You maybe able to add the LMI ontop of the loan so that it is not payable upfront. That should boost your COC return.

Terryw
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LOs are OK, but i have heard they have to be carefully created so as not to look like an installment contract or they too could be illegal.

Terryw
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Yes, use a LO instead of a installment contract. This will only delay the payment though.

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Maybe if the lease comes under the Residential Tenancy Act, then maybe a bond is required. This would vary from state to state.

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This will enable the holder to sell the property withou paying stamp duty. The option holder would actually be selling the option. However the vendor is protected in that the purchaser has been locked in, and cannot get out of the contract.

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Yes, I would be getting a second and third opinion. The accountant may be suggesting she sell it as she may be able to claim the PPOR exemption (since she first lived in it) and it should therefore be tax free.

But even if tax free, there would be agents fees, solicitor fees, and then when she purchases again stamp duty, solicitor fee etc on the…[Read more]

And they will be hard to locate. There are no ‘lists’ or website etc where you could find these properties.

Terryw
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These can be hard to sell as well.

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Doesn’t sound very good to me. You may be making $10 per week after expenses. With no capital growth is it worth all the effort?

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A redraw would only be tax deductible if the money was used for investment/tax purposes. An offset is good because it is a totally separate account to the loan.

Terryw
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Maybe he should rent out the old PPOR to get some money in, and not be in such a rush to sell as this may lead to him dropping the price substantially just to get a quick sale.

Terryw
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Banks usually will not accept your valuations – often even if done from a valuer on their panel.

It would be good to get a rough idea (maybe from an agent) and then if you intend to go for an increase, use the bank to order your valuation – so you don’t have to pay twice.

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Some good points there GP.

I know GP is a HDT user and knows a lot of ins and outs, while I only have discretionary trusts.

I guess if the unit holder of the HDT is sued, then the unit is at risk. The trust assets should be ok. I don’t know what effect this would have, if for example, a person went bankrupt and his unit was seized by a…[Read more]

Diamond

I think you mean you already have a trust in place, but just signed a contract in your own names?

I am not entirely sure myself, but in some states you should sign the contract as “name ATF XX family trust”. On the other hand, trusts are not legal entities, so the trustee just owns property in his/her name on behalf of the trust. This…[Read more]

Are you sure you are only paying $15,000 for it? Or does your brother have finance on it, and you will only have to put in $15,000 cash? It sounds too good to be true.

Terryw
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And they are probably thinking, lets get a few extra days of interest from these deserting customers.

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Lenders will only lend on the lower of valuation or contrat price. So if your commercial lender will lend 70% based on a $100,000 purchase price, and the valuation comes in low at $70,000, then first you will have to ask yourself “am I being ripped off?”, and then have to decide if it will work at the loan would be only 70% of $70,000 =…[Read more]

ANZ will lend nearly anywhere in Tas, but they will not lend for wraps.

Terryw
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Yes it could work if you buy jointly – but I agree with the otheres, not enough details.

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I used to live in Japan, and have looked at it. NAB, and ANZ will lend up to 70% LVR in Japanese yen for property in Australia. But you must be working in Japan, earning yen. If you even leave Japan (ie stop working there), the loan must be renegoitated and changed into AUD.

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