A contract is binding once all the conditions are met. So you may be stuck if you have signed without any exit clauses such as finance. However, the contract is not enforceable unless the other party has your signed contract, so that may be a way out – if you haven’t exchanged yet.

And many states have short cooling off periods, where you can…[Read more]

Hi

I think zoning varies from council to council so it is hard to say.

If there are two titles, then these should be able to be sold separately. Whether you can move a house or not depends on the local council regulations and approvals etc.

Terryw
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Terry@discoverhomeloans.com.au
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Hi Karlm63

That is a horrible fee to have. Especially for so long.

Sometimes it may pay to refinance get a lower interest rate and set things up properly. Maybe you need to do some calculations and see how much you could save in the first year against what it will cost to leave.

Beware of mortgage managers!

Terryw
Discover Home…[Read more]

One disadvantage of land is the high holding costs. There is no income coming in, usually, but you still have to pay interest and rates.

Having a high deposit is fine, but you should probably only pay a deposit if you have paid off the loan on your home.

Terryw
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Terry@discoverhomeloans.com.au
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St G can lend around 75% on end value in some circumstances. Bankwest 80%, La Trobe 75%.

Terryw
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Terry@discoverhomeloans.com.au
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Yes, a few lenders will lend for NZ properties from Australia. eg. Pioneer mortgages.

Terryw
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Terry@discoverhomeloans.com.au
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Originally posted by blogs:
Can someone please explain to the much spouted belief that its the land that goes up in value? Find this hard to understand as if this were the case every second place would be being knocked down to build a new house etc on the ‘land’. I would have thought its the whole package that goes up-just look at the inner city…[Read more]

Get a part time job while at uni, save as much as you can, and before you go for a loan application change to full time. Your work history will help, and the added income will too. Once you have the loan, what you do is up to you.

Also register an ABN now. This helps is getting low doc loans later.

If your parents have equity, you may be able to…[Read more]

Sometimes lenders only require a short application form for small amounts, and may not need to do much checking.

I just got a valuation back on one of my Sydney properties – it has dropped 12% in the past year!

Terryw
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Terry@discoverhomeloans.com.au
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Hi Morty

I don’t think you should have a problem. As long as you and your partner could service the loan, you should be able to get the loan for a company.

And I think having a trust is still a good idea – asset protection and will help in income distributions. But have a different trust to your buy and hold.

Terryw
Discover Home…[Read more]

Don’t forget you can claim depreciation on the furniture too – if using it for the investment.

Terryw
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Terry@discoverhomeloans.com.au
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If you were to put it in the mil’s name, then she could claim it as her main residence and be CGT exempt. Will save you going on the loan too and will reduce your risk and preserve your borrowing cap. Maybe you need another written agreement on profit sharing, and at least a loan agreement if you are lending her the deposit.

Terryw
Discover Home…[Read more]

I agree with Richard – what your mortgage manager said is not only wrong, but could cost you if you were to listen to that ‘advice’. What happens to all the people that just believe these things?

It is very annoying when I ring lenders and ask if they have a 100% offset account and they say “no, but with have redraw which is the same” – its…[Read more]

You need to use a legal team from the state your property is located in as laws differ from state to state.

Sometimes a conveyancer is all your may need, but their job is just the conveyance – changing the titles into your name. But sometimes you may need someone broader, with more legal skills, eg contract problems. Some legal problem may pop up…[Read more]

Your lender will need to get the valuation done using one of their panel valuers.

Terryw
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Terry@discoverhomeloans.com.au
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If your partner’s income is high enough, you may be able to get thru on that alone. Off the top of my head, I think temping will require a bit of a longer history, 12-18 months at least, before the lenders will take it into account.

There are no/low docs with no ABN requirements and some with 1 day ABN requirements.

Terryw
Discover Home…[Read more]

When you say development, what are you talking about? ie one house, a duplex etc.

There are banks that lend on end value. Generally up to 75-80% may be possible with some major banks, 65% with private type lenders.

Terryw
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Terry@discoverhomeloans.com.au
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Hi Wayne

I don’t have any vacant land, so have never really looked into it and have not read those documents in full either – nor am I an accountant. I have listed them as a guide that interest can be claimed in certain circumstances.

If you don’t intend to build, then I am not sure if you could claim. But it is certainly worth looking into.…[Read more]

Originally posted by karm:
I’m a FInance Strategist and work with investors all the time and as part of my work I try to keep informed. COntacting the ATO is often awaist as they rarely give clear “advice” unless you ask for a private ruling. My accountant who is also a wiz with regard property etc has assured me that non income producing proerty,…[Read more]

See:
TR 2000/17W
“Income tax: deductions for interest following the Steele decision”
http://law.ato.gov.au/atolaw/view.htm?locid='TXR/TR200017/NAT/ATO'&PiT=99991231235958

Hangon, this was withdrawn by the ATO on 9 June 2004)

try this one:
TR 2004/4
“Income tax: deductions for interest incurred prior to the commencement of, or following the…[Read more]