Depends on how risk adverse you are. Some people are really conservative and buy one at a time, others just buy as many as quickly as they can. Remember the earlier you own a property, the quicker you can acceess the growth.

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

There is a new non conformiong lender on the market called HLP Mortgages (http://www.hlpmortgageco.com.au/info/index.htm). They will be lending money to people with credit impairments, ex-bankrupts etc.

This is a growing market, but there are already 4 major lenders in there and a few other smaller ones popping up.

A 60% return is not really…[Read more]

I beleive this has happened a lot more than the article indicates, but banks wanting to avoid bad publicity has decided not to alert police or prosecute offenders.

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

PMI would have probably allowed 95% IO – even for a first property.

I wouldn’t be worried too much as the extra payments are coming off the principle, so it is not like you are losing money. Maybe after 6 months you can change the loan to PI. It may be possible to refinance the loan with another lender at IO and withdraw extra equity and to claim…[Read more]

The offset account doesn’t change you loan balance, so you will still ahve to make the minimum repayments. You will not be charged any interest if you have more in the offset than in the loan, so all of the repayment would be going to reduce the principle. If you change your loan to IO, then you may be able to just let the balance hover if you…[Read more]

It dpends on the state. In some states you can sign and/or nominee and then form a trust before settlement on you ok, in other states (QLD?) you have to have the trust formed before sigining or double stamp duty would be payable.

Talk to you solicitor before sigining.

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

You should probably be looking at trusts rather than ‘business’. I think this is just a generic term, you have either indivifual name(s), company or trusts to use to purchase property.

Whether you can buy more properties would depend on your income as well as equity.

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

One of our clients just settled on a property in Sydney which is getting about $700 pw rent and only cost $500,000. Not bad cashflow with good capital growth potential.

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

Hi Start and Wayne

Yes, it varies between banks and can go as high as 3.1% of loan amount!! It also varies depending on whether the loan is PI/IO, amounts over $300,000 or over $500,000 and whether investment or owner occupied.

as a rough guide:
80.01 to 81% 0.41
81.01 to 82% 0.41
82.01 to 83% 0.56
83.01 to 84% 0.62
84.01 to 85% 0.72
85.01 to…[Read more]

I agree, no matter what you call it, it is still a tax.

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

I would say no. CGT only applies to assets held more than 12 months. But the profit will be classed as income and will be taxed the same.

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

Yes you could go to 90% of the valuation of your property, but you would have to pay mortgage insurance – which could be around $5000.

You could then withdraw the money and ‘lend’ it to your friend witha written loan agreement, charging market interest rates – same as your loan.

You should have some sort of written agreement on how profit and…[Read more]

I htink I recall reading somewhere that tax debts are the only debts that are never forgiven. So I hope you friend has done some good research.

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

Here’s the website, but no free tickets listed.

http://www.tradersexpo.com.au/traders&investors/syd_home.htm

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

ANZ issued a bulletin last year to all brokers saying that they would be barred if they did a loan for someone intending to wrap! In their bulletin they seemed to confuse wrapping and lease options, suggesting they didn’t really understand the two.

But as Pelican said, it seems if you approach banks directly, sometimes the local branch manager…[Read more]

There’s no easy answer. Just keep saving like mad, accessing equity with growth, and get a bit creative – vendor financing the deposits, wraps, LOs, investors etc.

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

maybe. Yes, you can rent from your familiy trust, and it can claim deduction.

A trust can only negatively gear if it has other income. If there is no other income then the loss cannot be distributed and must just sit there waiting to be offset against future income.

If the person is using a hybrid trust, then they can borrow to buy units in the…[Read more]

there is actually an article about this in the investors club newsletter this month.

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

I think if these new items were an improvement on the old ones they cannot be a repair/replacement and must be classed as improvements. Therefore they must be depreciated – I am not sure if they would be classed as building or fittings tho.

ps not an accountant.

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

you can jsut put a clause in your contract which states rent will rise in line with interest rates and the CPI (but cannot go down!!).

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