get a bit creative. Tax deductibility is determined what the borrowed funds are used for. So you could take out all of your offset money and use that with no issues as it is not borrowed. Then set up a LOC on the property and use this for investment expenses. This will free up money you would have used to pay into your…[Read more]

You are just increasing one investment loan to pay another. And the increase is a small amount, so it may be easier just to increase the existing loan. At tax time the interest may need to be apportioned between the 2 properties, but, if the loan is IO it should be easy to work out. If you get it wrong, you won't be paying any more tax anyway.

Put a notice up on the notice board (friend of mine did this an got a unit cheap) and approach the managing agent – if there is one who does most of the building rentals.

Hi AngelaI think the main problems lenders have, or had, with HDTs was that the owner of the property would be the company whereas the loan needed to be in the unit holders name. Having a loan in someone other than the owners name can create legal problems down the track if things go wrong. I don't think tax issues were of any concern to…[Read more]

look at http://www.trustdeed.com.au for heaps of info and some strategies.

A trust needs a trustee. This can be one person, two or more people OR a company or 2 or more companies OR 1 company and  one person etc etc.Having a company as trustee is safer as it distances yourself from the trust assets. The company will only act as the owner of the property on behalf of the trust. So all the rent will go to the trust. The…[Read more]

Watch out for damage in common areas – they will all blame each other.The people that i know doing it are Thai and they rent out to other Thai students. pile them in. It was going so well in the place they lived at they rented another one up the road. But they can go there and check things out when they pick up the rent etc. I als knew one…[Read more]

big risk. if they damage the property you will be responsible. If you understand this, then good idea.I know of people doing it in the inner city and making $200 approx per week per unit.

Qlds007 wrote:
ObieSorry but that is one of the issues of X collateralising loans you just cant do itIf my IP lender does not want to remove the second mortgage on my PPOR I will just refinance them out of the equation. Assume that the Investment property has increased in value but your PPOR has fallen in value or has remained stagnant.Sure you…[Read more]

It is possible for claim the interest on that 10% withdrawn from the main loan. But it is very messy and not the ideal way to do so. It will create future problems trying to work out the claimable portion because it is one big loan.The ATO considers each subsequent repayment into that loan as coming off the main loan and IP loan in proportions to…[Read more]

One potential problem is that the 3 properties will be cross collateralised. Better to have 1 LOC on each – but this may not be practical if you have a little bit of equity in each.

Hi DonI agree with Richard. These days the lenders will not like this sort of deal.What you are doing is essentially borrowing the $125,000 from the vendor. So I would suggest you need a separate contract for this and leave the contract of sale for the property as is.Maybe a verbal offer with an explanation is better than a written one. And you…[Read more]

Why sell your existing property? You will only have to pay stamp duty, legals, loan fees (and exit fees?) again, and your equity will probably decrease.Firstly you should consider that most of these partnerships fail. You will need to discuss what will you do if he wants out or you want out?I think using a discretionary trust with a corporate…[Read more]

If the woman paid you directly, then i believe she has a strong case for having a beneficial interest in the property – as these funds were directly used to purchase the property.And Pully makes a good point about the mental illness and capacity.Very messy, sorry to say I don't think it looks good for Websa. Please seek legal advice asap.

depends on your situation and the state you are in. In NSW you may be exempt up to around $550,000 i think. But in VIC you are only exempt if you are married with children and the cut off is much lower.

Hi Angela. Yes, units are consider property of the owner. so not asset protection. An interest in a discretionary trust is not property until a declaration of distribution is made. There have been some exceptions in a recent case (Richstar), but there were cases after this that did not follow that decision. Anyway a DT is the safes way to go, but…[Read more]

I am already getting emails (on my fake account which I gave that company) for new business opportunities. There was one about forex trading and others too.

Yes, i agree. You could set up a trust. Discretionary or bare trust, depending on what you want to do in the future – but the trustee would be on the loan and to take the risk. You can change trustees later on with only nominal stamp duty -when you reach 18 and qualify for a loan.

Good points Linar.Websa, now you know why those 2 had bad credit in the first place!Sorry, i don't know anything about SA.good luck and keep us informed.

Yes, in NSW you will be charged stamp duty on the value. OSR may even require you to get a valuation to back it up. One of my clients did this recently.There may also be implications if the gifter goes into bankruptcy. If they go bankrupt creditors will look to see what assets were disposed of and then look into those transactions. If they are not…[Read more]