If both are on title, then both will need to be on the loan, or a loan in one name only may be possible, but the other will have to guarrantee that loan. They could for example get a St G portfolio loan with splits in different names

The net result is both are responsible for the whole loan = hurts serviceability.

Terryw
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Further to Simon’s suggestion, you could also sell your home to a trust, the trust could borrow to buy from you creating a large deductible mortgage.

Terryw
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Are you saying you buy houses for cash by using your LOC? If so, then this is an excellent way. What you can do then is to get a mortgage on the property, release your money back into the LOC and to go again.

If you can buy well, and/or do quick improvements, you may be able to end up with 100% finance. eg buy for $80,000, do up, value comes in…[Read more]

Tony

Not quiet sure what you mean, but have a look at this post:
https://www.propertyinvesting.com/forum/topic/20340.html

BTW, a friend in the ATO once said apply for a private ruling is like waving a red flag at a bull.

Terryw
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Hi Mike

Can I add a question?

Would it be necessary to get the loan agreement stamped by the office of state revenue? (And pay duty?).

Thanks

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Bank calculators are rather complex, but some work it out similar to this:
Net Salary
Plus 80% rent
for income, and this must be greater than:
Outgoings – total debt payments (sometimes taken as if 8.25% PI loans)
plus, 3% credit card limit
plus any rent payable
plus a living allowance (more if couple, kids etc).

Terryw
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Ask them to give you power of attorney so you can sign on their behalf.

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I don’t think that is true. Better talk to a good accountant,

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Hi RAMK

The title would be in the name of the trustee, – trusts aren’t mentioned on title. But the trustee is only the legal owner, not the beneficial owner. If someone is sued, assets properly held in a trust are much safer as they are not the persons personal assets.

If you have a company as trustee, then this usually doesn’t or shouldn’t,…[Read more]

You would technically be self employed and would have to show tax returns for the last 2 years. I spoke to ANZ and St george this week about this topic and both indicated they would look at someone after 12 months.

Homeside appear to be more lenient and will look at someone straight away if they are in the same industry as before and can prove…[Read more]

It only becomes your PPOR once you live in it. Therefore if you have rented it out before living in it, you would most likely have to pay CGT for this period.

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Still can’t remember the name of that 4th one, but to check what Genworth will approve for by location go to:
http://www.genworth.com.au/default.aspx?item=access&id=loc_guide_au

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Giddo

I beleive that is the case in NSW too. Stamp duty may still apply on the transfer of shares (Except companies formed in VIC?), but this should be much lower.

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Hi Richard

Isn’t there a 4th one also? PMI, GE, Mobius and another – I think firstmac were using them – can’t remember who.

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Cata

I meant if you owned, say Telstra, shares only. There would be no way the trustee could be sued if their capacity as trustee. However, they could be sued as an individual for other reasons.

Terryw
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I think I have posted something about this too, for VIC. Previously in VIC, if you had signed and/or nominee and had a written agreement with your nominee prior to signing the contract, then you could nominate the nominee and avoid paying stamp duty twice. But this was a few years ago, and I think things have changed – many were no doubt just back…[Read more]

If you have lived in the house before renting out, then you could probably claim it as being your PPOR for the whole time. If rented first, then only could claim from the date of first living in it.

BUT (and there is always a but) you can only have one PPOR at one time. So if you were to ever sell the other house, you could not also claim that…[Read more]

Check out the agreement and the free hints available at:
http://www.lawcentral.com.au

Terryw
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Originally posted by tonyy21692:
Hi Carl

Common trap for young player, as the interest at your personal level is not deductible.

Look at a HDT to overcome.

Regards
Tony

Tony,

Not sure what you mean by this.

Carl will be borrowing from his bank and lending money to his trust. The trust will pay him interest. This is income. However Carl has…[Read more]

If you hold property more than 12 months then your get 50% discount on CGT. So if you are in the top tax bracket, then you could only pay a max of 25% CGT after the discount.

Why not use a trust next time. That way you might have a choice of paying tax yourself or distributing it to a company.

Terryw
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