Hi1. I think you may be eiligible for the grant, but may not be for the stamp duty exemption2. You should never pay anything off of an investment loan, but place all money in a offset account. So you save the same interest, but still have your funds available without adverse tax consequences. Once your IP is paid off you will be paying tax on the…[Read more]

You better ask your solicitor this question. In NSW I think stamp duty is payable within 3 months of exchange of contract. So the exemption may have already been applied for? But if you don't settle then you may still be eligible. But then again you are cancelling one contract and signing a similar one for the same property, so they may not allow…[Read more]

Steve used to use (and maybe still does?) a discretionary trust with a company as trustee.With these entities, if is the director of the company that guarantees the loan. the director will need an income to prove serviceability. You can have 2 directors, but if something happens and the loan cannot be paid back, then the lender will take action…[Read more]

If a person is on title they are not a guarantor but a co-owner. The FHOG is only available if all owners qualify.

oaklands wrote:
If the market value of my investment property has increased and I refinance upto 90%. Can I still declare the new holding cost at 90% (interest paid on mortgage)?

If you are asking can you claim the interest on the increased portion of the loan, then the answer will depend on what you are using the money for. The security…[Read more]

St G can lend up to 80% on units as small as 25sq meters.

Hi Oyou could set up your trust online yourself from as little as $175 – but if you don't know what you are doing you could get into trouble, so it may be wiser to go to an accountant for some advice.Many pros for setting up a trust – the main one being superior asset protection and flexibility in distributing profits and saving tax. Trust assets…[Read more]

Tax consequences: – redrawing from a loan, whether it is a LOC or a standard loan, is considered new borrowings- Interest on borrowings are only deductible if the money was used for investment or business purposes- Putting money into an offset account is not putting money into the loan. It is a separate account, so- taking money out of an offset…[Read more]

No Australian lender will lend on overseas properties – except maybe NZ. Aust banks based in the country of the security property may be able to help, but you generally have to be working in that country.

IP This deal has nothing to do with me. It was anothe broker who decided he had better bite the bullet and get out of it now before rates dropped further.Also you should watch who  you slander publically. There is no comission payable for switching loans anyway!

HiAs a general guide you could borrow roughly 5 times your annual income (gross). If you live at home and wish to buy an investment you could probably get a bit more due to the rental income being included. you will generally need about 5% deposit and another 5% for other costs. If you have  a good employment history you may be able to borrow…[Read more]

if you withdraw money from a loan it is treated as being new borrowings. So the interest on that money will only be deductible if the funds are used for investment purposes or business purposes.

The problem with units in general is the high strata fees. CBD units pose additional problems in restrictions on finance. This can limit the number of potential buyers and hurt your borrowing capacity if you have low equity.

If the rate is variable the lender can vary the rate any time.Many clients have been hurt by taking out loans with Macquarie – especially no doc and low doc loans. A few months ago they stopped lending to new clients and dramatically put their rates up on these products – I think at almost 1% above what they started at. With high exit fees many…[Read more]

abarsby wrote:
Thanks Terry I appreciate your help. I am looking at tax minimisation so I might look at purchasing in my own name.CheersAB

AB, That could result in more tax!eg one of my friends was on $100,000, wife on nil. He bought in Perth before the boom. I told him to look at a discretionary trust, but he went ahead buying in his own…[Read more]

abarsbyIf the trust owns the property you cannot claim the deductions (unless a unit trust is used). The trust claims the deductions – so no you cannot claim the variation for your income tax.

Having a company will only have limited effect with property as you would be required to give personal guarantees for loans. They would help if something happened on site, for example, and someone was injured and insurance didin't cover it. Pretty remote, but it could happen.Having a trust would be more flexible tax wise – with same asset…[Read more]

They are totally different.An offset account is a savings account where interest that would have been paid comes off a home loan instead.A LOC is a facility where you can borrow (ie withdraw) up to a certain limit.It would be much easier for a bank to say they are going to reduce your LOC limit on funds yet to be withdrawn than it would be with…[Read more]

There are 2 forms of vendor finance.1) is where he lends you the deposit and you buy the house as per normal2) is where you buy the house from him and pay it off in installments. The title will stay in his name until you make the final repayment. If prices rise and your situation improves you may be able to refinance this loan with a bank after a…[Read more]

Most banks would no lend on a low doc basis – none on a no doc. There may be a few fringe lenders out there who offer Low Doc personal loans – but expect rates high – maybe around 26%. A cheaper option may be a credit card – many banks treat these as low docs – some don't even require proof of income.