in the year 2000 these were going for about $150k. What are they selling for now?

recalculate based on value.

not sure what you mean about selling. Land tax is paid for the full year in advance and you do not get any credit back if you sell mid year. But you can contract with the purchaser for them to reimburse you.

lexd

Don’t see how delaying things would change anything.

I suggest you seek tax advice as you could probably pay off that loan, using the offset money, and start again. but before you repay the loan you must split it so you can repay the relevant portion. Splitting it can unmix it.

e.g. You want to buy a $100,000 property, you could:

$80,000 borrowed from ANZ using as security the new IP. IO loan
$25,000 borrowed from Westpac using as security the PPOR. LOC
——-
$105,000
——-

105% borrowings with no cross collateralising

Once settled convert the LOC to a IO loan.

Its like unscrambling an omelette.

it depends on the situation actually. You might be able to pay off the loan and then reborrow. But if you increased and existing loan you would need to split it first.

Seek tax advice.

Here is a thread where someone appears to have suffered a mixed loan:
https://www.propertyinvesting.com/topic/4995626-redraw-conflicting-advice/

Dinh, did you increase the investment loan and place any of this money into the offset?

If so you have contaminated your borrowed money, and you have also contaminated the investment loan.

See my other post which I just wrote where I warned about this.
https://www.propertyinvesting.com/topic/5025544-need-advise-cash-in-equity-through-loan/

A trust is a separate entity for tax purposes (not for legal purposes though). So any expenses the trust incurs it claims, including depreciation. A trust can negatively gear, but you cannot use a loss in the trust to offset your personal income.

Unless your mortgage broker is also a tax agent or a lawyer, they are not qualified to give tax advice.
s 8-1 ITAA97 will allow interest to be deductible where funds are borrowed to use to investment property acquistition. If you borrow and place that money into an offset account, there is no connection to the investing.

If you later use that…[Read more]

It is very common to see $1000 put down as a deposit. $1 is not so common, but I have done deals where there is no deposit until the contract goes unconditional. So you would put down say $100 now with the remaider making up 10% when the conditions are met – subject to finance etc. And it doesn’t have to be 10%. COme to think of it I have seen the…[Read more]

not a good idea to borrow cash and put it in an offset account as you could lose the deductibility of interest.

best to set up a LOC or an IO loan that you can draw down when needed.

Can’t come up with $1?

The no vesting date – any trust set up in SA doesn’t have to have a vesting date. In theory it could go on past 80 years, but just because there is no vesting date doesn’t mean it won’t vest. A beneficiary can force it to. But would SA law apply to a trust set up in QLD which nominates SA as the applicable law? Would the trustee need to be located…[Read more]

I looked at the legislation recently and there are some concessions for NZers. Just google ‘stamp duty act vic’ and have a look.

Yes, you could put down an offer which involves a long cooling off period, subject to finance, subject to building inspection etc. This way you can pull out and get your full deposit back if you cannot meet the condition.

Another option is to use an option agreement, but this is for more longer periods.

This is a legal question

There is no gift tax in Australia. The gift to the children will be tax free. But this will not effect the CGT on the disposal on the property.

But before he does this he should seek legal advice as there are wide ranging consequences. Depending on the circumstances he may be better off lending the children the money,…[Read more]

Yes many ways to set this could potentially.

First, try a different lender
Secondly, ask the bank what you could borrow without the wife. See how much the short fall is
thirdly, is it possible for your wife to borrow on her own and lend you and the other person the money.
4th – it is possible for you to borrow some on other property and lend your…[Read more]

Why are they asking for a guarantor – are you using other property which you wife partly owns as security or is it because of servicing?

You should keep your wife right out of it if possible. You don’t want her exposed to other people’s debts and it would adversely effect her future borrowing capacity.

No it doesn’t if by ‘partner’ you mean spouse. If not a spouse then you would not find a lender I think.
Not all banks allow this either BTW – AMP recently insisted that they would only lend to my clients if they purchased at least 90/10 together but not if just 1 was on title. All the majors should be fine.

Selling one house to buy another will result in losing about 10% of the value in transaction costs plus you would trigger CGT and have to pay this. Both means less capital is compounding for you. It may still be worth doing however, depending on the situation.

For financial planners in VIC check out Dovers/McMasters who advise on property.