I think for whatever price you ‘sell’ the property for you should be able substantiate the price if audited. eg keep a file of comparative sales, get a valuation etc.

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

What percentage of rent that banks take into account can be misleading. SOme give with one hand and take with the other. In general I have found Westpac and ING to be pretty generous overall.

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

Kreman

It will be very hard for you to qualify for a loan at this stage. You would need about 20% deposit and costs.

Maybe someone could wrap it to you? (the rate would probably be cheaper than 11%!)

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

Hi

Not many lenders will refinance up to 95%, 90% is generally the maximum.

Theoretically as long as your overall LVR is 95% or less and you have the income to service the loans then it may be OK. So add up the values of all thre properties and the existing loans together with what you need to finance the new purchase and see what you get.

I…[Read more]

Adofunk. A conveyancer suggeting something illegal! I bet it happens a lot.

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

As a broker, I have been seeing htis since last year. I had one young client who purchase off the plan in Sydney 2 years ago. There was no growth in value at all. The person did not even have a deposit and had used a deposit bond. because of her low wage she couldn’t qualify for a loan. It was also in an area that was hard to get finance for.

The…[Read more]

I beleive you can’t do this without selling the properties to the trust. hence stamp duty and capital gains tax would apply. Depending on your circumstances, it may still be a good thing to do -check with your accountant.

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

The ATO is looking to grab as much tax as possible.

But what is the office of State Revenue thinking? I beleive the OSR (or Vic equivalent) is the agency that collects stamp duty-which is a state tax and has nothing to do with the ATO. So is it the OSR taht your solicitors were referring to? If not, maybe they were talking about CGT? Or I may be…[Read more]

Reminds me of the movie American Pie 3

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

Hi

To get an idea on borrowing capability for this area, check the postcode at http://www.pmigroup.com.au/LocationWizard.asp

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

Brendon

yep. if it is classed as inner city, then the loan may not be able to be mortgage insured, and then it would be a 80% lend.

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

Yes, I agree that you cannot use equity on a property you have puchased off the plan until you settle. This is because you don’t actually own the property, and there is a chance that settlement may not take place.

BTW, nearly every bank will lend on currnet valuation if the contract is more than a year old.

Terryw
Discover Home Loans
North…[Read more]

It is a pitty bank staff are so poorly trained and don’t (often) know there own policies. Most people would probably take ‘the banks’ word for it if they were told something like this.

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

I forgot one important point. If your properties are crss securitised and the shit hits the fan, things go wrong and you can’t pay, the lender can just sell up your properties.

If you are not cross securitised, they will still be comming after you for the money, taking the first secuirty property first, but if ths wasn’t enough, you would have a…[Read more]

I have friends in the ATO and they have informerly informed me that applying for a private ruling is like waving a red flag at a bull!

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

Heritage Building Society had fixed rates with a redraw facility (no fees or penalty), but have very recently changed the rules on this product. I think now you can not payoff more than 20% without penalty.

There are no many product, as Simon said, but have you considered a split loan? eg 50% fixed and 50% PI with access to the…[Read more]

Hi There.

Have you spoken to a GOOD accountant. I beleive there may be a way to claim the expenses if the original purpose if to build an investment proeprty. I can’t remember the reasoning behind it now.

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

Sorry about my short reply. let me elaborate:

There is no GST payable on established properties but you will have to pay GST on things like agents commissions etc.

If you are getting a property constructed, then you would pay GST on the construction portion, but not on land.

Commercial properties are different and apparently you have to pay GST…[Read more]

Michael Yardley (who comes here sometimes) puts out a monthly newsletter, one of which recently contained a brief analysis of growth vs yield. High growth was the winner. You may be able to access the newsletters online at http://www.metropole.com.au/

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

These types of Trusts are not for me. The returns are nothing to write home about. Have you considered just buying shares? Similar returns and easier to sell.

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