Hi Nigel

This was probably a low doc? I beleive that Macquarie’s No Docs only go to 70%. I like Macquarie too, but their exit fees can also be high – but no LMI is payable.

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Being a warehouse conversion may also be a problem. Has the bank done a valuation yet? If not, take care in case they may backout.

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When you say living with, do you mean defacto? If so, then he has an equitable interest in the property and could make a claim.

If not, then he may still be able to purchase the property using a no doc loan at 70% LVR.

Or, you may be able to purchase a property for him now and transfer it later, without stamp duty using a bare…[Read more]

Good stuff Redwing.

If you are having serviceablity problems, RAMS have just released a 80% LVR No Doc.

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It is hard to retire on property quickly. Many do make their money in business and then hold their wealth in property. You can keep getting loans if you have the income and/or equity. If you cannot prove your income, then there are low doc loans available.

Terryw
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You should be OK. You can work it out like this:

Security: Land $120,000 + new purchase $620,000 = $740,000

Loan = $620,000

LVR = loan/Security = 83%

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I beleive you have to have lived in the property to claim the main residence exemption. Once you move out, the 6 years starts.

I have never heard anything about the gain being passed on to another property.

Terryw
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You have to work out the daily interest, and then times this by the number of days in the month.

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I have lots of problems with my wireless connections. If you offer it and your tenants have problems, they may be more trouble than it is worth.

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Thanks GSJ, This is very interesting.

I will have to look into this further. The ATO product ruling is available at this link

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One thing to keep in mind is, if you rent out your current house which is not paid off, you will be paying a lot of tax on the rent. When you borrow to buy your new house, then you will be paying a lot of interest which you will not be able to claim if you are living in that house.

You have to weigh this up with the costs of selling and…[Read more]

Namaste Amit

I beleive you can negative gear property overseas. Would you be making such a loss over there? From what I have heard yields are rather high over there – not sure of the interest rates tho.

Pyramid, where the legislation is unfriendly, you usually will find other other methods……

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Title will transfer now, but it is really up to you how you secure the $10,000. It could be a 2nd mortgage, a caveat, a loan contract, etc.

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Sarah

Don’t worry too much. Maybe you could see if you can get out of the contract? If not, then you may have to wait for some growth to occur to gain equity. Keep saving at the same time.

In the long run, you will probably make more from this investment than a cheap positively geared property in an outback town.

Terryw
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I supose it would depend on your personality, but I would probably find it hard to put up the rent if I were to get to know my tenants too well. Sometimes paying for a property manager can actually save you money.

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If the ppty is jointly owned, you can sell you half or buy the other person’s half. Possibly a trust is the better way to proceed.

Depending on the size of the capital gains (if they apply), you could also consider selling half to your trust now and half in a different financial year – it may save some tax.

Also be aware that if you claim one of…[Read more]

It depends how small it is!

Many banks will look at sizes greater than 40sq m. St george is particularly good wth small apartments.

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Pulling 20% deposits from the LOC is a very good way to proceed.

But, it may also be an idea to pay cash using the LOC at first, and then to mortgage the property soon after. If you are getting a bargin, you may be able to borrow more money this way. This is because banks will only lend on the lesser of valuation or purchase price. When you…[Read more]

Hi Maddy

I think you will find you can distribute to non residents (if they are beneficiaries), but there is a withholding tax of about 30% – at least.

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Tony

You don’t need a pack. All the info is out there, if you want to spend time looking. Really, there is nothing much to a wrap. It is just selling a property where the owner pays you in installments. That’s it. However, owing a pack might be more convenient.

Terryw
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