You could borrow more fairly easily if you want to.

for example getting a 65% No doc loan on your main house would give you $155,000 extra. you could then use this as deposits and borrow more. This should enable you to borrow for another house at approx $380,000 price range.

Terryw
Discover Home Loans
Mortgage Broker
North Sydney
Terry@discoverhl.com.au

I beleive it is a sound practice if done properly.

One idea promoted by the investors club is to buy seven properties, one per year for seven years. In year 8, the first proeprty would be worth approximately double what you paid for it.

You then take some funds out of this by increasing the loan. The funds can be used to live on or to supplement…[Read more]

Didn’t you already ask this question????

Trusts will help protect you from outside attacks. If borrowing money, personal guarrantees will be required.

Terryw
Discover Home Loans
Mortgage Broker
North Sydney
Terry@discoverhl.com.au

Hi

I am actually suing a person at the moment, in NSW.

Once you have a court judgement against a person, you can do a number of things including:
– Obtaining a writ of execution and sending the sheriff around to seize personal property which can be sold
– Garnish their wages. A certain amount must be left for living expenses, and then the rest…[Read more]

Rob, the Hart’s case was about a specific product and situation. I am not an accountant, and don’t do this myself, but apparently it is still possible to capitalise interest legally.

This could enable people to pay off their home loans quicker, and claim more back in tax. So anyone wanting to do this should probably talk to a few accountant’s…[Read more]

That’s a bit complicated and something you should run by your accountant. Before you do, have a quick read up on the benefits of a discretionary trust – instead of a company.

Terryw
Discover Home Loans
Mortgage Broker
North Sydney
Terry@discoverhl.com.au

ANZ’s is 7.32% normally, but depending on the amount, there are discounts on their package of up to 0.70%.

Macquarie also have one (MEC) at 6.75% for amounts over $300,000.

Terryw
Discover Home Loans
Mortgage Broker
North Sydney
Terry@discoverhl.com.au

Thanks Brahms. I did mean the MSE, which can basically be used like a LOC.

There are other low docs available, probably ANZ would be good if you needed a low doc LOC at around 6.82%. But it will not fit everyone.

Rob, what is that Low Doc at 6.76% you are talking about?

Terryw
Discover Home Loans
Mortgage Broker
North Sydney
Terry@discoverhl.com.au

If you only have a temporary job, maybe you could change to full time just before your loan application. What you do after the loan settles is up to you.

Terryw
Discover Home Loans
Mortgage Broker
North Sydney
Terry@discoverhl.com.au

I beleive the CGT will flow through to the beneficiaries. So if it is a person that receives the capital gain, they would receive the discount. Whereas if the gain went to a company, then it would not.

ps. I am not an accountant

Terryw
Discover Home Loans
Mortgage Broker
North Sydney
Terry@discoverhl.com.au

Thats a lot of money for a book!

Terryw
Discover Home Loans
Mortgage Broker
North Sydney
Terry@discoverhl.com.au

Any money not spent on paying interest on investment loans could then be diverted to the person’s home loan, paying it off sooner.

Terryw
Discover Home Loans
Mortgage Broker
North Sydney
Terry@discoverhl.com.au

Macquarie MMS – it can be used like a LOC, but is just a term loan.

Terryw
Discover Home Loans
Mortgage Broker
North Sydney
Terry@discoverhl.com.au

Do you have to get a loan? That is the slow bit.

Terryw
Discover Home Loans
Mortgage Broker
North Sydney
Terry@discoverhl.com.au

It depends what you want to do long term. If you never intend to return to your home, it may be better to sell. Otherwise you will be paying rent with after tax dollars and then be paying tax on the rental income.

Terryw
Discover Home Loans
Mortgage Broker
North Sydney
Terry@discoverhl.com.au

Maybe you could use a discretionary trust with both of you as trustee. Both incomes would therefore be used to calculate serviceability. The CG could then be distributed to the person with the loss first.

You also do not mention if these will be investments only or a mixture of both.

Terryw
Discover Home Loans
Mortgage Broker
North…[Read more]

Martin

A trustee can be a beneficiary. I am a trustee of my trust and a beneficiary.

Terryw
Discover Home Loans
Mortgage Broker
North Sydney
Terry@discoverhl.com.au

On 95% loans, it is roughly 2% of the loan balance. Maybe a bit more if the LMI is added to the loan.

Terryw
Discover Home Loans
Mortgage Broker
North Sydney
Terry@discoverhl.com.au

regarding the capitalising of interest on an investment property, then this is not necessarily a no no.

I have heard that one person was paying an investment loan with a LOC (no it doesn’t have to be a LOC!!!). She then only pay the interest on the LOC.

eg. $500,000 loan, monthly interest is $2916. This interest is paid with money drawn from a…[Read more]

Rob

I think I read about that AAT case in a newsletter from Julia of Bantacs – who no longer posts here. The case invloved a copuple in the ACT called Janmor or something similar. I will try to find it.

Terryw
Discover Home Loans
Mortgage Broker
North Sydney
Terry@discoverhl.com.au