I had one client who had a small acreage, he tried to argue he was a primary producer of honey as he had about 3 bee hives. He thought he had gotten away with it until they started asking about who held the licence, and where he sold the honey.

1.7% is a lot, but I don’t think there is anything really you ca do about it – except primary…[Read more]

Originally posted by queengucci:
Guys, links to define consumer… what do you think??

1. Covered under the code

http://www.creditcode.gov.au/display.asp?file=/content/credit_does_cover.htm

2. Not Covered under the code

http://www.creditcode.gov.au/display.asp?file=/content/credit_does_not_cover.htm

Hi Queen

Just look straight at the…[Read more]

Look at this recent case
Tabone and Commissioner of Taxation [2006] AATA 466 (29 May 2006)
http://www.austlii.edu.au/au/cases/cth/aat/2006/466.html

It is about owning a home using a trust

Terryw
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Hi E

And don’t forget the golden rule of asset protection is not to own assets in a trading company. What would happen if your company got into trouble? Your company’s house would be at risk.

Far better off setting up a trust and have that own the house. You could also transfer the shares of the company to the trust and divert the profits into…[Read more]

That is the trouble with Adelaide Bank, they also sell their products through about 4 mortgage managers, all at potentially different rates.

If you do refinance out of one of these mortgage managers there are generally high exit fees, even on variable loans. And going back into the same funder still would result in these charges.

it seems like…[Read more]

You could ‘buy them out’ by terminating their contract. Depending on which state you are in, they may avoid stamp duty, and you get the property back – with the need to pay stamp duty again on a new purchase, plus you get a slight discount.

Terryw
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Just send…[Read more]

E

Maybe a better question is “is it worthwhile doing this?”

The benefits appear to be solely in the claiming of interest.

Your company must rent the property at market rent. So each year, the rent should rise in line with the market. At first there maybe a loss, but as each year passes the loss gets less, and the tax deductions decrease.

Then…[Read more]

Originally posted by queengucci:
Hey Guys

Thank you so much for your responses.

I am in WA and the broker is in another state, but i also found out today that when a broker is dealing with a consumer in another state, then the state laws of the consumer apply. Therefore WA law is applicable in this case.

The application form to draw my equity…[Read more]

There seems to be some confusion here.

An option is an agreement whereby the purchaser has the right, but not the obligation, to purchase something in the future.

eg. say Peter and Jackie’s property, the one they are looking at, is worth $1,000,000. They are not sure if they really want to buy, but think there is potential. So they offer the…[Read more]

What country are these in? Doesn’t sound like Australia

Terryw
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Queen

The $10K was probably listed in the original loan contract, but it may have been listed as a %.

I cannot understand how a lender can charge you an exit fee when you didn’t exit.

If you want, fax all of your loan agreement to me and I will have a look at it. 1300130010.

Terryw
Discover Home…[Read more]

Hi, yes, very common. The fee is up to your negotiation skills. Generally 2% seems to be common, but it would depend on how long the option agreement is for, the agreed on purchase price etc.

Terryw
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You’ve posted twice, see my reply here:
https://www.propertyinvesting.com/forum/topic/26171.html

Terryw
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Pulling equity out = increasing your loan. So repayments will go up.

But bear in mind that you cannot generally pull out all the equity, but only up to around 80% of the new value (or 90-95% if you wish to pay LMI). So in your example, new value is $120,000. 80% of this is $96,000, less your current loan of $80,000 = 16,000 in extra equity that…[Read more]

It really depends on how the trust is structured and the lenders policy. I have just written on this in my newsletter – send me an email if you want a copy.

Generally for asset protection reasons, you want to keep guarantees to a minimum. However, sometimes you may want to or need to include a partner for servicing reasons – your income alone may…[Read more]

Not only will he receive the trailing commission, but an upfront commission as well!

But I have never heard of someone being refinanced into the same lender.

Terryw
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You can only claim one property as your main residence. So moving into the IP will mean if will be tax free that the period you live there, but at the same time, your home may be CGT liable for the period you didn’t live in it.

Terryw
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Hi

So you are going to move out and rent the property? In that case you will probably want to keep your loan high, and also save interest at the same time. Therefore, you should look at the merits of taking an interest only loan with a 100% offset account.

Terryw
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Terry@discoverhomeloans.com.au
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Why not see a second broker for a different opinion

Terryw
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In that case, probably an accountant would be more suitable than a FP.

Terryw
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