Hi BoshyIf the broker can give you a copy of the valuation, then they are probably mortgage originators/managers. ie They rebadge wholesale funds. These sorts of loans are usually covered by LMI no matter what LVR and exit fees tend to be high. You ask about the accountant. I would say you should seek advice because it is not necessarily the best…[Read more]

A discretionary trust is one which allows the trustee discretion to distribute income and capital gains to a wide class of beneficiaries.A hybrid is, usually, a discretionary trust which has the ability to issue units. Usually the high income earner borrows to buy the units and claims the interest on this loan against their personal income. In…[Read more]

If you can't service the loan, then maybe you shouldn't get it. There is nothing worse than seeing clients who over extend and then lose the lot.If you had a low LVR, you could borrow more and use this to help with the repayments, but 85% is very high and the price is very high too, adding to the risk.AlternativesWhat about taking an option over…[Read more]

Renovations are certainly deductible. But when and how is the question, and this depends if it is a repair, a part of the building works or an improvement etc.

Yes, this is common. Your solicitor should have warned you about this before you exchanged. If not settled, or certain certificates issued by a certain date, then one or either party can back out.Some developers have been know to go slow when they know prices have risen just so they can take the properties back and resell them at a higher price.It…[Read more]

try http://www.guardianpartners.com.au

Hi KoonsI like option 3. But there are other factors to consider – that fact that someone else is living in your home, and the hassle of living in rented place where you may have to move after 6 months etc. Maybe work out how much you will actually be saving by renting the place out and then see if it is worth it.

Hi MarcSo you are borrowing money to buy your wife's half of the property which will be an investment. On the face of it, it sounds to be ok. But the ATO could apply part IVA and say you did it with the dominant purpose of avoiding tax and thereby disallow it. Whether they would do this or not I don't know. To make it stronger froma tax POV, what…[Read more]

I am helping a client at the moment who has a second mortgage. He is paying around 24%, but has defaulted and the rate is now 33% pa.The going rate seems to be around 20%, and they usually only lend up to 80% LVR, so you would ordinairly not need one as cheaper funds are available on normal 1st mortgages up to 80%. This guy was just ripped off by…[Read more]

HiThe ATO wants to assess you on  your worldwide income, so you probably can claim the loss against your Aussie income – but you will have to pay tax on the profits here too.For NZ properties, you actually can get loans here in Australia. There are not many lenders that do it, but one is Pioneer. I think the rates are lower here slightly, but…[Read more]

It all depends if you have a company as Trustee. If no company, then most will probably lend. If a company, then the number of lenders drops because the loan will need to be in a different name to the title holder.On a different note, please be extremely cautious with using a hybrid trust. The ATO has recently issued a number of private rulings…[Read more]

Hi WayneThere was that recent case in NSW where an agent sold a house where one son of hte family killed his parents and a sister (gozales family). The house was sold to a Taiwanese couple who where from out of town and not familiar with it. They were also superstitious. They eventually found out and sued the agent. Think the received a large…[Read more]

Hi GiulioIn NSW, I think they limit you to 1 owner built property every 5 years!I'd be interested to know the answer to your other question too.

One potential problem is if the MIL has a loan over the property. She would need a cash payment to pay that out. If this is the case she could vendor finance it to you on an installment contract instead though.

People are dying everyday all over the place. Probably most places have had at least one death in them over the years. One of my tenants even died recently  – of natural causes, in the house too I think. But I guess a murder is different. It would be a bit scary living in a place with a ghost, but but most people would gradually forget about it…[Read more]

One of my PMs talked me into dropping the rent recently to get a tenant in quick. I was then shocked to see she has signed them up for a 1 year lease – I had assumed it was 6 months. I checked the contract I had signed with the agent, and in the standard provisions it includes a provision that the agent has the ability to sign the lease on behalve…[Read more]

another one is http://www.invested.com.au

If you wish to challenge a valuation, you will need to show recent sales history for similar properties in the area. Try and get a little list together and present this to the lender who should pass it on to the valuer.However, if you have the loan approved already, then there is not much to worry about. Valuations are only valid for 3 months, so…[Read more]

Hi I am not an accoutant, but think you are correct on the 6 year rule. Once your property is rented out, or even while you are trying to rent it, I think all expenses should be deductible.It is a bit more tricky with the interest on the loan tho. When you pull money out, this is classes as reborrowings and the interest is only deductible if the…[Read more]

The guaranteed tenancy is what makes it unattactive!! Lenders realise there is no real guarantee and fear that the guarantee has been built into the price. though there are less problems with this with an existing building.You would probably only get 70 to 80% LVR for a serviced apartment.If you doubt capital gains would be good and rental returns…[Read more]