Some of the best performing funds atm are actually the property ones. it is possible to put a bit of money into several different funds across several different classes. eg. Aussie shares, O/S shares, start up companies, commercial property, residential property.

But having said this, direct property is still attractive for a number of reasons…[Read more]

Originally posted by DaveA:
Originally posted by Terryw:
Depending on which lender your loans are with, you might be able to get some done without charge – by a bank valuer.

Terryw
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Terry@discoverhomeloans.com.au
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im guessing this would be apparent in slightly higher interest rates? is there…[Read more]

Frank

Do you realise that this could affect your future borrowings, adversely?

Terryw
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It would be better if you owned an asset outright, but by taking an IO loan the lower repayments over the years may enable you to buy many more assets multiplying you returns.

I would say the advantages of IO are:
1) lower repayments which allow you to invest in extra property/shares etc

2) if on Investments, lower repayments allowing you to…[Read more]

That’s correct v8ghia. However, Most don’t realise the adverse affect this has if wanting to maximise borrowings and get multiple loans.

Terryw
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Terry@discoverhomeloans.com.au
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If you have a PPOR loan, then you should have an offset account attached to that as the interest is not deductible. Pay this down first.

Once you have paid off your PPOR debt, then you should consider a 100% offset account against an investmnet. But as you say you will not be ‘earning’ much as tax must be considered, somaybe just use the offset…[Read more]

nadiaz, it may also depend on other factors such as capital growth potential.

Terryw
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Terry@discoverhomeloans.com.au
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Banks generally lend only on the contract price or the valuation, whichever is lower. So in this case they would only lend x% of $80,000. Once it is settled, then the client could apply for an increase, but many lenders want 3 months time lapse before allowing this.

In some circumstances it may be possible to get the loan based on valuation, but…[Read more]

By buying an option over the property, you may be able to onsell this and avoid stamp duty.

If you were to sell a property, you would have to own it first (even for a few mins) and this would mean stamp duty.

Terryw
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Terry@discoverhomeloans.com.au
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You’re accountant seems uneducated. The point of a trust is not to prevent the bank from getting your property, but other’s. The property will be used as security for the loan anyway, so the bank can definitely get at your property if you were to default. Did he mention all the tax advantages of a trust?

I tend to agree with the solicitor. HDTs…[Read more]

Having a tenant on a lease can prevent people who want to live in it from buying it – limiting your buyers to investors. But if it is empty, then both investors and owners may still be interested.

Terryw
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Terry@discoverhomeloans.com.au
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Sounds like a good idea. If you feel you have bitten off more than you can chew, take time out to re-assess the situation. You can also make another offer on this one later (if still available).

Terryw
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Terry@discoverhomeloans.com.au
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The ATO put out a tax ruling in Dec last year regarding the capitalising of interest. They said it was ok, however a few days after this was issued it was withdrawn. I am not sure if they have reissued it or not.

Terryw
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Terry@discoverhomeloans.com.au
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Originally posted by Oz Boy:
How come none of the brokers who answered this question asked how much the person could afford to pay????

This is what the broking industry is trying to rid itself of, brokers just set on doing the loan without taking into account the clients position.

Also worth noting that none asked about the debt on the Visa if…[Read more]

Baldy, the lender will look at all income you get as well as the trust’s income, as Richard has mentioned.

Terryw
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Depending on which lender your loans are with, you might be able to get some done without charge – by a bank valuer.

Terryw
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Terry@discoverhomeloans.com.au
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Hmmm, this property is your company’s, not yours so why pay it out early? Maybe it would be better to place extra money into a 100% offset account so you can use this money later to pay for your own home.

Its generally a bad idea to buy a home using a company, may I ask what lead you down this path?

Terryw
Discover Home…[Read more]

I agree more and more everyday!!. When you look at all the costs of property, from the start up costs of stamp duty, to land tax, and then look at the returns of some of these funds, including ING property funds – some have returned 70% pa last year, it makes you wonder why invest in property?

Terryw
Discover Home…[Read more]

You would have to talk to a solicitor really. But my understanding is, that when you are sued the first thing creditors do is a land titles search to see what assets you have. If they find some property, they may then search and see how much the mortgage is. If they see it is mortgaged up higher, they may assume you have no equity = no assets and…[Read more]

Yearly, and its free!!!!

Terryw
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