For just a quick ball park figure = you can borrow in total roughly 6 times your annual incomes.

Hi TimHere is a quote from an email I received from ING on the 28th Nov 2008:"Genworth will require additional documents for Lo Doc applications with an LVR above 60%. In INGDIRECT’s view, these changes will render Genworth’s Lo Doc proposition uncommercial. To that end, INGDIRECT will not endorse the changes and therefore no longer offer Lo Doc…[Read more]

It might have the opposite effect – pushing up prices

Hi DanielI don't know anything of Onedirect – I suspect they are mortgage managers so they may not offer offset accounts. But even if they do, you would still be better off in the long run by having a second split – after paying down the loan.eg. Say you have a loan of $200,000 with $50,000 in the offset. You then buy an IP and use $50,000 as a…[Read more]

You may have entered into a binding contract despite the fact that you have yet to sign the formal contract. Tell the agent what you want to do and maybe submitt a new offer by the new buyer and tell the vendor you are withdrawing the old offer and submitting this in its place.Seek legal advice quickly – not from a conveyancer, but from a lawyer…[Read more]

I was just reading that the futures markets are anticipating more cuts to rates, so maybe don't fix in yet.Beware with the redraw – make sure you get a separate slit set up or you will be suffering at tax time and you will end up paying more tax than necessary.

I have sold a few properties on a 'rent to buy' method in Vic. You can get higher rents in exchange for giving them the opportunity to purchase as a reduced price in the future.  You do this by selling them an option to purchase and charge a higher rent with some of this coming off their purchase price.The major downside is if you sell them an…[Read more]

Lenders will consider rental income from the future purchase.You might want to consider putting your cash into your home loan and reborrowing to save some tax.Westpac is allegedly bring out a 1,2,3 year fixed rate of 4.99% on monday, so that could help with lowering repayments – but variable rates could fall still further. Westpac and other major…[Read more]

Commercial Property is taxed the same as any other property.

Commercial Property is taxed the same as any other property.

Commercial Property is taxed the same as any other property.

There are a few downsides as well, such as:- could possibly drop in value- could drag out and be completed much later than expected- you could lose your job or have trouble coming up with finance at settlement. Especially in this climate, rules for lending are tightening up all the time.- there is an opportunity cost as you may not want to do…[Read more]

Its good to pay down debt – but it can complicate things from the tax point of view.eg. you have a $200,000 investment loan and $100,000 cash. You park the money into the account to save interest, and the balance reduces to $100,000. You then decide to by a $100,000 boat and take the money out. The loan balance is now $200,000, but only interest…[Read more]

PASSNBY wrote:
So can you get a offset account on a fixed loan? and with RHG?

Haven't checked lately, but RHG didn't offer any offset accounts the last time I asked – I was told by one of their staff that the redraw facility works just the same and this is simply not the case!Generally cannot get an offset on fixed loans either.

Wow, almost as low as in Japan – they are down to 0.30% there.

Trusts can negative gear – losses from an investment property can be offset by other trust income, but you cannot offset personal income. This shouldn't be a problem with being self employed.I would urge you not to buy in the same entity as your business. If you do, then you will be exposing the house to creditors if your business fails. Set up a…[Read more]

Hi AjayI think it excludes balcony area.St George can do Besits as small as 25 square metres too.

There is also no guarantee that the FHOG and stamp duty exemptions will still be around in 5 years – though I can't see it getting any easier for FH buyers.

Sounds like it will be hard. the 110% loans are gone, and the 100% loans are almost gone too. There is one (maybe more??) still left, but you will need a good work history and income to qualify.

Buy whatever you think will grow the fastest.I would get an IO loan if you have other non-deductible debt as you would want to decrease this first.If no other bad debt, personally I would still get an IO loan, but it depends on your risk level. You may want to pay off a portion of this one before embarking on the next if you are conservative. Look…[Read more]