I think the returns would have to be much higher for a risky business start up.

I have seen investors offering 15% pa for borrowing money for property related investments – relatively safe.

For most businesses I think you should expect more than 100% pa. If you are going to be making that much money, you could afford a hihg…[Read more]

Hi Mike

What if you signed a contract on 29th of June with a subject to finance clause which was only met on the 2nd of July? ie the contract was not unconditional until the new financial year.

When would be the timing of the event?

I am now inclined to think it is the date of the contract still.

Would this be correct?

Terryw
Discover Home…[Read more]

I agree with Derek, but more specifically beleive it is actually the date of the contract when the contract goes unconditional. ie you might sign today, but with a subject to finance clause which isn’t satisfied for a week. better check with your accountant to be sure.

Terryw
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Parramatta
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This happened to one of mine in Vic a few years ago. My agent when and got a court order for me that the property had been abondoned by the tenant, and I had the right to enter and take possession. I also was awarded a sum for lost rent etc. Once you have this you can pursue the ex-tenant for these sums. (may have to wait a few years for them to…[Read more]

It would probably be cashflow postive, but that does not necessarily make it a good investment.

Terryw
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Yes, just make sure you have a lease drawn up just in case. make sure everything is in writing.

Terryw
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You never lose the equity by selling, but you have to look into capital gains tax.

Now it would appear your apartment is exempt. You could probably sell now or within the next 6 years and still claim this exemption. But you can only claim one property at any one time, so if you had a period where you owned 2 properties, you have to chose between…[Read more]

With cash you can generally settle much faster, so you could possibly use this as a selling point.

Terryw
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I have concerns about these sorts of things.

Firstly WA seems to be booming now. Who knows what will happen in 2008. Be prepared for the worst.

2nd, going thirds. Did you know when you go for finance in the future, you will be assessed as owing the whole amount (if there is a loan) but will only be able to take into account 1/3 of the…[Read more]

Originally posted by aliandmike:
Originally posted by Terryw:

Also, probably best to get loans in one name only. ie not with a partner. This will allow you to go further eventually.

Terry, when you say partner, do you mean a business partner or Wife/Husband. My wife and I have 1 IP and our PPOR and are looking around for another IP at the…[Read more]

hi Stuck

from
1) $175 http://www.cleardocs.com.au
or $275 at lawcentral.

unit trusts are a bit more. Bare trusts are available on Law Central, but you could easily set one up yourself.

Hybrids are not available on these sites. Set up is about $1200

Online they can be estalished in 5 min.

Please join lawcentral and go thru the process of setting up a…[Read more]

The postcode won’t be a problem with the majority of lenders as mortgage insurer PMI will lend up to 100% there (for full doc up to $400,000) and even 80% LVR there for a low doc loan up to $500,000

see
http://www.pmigroup.com.au/LocationWizard.asp

If you have enough equity, you should be able to capitalise interest

Terryw
Discover Home…[Read more]

On some fixed loans, there are penalties for paying extra over a certain amount.

Also, many fixed loans do not allow a 100% offset account to be linked.

One more point for variable is, what if you want to change lenders mid way through a fixed loans? Maybe to be able to borrow more money for a new ppty. If you have fixed, there could be large…[Read more]

You have to make a choice on how you feel the market for rates is going to go.

I myself never fix anymore. I was stuck once when I fixed, and then sold a property. Rates had moved, and I had a huge exit fee as a result.

variable is more flexible – what if you want to increase your loan in a years time and your lender won’t lend. You may want to…[Read more]

If the mum has no property, what about buying in her name? That way when sold, there will be no CGT. Check with an accountant on what effect this will have on her pension etc.

I beleive a 12 year old could own property, but cannot get a loan. Not sure of the tax implications tho. Children are generally tax at around 66% on income above a certain…[Read more]

There is nothing much to it. Just keep all loans separate (not cross col) and gradually increase the loans as the values rise. Use the increase for the deposit on the next one.

Also, probably best to get loans in one name only. ie not with a partner. This will allow you to go further eventually.

Terryw
Discover Home…[Read more]

I am based in Sydney, but am currently in Bangkok. If you send me some details, I can work it out for you.

Terryw
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Depending on the location, you could possibly get a No Doc loan up to 80% LVR – no need to prove income or serviceability at all.

This would give you $280,000 if the ppty values at $350,000. That would be another $50K for you to use to consolidate other loans etc.

Terryw
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Parramatta
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Looks like both locations are eligible for LMI with Low Docs up to $500,000 at 80% LVR.

Terryw
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Yes, that is certainly a problem. You possibly could have gotten finanace, but at rates of aroun 10%+. better off in the wife’s name only.

Terryw
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