All you have to do is to let the agent know and start advertising the fact that you, the vendor, will leave 30% in the deal – or lend the purchaser 30% and the terms. eg IO over 5 years at 10% etc.

Discuss with your solicitor who will prepare a second mortgage to be lodged over the property once it settles.

Hopefully as the property grows, it…[Read more]

BTW, I think Jo meant, http://www.ato.gov.au

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

I think you will find it will be classed as a ‘rural’ loan. Normal residential loans are generally not available for land zoned rural – the LVRs will be lower and the rates probably higher.

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

ANZ is one of the best and cheapest LOCs available, so they are not trying to rip you off with an inferior product with high interest rates.

the danger with LOCs are some people have these on investment properties and then put all of their salary in, and take it out again. The ATO considers it to be a repayment when the money goes in and a…[Read more]

LOCs are good, but can sometimes have higher interest rates.

I don’t know who Westpoint is, but there are a number of companies out there that setup these LOCs and charge a very high fee for doing so. So make sure you research thoroughly.

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

I seen an accountant about this myself when I had 6 properties and he said I could be classed as a trader with this many properties.

Westan makes a good point in that if you are selling in less than 12 months, then it makes not difference. If you are holding longer and are doing it as a ‘profession’, then you could be classed as a tradder anytime…[Read more]

I was/am? a member of this wealthtips site and am under the impression that it has been replaced by pi.com.

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

1. You do not get any discount for other assets held under 12 months anyway.

2. They are paying you in installments and do not get to ‘own’ the property until they pay the whole lot. But they have the right to occupy the property in the meantime.

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

I agree with Matt in that you probably should not discuss with your non investing friends. They will either steer you in the wrong direction or discourage you altogether.

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

It depends on the state your property.

In Vic, you must enter into a written agreement with the nominee before you sign the contract of sale. If not, then double stamp duty will be payable. In other states it may only apply for related parties such as spouse and a person nominating their own trust or company.

Check with your…[Read more]

I found that July was very quiet, but it is getting busy as spring approaches.

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

I agree with aussierogue

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

Why sell a good property to purchase inferior one(s)?

This property costs about $6000 pa. This is before taking into account the tax decutions.

In 4 years it has increase in value by about $25,000 per year. This is tax free if you do not sell.

If he does sell and releases money, he could buy a few cashflow positive property. But often these…[Read more]

It looks like IP1 is growing well, so it would be a shame to sell it.

What about selling your shares? that should release enough money to help you live on for a while. Or at least stop revinvesting the dividends to help with the cashflow.

Selling properties is expensive. You have to pay agents fees and CGT and legals etc. And then later on you…[Read more]

I would see no real benefit in selling. sure, you may free up a little bit extra, but you have to live somewhere and your home is your only CGT free asset.

If you want to buy property, just go for No doc or Low docs at 80% LVR. With that much cash and equity, you should be able to buy $2.8 mil worth of property (in theory anyway). That should be…[Read more]

There is a tax determination on what constitutes a main residence. If you email next week i can send you a copy (it is on my work computer).

Some of the things that determine whether or not a place is your main residence include:
– intention
– mail
– phone, electricity, gas connections etc
– electoral roll address
– family
etc

Terryw
Discover…[Read more]

I think it would be based on the date of the contract of sale of the land.

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

I’ve purchased 7 properties without ever seeing them. All went OK, but now these days, I probably wouldn’t do it again. It is good to get a look at the neighbourhood too -which is something you can’t see from a report.

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

I would pay down PPOR loan and then set up a LOC, use this as deposits and buy 5 more $100,000 properties.

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

alwayscurious

Now may not be the best time to sell – as there is a bit of a slump – depending on the location.

You don’t give the values for you properties, so that makes it hard to answer.

Depending on the values, selling all three in the one year may give you a big CGT bill. Since you wife is on a low income, it may be better to sell you…[Read more]