Hi Elka

I am not sure what Richard meant, but I was thinking of s112-20 of the Income Tax Assessment Act (1997), which covers the Market substitution rule, see:
http://www.austlii.edu.au/au/legis/cth/consol_act/itaa1997240/s112.20.html

Terryw
Discover Home Loans
Parramatta
Terry@discoverhomeloans.com.au
Sign up to my mailing list.
Just send me…[Read more]

Its not the sort of thing you can write a book about. What do you want to know – With a No Doc basically you can borrow 70 to 80% of the value of a proeprty without showing an income or assets/liabilities. There is no serviceability test.

With a Low Doc, then lender requires an income to be listed, as well as your other assets and liabilities.…[Read more]

You could probably get 70-80% LVR on your property withou too much trouble. This should free up a lot of funds. These funds could then be used as deposits for the next deals.

If you had a cashflow problem you could borrow some equity and use that to repay part of the loans, but this strategy could be dangerous if you are not careful, and don’t…[Read more]

I don’t think you should ever buy an asset in anything but a trust – one exception is your main residence because of the CGT exemption.

A trust is better than a company as it has more flexibility with distribution of income and asset protection.

Terryw
Discover Home Loans
Parramatta
Terry@discoverhomeloans.com.au
Sign up to my mailing list.
Just…[Read more]

Good try Christopher, but the ATO is aware of people wanting to keep their tax money as long as possible. I think there are penalties if you submit a variation of tax thing and at the end of your you figures are out by more than X% (maybe 20%).

Terryw
Discover Home Loans
Parramatta
Terry@discoverhomeloans.com.au
Sign up to my mailing list.
Just…[Read more]

Hi guys

Luckily got it set now. I asked RAMS if they could just submit it to a different mortgage insurer but this was also against their policy.

Terryw
Discover Home Loans
Parramatta
Terry@discoverhomeloans.com.au
Sign up to my mailing list.
Just send me a blank email, with “subscribe” in subject line.

Have contracts been exchanged? If so, they are enforceable. Did they have any conditions which may allow them to back out? If not, then they may be locked it.

Better talk to a solicitor quick.

Terryw
Discover Home Loans
Parramatta
Terry@discoverhomeloans.com.au
Sign up to my mailing list.
Just send me a blank email, with…[Read more]

Hello Dr

If you put yourself in the lender’s position and think of it, it does make sense – even though not to my liking!

If the lender knows your income, then they know whether you can afford the repayments or not (by their calculations). So if a client comes back a few months later and wants more, they will be worried about affordability.…[Read more]

Originally posted by crj:
In Australia each State deals with the land in its own boundaries and the rules vary eg time required for adverse possession etc. In NSW you can’t get adverse possession of part of a parcel of land.

A definitive work on adverse possession is Mal Park’s PhD…[Read more]

I had a look at Centrelink’s policies a while back for my grandfather. It seems they will count trust assets as being your own if you control a trust (or company). They define control broadly to include ebing an appointor, trustee, director of trustee etc. And receiving a distribution would possibly also fall in here.

So they have it pretty much…[Read more]

I’ve looked into Japan. It can be done with Aussie banks there like NAB, but as Cameron says you need to be working there, or at least earning money in Yen. To qualify you would need a stable job of at least 2 years history, and if you ever moved back or stopped earning in Yen, the loan would need to be renegoitated – ie you would have to apply…[Read more]

what are you thoughts on capital gains over the enxt years years? If you think there will be none, then maybe you are better off investing elsewhere and waiting a bit before getting back into property.

Terryw
Discover Home Loans
Parramatta
Terry@discoverhomeloans.com.au
Sign up to my mailing list.
Just send me a blank email, with…[Read more]

Isstreet

Are you aware that the information you posted above is from a UK source:
http://www.businessomatic.com/html/how_to_claim_free_land_and_pro.html

This site is mainly concerned with Australian Investment Property, so I would think the above wouldn’t necessarily apply here.

Terryw
Discover Home…[Read more]

Its great if you can get both. But if you had a choice, I would certainly go for capital growth.

Buying cheap property in an area with little prospects of increasing in value is not worth it. You will be faced with many problems and high costs. what if you are making $50 pw +ve cashflow and rates rise, or the hotwater system busts. This could eat…[Read more]

I beleive you can sell it to yourself for whatever amount you fancy, but for taxation and stamp duty purposes you will be required to calculate the amount at market rates.

Maybe you will need a few valuations to prove the value if audited.

Terryw
Discover Home Loans
Parramatta
Terry@discoverhomeloans.com.au
Sign up to my mailing list.
Just send…[Read more]

Paul, that’sa really good booklet isn’t it!

Terryw
Discover Home Loans
Parramatta
Terry@discoverhomeloans.com.au
Sign up to my mailing list.
Just send me a blank email, with “subscribe” in subject line.

Wow, what happened? Identify theft?

Terryw
Discover Home Loans
Parramatta
Terry@discoverhomeloans.com.au
Sign up to my mailing list.
Just send me a blank email, with “subscribe” in subject line.

Sometimes it is difficult to get the lendeer to agree with a revaluation quickly if there is LMI involved. It is generally 6months if so. But one way around this is to suggest you are going to another lender.

Terryw
Discover Home Loans
Parramatta
Terry@discoverhomeloans.com.au
Sign up to my mailing list.
Just send me a blank email, with…[Read more]

Its probably not a good time to sell.

Would you be able to get a ‘flatmate’ to help out with the repayments? – for a while at least?

Or move out entirely and rent it, while you rent somewhere cheaper?

Then you can sell when the market picks up.

Terryw
Discover Home Loans
Parramatta
Terry@discoverhomeloans.com.au
Sign up to my mailing…[Read more]

I don’t think anything is guarranteed.

There are various proeprty trusts out there returning about 10%. There are also mortgage companies offering similar, but some have gone under recently – eg. Westpoint.

Whatever you do maybe split up the funds into several investments to reduce your risk of losing the lot.

Terryw
Discover Home…[Read more]