Trude, which state are you in?

Terryw
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I think you can refuse trivial repairs. But landlords are required to keep the property safe, and essential repairs must be done. I good place to look is the various tenants union websites – places where tenants are advised of their rights.

eg
http://www.tuv.org.au/
http://www.tenants.org.au/

Terryw
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Hi Troy

I am not an accountant, but can offer a few points.

It may not be a good idea to rent out your home without living in it first. If you live in it first, you could class it as your main residence, rent it out, claim deductions and still be able to sell it CGT free.

1. Mike at http://www.guardianpartners.com.au is the best account that I know…[Read more]

Probably none in Australia, unless you had another property here as security.

Terryw
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Crashy, you had me confused. You are using broker to refer to the real estate agent/

Terryw
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Do you mean transfer the loan?

Some loans are termed ‘portable’ which means the security can be switched. It will depend on which sort of loan you have.

But maybe I misunderstand, as you say your broker won’t like it??/

Terryw
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Hi

Don’t think you will find a lender who will lend on end value. Just on the value or the contract price, whichever is lower.

Terryw
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Originally posted by JohnSmith:
I would have to disagree with both Terry and Simon.

Banks
Do use mortgage insurers when they need to.

The banks will normally self insure, but under capital adequacy requirements they have to set aside a certain amount of capital. If they are short cash at any stage they quite often grab a whole lot of mortgages…[Read more]

Hi CP

One way to do it is buy a place, live in it, and then rent it out – as you are going to do. Living in a place is costly, but renting the same place is usually much cheaper. Compare the mortgage on a $400,000 unit with hefty strata fees to renting that unit. Sometimes 50% difference.

But did you know you can still claim the place being…[Read more]

CT

If you borrow money, deductibility will depend on what the money is used for, not what the security is, nor what the original loan was for. Not sure exactly what you are asking, but if the original loan were paid off, then you would probably have to pay stamp duty again on the new loan. But if the original loan was not discharged, then you may…[Read more]

quite safe?

Not necessarily. These sorts of companies lend to people who have problems getting normal finance. It may be secured by property, but things can go wrong and there are shortfalls sometimes.

Does this company have a prospectus?

Terryw
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Its similar to a wrap, but different in the middle – between signing and settlement.

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You don’t have a contract until it is accepted = exchanged. So putting a time limit on it may speed things up.

Terryw
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Originally posted by salocker:
Thanks for all your comments.

I have this in mind to invest in property, is it feasible?

1) Buy Property value of $500k using a HDT structure – 500 Units
2) Unit Holders as follows- SMSF 100 Units, Mum & Dad 400 Units
3) Bank Loan for Mum & Dad for $400k

With point 2, does it pass the arms length test?
With point…[Read more]

Look at a discretionary trust too – for asset protection and flexibility.

Terryw
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These days I recommend people avoid the smaller lenders such as the various originators where possible. This is because , as Simon mentioned, all of their loans are mortgage insured. Even if you the client do not pay the fee or know about it, they are still mortgage insured in the background.

Thats usually not a problem if you are buying one or…[Read more]

CT you would have to talk to your lawyer about that.

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Hi

I think hybrids are better for 2 reasons.
1) allows negative gearing
2) refinancing principle.

But hybrids are less effective in the area of asset protection. This is because the units are property. If the unit holder is sued, these units could be at risk. However, a well drafted deed will allow the trustee to bypass distributing income to…[Read more]

Capital growth is what will make you rich. Don’t sacrifice this for a few extra dollars in rent.

Terryw
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Marc, I agree, but you never know how things will change in the future, so best to prepare just in case.

Terryw
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