Can you qualify for finance now, and are you sure you will next when it comes time to settle? That is a potential risk these days with finance tightening.

That is what a guarantee is – nothing really. It is only as good as the company/person backing it.A guarantee by a company, especially a small company is worthless unless it is backed up by a personal guarantee. If the person making the personal guarantee has no assets then their guarantee is worthless too.If he hasn't got any money there is not…[Read more]

Hi WideWhere are you living now? Do you have a mortgage on that property? And I see you have some consumer debt.Why not change all your loans to IO immediately. You should divert the extra money you are paying on your deductible loans to the consumer debt. The faster you finish this the more interest you will save – interest which you cannot…[Read more]

TonyWatch out with the claming of tax. It may save you a few dollars now, but end up with a huge CGT bill later.

In most cases they don't check, but they are auditing a number or percentage of receivers of the grant. They will send you a letter and ask you to provide proof you were living there – then it is up to you – bills, electoral roll, rates notices, connections etc all can be used.

There are plenty of share training programs and other share stuff out there. I think you should do some more research. maybe take at least 6 months before you sign up for something otherwise you could be wasting your money.

I just had to ring Bankwest and was advised they are taking 15 days now. Working days = 3 weeks

GodNever buy rural! unless you want a farm.if you really want one, then you should inspect it because of the extra risks involved.

i have previously bought about 10 unseen. But now I probably woudn't do so again. You need to get a feel for the area and see the surrounding houses and parks and whatever else is there. Otherwise who knows what you could be getting yourself into. Getting a mate or a building inspector etc to look at the place won't really tell you this info.I…[Read more]

Depends on the bank. All seem to be running very slow at the moment. Will also depend on the valuer. Probably take around 2 weeks if everything goes smoothly.

bator.h wrote:
Also, if I do decide to buy the two apartments, is it a better idea to put all my money in the investment property and try to positive gear it, or put the money in my PPOR and negative gear the investment property?

Hmmmm. Think about what you are asking.Would you reduce your loan on the main residence and save interest – which is…[Read more]

bator.h wrote:
I think we will get a high loan for the studio apartment to allow us to redraw funds as needed. Terry, I am unfamiliar with the CGT exemption you mentioned; is there any place I can get more information about this?

yephttp://www.austlii.edu.au/au/legis/cth/consol_act/itaa1997240/s118.145.html

yeha, good idea about the shares. Look at using a discretionary trust to own them

all people on the title must qualify. So if he has owned a property before 2001 he won't qualify. If he had owned a rental property, but not an owner occupied property after 2001, he might still be ok.

and http://www.austlii.edu.au/cgi-bin/sinodisp/au/cases/cth/HCA/1999/7.html?query=^steelefor Steele v FCT

hi ElkaHere is a link to the tax ruling. There are links to the cases at the bottom if you are keen to read themTR 2004/4 Income tax: deductions for interest incurred prior to the commencement of, or following the cessation of, relevant income earning activitieshttp://law.ato.gov.au/atolaw/view.htm?locid=%27TXR/TR20044/NAT/ATO%27&PiT=99991231235958

Kailyn wrote:
Mortgage Life Insurance refers to an insurance policy that guarantees repayment of a mortgage loan in the event of death. Its purpose is to pay off the debtors mortgage and leave the family with a mortgage free home….high interest savings

The topic of this thread is lenders mortgage insurance. This protects the lender if the…[Read more]

Once you have settled on the property the ownership structure cannot be changed. I don't think you will be able to transfer it between spouses without stamp duty – think it only applies if you are adding one spouse to a property laready owned by the other spouse and only if that property is the main residence.When did you check with the FIRB? The…[Read more]

One thing you need to consider then is that if a trust doesn't distribute the income then it is taxed at tax marginal rate. So each year you will need to find someone to distribute to. if you are a non-resident that the tax will be starting at 30% and up.

Hi ElkamThis was decided in the case of Steele v FCT a few years ago. The result was that as long as your were intending to build a rental property then all rates, water, and interest would be deductible. I can dig it up if you would like a read.in fact, it may work out better for Narelle to claim the costs of interest etc agaisnt her income as…[Read more]