Maybe you are referring to a loan by a company called Seiza? It is probably the so called 'cashflow loan" whereby they charge you the full interest rate but only make you pay 3% or so with the rest capitalised into the loan – ie your loan is increasing as they are adding the interest to the balance.

Sorry to hear.I think there is nothing to prevent you from purchasing your sister's shares via a trust structure. You should get some expert advice regarding this as the tax issues are rather complex and there may be ways to save lots of tax – especially if the home was purchased pre-CGT.

You can only claim one place as your main residence at any one time, except for a period of 6 months when in between properties when there can be an overlap. The legilsation is near s 145-118 of the Income Tax Assessment Act 1997.

A company has many advantages over individuals as trustees1) There is no confusion over who owns the asset.If you were personal trustee, then there is a question on if the property is owned by you or the trust. If you have a company as trustee, there is less confusion – especially if this is all the company does2) Asset protectionTrustees of a…[Read more]

Work out how much tax your wife would pay, and the stamp duty payable.Then out how much interest you will save when you pay down your home loan. See how long it will take to get your money back.

Thats it Peter.

If a deal falls over and the bank sells you up, they are likely to be able to come after your other assets whether they are mortgaged or not. The only real way to protect other assets is to not own them – have another person or entity own then, preferably as trustee. Another possible way to protect them is to allow another party to mortgage these…[Read more]

I think you may be able to structure it so little tax is paid. You will need some good advice.But why buy it in your dad's name anyway? You will just be wasting stamp duty and delaying the FHOG for 5 years is risky – who knows if it will be still around. Getting it now in your name will allow save on CGT for your dad and give you the future growth…[Read more]

For a lender with low exit fees and a good rate look at Bank West.

The family court has unravelled discretionary trust assets in the past, but having one is still a good idea. Just keep quiet about the property owned via the trust. If they don't know about it, they cannot attack it.

Do you have someone else who could help out by being the director of the new entity? ie someone to help on serviceability?

Hi PeterWith two trustees you could be doubling your risk and reducing borrowing capacity in the long run.I agree with Richard, probably an idea to get the LOC on the PPOR first. You will then have this and the cash available to purchase bargins when they pop up. You could pay cash, then mortgage these properties. This may allow you to get higher…[Read more]

Just getting the approval could add a fair bit to the value. Weigh up the costs v the value with the DA.

You don't have much equity, so it is probably not worth moving banks as you will have exit fees and possibly LMI again. Maybe you can apply to vary your loan to IO. You cannot generally have an offset account linked to fixed loans – but you could split a portion as variable and link an offset to that.The reason IO is best for you is that you are…[Read more]

Banks don't care whether a property is positive geared or not, but the more rent the better. They all have complex ways of calculating serviceability and most will only include about 80% of the rent, they also assume you will spend a certain amount each year on living expenses – roughly $15,000 pa for a  single person. Then you have to declare…[Read more]

You would have to use lenders with separate mortgage insurers. Serviceability may be tight – do you need to purchase all of  them in the same entity?

You will need to speak to a solicitor. And work out how you are going to do it.One way is The title passes to you and you pay him in installments. This would be only possible if he could pay out his loan on the property if he has one. Another variation is the wrap with the title staying with the uncle until you make the final repayment.Another, is…[Read more]

excellent!Good use of the LOC too. That way the lender can lender on valuation rather than purchase price.

I would say since you are going to be moving out and renting it, you should make it IO immediately. Try to get a 100% offset account lined and put all spare cash in there – this will be the same as putting it in the loan in terms of interest savings.

HiServiceability is going to be tight – is that $600 pw before tax or after?You may be able to squeeze in another IP now, but the third one may be a few pay rises away.