Depends on a lot of factors such as whether you can provide proof of income, your level of income, size of the loan etc etc etc. ANZ is pretty good at the moment for full doc loans.

You should probably get your bank to do the valuation. If you get one yourself, you may find hte bank/lender will not accept it for the increase and have to pay for another one.

There are big differences in holding an asset through a company or a trust. Generally, it is recommended to hold growth assets in a discretionary trust as you can still access the 50% CGT discount. So the max CGT you would pay if using a trust would be 24.25% verse 30% if you held in a company.Other benefits of a trust include the streaming…[Read more]

Hi Jason

I guess if you pull out some equity you will be better off if you can make a return greater than your interest rate, It may be difficult to do with property in the short term but may well happen long term. Whether you should do it or not wil ldepend on your outlook.

Some of the exit fees can be horrendous. There is one 100% loan out there with a 5% exit fee in the first year!

Hi BenThe ACN = Australian Company Number. Trusts don't get these because they are not companies. Your trust can and probably should have an ABN if it is comducting a business. A TFN is needed too.

Just borrow a bit more to cover the costs and the interest repayments plus a buffer. There is plenty of equity in there.

Hi JoshYou should probably have a company operate the business. If the business gets sued then you would usually be personally safe. eg. If one of those baldness cures you are selling could cause an allergic reation and kills someone – their family sues the seller = the company (not you).The profits for the business would be held in the company,…[Read more]

Yes, a contract should be enough to prove it is tenanted.The 6 year rule starts again if you move back in (ie you can move out again and rent it for another 6 years).

Is there  a box for maybe?(Not sure either sorry)

Kids can own property but they cannot get loans – and all people on title must be on the loan. What you are describe could be done with an adult too?

I think you might as well do the full real estate licencee course in you are thinking of being a buyers agent. it is only a little bit longer but would open up much more opportunities. Bigger money too I would think. It is also good that you are getting some experience in a valuer firm as you can see how things are done. Getting some real estate…[Read more]

Hi AstrawanTrusts don't pay tax (unless the income is not distributed = top rate). They do allow you to distribute income to the lowest income earner(s) so you can save heaps. And as a last resort you can distribute to a company and cap the tax at 30%. But with a capital gain you can distribute it to individuals and they will receive the 50%…[Read more]

Even if you stay long term having a IO is better I beleive. You can still save the same amount of interest by putting the extra money into the offset account and if you do change your mind and move out you will be much better off at tax time.With IO loans you could also chose to pay it off as a PI too and then just reduce the repayments if you…[Read more]

It would depend on what sort of equity you have in it. If not much, then there may be no point, but if you have heaps of equity the interest savings could be huge.

Hi JoshThink I can remember you.You can still use a Hybrid Trust to offset negative gearing, but will lose some flexibility. But because you are self employed, you can use your business income to offset any loss in the trust – ie you can negative gear in the discretionary trust.

Hi RabbitohWith that sort of speed in paying off your loan you should be able to afford a few more.You could increase the loan on the existing one and take the deposit for the next one from here.Have you considered just using an Interest Only loan with a 100% offset account attached? That way you can make the minimum payment with all the extra…[Read more]

Hi RichardDoes that rule apply to selling properties under a standard contract?

Quickly get a new accountant. You may also be able to amend the last 4 years tax returns if there are things you left out. tax returns older than 4 years can also be amended at the commissioners discretion too.The financial year is not over yet, still 4 months to prepare. You need to reduce the income of the persons with the gain. Perhaps…[Read more]

You should never run a business in your own name! A friend of mine was just sued for $800,000 because one of his employees committed a fraud – he had the business owned under his own name. Having a company will limit liability (in most cases). Get a new accountant.If you are making that sort of money you would want to set up good structures to…[Read more]