I think even while bankrupt you can get a loan – if someone will lend to you.

yes, i think you will have a uncommercial rent and this may lead to problems with the ATO.

i think it is a great product – for the first 3 years only. Then you can easily change as the exit fees are minimal.I would also get a longer term just in case. You can always pay it off quicker.

Trustees can only distribute to the beneficiaries or class of beneficiaries. Usually a deed is worded such that the family of a named beneficiary, trustee or director/shareholder of the trustee is all included. So if you marry, have children, adopt children, get some step children etc they should all be automatically included without being…[Read more]

should be ok as long as they are not on title and everything is commercial.If they are on title, then they could probably rent your share of the place.

gezzy wrote:

Terryw wrote:
of course!Most people use the equity in their home. It wouldn't be a good idea to save up a separate deposit for an IP if you still have a loan on your home as you would be losing tax deductions.

Hi Terryw,Could you please explain how you would be losing tax deductions? I've read many of your posts and value your…[Read more]

Get some proper advice first.Why have 5 directors?? 5 times the risk. This will eat into your future serviceability too. I would look at having one director. 

1. usually valuations are conducted. There are basically 3 types of valuations the banks do.a) full valuationb) short valuationc) kerbside or drive bye valuation.to this we can probably addd) internal valuation where they don't use a valuer, but just look at some figures for the area and see if your property is in the range.e) no valuation at all.…[Read more]

i think it should be ok. But you could have set it up better in my opinion.eg.IO home loan, with 100% offset account attached.LOC on the home loan for any spare equity.IO loan on the IP. (separate bank)What you are doing now is essentially borrowing to pay the interest on the IP. This may be set up so you can tax deduct it.using the above example.…[Read more]

of course!Most people use the equity in their home. It wouldn't be a good idea to save up a separate deposit for an IP if you still have a loan on your home as you would be losing tax deductions.

ATO will assess on whatever he puts down on the forms. But if they do an audit they may pull him up. CGT is supposed to be payable on the market value.

St G has a really good LOC – but why do you need a LOC if you are refinancing? They can get you into a lot of trouble with claiming deductions.

permanent residence is enough. You are not classed as a 'foreigner' if you have permanent residence.But, if you are going overseas for a long time there could be tax implications.

I had a friend who went to the $16,000 Henry Kaye bootcamp, many years ago now, with the intention of leaving before lunch time on the last day and receiving her money back.She ended up staying for the full program and forfeiting this right because of getting caught up in all the hype during the seminar. Also there will be not notification at the…[Read more]

The 6  year rule only applies to absences from your main residence. It is my understanding that you cannot claim a place as your main residence until you have liked in it. So, i think she cannot claim it as a main residence from purchase until Dec when she moves in. GCT will apply to any gain during this period, but she may be able to claim some…[Read more]

Some lenders can still do up to 4 dwellings on one title. I was reading bankwest's policy yestreday and they will consider4, up to 80% i think – but on a case by case basis.Since you haven't started the process yet, i think you should consider applying for finance for the land and a pre-approval for the building component at the same time. Then…[Read more]

I agree – most lenders would consider that sort of default irrelevant. Some of the higher LVR loans may have problems tho – some need you to be sqeaky clean.

These days it is not as easy as it sounds. I tried to do one recently, but the mortgage insurer knocked it back.Basically you, subject to serviceability etc, can get a loan for 80% of the building contract and the value of the original house. But valuations are coming in tight so if you don't have much equity it may be hard.You can't really…[Read more]

I would stick with the major banks and avoid the non-bank lenders. The offset account works well tax wise by keeping your loan balance high while helping you to still save interest. You should really have one from day 1 for the max benefits – esp if you are going to rent the place out later.

yes it is hard, especially now.I have one client who is a builder and wants to build his own projects. Actually had 2 clients, both were low doc types and I used to put them to Latrobe – but they will not do owner builder loans anymore. No one will – as a low doc.St George do, or used to, on a full doc basis.I don't know why they deem it more…[Read more]