A lot of people live on equity and even use equity to pay for interest expenses. As long as the property keeps growing it is possible.

There is limited things you can do without actually using the money or using it as security. You could use 100% lendsYou could buy cheap property, pay cash and then mortgage after settlement based with the loan based on valuation. This could release all of your funds so it is 100% plus financed.

The ATO can still force you to pay CGT on your main residence if you are conducting a business there or if they think you are buying and selling as a business. There are no guidelines (AFAIK) that say how many properties you can buy and sell before this happens. Maybe youshould get ready a few good reasons for moving all the time – distance,…[Read more]

I don't like the new format either and think not many are posting because of this. But I ahve never had a problem logging in like Jaffasoft – why not just get firefox or explorer to save your password.

Beware of telemarketers!

Why not get a 100% offset against one of your properties?

Beware of the non bank lenders who may have cheap rates but high fees.

What about a compromise – do a little of the improvements and put the rent up slightly.

HiThat is correct. Generally for refinances the maximum is 90%, though there are a few lenders that go higher. I cannot think who at this moment. ANZ was one, but I think they have changed policies. Royal Guardian may be another. If you are prepared to pay about 9.5% pa, I think there is even on 105% loan that allows refinances.

The best person to see is a good accountant. Do some preliminary research on the net and be aware that not many accountants understand trusts so if your's says you don't need one ask for the reasons why.

A way around the loss problem is to use a Hybrid Discretionary Trust, but you must be careful and seek the advice of an expert accountant. But if you are self employed, this should not be a problem as profits from the company can be diverted into the trust offsetting the loss.Having different trusts is good for asset protection, but having one…[Read more]

Yes that is true. It is because legally you must continue paying for the loan if the other person doesn't – you are jointly and severably liable. And for tax reasons you only get half the rent.There may not be a way around it other than not buying jointly where possible. This is especially so when husband and wife are buying property together…[Read more]

Why is your accountant recomending a trust for the second investment property and not the first?If you are self employed, I would be inclined to use a discretioanry trust straight away. Look at having your company shares owned by a trust too – for asset protection and tax reasons.

What are you trying to acheive? Unit trusts provide no, or little, flexibility or asset protection. With a unit trust the percentage of holdings is fixed in proportion to the number of units held. So if you own 50% of the units, you must get 50% of the profits.Also there is little asset protection as if you went bankrupt your units are property…[Read more]

I agree you cannot legally claim the interest as the purpose is personal. Not sure if the ATO would necessarily know about it unless you were audited.

Just because Neil Jenman comments on a company doesn't mean it is dodgy. I have heard of Mcorp, they run property investment courses and education – a bit pricy, but last year they were offering free places in their 2 day course. Didn't know they were buyers agents though.

I think the general rule is 4 weeks rent as bond and they also need to pay 2 weeks in advance.

Excellent news.Thanks Richard

I don't think there is a way around it other than exchanging contracts quicker.

Richard,The article is gone from that page. Who is the new LMI company?