Many lenders have relaxed their policies on rural properties. It is now much easier to get finance on properties up to 100 acres. Beware of certain banks. They have a habit of changing their polcies for rural properties and calling in loans at short notice.

Terryw
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Hi Skippy

There is a wealth of information available at: http://www.tenants.org.au (the tenants union of NSW).

I beleive if the tenant is more than 14 days behindi n their rent, then you can issue a notice to vacate. This must give them 14 more days to leave. You will also need to apply to the Consumer, Trader and Tenancy Tribunal to kick them…[Read more]

Nothing beats buy and hold

Terryw
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i’ve done 6 – 3 lease options and 3 installment contracts.

I wouldn’t do anymore. I have foudn the profit is too small for the hassle. It ties up your funds, and so you must take into account the opportunity costs.

Terryw
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Is this like a second mortgage?

Terryw
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one of my banks did something similar.

Think of the good side, you have had that money in your hands for an extra 8 months!

Terryw
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I hope that is not true, as I am all three in one of my trusts!!

Terryw
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Plan the finance side as well. Suddenly giving up your day job can make it harder to qualify for finance.

Terryw
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I would increase the rent slowly, maybe every 6 months until it is up to market rent.

Terryw
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I would probably look at setting up a hybrid trust with one of you as trustee. Also, probably only one named beneficiary (because banks may ask for a guarrantee from the other named beneficiaries.

The hybrid may only cost $1200 or so to set up. You will be able to negative gear if needed, and also have the flexiblity in the future if needed -…[Read more]

Look for the sunset clause. ie what date does the building have to be completed by?

Terryw
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It could be very dangerous in doing your own lease – unless you are a lawyer.

You may get some important point wrong, or leave something out which could cost you dearly down the track.

Terryw
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Dekra

You will need to get good advice on this one. What you mother is proposing may not be the best way.

Things to consider:
– This may effect her pension
– Do you have a PPOR? If not, then it may be better to get the ppty into your personal name to save CGT.
– Maybe a testamentory trust could be set up for the inheritance
– Maybe a reverse…[Read more]

Originally posted by coastymike:
terry,

You can certainly sell property in a company structure without actually selling the shares. However any capital gains made will be taxed at the company tax rate of 30% and the 50% CGT Discount cannot be applied as companies do not receive this concession.

Hi Mike

Yes I was a bit vague there. Of course,…[Read more]

I beleive they do. If you spend money in order to make money, then the expense is generally claimable.

(i’m not an accountant)

Terryw
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Derek

I think you are mixing up superannuation trusts and discretionary trusts. Discretionary trusts can purchase property held by a beneficiary. A few of my clients have actually sold their property to their trust.

Terryw
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These days nearly all lenders offer low doc loans. Usually the max LVR is around 80%, though there are a few that offer higher LVRs with higher rates.

Terryw
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Hi Carlin

What you would need to do is to decide on the new lender, apply and wait for the valuations to come in. If there is enough equity in there (and you service) than you can, maybe, have a loan for the existing property and a split for the extra equity.

Once the deal is approved, the new lender will payout the old lender and titles will be…[Read more]

Agents fees are around 2.5% of the sale price. You will probably need a solicitor as well.

CGT only applies to a gain – which may be nil or negative in your case, so you may even have a loss after you take costs such as stamp duty into account.

Terryw
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Originally posted by jesse010:

I’m 22, my husband just got married…….

Did your husband marry you?[blink]

Watch out for those cheap properties returning a high yield. Just because the yield is good doesn’t mean they are a good investment.

Just keep reading as much as you can, especially posts on forums like this.

Terryw
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