And, if you are going to use a No Doc (can go up to 80% LVR with RAMS), consider having one person resign as director. This could help you limit the personal guarrantee to one person, reducing risk and saving the other person for more loans later.

Terryw
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I just refinanced someone out of MB into the ANZ as they wanted a LOC, and MB were not willing to change things, or it was too hard for them.

Depending on the amounts I think you will find ANZ or St George to be good for LOCs

Terryw
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Originally posted by Dr.X:

someone of a similar sex

[blush2]

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You could do that, but the extra interest incurred would not be deductible. Why? because you are not borrowing, you are taking from a savings account.

In this case, it would be best to approach your lender and ask for a separate loan securred against your home, and use this money as deposit for the new property.

Terryw
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I agree too. Don’t know which is worse, this one or the one starting with C.

Terryw
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A possible solution is not to get married, and not to sleep with your ‘spouse’!

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Originally posted by mcdeyess:

snip

I am particularly interested in the second point “your net profit …. is calculated as the difference between your receipts …. from the sale of the property and the costs incurred in buying, holding, renovating and selling the property ”

This says to me;
Sale of the property $275K
deduct agents fee’s,…[Read more]

Ian, I think you are right about the 50% discount.

I think that if you are doing this as a business you could possibly class the gain as income (rather than a CG).

It may also be possible to keep the gain as a capital gain.

Whichever is prefereable may depend on whether you have losses from previous years.

Terryw
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It would probably depend on the amount of rent compared to the interest. If you will be making a loss, then you may as well claim it, if making a gain, then you will be paying extra tax.

Don’t forget to take into account depreciation, interest, loan establishment costs etc.

Terryw
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You might as well just find the lender first and then do the valuation through the bank, otherwise they bank will not accept your valuation and you will be paying for 2.

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Sometimes you can argue the case, and get them to do a full valuation.

If you are increasing your loan, then the repayments will naturally increase, but these extra payments should be attributed to the new purchase.

Terryw
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From an interest saving point of view, they are both the same. But from a tax perspective totally different.

If you use a redraw, you can get inot trouble. Each time you place money in the account, you are paying down the loan. Each time you withdraw money, you are borrowing new money. So you can probably see that deductability will depend on…[Read more]

Carlin

You just apply for a loan increase. Tell them it is for further investments. very simple. Some banks may only require a shorter application form to be filled out, depending on the amount. Many banks allow valuations to be done every 3 months.

ANZ is a good bank for increases, under $100,000 it is only a 2 page app form, and they allow a…[Read more]

If you own a property outright, there is hope!

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Like some sort of wrap.

Yes this will effect borrowing capacity as you still have a loan. But they are paying this, so you can declare this as income.

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Looti

I can’t understand why anyone would do that. Do you mean they are going to pay you in full now, and let the title transfer later? This is very risky for them!!

If so, you could just pay out your loan now, or just pay cash for the next property.

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Kiwi

Who approved the release of deposit?

The deposit was used to pay agent’s costs, so what happens if the sale falls through? Agent will probably have a clause in there to enable them to keep the deposit. You would have to chase the vendor for it.

Don’t think you can blame the solicitor for anything.

How much is the shortfall?

The lender…[Read more]

Hi Carpe

Sounds like you have a good asset base and low debt, so you living off equity would be a great option.

Make sure you read the topics discussed at the somesoft forum, especially the posts by Steve Navra, and there are more posts at http://www.invested.com.au

Good luck

Terryw
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Hi Kiwi

This actually happened to me a few years ago. What I did was negotiate with the agent to take a lesser commission (he wanted to save the sale and get at least something out of it).

In your case you may be able to do the same, depending on how much the shortfall is. You can get a copy of the mortgage throught the land titles office, so…[Read more]

Carlin

You can just increase an existing loan, take the extra money and use that as a deposit and borrow the rest from a different bank.

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