Jules, ask them about going part time and see what they say. As Xenia said, if you quit and it doesn’t work out you can always get another full time job.

Whats the worst thing that can happen? you don’t make anymoney – then you lose 6 months in wages.

With carefull planning, hopefully you won’t lose money.

Terryw
Discover Home…[Read more]

Idon’t think it would matter which loan you paid extra into, the overall interest would be the same either way. But if each loan has fees, then it would be good to pay one off quicker, and the smaller one would be easier to pay off in this case.

If you have 2 loans and no investment properties, i assume that both are for your home. If one loan…[Read more]

I have seen many clients with similar stories. Don’t feel too bad about it, these things happen – and worse.

Anyone contemplating divorce, make sure you cancel additional card holders on your credit cards too.

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

I have heard a few people increase their mortgage before moving out, and then claim the whole interest portion as a deduction, and use the funds to pay down the new home loan. Technically they have not increased the mortgage for non investment purposes after the property was an investment, so they feel safe in claiming all of the interest. Don’t…[Read more]

Redwing, I buy mine from http://www.lawcentral.com.au

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.

Don’t really think there is much you can do to minimise it unfortunately.

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.

Nice summary Josh

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.

Sure you could use the equity to pay off your home loan, but the interest would not be deductible – leaving you in the same situation.

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.

The trouble is if you sell, then you are losing your only CGT free asset, and you will have to rent somewhere else anyway – or downgrade as you suggest.

What about just borrowing against your current home and investing more?

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

Yes, just set up a new trust. If necessary the income can be distributed to the unit trust.

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.

Thanks John.

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.

With borrowing under a unit trust structure, lenders will usually require all unit holders to guarrantee the loan, each being jointly and severably liable for the whole debt. If there are several people, then this can get very messy, and risky- what if the others stop paying?

Terryw
Discover Home…[Read more]

A discretionary trust allows:
– tax minimisation
– avoidance of CGT and stamp duty on death
– asset protection
– more privacy than a company

A company allows
– limited liability

I suggest if you are looking at a business then a company is worth considering – with the shares owned by a trust.

Anything else, probably a trust is…[Read more]

If using a LOC on your existing home, then you are probably paying all income etc into this loan. Just becareful if you start using this for investments as it can have serious tax consequences if you mix investment and non investment portions.

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

The formular may be listed in your mortgage documents.

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.

Overall, it wouldn’t matter which property’s loan you put the money into. Your net tax position would be the same. Maybe putting it into a 100% offset account?

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.

You can do various things such as buying your JV partner out after a certain period, selling the property, or they may buy you out.

If the person requires a salary, that is going to make things harder. How is going to pay? – Your JV partner may not be happy as this will eat into any profit you are making.

Terryw
Discover Home…[Read more]

A wrap is just a sale, with a bit of a twist. I guess how long it takes depends on how good you are at onselling. Management should be less hassle than a normal rental as you don’t have to worry about repairs, etc.

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

Another point with my idea, is if yu had the IP in the trust, you would be lending the trust money from the LOC, thus creating another laying separating this type of scenario from the Hart’s case. But it is a grey area, so check with your accountant.

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

You could possibly consider offering a precentage discount on the market rate in x years time in return for higher rent now.

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.