No Docs are virtually gone.There are still many Low Docs around, but conditions are tightening up, you will need 2 years ABN and GST (if you need to declare more than $75kpa income). Rates will vary from around 7.97% tp 9+% (before yesterdays cuts).

Hi TedThats not my opinion but the lenders and mortgage insurers. Maybe you used St George who have their own LMI company?I guess one reason they find inner city more risky is because of all the high rise apartments. Sometimes these buildings have various problems with Strata and building issues and having too many eggs in the one basket could be…[Read more]

I would probably pay $50,000 off your home loan and then get a LOC on this property up to 80%. -Use this LOC (Line of Credit) to pay for the 20% deposit and costs of the new purchase and then get another 80% loan for the remainder.-New loan should be IO. -Home loan should have a 100% offset account attached where all salary and rents etc go. -Use…[Read more]

Just give them a call and find out the break costs and then do some calculations on how long it will take to recoup the costs. If it is an investment it may be deductible in the year of discharging the loan.BTW – you must have signed something to take the loan out so don't blame your girlfriend too much!

Here are my versions of answers:1) should be similar to getting finance in your own name.2) You could gift to the trust or lend to the trust. There are different tax and asset protection issues to be thought out with each of these.3) Yes, even if you are not specifically named you may still be a beneficiary. the deed should be worded such that any…[Read more]

I think it would still be possible for you to get the grant, with the OSR assessing the deal based on market value – eg for the reduction in stamp duty.But if your mum is getting the pension she will need specialist advice on how the gifting will affect this.

Looks like you have been misinformed. You can have the existing home in joint names and the new loan in just one name – the other party not on title will have to provide a guarantee though as their security is being used. you can do this with separate loans too.

ajayayyar wrote:
Hi Terry – why would financing be harder because the apartment is in the city?Additionally, what is the issue with "serviced apartments"? I have heard people saying this in the past, but I haven't yet heard a good reason for it.

HiThe mortgage insurers generall won't insure for inner city suburbs as they consider these higher…[Read more]

you could but………..The trust will own the property so only it can claim any losses. Trusts cannot distribute losses, so unless your trust has other income it won't help you save tax now – the losses will carry forward and can be used to offset future income. ie you cannot personally claim the losses or reduce your own tax.You will also be up…[Read more]

probably negative growth

wat dii.try http://www.guardianpartners.com.au

Finance will be one issue to consider. Being in the city will make it more difficult to finance and being a serviced apartment will also mean it more difficult.

Did you know that rent rolls are valuable and can be sold. Maybe you could get a few friends together, do the real estate course and get licenced. You can then sell the roll – you will get around 1 to 2 times the annual income.eg. if you had 6 properties renting for $400 pw = $28800 pa. in rent. at 8% management fees = $2304. sell at 2 times =…[Read more]

You may be interested in reading Tax Ruling TR 2000/2Income tax: deductibility of interest on moneys drawn down under line of credit facilities and redraw facilities http://law.ato.gov.au/atolaw/view.htm?locid=%27TXR/TR20002/NAT/ATO%27&PiT=99991231235958

Hi RichardThere have been some big changed within finance over the past year. No Doc loans have vertually disappeared and now Low Docs. Any one with a bad credit history is having a very hard time. Many or most of the small private type lenders have disappeared. It is very hard, if not impossible to get a loan for development based on end…[Read more]

Hi PeteIf you guarantee a loan it is the same as taking out the loan in terms of effect on future borrowings. Future lenders will want to know all the loans you have taken out and any loans you have guaranteed.Furniture for a rental property could be added along the way – but if you are adding furniture your rent should be rising too to make it…[Read more]

Cashbonds are old stuff. Don't know of anybody actually using them nor anyone who did use them- it was good in theory.

I don't know any accountants in Brisbane but Richard's one sounds good. I do get the newsletters for Bantacs.com.au too and they know their stuff as well.

Hi PeteTrusts can get the same LVRs as individuals. 95% or maybe even 100%.If you guarantee a loan you will need to declare this if you apply for subsequent loans – not matter which name/entity.

bardon wrote:
The trust buys the house you own the shares in the trust the trust offer the property up as security for a mortgage that is taken out in your name.  The house runs at a loss and you can offset this loss agints your personal income.

Sort ofThe trustee buys the house in their capacity as trustee. The individual unit holders then…[Read more]