Think of the tax issues. If you borrow to buy a main residence, the interest is not deductible. But if you were to borrow to build an investment, it should be. So keeping your cash for the main residence may be more tax effective.

Hi PDalmost any lender could do a LOC these days. Which one will depend on your husband's and Bro in law's income and other requirements.Not sure what you mean about the bro in law's will? He should be able to determine who he has in his will and who his share of the property will go to. If there is agreement that it will go to your family, then…[Read more]

I don't think any lenders try to force cross collateralising loans on people. Some seem to have a policy of trying to do it, but it you insist they should relent – if not, just go elsewhere.

The only problem with flxing is the lose of flexibility – in the near future you may want, or need, to change lenders (eg. to access equity, increase borrowing capacity etc). This should be considered too,

LMI companies often reject loans that the banks would otherwise do. Especially when in comes to small defaults etc. Becareful of where you borrow as some lenders insure all their loans, but pay the premium – the client is often unaware and this can affect later borrowings, especially if the client is wanting to use No/Low Docs/

As a guide, here is PMI's location wizard:http://www.pmigroup.com.au/locationwizard.asp?attractor=4PMI are probably the biggest mortgage insurer of low/no docsLow/no docs are usually less than the current standard variable rates which are 8.07%.No Doc loans can be rejected when the mortgage insurer already knows your income and calculates you…[Read more]

I think it depends on what is in the contract you signed. If you didn't agree to it, they cannot enforce it. If it is handwritten in the contract, unless you signed or initialled it, you can argue it was added later.

If you are wrapping, then you are just selling a property with the payments coming in installments.If you owned the property and were personally sued, then what would happen is the person would get a judgment against you for $X. Once they have a judgment doesn't necessarily mean you will lose everything, or even anything. Depending on how much the…[Read more]

http://www.guardianpartners.com.au

I think the original idea behind Low Doc loans was that these are for business people who have not had time or inclination to get their tax done. All businesses need an ABN, so this is a good measure of how long a person has been in business.

I think the original idea behind Low Doc loans was that these are for business people who have not had time or inclination to get their tax done. All businesses need an ABN, so this is a good measure of how long a person has been in business.

I don't know of any lender that will lend for wraps (installment contracts). Some have previously threatened to cancel the accreditation of any broker that is involved in submitting deals for wrappers.So ask your broker will she/he be disclosing this info.

If your are paying PI on an investment property, than that is $300 extra that could be coming off your home loan instead = saving you interest and tax.OrIf you have no home loan, that is $300 extra per month that you could be using to pay for further investments.All depends on what you want to achieve.

EmilI am not sure you have your head around the concept yet.Vendor would usually take out a second mortgage as this is the safest way to protect their money, but you may be able to talk them into not doing this. Just think of it as having 2 loans. The bank has the first mortgage on your title and the former owner will have the second one. Keep in…[Read more]

Claiming expenses on part of your house will probably end up with you paying more taxes in the long run. plan carefully.

Here are some good articles covering resettlement issues of discretionary trusts: Family Trust Resettlement Issueshttp://www.taxlawyers.com.au/Publications/New/resettlement_of_trusts.htmTrusts – So, where are we, post Commercial Nominees?http://www.taxlawyers.com.au/Publications/New/Trustacc2.htm

I beleive that a resettlement only occurs when the trust is changed in some way. Changing a trustee won't actually change the trust in anyway – beneficial owners of the trust assets will still be the same. If you start adding or substracting beneificaries or classes of beneficiaries, then the ATO will probably deem a new trust to come into…[Read more]

If you have debt on your PPOR, pay it off that first, then reborrow it for investment proeprty deposits using No Docs.

Any loan on a property is irrelevant for CGT purposes.

I don't think units are a very good investment, and studios more so. Maybe your managed funds would out perform the studio?