Let me add a bit of detail to Richard's post – All ANZ low Docs are mortgage insured if LVR over 60%.

There are problems with getting loans in hybrid trusts if the trustee is different to the unit holder. If they are the same, then you may get it through with lenders that don't even like hybrids. The trustee is the name on the title with the unit holder ususally being the highest income earner. So if you have a company as the trustee, then the…[Read more]

jake.taylor wrote:
Hi Terry,Good Article. I have a couple of questions. My wife is originally from Phuket and we are thinking of buying a small house there as a start. I believe if she has had a bank account for more than 6 months in Thailand, the respective bank would be willing to lend up to 50% of the property value.With my wife's ability to…[Read more]

St George has a good one which can be split into several sub-accounts and the individual balances adjusted to suit. You need to be careful with a LOC from a tax perspective. Not recommended for investments if you are going to be putting money in and out all thetime. Not sure what Lomas recommends though.

Hi PhilI agree that there is no point to investing unless there is capital growth, but less inclined to agree on the cashflow products. These are more organised that the do it yourself model and can therefore attract more attention from the ATO.

I live in Sydney and am a mortgage broker.I would recomend Mike at http://www.guardianpartners.com.au as a good accountant knowledgeable on trusts and property investing. Not so sure on good solicitors though!

JamesAre you saying you are going to live in the property? If so, negative grealing wouldn't apply? (or maybe you will move in and out before renting it and then claim the main residence exemption on CGT).

Bank Managers often give poor advice – which they legally shouldn't. Do you have a loan on your PPOR? ie non-deductible?

There are also tax consequences to be considered. You cannot claim a property as your main residence until you live in it first. If it is not a main residence you may have to pay CGT if the place is sold.

You should be able to claim either – or a portion of either.Maybe you have heard about the double deductions available on laptops – this is where the employer buys a laptop for the employee and claim a deduction, the employee is also able to claim the deduction. This is only available on items exempt from FBT such as laptops (but not desktops),…[Read more]

I would ask why are you paying PI on your loans? I assume your loan on your own home is paid off, but it would still be an idea to keep all loans IO and pay any extra into an offset account linked to one of these. This would be better for tax reasons if you ever needed access to those funds for non-investment purposes, it would also allow you to…[Read more]

JamesI think many lenders will allow spouses to guarantee the loan with one name on title.Also you may want to consider the long term effects of your actions. If you are the owner and also the highest income earner, then what happens when you sell = you end up paying more CGT.Your property would only be negatively geared in the first few years…[Read more]

hi TrustieSounds like a good deal to me. If your daughter can pick it up for market value, the combined value of your properties should be higher because of the development potential. Even if you do nothing for years to come it is possibly better than buying 2 separate properties..What you could do to help your daughter is to lend her the money…[Read more]

Hi MarcThey were under market valuation (CBRE) plus he was offering vendor finance and I think paying the stamp duty. He had done a big project and just wanted to get rid of the remaining few so he could move onto another development. I beleiv ethey were genuinely under market value – but all gone now anyway.

First of all, do not beleive anything an agent says.You have signed a contract and it is still an offer to the other party until they accept it. They accept it by signing the same contract or a copy and you have not secured the house until you have that in your possession. If the other party's offer falls through, the vendor could still accept…[Read more]

You should be able to get a lease pack from the RE Institute in your state, I think. There are also some available online, I think again, maybe at http://www.docdownload.com.au/

Just think of the company as a 'person'.Costs associated with investment would be deductible. If the rent is not enough to cover this, you will have a negative geared property and this should be able to offset other income the company has, if any.If you wish to pay off a loan, you cannot claim the principle as a deduction as it is not an expense -…[Read more]

I have  a client who purchased a place for $29,000 and a year later is getting $700 pw rent. Not a bad yield.

philbamback wrote:
Problem I see with all those trusts mentioned is they have a vesting date i.e. an end date and therefore a CGT trigger for someone (maybe you will be dead but someone!), imagine the Capital Growth and subsequent tax on a 50 yera property hold that you are forced to sell because your trust is at an end!I use a hybrid DT with no…[Read more]

9ball wrote:
Hi All, just wanted to add a bit to the original post. Lets say the original property (make it an IP) was worth a bit more and you refinanced it. Instead of using the extra equity to buy a car you used it to pay off your PPR. You now own your home outright and decide to get a LOC against your home to purchase further IP's. I know…[Read more]