good points digger.

You can't have your offset at a different bank! I know ANZ and Westpac have full 100% offset accounts. St George also has one, though they can be strange with 3 different options so take care. NAB also have one, I think still as do Bankwest.

Funny, i had a client who salary sacrificed his whole income, so he had $nil taxable income and the bank still was able to lend to him. Westpac it was. (he was putting all his money into super)

QCMNeil Jenman's argument to that is the TIC claims it is a 'club' and offer free services when in fact they are making large commissions. Does it really matter if the end result is a house no more expensive than others in the area? I don't know!

Interest only periods are limited. Often 5 or 10 years is the max, depending on the bank. At the end of the IO term you can ally to change it back to IO for another 5 or 10 years, but this may depend on your circumstances at the time as most lenders would probably want to see evidence of income etc.I beleive the MISA account is not a true 100%…[Read more]

I see your point. if they slap a caveat and challenge the withholding of deposit it could take years to resolve. Then you are stuck with the place. Best to speak to your lawyer, probably while trying to resell asap. They may not have grounds for a caveat if they have breached the agreement and it is properly terminated. They will no longer have an…[Read more]

I recall recently reading that the investors club is suing Neil Jenman. think it was mentioned in Jenman's recent email newsletter.

good work spud.how did  you find the finance – was it from someone reading thispost?

hi NitdropsWhat product is that? Is it the portfolio loan? It is a very good product, with ability to split the sub accounts etc. But from a tax point of view it can be less than ideal. I would only use a LOC for accessing built up equity myself. IO loan with a 100% offset is preferrable for other uses – and a cheaper rate.

I agree that you need legal advice – that is it why it is best not to use a conveyancer for conveyancing!In NSW you can terminate the contract by issuing a notice to complete and waiting 14 days. If they do not settle by then you can terminate the agreement and keep their deposit. If they have not paid 10% deposit, you may be able to claim the…[Read more]

I recall now (memory fading!) that one of my clients made me attorney for him and his trust with a corporate trustee. I still have a copy of the document (and may go sell one of his properties for the sake of it!). The document is a bit longer than a normal one (9 pages) and It was drawn up by group of lawyers, ie specifically designed and…[Read more]

Interest on borrowings to pay investment expenses should normally be deductible. the fin plan is an investment expense.

ANZ, Westpac………….

L.A Aussie wrote:

Terryw wrote:
You are assuming Spud had kids while on the pension.What should he do if he kids came first and the pension second? Adopt a few kids out ???And what is a solicitor loan? They don't exist!

True;  I did assume he had kids while being able-bodied and working.I still think having 5 kids in this day and age is…[Read more]

Usually they are very conservative! The Govt uses the value for calculating land tax.

i have both of these. Rates are pretty similar and (and products too), but you may be able to get an extra discount with westpac, depending on the size. ANZ are getting a bit funny with their requirements these days and I prefer Westpac for their service as well.

cosmic wrote:
For me, this is the most confusing part about entering the IP game, for the moment.  I would like to learn more about this.  What should I read?

Just read the posts here. Best education there is.

looks like your doing well with the property so keep it up i think.I would suggest you use IO loans with a 100% offset attached. This way you can save the same interest without paying the loan down. So if you ever decide you need the cash it won't be tax complicated – eg you may want to buy a PPOR.Also look at setting up a discretionary trust for…[Read more]

You should seek proper advice as there are various CGT implications. If the property was previously a owner occupied property, or was purchased prior to 1985 it may be possible to sell without CGT implications – but I think this must be done within the first 2 years of transfer.So it may be an idea to look at the figure for you to sell that…[Read more]

I remember years ago a bank worker telling my parents they should be paying off an investment loan as fast as possible – while they still had a owner occupied mortgage.I also see client with loans set up incorrectly from the bank they went with. eg. LOC for an investment property where all of their salary is deposited. THis is a tax disaster.So it…[Read more]