I guess the ‘sunset period’ has expired?
Some developers deliberately do up contracts with so that they can do this. I don’t know what you can do about this unfortunate situation.

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

There is still plenty of cheap stuff around in Sydney. You can get units in Campbelltown for $150,000.

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

Yes you could use the equity in a lease optioned property and the bank will still want to use the property as security. You just have to be careful not to borrow more than the purchasers will end up paying you. or they may be in trouble if you are foreclosen upon.

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

There’s not much he can do really. If he hasn’t got much of a deposit, then he won’t be able to get a loan. he will need at least 10% (plus costs) for a low doc loan (with a very high rate). I would suggest vendor finance.

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

I agree, if the finance date has passsed and they haven’t backed out it should be unconditional. Talk to your solicitor first thing.

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

It should make a difference on deductibility of interest if you go as your broker suggested (If I have read you posts correctly). As Simon said, if you withdraw equity from you IP, you won’t be able to claim this extra interest as it is for domestic purposes.

It may be a good idea to rent for 6 months anyway. Since your from out of town, it would…[Read more]

Originally posted by Julia:
JLtara,
Section 104-15(1) of ITAA 1997 states that a CGT event happens when the owner of a property enters into an arrangement with another party to allow them to live in the property and title may transfer at the end of the arrangement.

Hello Julia.

Thanks again for an insightful post. Do you think the above could…[Read more]

Found it. please have a look at
http://law.ato.gov.au/atolaw/view.htm?locid='CGD/TD51/NAT/ATO‘

CGT Determination Number 51
Capital Gains: What factors are taken into account in determining whether or not a dwelling is a taxpayer’s sole or principal residence?

1. Whether a dwelling is a taxpayer’s sole or principal residence is an issue which…[Read more]

I’ve done something similar and it is a good strategy as it is cheaper to rent than paya mortgage on an equivalent property. Have you considered factoring in the 6 year rule for CGT expemtion? You can rent out your PPOR for up to 6 years without paying CGT when you sell. That means you may be able to keep your existing home and borrow against it,…[Read more]

Media beat up? There are heaps of shoky brokers out there, so maybe it is not entirely a beat up. But then again, I have never received an overseas trip! We do get pens and wine openers sometimes.

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

It is just a lease with an option to purchase the property. These can be structured many ways, and it could enable you to control property for a small outlay.

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

The loan would need to be in the same names as the title. You could both be on the title and just have an agreement to borrow the money for the deposit off you friend, or you could go on the title alone and then have a side agreement with your friend. – But you would be taking all the risk.

Terryw
Discover Home Loans
North…[Read more]

There is a specific tax ruling on this topic. I can’t seem to fin the reference at the moment, but you need to prove that you were living there at some stage. eg Electoal roll, electricity statements, mail at that address, etc.

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

It may be illegal to charge a fee for finding properties in certain states, if you are not a registered RE agent. Just ring the Dept of Fair Trading in your state to find out.

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

Another Option you may or may not want to consider is selling one or two of your investment properties, and using the money to pay off your home loan. This would kill your non deductible debt (or a lot of it), and you could then reborrow the money for more ivnestments.

BUT, you will have to pay CGT and stamp duty when you buy new property to…[Read more]

Hi Shirley

I read this too. I don’t know why he would write that-puzzling.

Having a large capital gain in a trust would be the best place to have it. You can still distribute it to yourself if need be, but circumstances change yearly, so it may be best to keep your options open.

I think some financial planners and accountants just frown on mums…[Read more]

Its about the only Australian resource available. It is very genral in nature and althou giving you lots of ideas, it doesn’t go in the figures. Its worth getting if you are consdering LOs.

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

Dave

That may be so, but the wrapee would not necessarily know until too late. If the wrapper has no other assets, then the wrappee could be in trouble financially.

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

I agree that it would be a good idea to look into setting up a trust. First get a book called “Trust Magic” avialable at http://www.gatherumgoss.com and study it to get a rough idea of how trusts work, and then go and see an accountant. Trusts can be set uo for as little as $275, but an accountant will charge a lot more.

Terryw
Discover Home Loans
North…[Read more]

Hi
You could just get a couple of valuations done (and average them), and add your margin to this (20%) for the tenants purchase price.

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