You could fix a few or all of your loans, with varying number of years. But having IO loans will actually help. If rates suddenly jumped the extra repayments on a PI loan would be much more.

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

Jarmbie
My understanding is that Macquarie cannot do low docs if you have just become self employed. You still need 2 years history (and the rate is more like 7.30%, but this drops down to about 6.50% over a few years). I htink Combank will waive the 2 year requirement if you have recently become self employed in exactly the same job (eg computer…[Read more]

Title will be technically transfered to you, then the new purchser immediately.

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

Yes it is possible. Could be messy if your loans are cross securitised.

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

As a guide, you could borrow up to 80% of completion value. 80% of $650,000 = $520,000. You must still show serviceability to borrow the money at this LVR. Going on some no doc type loans, you could get about 66.6% = $432,900.

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

What about somethign slightly different.

Buy your $300,000 home, pay down as fast as you can, then buy your dream home using the equity. Rent this dream home out, keep saving, paying down your PPOR and maybe even buying more property.

Then sell your PPOR, CGT free, use the money to pay down your dream home which now becomes your new PPOR. So far…[Read more]

Hi Kay

I beleive that table is just an accumulative index of the CPI since the time it first came into use. The quarterly figure is just addedd on top.

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

Hi Tom

I am just doing the same thing, putting the rent up in line with the CPI. I found the following page on the ATO web site:
http://www.ato.gov.au/taxprofessionals/content.asp?doc=/content/cpi.htm

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

If you can substantiate that you are in the business of property investing, then these costs should be claimable. You would have to already own a few properties tho.

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

Richard, these are legal and done all the time in Australia. Unfortunately you will be up for stamp duty as you are buying and onselling. You would also be up for CGT.

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

Hi. yes there are various ‘low docs’ and ‘no docs’ and what I call ‘we don’t give a stuff docs’ (private lenders etc, rates 8 or 9%).

Normally you need 2 years self employment history to get a good low doc.

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

I had a similar problem with ANZ. I went to sell a property only to find it was not in my name! ANZ never registered teh mortgage at settlement. I used a cheap conveyancer too.

Talk to teh banks customer complaints section. And it is probably best to speak to your solicitor too – and then ask the bank to pay for these legals fees (they probably…[Read more]

You can still get loans without a job-easily. But you will have to pay a premium on the interest rate and the LVR will be lower. It is far better to keep working full time as long as you can and then after you get to a certain level, bail out.

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

Kim

I am not sure on the asnwer to this, but am under the impression that if you were to rent out part of the property (eg. 50%) then that part would lose the CGT exemption.

Melanie

I am not exactly sure but if that was the case, maybe Kim could stop renting out 50% of the property at some stage and then the 6 year rule would start again. Kim,…[Read more]

You may not be able to refinance your loan if the value has dropped. If you think there may be a crash comming up then prepare now by building up some reserve funds.

Also it is possible that the lender could ask you to pay down the loan to keep the lvr at the same level incase of a drop. I have seen them do this with rural properties. It is like…[Read more]

I made some enquiries a while ago and could only come up with a private lender that was willing to lend on someting like this. The rates would be in the 8% + range, and LVR was about 70%. This is not ideal, and severely limits the resale value of these units. Though, the rental yield can be higher than normal.

Terryw
Discover Home Loans
North…[Read more]

I think COC (hey don’t be rude!) return would be calculated on the amount of money coming out of your pocket.

eg if you put $5000 and get back $2500 in year one, then it would be a 50% COC return.

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

Unit trusts are good because the ownership portions can be fixed. You could also have your discretionary trust owing the units in the unit trust for maximum flexibility.

If there is a split up, it will still be messy and one will have to buy out the other, so it won’t be much different than buying in your own names, but the asset protection will…[Read more]

Yes it would be legal. But you would have to pay tax on it. but she is probably paying tax anyway. It would look good for your next loan application too>

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

You should be able to. In NSW I beleive that if they pay anything other than 10% and they don’t go thru, there is a clause that says you are entitled to the full 10%.

It may not even cost that much in legal fees to do, but may be worth it.

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