Novo

nearly all lenders lend up to 90 or 95%.

The risk fee you were asked to pay would be similar to LMI which most banks would charge you if you borrow over 80% LVR, so this is not too bad. The exit fees are fairly higher though.

Terryw
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I missed the comment about the cash!

(if you put the cash into the loan, you may lose deductibility of the interest if it is removed).

Chris
If you have cash, then you can service the loan. Maybe you are concerned that the properties are negative geared?? It seems like they have grown in value over the years, so they may not be such a bad…[Read more]

I think you could do this yourself by just letting the interest capitalise or by setting up another LOC and using that to pay the interest, or part of it – maybe the shortfall.

Terryw
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And the 6 years can start again if you were to move back into the property briefly and out again.

Terryw
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Selling one would be one option, but if you don’t want to, then,,
You could set up a LOC on your home, use this to pay for the shortfall each month. This is basically what the investors direct loan does anyway.

Your LVRs are fairly low so your position is not too bad.

Terryw
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For good stuff on business, look at the books by Brad Sugars.

What is the total business cost? I think you would generally want to make back your purchase costs in 1-2 years. eg a $84,000 profit = purchase price of between $84,000 to $168,000.

But businesses vary so much, it is hard to generalise.

Terryw
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I think that it common. It you do the inspections before signing, then they could sell to someone else in the meantime – leaving you out of pocket.

Terryw
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It is a good idea, but I don’t think it would necessarily add much value to the property or to the rent.

Terryw
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That would possibly get you into the market quicker. But you would have much higher repayments, so you would need more growth/rent to cover it. You have to work out if you think this is worthwhile. Also consider the effect of a personal loan on your home loan application. will you still be able to qualify? Personal loans have higher rates and…[Read more]

Ihear that the fees in WA are substantially higher than other states. I have seen fees (in eastern states) range from 6% to 8% plus GST, but many put on little extras such as postage, admin, etc etc plus relet fees, inspection fees etc etc.

I don’t know how much you can negoitate with one property. I wouldn’t be too concerned as you will only be…[Read more]

Originally posted by anandinvestments:
I completely agree with you V8ghia….i don’t know why or how the 2 year ABN rule came about but its a real shame because we really do think we’re doing well for ourselves but the 2 year rule is making things 100 times harder than it needs to be.

Our development timeframes are only 12months and thats from…[Read more]

These properties will probably go up in value again. All good locations. Its a hard decision to make.
Can you afford to hold on to them?
Maybe you could sell one to start with and see how you go???

Terryw
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You would be liable for tax on the full gain contract price – $100,000 in your eg. But if you had more than 12 months between buying and selling (contract dates) you would be able to claim the 50% reduction, so would only have to pay tax on $50,000.

Terryw
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Sue the purchaser for the full 10% -and maybe more.

Terryw
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I am away at the moment, but from memory, ING can do low docs without the 2 year ABN requirement. Another is possibly Adelaide Bank.

Terryw
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CT, has been done by many. As long as all valuations stack up, the ATO is not missing out – well maybe by a little bit!

I suppose they could argue that it is a scheme designed to minimise tax, and they may have a point – div 4a. But tax is not the only reason, there are asset protection issues and estate planning issues as well.

Terryw
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CT, has been done by many. As long as all valuations stack up, the ATO is not missing out – well maybe by a little bit!

I suppose they could argue that it is a scheme designed to minimise tax, and they may have a point – div 4a. But tax is not the only reason, there are asset protection issues and estate planning issues as well.

Terryw
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There may also be a problem if you both were to die togther – how is it determined who died first?

it seems the general rule is it is presumed that the oldest died first unless it can be proven otherwise.

You may be able to specify in your wills what will happen if you both die together.

Terryw
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I think you would possibly be able to claim the first 6 years of it being rented as still being your PPOR (if you didn’t claim another). So the CGT would be the sale price less value at this time.

eg if worth $400,000 at year 6, then sold for $550,000 at year 10 = a profit of $150,000. Less costs of say $50,000 = $100,000.

Depending on the…[Read more]

Unfortunately everyone on title has to go on loan,

Terryw
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