You probably should have been notified about the default at the time. If not, then the lister may have not followed the correct legal proceedure and you could get it removed. You could go to a solicitor and ask them to draft a letter to the lister threatening to sue if it is not removed. But this may end up costing you more than the default…[Read more]

I just purchased Kevin Young’s book. The chapter on
“Positively Geared is Positively Dangerous” is only 2 pages long!

He is basically warning against buying cheap, old, rural properties with no depreciation benefits, and no prospect of growth.

Of course he is in favour of positive cashflow property if it could meet all of their other…[Read more]

I just came back from the Property Expo in Sydney and there was a buyers agent there who offers to find cashflow posiitve property for people for a fee. I can dig thru my bag of info and find the name if you need it.

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

try
http://www.bantacs.com.au

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

If the amount of interest claimed on an IP suddenly goes up when there has been no interest rate rise, then it may ring alarm bells at the ATO.

I think there may even be a question on the tax return asking if any investment loans have been increased during the year.!?!

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

I don’t think so, but go to the website of the office of state revenue in your state, there may be further information available there.

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

While the property is an investment you should be able to claim all costs associated with it including interest, depreciation etc.
But you will not be able to claim it as your main residence until you move in, and this will mean it will be subject to CGT (if any gains!!) during this period, if you sell.

Terryw
Discover Home Loans
Mortgage…[Read more]

Yes it will be hard. how long is your contract? The lenders will want to see the agreement and to look at the terms and the lenght remaining etc. It will also depend on what sort of LVR you require.

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

You should be able to get 95% LVR in most areas of Australia (up to $150,000) with the mortgage insurer PMI. check to see if the location is listed on this:
http://www.pmigroup.com.au/locationwizard.asp?attractor=4

If the suburb is not listed there or if the loan is higher than $150,000 it will be very hard.

Terryw
Discover Home Loans
Mortgage…[Read more]

Hi

Sounds like you may need a second (or 4th) opinion on the finance side due to the conflicting stories. You must have a fair bit of equity in your home with that low LVR.

Feel free to send me your figures and I will check them out.

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

Yes becareful there!

A quick way is to ring your credit card company and to ask for an increase in your limit.

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

Hi

1) You are buying and selling property so you must use a conveyancer/solicitor unless you know how to do this yourself. Maybe you could use one of those conveyancing kits??

2) I think so. Many people have done it. But maybe they could argue it was done just to avoid tax. Do you have any other reasons for doing so, such as asset…[Read more]

FFComm

CGT is not necessarily 30% in Australia. It would depend on the structure used and may be much less.

Some banks will allow a 2nd mortgage, and caveats can be place on title without the lenders permisison.

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

Brahms

Yes, you can now get 95% low doc loans with First Mac. They have their own mortgage insurers (who are very strict!!). Rates will be high and LMI will be about 3%!!!

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

You should be able to do Tenants in Common anywhere in Australia.

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

Hi Ajay

I would be wary too. Anubis has raised a good point. What if you want to sell in 3 years. Your market would be limited to investors only – as you would still have a long lease in place. This could make it harder to sell, meaning you may get a lower price.

If you are only getting market rent, then why pay a 15% management fee. Just…[Read more]

What exactly is your problem? ie why couldn’t you get an approval for Melbourne? Is it serviceability? Location?

I would suggest you talk to another broker. If you have enough equity in your property, then it may not be much of a problem.

Some questions:
What do you mean by bridging finance for the Melbourne one? Has the bank agreed to lend you…[Read more]

Ajay

I have heard their management fees are high, and the leases are long so this can be a bit of a turn off to some people.

What sort of rents would you get on a $500,000 proeprty? Is it market rent or aa bit higher?

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

Hopefully this is a temporary situation. So I wouldn’t be too concerned about renting for a while. Prices probably won’t move mcuh in the next year. Then you can buy the new house.

You probably would not be affected by capital gains tax either. You can rent you house out for up to 6 years and not have to pay CGT if you sell in this period.

It…[Read more]

There would probably be licencing issues. The best place to start is to talk to the department of fair trading in yoru state. They can give advice on what licence you need, if needed at all, and general business setup advice as well.

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