Julie

I think you should have a company for your business for sure as this limits liability. But for property purchases, this is generally not recommended for lack of asset protection (the shares are an asset in your hands) and the lack of tax flexibility.

Terryw
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Hi Swifty

You probably would only need a HDT if you are going to be making a loss. HDTs are a way around the fact that trusts cannot offset losses. So if you are buying cashflow positive property, then it may not matter. If you have a HDT, the costs will be higher (running and set up) and it is harder to get finance, or rather there may be less…[Read more]

Since youhave a lot of equity you could get a loan to purchase another property fairly easily. But if you think you cannot afford the repayments, it may not be wise. Your home loan is low so you will be paying more tax on the rental income you would receive if you rented this out, and at the same time the interest on the new home would not be…[Read more]

Originally posted by Captain M:
Hi, I’m new to property investing. I’m in the process of finding tenants for my first investment property.

I was told that landlords insurance was a good idea, so I did some research, and came across TICA (www.tica.com.au) which provides landlords insurance. The application…[Read more]

If you have cash in the bank, then it would be best to pay down the PPOR loan (as the interest is not claimable) and then to reborrow this for investment purposes – interest will be claimable.

Terryw
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Terry@discoverhomeloans.com.au
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Someone has just alerted me to Chris Batten’s reply to this same question posted on another forum:
http://www.somersoft.com/forums/showpost.php?p=273254&postcount=21

It seems HDTs are looking more and more unstable, taxwise, day by day.

Chris Batten is a tax and trust expert. see http://www.chrisbatten.com.au

Terryw
Discover Home…[Read more]

You will need to get your 3 IP houses valued by your lender and then if the LVRs are 80% or less you can apply for a release of security.

If your LVRs are over 80%, you could get your home valued too and then get a LOC over this, and use some money from the LOC to pay down the loans on the IPs to make it less than 80%. Or if you had some cash you…[Read more]

Acompany is usually not a good idea for growth assets as there is no 50% CGT discount available. You should probably use a trust structure. You will then have maximum flexibility in minimising tax by distributing to a wide class of individuals and then a company if need be, capping the tax rate at 30%. Remember individuals have a max tax rate of…[Read more]

You could probably sue the tenant (btw did you mean 2006?), but it may be better just to find another – easier and you will be helping him out.

Terryw
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Terry@discoverhomeloans.com.au
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I don’t think there are many reasons to consider wrapping is better than postive cashflow property. Maybe it is for the wrappee as they get the property. but for the wrapper, they may get a bit of extra cashflow, but they lose any future capital growth – unless the wrappee defaults etc.

Terryw
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With contract law an offer is binding if accepted, but in the sale of land the contract can only be enforced if it is in writing. ie. contracts exchanged. Without your signed contract they cannot enforce it.

Terryw
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Terry@discoverhomeloans.com.au
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Originally posted by dee dee:
I’m not having much luck figuring this one out!
From reading other posts on the forum, I notice that people suggest it is better to have an offset account linked to IO loans. I have a split loan (small amount P&I, rest IO). I’ve previously been advised by my mortgage broker (who seems to have gone AWOL) that it is…[Read more]

You can get a Low doc loan or a No Doc loan if you are self employed.

Terryw
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It is probably not worth it if you are going to do one or two properties. There is a lot to learn with the different markets, laws, proceedures etc, and it can be costly getting small amounts of money back to Australia.

I wouldn’t recommend it unless you are familiar with the country and the area you are investing in.

Terryw
Discover Home…[Read more]

It depends if you are paying tax in Australia. If you are working o/s, then unless you have other income in Australia, then you won’t be paying tax here, so there is nothing to offset. The loss from the property can be carried forward so when you do come back you can then offset the accumulated loss from your income then,.

Terryw
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Yeah, its a usually a good idea to have a few loans with the one lender so you can get the bigger discounts. The annual fees are around $300-$400, but you usually get the app fees waived as well as any monthly fees etc.

Terryw
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Sounds like you might be in NSW? I think the penalty is approx. 20% pa penalty interest – not much really

Terryw
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Sounds like you might be in NSW? I think the penalty is approx. 20% pa penalty interest – not much really

Terryw
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Terry@discoverhomeloans.com.au
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Another example.

I had a client also with 4 properties with one of the big 4. He had everything cross collateralised and when his fixed loan expired he wanted another fixed term. There was a cheaper rate at another bank, but he couldn’t leave the existing bank without getting everything revalued, paying various release of security fees etc. Even…[Read more]

Dave,

these days just a willingness to pay the fees usually. Although there may be a min initial loan size of $150k to qualify, after that the discount depends on your overall borrowings, with the more you borrow the greater the discount.

Terryw
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Terry@discoverhomeloans.com.au
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