I think it should probably work

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

Hi again

It would probably be best just to pay the $300 and switch to IO. You may even be able to talk them into waiving this. This just keeping the same amount in the offset , should result in no interest payable.

Putting money in and taking it out again can have tax implications too – if it is an investment.

Terryw
Discover Home Loans
North…[Read more]

I think it is better to ask, which is better high growth or high cashflow?

Positve cashflow is always better. There is no sense in losing $1 tax claim back 50c, unless there is growth.

In my opinion, I think it is better to go for high growth property. Cashflow positive property is good, but a $20 per week cashflow is no good if the property is…[Read more]

‘Different income tax structure’ is a bit vague. I wonder what he meant?

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

I think what Chris Batten is getting at is for you to structure your purchase of property that gives you the great flexibility in tax minimisation and asset protection. If you use a unit trust and discretionary trust strucuture it gives the added benefit of allowing you to transfer a property to your SMSF without paying stamp duty or CGT. You may…[Read more]

I think in some states, (VIC) you are required to use PI loans on installment contracts.

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

Firstly, never beleive an agent@!

And secondly, if you are goign for a 14 days settlement, I hope you are paying cash. It would be very hard for a ‘normal’ bank to have the finance ready in time.

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

Chris

You probably shouldn’t be using a company that is trading to hold assets. What is your ACN (is that accounting?) business has trouble witha client and is sued? You could lose all properties. And I hope you are using a trust as well.

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

I’ve seen a recent example where $10,000 in land tax was simply reduced to $5000 by splitting a trust up into two trusts with one property each.

Since Land tax is incremental, the more you own in one name, the higher the percentage you pay.

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

Jason

You have jumbled things up. If you parents have a property and withdraw funds to loan you the money, they cannot simply claim the interest because it is an investment property. The ATO looks at the purose of the redraw.

What you need to do is have a loan contract drawn up, your parents draw money and lend it to you. they charge you the…[Read more]

It may be possible to wrap, but the repayments would be much greater than the market rent on the place. But it can be done, and has been done in Sydney.

If it is on the market, you can offer the agents incentives to sell. eg, above $XX, they get an extra 2% commission etc.

Also, it is not clear from your post, what did you pay for it and what is…[Read more]

There are some ways to buy without a deposit.

1) 100% finance. this is hard to qualify for and is often only for owner occupiers.

2) use equity in existing property

3) stack the contract and lie to the bank.

4) go for 95% loans with LMI capitalised to minimise cash outlay.

It generally doesn’t matter how good your deal is, or how good the…[Read more]

Sounds alright to me. I would much rather a good IP in Marrickville than in whoop whoop. The figures you quote, are they before tax, PI loan with extra payments? If you just change it to interest only and put all extra payments into a 100% offset account, this should ease cashflow.

You would have had good gains over the last few years and it…[Read more]

On the weekend i found an old pamphlet from about 1995 advertising a 10 year fixed rate at 9.95% with colonial bank. imagine if you had taken that.

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

ANZ is good with 95% loans (with the LMI added on top). They do multiple 95% loans, even on investment properties – I obtained 6 myself at 95%.

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

Yes, i think you could negotiate anything. But, if for whatever reason you can’t or don’t settle, then the renovations belong to the owner.

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

great location in my opinion.

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

Its true that trusts don’t pay tax (normally), but the beneficiaries do on the distributed income!

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

Seems to be heavlily in their favour (of course). I think borrowing 105% will give them a 40% share of any capital gain.

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

I Would still use a trust with corporate trustee. You owuld still wan the flexibility of distributions even if you cannot get the CGT discount.

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