Lenders are not too keen on lending for businesses without property as security. Some franchises can be borrowed for more easily though.What sort of business is it and how much do you need? And will you have proeprty to offer as security?

Whatever you do, I think paying the $60,000 off your home loan first would be a good option. This will save you interest – interest which you cannot get any deductions for. Once you pay it into the loan you can then reborrow it and claim the interest if you use it for deposits on investment properties.

Lenders mortgage agreements would usually prohibit on-selling via an installment contract a property over which they have a mortgage without their permission. Same with granting options over the property.

It is very common and can be very useful, especially if you have a PPOR loan.

Banks generally don't like wraps at all. But they do take into account potential rent on the property to be purchased.

You can always transfer your property to a trust a few years down the track too. This may give it time to build up more equity which can be released to pay off your home loan (but would result in more CGT probably).

In NSW Buyer's agents need to be registered with the department of fair trading. They must do a course which is almost the same as the full real estate licencee course – 12 weeks or so full time.

Sounds like the finance clause may have been left a bit vague. It is a good idea to say something like subject to a loan of $xxx with ABC Bank – specify the exact amount and the name of the bank.

Current property can be used by the trust in 2 ways. The trust can use your personal property as security and you could get a LOC on the property and lend money to the new trust too.

High growth cannot be sustainable in the long run or nobody would be able to afford a house. I guess all you have to ask is can it keep on happening in the foreseeable future?

you may need a realestate agents licence to charge a fee for the introduction of a property

ATO looks at the purpose of borrowings. So increasing your loan on the IP to pay for the New PPOR would be personal use = non deductible.A way around this is to sell the property to your trust or partner. eg if you own 50/50 you or your partner could buy out the other party. They would need to borrow to do this and the borrowing would be…[Read more]

I agree with Richard – your broker is giving negligent tax advise. The ATO looks at the purpose of the funds to determine deductibility. If you increase one loan in order to get a deposit for a new home, the purpose of the increase is private.Not many financial planners are interested in property – but Richard is a qualified FP who is interested…[Read more]

i beleive that all loans should be IO. This will result in reduced payments so you can invest the savings elsewhere – and it still gives you the option of paying extra off the loans if or when you decide. Any spare money should be in the 100% offset account – which hopefully you have set up under the breakfree package. Put all your savings in the…[Read more]

Yep, the settlement date has to be decided up front. There are often clauses which state if the contract is not dated, settlement is to occur xx days from the date of signing – 42 days in NSW usually.

There is nothing hard about financing properties. If you can keep coming up with the deposits, you can keep getting finance.

You can only settle in the future, so I assume you mean 15 June 2008And you can settle whenever you wish if you can find a buyer willing to agree. Generally investors would be happy for a long settlement as the price can be agreed upon now and they can receive any capital growth between now and settlement.

BGV wrote:
Yeah that is exaclty I am saying, however the seller was notified before the 4.00pm deadline, in fact a couple of days before.I don't know the exact wording but basically it says that if finance is not obtained a letter from the bank must be provided before 4.00pm on the day of the agreed deadline.

Sounds like your friend did not do…[Read more]

I guess you don't have any cash lying around and you are worried about having a large loan on your new PPOR property and smallish loan on your investment.If you meant, in the top post, that you would increase the existing loan to use as deposit for the new purchase, then the extra interest incurred on the increase would not be deductible as the…[Read more]

I don't think requesting a special clearance guarantees the funds will be cleared in 48 hrs. I have been caught out a few times as well with various banks. But I don't know why it would take so long for cheques to clear.