I think the only extra tax you may have to pay is Land Tax – and this would depend on the value of the land component of your property.

If your rent is less than your costs, then you could negatively gear the property – ie claim the loss against other income. And you should also be able to claim depreciation.

It would be a good idea to get a…[Read more]

Not sure what sort of ‘product’ your friends are referring to.

If you cannot afford the repayments, then the only product that is going to help you is a loan where you can capitalise the interest. To do this, you are going to need a lowish LVR to start with = higher deposit.

If you could afford the higher deposit, then the other option is to put…[Read more]

Well, you will agree on a price now. So they may end up paying you a bit more rent per week now, but if they purchase the property down the track, prices will have risen, but their purchase price will have dropped (probably, depends on how it is structured). So they will be buying at a discount.

You are basically giving up future potential…[Read more]

Many people keep refinancing back to IO loans at the end of the IO term. A good option is to get a 100% offset against your loan so you can store excess cash there until you need it. This helps reduce interest without having to pay off the loan too.

Also, with IO, it may not really matter in the long run (if property keeps rising). Imagine if you…[Read more]

Since the repayments are less, if you could invest elsewhere with a higher return on the money you save, IO may be beneficial.

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It depends on the LVR. I think ANZ have one of the cheapest rates if under 60% LVR, and the loan is on the breakfree package with the 0.7% discount.

But, they will not do low doc loans for companies or trusts.

Terryw
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Why buy in the country? Population growth is lower, and this would potentially limit capital growth

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That’s the case with ANZ, but not all lenders.

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Because:

When you pay PI you are paying down the loan. This involves extra repayments. This will reduce the amount of interest you can claim on your tax for an investment.

Instead, if you use a IO, the repayments will be lower. The extra money can then be diverted to reducing your home loan faster. This is beneficial as it is non deductible…[Read more]

Just ask for a “release of security” form.

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I would just refuse to pay it. If you give in this time, what will he do next? Demand pay TV maybe????

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Tajik,

Sorry, I misunderstood the post. I agree its the ownership that’s important for these issues.

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Originally posted by trajik:
No problem Andrew, just draw up an agreement with your wife to lend her 50% of the loan from her, so that way you practically have the complete loan. Your wife has an interest expense to the bank but and equal amount of interest income from you. The ATO have accepted that a husband and wife may enter into a joint…[Read more]

sounds like a structural problem. Have a reread of the contracts regarding the guarantees and contact the company.

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What about a depreciation schedule?

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I think it may be too late. If you have exchanged contracts and the trust does not exist, then you may have a problem – better check with a solicitor.

If ok, you may need to get the loan to be redone. The title to the property will be in the name of the Trustee, but the loan needs to be in the name of the unit holder. The bank will also require a…[Read more]

Sorry, that was a joke.

Are there many other blocks for sale int he same area? Maybe you could offer the agents an incentive, eg. double their commission if they sell it for a certain price.

You could also Put the price up a bit and then offer to pay the purchaser’s stamp duty or offer to lend the deposit etc.

Terryw
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Dom

You seem to want to not go through a broker for some reason.

There are a few banks that do not require valuations on properties under a certain value and a certain LVR – sometimes 80%.

Other lenders just require a kerbside valuation.

But it all depends on the location/postcode, the amount, the LVR, the lender, whether it is a purchase or…[Read more]

Try giving it a fresh coat of paint.

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Do you have a loan on the land? If so, holding the land till next April will result in you having to pay 5 months of interest – have you factored this into your Calcs?

And do you think you will be able to sell for more in April?

I suppose you also have to factor in the interest saved by plonking the money off the loan on your unit in…[Read more]