I beleive those sorts of expenses can be claimed fully when you incur the expenses. so if you were to pay 12months full rates, then you should be able to claim the full 12months.

However, with some non cash expenses such as borrowing costs, these need to be aportioned.

Terryw
Discover Home Loans
Terry@discoverhomeloans.com.au
Send an email to…[Read more]

I can’t think of any off the top of my head. How far over $1mil do you need to go? Is it owner occupied or investment?

Certainly LMI companys PMI, Genworth won’t usually go over $1mil, but there are a few more out there, some non insured.
But expect higher rates and exit fees.

Terryw
Discover Home Loans
Terry@discoverhomeloans.com.au
Send an…[Read more]

Plus legals, plus exit exit fees and application fees etc

Terryw
Discover Home Loans
Terry@discoverhomeloans.com.au
Send an email to get my newsletter.

Tysonboss,

Its not that simple really. WIth Low Docs you still have to list an income. Often this is in the form of a statutory declaration. If this income is too low to pass the lenders serviceability model, then the loan will be declined. Therefore some people have been known to exagerate their income.

If you declare $50,000 in your tax…[Read more]

Tysonboss,

Its not that simple really. WIth Low Docs you still have to list an income. Often this is in the form of a statutory declaration. If this income is too low to pass the lenders serviceability model, then the loan will be declined. Therefore some people have been known to exagerate their income.

If you declare $50,000 in your tax…[Read more]

No lender in Australia will lend for property overseas with the exeption of property in NZ. You need to use a lender based in the country you wish to purchase in, or use a LOC secured on an AUstralian property.

Terryw
Discover Home Loans
Terry@discoverhomeloans.com.au
Send an email to get my newsletter.

LVR = loan to value ratio.
eg $100,000 property with a loan of $80,000 is an LVR of 80% (loan / value)

Terryw
Discover Home Loans
Terry@discoverhomeloans.com.au
Send an email to get my newsletter.

Hi Marc

May I ask on what basis they charge? ie is it a yearly fee, or a fee per loan or a fee for the fin plan etc?

Terryw
Discover Home Loans
Terry@discoverhomeloans.com.au
Send an email to get my newsletter.

I am think peopel generally should have one proeprty in their own name so that they can claim CGT exemption (main residence exemption). CGT can be huge, so giving this benefit up can be costly.

You also never know when the FHOG scheme will end. It probably won’t be around forever, so getting it while you can may be a good idea.

Terryw
Discover…[Read more]

LVR = loan to value ratio.
eg $100,000 property with a loan of $80,000 is an LVR of 80% (loan / value)

Terryw
Discover Home Loans
Terry@discoverhomeloans.com.au
Send an email to get my newsletter.

If you are going to buy just one property it may not matter much, but if you want to get a few more it will hinder you.

Jsut think of what cross collateralising means. It is one loan secured by two properties. So what happens if you want to sell one property? You will have to apply to get it released. This means another valuation on the other one…[Read more]

ATO has done some small auditing of Low Docs in the past, according to their press releases. None of my clients have been audited in this regard. One client did have the child support agency get hold of one of his low doc applications though.

With No Docs you should be safe as nothing is declared. But the ATO could ask how you are servicing a…[Read more]

Unit trusts are similar to companies in that they have units which are like shares. But they do not have the limited liablity benefits of a company.

Cost to set up is a few hundred dollars. Easy to operate, bank account would be in the trustee’s name. You could each set up a discretionary trust to own the units. As you buy more you can use the…[Read more]

IO has the following advantages:
– reduced repayments

This means that you can pay extra off non deductible expenses first, and/or can invest in more investments.

Terryw
Discover Home Loans
Terry@discoverhomeloans.com.au
Send an email to get my newsletter.

The buyer is probably hoping for an increase in the value of the property before settlement. I suppose it is just like a normal long settlment but they release the deposit and pay your expenses (and probably get the rent).

I am not sure how safe it would be for the buyer. What if the seller were to go bankrupt in the mean time? They probably…[Read more]

Hello Geoffrey

What are the beneficial ownership provisions you mention?

I always thought deductibility of expenses must be in accordance with the percentage ownership. So if 50/50 husband and wife, then they can only claim 50/50.
There may be a way around this with salary sacrificing, see http://www.bantacs.com.au for more on this.

You don’t give…[Read more]

What about if you rented it to your friend who let you stay there?

Terryw
Discover Home Loans
Terry@discoverhomeloans.com.au
Send an email to get my newsletter.

Hi Lizzy

There have been a few more No Docs advertised recently, I think Tonto/First Mac now have them, but am not sure of the ABN requirements.

Legacy Financial have a 80% True No Doc, unlimited defaults etc, 12.25% tho.

There are also No Docs with Seiza Capital and Centra Capital at up to 80% LVR, but again, I am not sure about the ABN…[Read more]

Hi Nicko

Did you realise if you transfer property to a trust that it is similar to selling it. ie stamp duty will apply and maybe CGT (unless it is your main residence).

From my notes, here are some details on owning your own home in a trust:

Legal Cases:
Tabone and Commissioner of Taxation [2006] AATA 466 (29 May…[Read more]

stamp duty depends on which state the property is in. In NSW, I beleive it is payable within 3 months of exchange. in Vic I beleive it is on settlement.

Terryw
Discover Home Loans
Terry@discoverhomeloans.com.au
Send an email to get my newsletter.