Would your loan contract with your wife be enforceable in a court? Possibly it would, even if it was not written. if so, tehn you may be ok.

I would myself treat it as a loan. One loan repaid with another, should be OK – but you never know how the ATO will treat it if audited.

Terryw
Discover Home Loans
North Sydney
Terry@discoverhomeloans.com.au

Stacking the contract to get more finance may be fraud. Avoid this. Stacking the contract and paying cash for the property isn’t.

Terryw
Discover Home Loans
North Sydney
Terry@discoverhomeloans.com.au

I personally have found network marketing a waste of time and money. The products are usually way overpriced in order to allow commissions to be payable. Why pay $15 for some shampoo when you can pay $5 in the supermarket.

Terryw
Discover Home Loans
North Sydney
Terry@discoverhomeloans.com.au

Dematio

Be careful in the order of setting up your trust. The trustee needs to be in existance before the trust is setup. Therefore the company would have to be setup first.

Terryw
Discover Home Loans
North Sydney
Terry@discoverhomeloans.com.au

Xenia

That is a legitimate problem. The only way around it is not to tie all your equity up in lease options. keep some buy and holds as well.

You will also probaably find that a small portion of the tenants leave the properties within the first year. So that could give you some room for equity extraction.

Terryw
Discover Home Loans
North…[Read more]

Seems like they have cross collateralised your loans again even tho you have separate mortgages. This should be avoided as it will slow you down. You will probably not get more than 80% LVR for the boarding house, and most would probably class it as commercial. You could get 90% LVRs on the refinances if you have the borrowing capacity, but you…[Read more]

POAs differ from state to state. So you had better consult a solicitor or go to http://www.lawcentral.com.au. Me and my wife have enduring power of attorneys for each other, and I have bought a few properties when my wife was overseas (she still doesn’t know about them !).

Terryw
Discover Home Loans
North Sydney
Terry@discoverhomeloans.com.au

I suggest you write to your bank and ask for a payout figure for your loan as you will be refinancing. Tell them the reason, and see what they come back with.

Sometimes when you ring up, you just get the wrong person who doesn’t give a toss if you stay or go.

Terryw
Discover Home Loans
North Sydney
Terry@discoverhomeloans.com.au

I am having troubles accessing my work email in Japan, could you please email me on terrywaugh@gmail.com

Terryw
Discover Home Loans
North Sydney
Terry@discoverhomeloans.com.au

You could be actually increasing your risk by buying property jointly. What happens if the other person simply refuses to pay and walks out?

If you are sure about doing it together, go a written agreement drawn up covering things such as who pays what, what happens if one wants out and the other doesn’t etc.

You could use a unit trust with your…[Read more]

The problem with caveats, is the owner will have to consent to yours and then to the person that buys the option from you. This may be difficult to negotiate.

Terryw
Discover Home Loans
North Sydney
Terry@discoverhomeloans.com.au

They could always do a search to see if you owned property in your name, then check this to see if there is a mortgage. But this would be time consuming and costly, they would have to also search each state separately.

Terryw
Discover Home Loans
North Sydney
Terry@discoverhomeloans.com.au

I have spoken to a few good accountants about this and have received conflicting advice. I can point you in the direction of one in Sydney who would probably say it is deductible. pls PM me if needed.

Terryw
Discover Home Loans
North Sydney
Terry@discoverhomeloans.com.au

Originally posted by TMA:
Originally posted by Terryw:
It is not lying on the contract. Stacking the contract may be a way to get a higher valuation after settlement.

Can you define “stacking”?

I take it as putting a misleading amount on the contract. Misleading referring to NOT the true purchase price. How does this differ from lying? I believe…[Read more]

Yes Sorry TMA. Didn’t mean to sound like that. I will let Dev tell you where he puts his money.

let me rephrase the other bit. Bankwest will still not lend on valution if it is higher, but for mortgage insurance purposes they can base this on valuation if it is higher than purchase price.

eg. buy a property for $80,000 that values at $100,000.…[Read more]

I think lease options would be the same as normal rentals. The landlord should have their own insurance which would cover this. You are just renting with the option to purchase at a later date.

Terryw
Discover Home Loans
North Sydney
Terry@discoverhomeloans.com.au

I agree with TMA. If you are using a loan soley for investments, one account should be OK. The interest may have to be apportioned over a few proeprties, but even if you stuff this up, the overall figure would be the same and this would make no difference to the amount of tax payable.

Terryw
Discover Home Loans
North Sydney
Terry@discoverhomeloans.com.au

You can only get the profit if you sell. If you have equity and increase the loan, the extra portion could be paid into the home loan part, but this would not result in any tax savings. Tax deductibility is determined by use of the funds borrowed.

Terryw
Discover Home Loans
North Sydney
Terry@discoverhomeloans.com.au

Just try a different lender.

Terryw
Discover Home Loans
North Sydney
Terry@discoverhomeloans.com.au

try http://www.gatherumgoss.com for Melb

Terryw
Discover Home Loans
North Sydney
Terry@discoverhomeloans.com.au