Thank you everybody. You are too kind!

And sorry to all the people I have given ‘bum drum’ to!

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

If it is not going to effect the rent or the price, it may be better to go with the cheaper ones now, and then replace when you do the reno in 3 years – they would probably need replacing by then.

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

That sounds about right to me. Being overseas, means you won’t pass mortgage insurance guidelines so would have to limit your loans to 80% LVR.

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

You cuold buy a cafe and rent it to your wife, and she could claim the rent as a deduction. But buying in your own name may not be the best way to proceed. So talk to your account. I recomend Dale too.

You maybe able to qualify for another IP loan, depending on how much rent you are paying and receiving, other debts etc. If you have some equity,…[Read more]

Sarah, sorry – I was typing while you were.

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

Torachan

You are assuming they are negatively gearing the property and that $100 is under makert value. Sarah, are you and is it? If so, …..becareful

I wouldn’t sell if it was me. Selling an asset that is performing well is only going to cost you money and you will miss out on all the future capital growth.

Terryw
Discover Home Loans
Mortgage…[Read more]

You should look at paying IO on your investments while paying PI into your home loan. You should pay off non deductible debt first. Maybe keep paying the same amount overall, but just divert most of it to your home loan. It will save you interest and increase your deductions.

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

It is harder on your own, but can be done.

With Steve’s method of not maximing out, you will have to go to lenders which do not ask you on their application forms whether or not you have guarranteed any loans. If they don’t ask, then don’t tell. But they will see them on your credit report and may ask questions.

Terryw
Discover Home…[Read more]

Originally posted by maximus:

Hi Maximus

When applying for low docs, the only proof of self employment needed is the ABN. They may also ask what sort of business you are invloved in and you will have to list an income.

When applying for an ABN, you cannot use a name, other than your own, unless you have registered that name with the department…[Read more]

There are one or two lenders that do 40 years. One is GE Mortgages I think.

I agree with Steven. There would probably be no point in going for a longer term. It will be very unlikely that you will stay the full term with the same lender.

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

Have you asked the bank to do another valuation with someone else? Or have you provided them with evidence of other comparable sales in your area? A real estate agents letter will not be considered, unless it lists sales.

As a last resort, just tell the bank, in writing, that you are refinancing with X Bank due to a higher valuation. Most banks…[Read more]

Is the business making money? If you sell, you may get some money, but you will have to find a job or other income source. What about the costs of selling the business and/or house, have you factored these in?

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

Get legal advice. It shouldn’t be too hard to get a court order, and then get the sherrifs over there to kick them out,

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

Why not do both. Buy an home ot live in, live in it for 6 months and then rent it out and claim the deductions while paying cheaper rent elsewhere – and you will still be able to claim it as your main residence and hence CGT free status – if you do it right.

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

Don’t worry too much. The fine will probably be only small – about 12% pa of the outstanding amount.

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

Originally posted by maximus:
Hi Terry.

Just because you have held an ABN for two years, won’t lenders want to see that you have been active with your “business”. By that I mean, can you just get an ABN to make it easier to qualify for lo-doc loans in the future, namely 2 yrs away. Also, when getting the ABN, what sort of business name would one…[Read more]

I guess it depends on how you define unemployed.

It would be a good idea to set yourself up now with a ABN so that you would qualify for a better grade of low doc/no doc loan. Most of hte good ones want to see 2 years history of self employment.

There are private funds available for anyone with a heartbeat, but these only should be used after…[Read more]

Foundation

Yes, owning assets under a trust means they are not your assets, but belong to the beneficiaries – one of which may be you.

So if you go bankrupt, these assets are usually untouchable.

But if you have given a personal guarrantee, that is a totally separate matter. eg say you started a business in a shop under the trust. The land lord…[Read more]

ATO determines a sale to occur when the contracts go unconditional. So extending the settlement won’t have any effect. Best to put it down to experience. I am sure you won’t make that mistake again!

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

Good post Mike, and some good points too. I wouldn’t recomend anyone to setup a hybrid trust themselves, also getting some good advice is a very good idea as you could save the fees in no time.

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