Why doesn’t it seem right?

I have clients who have used the Cleardocs trust deed. It is nice and cheap and appears to be OK, but as Cata mentioned, you could mess things up or get into trouble if you don’t know how to set them up.

eg. a client of mine made his son Settlor. This means his son can never be a beneficiary of his trust – not an…[Read more]

Probably the two major LMI companies will not allow Low Docs in there areas you are considering. However, there is a no lender out there who claims to be able to do a Low Doc in areas these two LMI companies cannot lend for.

ANZ will also do Low Docs in most areas at up to 60% LVR – but not for companies or trusts.

Terryw
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You cannot claim them in this years return because your incomes will be different and this will result in different tax savings. You would have to do an amended assessment for the year they belong to. How much are you looking at here? It may be worth more hassle than savings.

Terryw
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Its funny how some bank staff do not know their onw bank’s policies.

Today I had a client who went to their Bank St George, and ws told they didn’t qualify. I did some checks and they qualified easily. strange.

Terryw
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Hi Michelle

RAMS use
– PMI
– Genworth
– Prime

Macquarie Mortgages use
– PMI
– Prime

Terryw
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If you withdraw money to invest in an online account, you will be paying interest at around 7.3% but only getting say 6%, losing 1.3% straight away. But you would also be paying tax on any interest you make.

The ATO could also disallow the deduction of interest on the money borrowed to invest in this savings account because you will be losing…[Read more]

I look at the yield first thing:

Rent / price
$13700/$140,000
= 9.8%

This looks good at first sight, but the rent assumes 100% occupancy, and does not include the management fees which are often high in these sorts of places.

You would have to put up $35,000. But would get back $540.

Prospects for capital growth would possibly be low because…[Read more]

Originally posted by kinkso0o0o:
Hi Terry,

Yes, this is what I thought, however am being told different by ANZ.

Do you have a PPOR loan in your structure as well? I do, maybe that matters? As the AnZ said the Home Equity Loan would be better at keeping personal loans seperate from Investment loans. Unfortunetly i dont know cos ive never seen the…[Read more]

Hi Condog

A solicitor I spoke to suggested just adding up all these expenses, and make the rent more to begin with. This should get around that problem. But you could only do this if the market would wear it.

Terryw
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Originally posted by elkam:
Hello Terry

I understood your comment about being careful if it’s special student accomodation, but why if it’s a unit as opposed to a house?

The reason I ask is that I own a unit which I am thinking of renting out by the room to students to increase the yield when the current tenants decide to move.

Thanks in…[Read more]

Hi pwarde

If you have sold the properties via installment contracts, then you cannot increase the loans to access the equity – the equity is not yours.

If LOs, then it may be possible, but you have to be careful you don’t borrow more than the tenant will be buying the property for.

If you have run out of capital, then you will have to save…[Read more]

I am on the ANZ breakfree package and I have a equity manager LOC set up (to access equity), plus other IO loans with the 100% offset account set against one. Salary does not have to go into this account (mine doesn’t). I cannot see any point in opening the more expensive Home Equity Loan.

If you look at the comparison…[Read more]

I would say there is not just one market, but many markets in Australia. Look at Perth and Sydney for example. And even within cities, there are different suburbs at different stages of the cycle. So it may be a bit hard to generalise too much.

Terryw
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Just check the exit fees as well

Terryw
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All you need is 20% deposit to get started using a No Doc loan. Maybe you could talk to your parents about lending you this money – if you feel comfortable.

ps. Did Peter Spann really give you $10mil in 10 years?

Terryw
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If it is semi rural, what are the prospects for capital growth. I think there is no point in buying a property that is +ve cashflow if there will be no growth for years to come.

Terryw
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You have to be very careful with FPs, they can hinder your wealth creation.

Terryw
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If you are talking about a house, then I think it is a good way to increase yields. If a unit, or specialised student accomdation, then be much more careful.

Terryw
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Not sure really. Stamp duty may depend on which state you are in. Probably it is best to check with the office of state revenue in your state.

I doubt you would be able avoid CGT if it is an investment property.

Terryw
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You cannot just break a contract, they are legally binding. You have to look for a sunset clause in the contract. I am not sure if all contracts for off the plan proeprty would have these. Basically it is a clause which states that if the property is not completed by xxx, then either party may rescind the contract. Have a good read of your…[Read more]