Its something I heard about years ago, not sure if things have changed. I can't even remember what the licence is called now, but it would probably be covered by the dept of fair trading over there.

With a company the shares have value, so if you hold the shares and you are sued personally, the shares at at risk. Creditors could get their hands on them and hence your property. A way around this is to hold the shares via a trust, or possibly better use a trust to own the property.Another disadvantage of a company is that the information behind…[Read more]

Yes it is possible to claim interest on vacant land with a few conditions. Ask you accountant to look at Steele's case for justification.

I believe wraps are legal over in WA if the person has the required licence.

Many offer free redraws, so you can put your money in and take it out, just like a LOC, but without the cheque book.OrMany offer 100% offset accounts. So you could withdraw some funds and store them in the offset, get a cheque book attached, and use the funds from there. You would only pay interest on the loan less the money in the offset, so it…[Read more]

Which two do you have unencumbered? Maybe you could take the residential properties out to different lenders and borrow up to 80% of the value using Low Docs. St George can do 4 on one title. Spread them around a bit. Each new property with a separate loan and use the LOC for costs and deposits.

I can think of a few disadvantages:- Companies do not get access to the 50% CGT discount- Asset protection (but shares could be held by a trust)Advantages- May be able to sell the shares of the company rather than the property with the purchaser avoiding stamp duty- Easy for several people to own one property by owning shares in the company-…[Read more]

Hi SueHas a breach even occurred? You say it is a 60 day contract and plenty of time left, which suggests they haven't gone over the 60 days.

TrakkaI've given you my opinions. Now why don't you just ring up a few lenders and ask them over the phone. Also grab a few loan application forms and look at what they ask.Just looking at a St George application, they ask for assets and liabilities and ask "What you owe". I cannot see any specific question asking "have you guaranteed any loans".…[Read more]

You can generally borrow up to 95% of the value of the property. 95% x $450,000 = $427,500 which wouldn't be enough.There are some lenders that can lend to 97% and some can even lend 100%. Don't forget you will be up for LMI as well and this will be another 2-3% of the loan amount.

You shouldn't be trying to do this without the use of a solicitor. Who told you that subject to finance clauses are not possible? (probably the agent?). You should be able to make the agreement subject to whatever you like if the other party will accept the condition.

trakka wrote:

Yossarian wrote:
Trakka,Also, I'd argue that loans that you guarantee are not your liabilities. If your son or daughter buys a car and needs you to go guarantor to get them the loan, do you think that the parents, when applying for their own mortgage, should declare that car loan on their statement of assets and liabilities? In…[Read more]

I have had a few of these and they got through ok.

That might work, but it would be hard to get a lender to allow a thrid party to guarantee the loan unless that person is a spouse or a defacto – and if that was the case she may not be able to qualify for the FHOG as you only get one FHOG per couple.

Excel is the only one for me!

Hi MichaelYou cannot generally borrow more than a property is worth, so it may depend on how much equity you have in your 'cashflow' properties.

If the lender doesn't ask about it, then I guess you are not doing anything wrong. But it is highly likely your lender will ask about these other loans as they will see them on your individual credit report.

Why not just borrow extra with a normal loan and use these funds to help make the repayments? Cheaper rate with the same result?

And here is the web site for the Trust Structure Guide. Have a look at the menus, including the flow chart:http://tsg.taxinstitute.com.au/BTw, it is only $250.00

What LVR do you need? If it is high, then you will not get finance on valuation.One way around this is to pay cash and then get finance. (use cash, LOC or family etc)Or just accept the lower loan and increase immediately after settlement. I had a client do this recently. He purchased for $395,000 and within one month had the place valued at…[Read more]