Complicated, but……….. could save you a fortune so it is worth trying to understand.

There is always the retirement type loans – reverse mortgages

PetersonDo you lend to Australian based people?

Get a second opinion on your borrowing capacity. Just in case

Don't know about the merits of charging yourself a high rent. You should be charging yourself a market rent. Higher rent means higher profits which have to be distributed – but I guess you could save tax by distributing to the lower income earners of the family. You would have to justify the rent if audited.Pos, you would need a unit trust to…[Read more]

For starters, All loans interest only.

What a question. it varies between banks!

wealthyjvd wrote:
whats the difference if you have IO and put money into the loan or have IO and save in offset?

Big tax consequences if it is an investment.Money paid into a loan = repayment. Withdrawing = new borrowings.If you put extra money into the loan and then wanted to withdraw $1000 for a holiday, then the interest on this portion…[Read more]

Very hard to sell quickly. It would take at least 42 days (in NSW) if you sold it instantly. Probably another month of advertising at least. I guess you should allow for 3 months to 6 months to sell at a reasonable price.Thats why you should keep some of your money in an offset account or shares, just in case of an emergency.

I agree with RichardYou have previously owned a property so won't qualify. You're spouse won't qualify either as his spouse (ie you) has previously owned property in Australia.

Yes it is possible with a discretionary trust. But the tenant would pay the rent to the trust, trust would then claim interest and other expenses. However, If there is a shortfall then the trust will incur a loss which cannot be used to offset personal income.

Thanks RichardI am located in Sydney, but being semi retired i try not to work too much.

My guess is the ex would probably have lodged a caveat against Oz's property which would prevent him dealing with it further. Maybe she would agree to let Oz extract some equity, but this would be complex if she is on title too. I think Oz may need to come up with a 5% deposit or look at a vendor finance type deal>

Maybe it could be converted into a pantry?

Sounds like a good plan. But get IO now. WOuld be good to have the offset too.One major concern is the size of the unit. 30sqm is very small. St G is one of the few lenders who will lend for this type. So prospective purchasers will have trouble getting finance when you sell. This will limit capital growth and sale price – but should also be…[Read more]

Hi KinksYou are talking about wrapping or vendor finance. There is no rule on how it is done, so it depends on the market and your negotiating skills. Usually they will add 20% to the price of the property when they sell to you and then add 2 to 3% to the market interest rate they will charge you. So if the property is valued at $100,000 and rates…[Read more]

If your existing loan is a low doc, it may be difficult to refinance at all due to recent restrictions. St G is probably the best bet.

You will have a hard time refinancing it to 95% LVR, probably 90% would be the max and then LMI is payable. Valuations coming in low as you said too.Why sell? do you need the money? Since prices are low it may be better off just to hold and wait for the next jump in prices. Consider refinancing on a lower rate, but make sure it is worth it with…[Read more]

Stamp duty is a state tax, so the rules vary from state to state. In NSW I think it will be levied just on the transfer value so no savings. In Vic in the past it was levied just on land value, but it may have changed.

perpetrator, give people a chance to read your posts. You shouldn't expect instant answers.