not all low doc loans are mortgage insured, but banks are already hedging their risks by having lower LVRs and higher rates for these loans. I don’t think they have a higher default rate than the normal loans either. And it is not just people who do not have the income that use them. Many people just use them for conveniance too. If you are self…[Read more]

not all low doc loans are mortgage insured, but banks are already hedging their risks by having lower LVRs and higher rates for these loans. I don’t think they have a higher default rate than the normal loans either. And it is not just people who do not have the income that use them. Many people just use them for conveniance too. If you are self…[Read more]

if it relates to your earning an income, then it should probably be allowable. You just have to be able to justify it if you are audited.

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

If you were to buy a used car wouldn’t you like to pay as little as possible?

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

I don’t give anything to tenants. but sometimes buy investment books as presents to ‘loved ones’ and then claim the costs as a deduction.

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

Hi Tom

I was just talking to a mate in a finance company and asked him about this. He said they would be able to do a second hand tv if the buyer and seller were companies. Maybe you could find one in a second hand shop and maybe your landlord has a corporate trustee??

I also looked at the figures, the interest rate on repayments of $130 per…[Read more]

I think a corporate trustee is ‘safer’ because if the trustee is ever sued, then the company has nothing, while the individual trustees personal assets could be exposed.

You can change trustees, but have to be careful you do not trigger a CGT event. If the beneficiaries are changed substantially, then the ATO can deem one trust to be closed and…[Read more]

Hi. i think Wizard were just playing around with the idea (and getting some publicity) and nothing actually came of it.

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

Rubbachook (nice name), I think you don’t really lose the tax deductibility, but rather don’t get any extra, you should still be able to claim the interest on the original loan amount for the IP, but not, as C2 suggested, the increased amount as the purpose on increasing htis loan was to pay not business related debt. (gee that was a long…[Read more]

Darryl’s girl

Watch out as there might be a sunset clause in the contract which may allow the builder to back out of the contract if the building is not complete by certain date.

I am not too keen on selling properties, and bascially beleive in keeping them for the long term. If you sell you have tax and agents fees etc, and then more stamp duty…[Read more]

If you are going to be living in it, I would think it wise to consider using available funds to buy your house first and then borrowing on this for deposits for your IPs. this way you could decrease non deductible debt.

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

Not a wise move from a tax perspective as the interest would not be tax deductible. But if you could get clear title on your PPOR, they should give you peace of mind at least.

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

Hi

Before the ATO can tax you, they have to know about the income. I’ve lived and worked in Japan before []

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

Hi Malachii

Which state is your property in?

I beleive you can go to the local court and get a summons issued. For a small fee the sherrif can then serve the summons on the tenant and they have a few weeks to pay or dispute the matter. Then the sherriff can garnish their pay or seize goods to be sold. I think it works like that in NSW.

$5000 is…[Read more]

Hi Fatboy

I agree with Phil and Annaw2 in that it would be better to pay down your PPOR mortgage first and then borrow the money back before you invest. You will be saving interest and increasing your tax dedcutions if you do.

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

Fibejebe, that’s ok, and please let us know the answer!

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

I don’t know about both of you being able to claim a PPOR. I beleive that each couple can only have one PPOR between them, and have even heard of people pretending they were separated so they could save tax (or evade tax?). You had better talk to an accountant about this, but you can probably claim a PPOR each up until you become a spouses…[Read more]

Some banks will allow dividends to be included as income if they are likely to continue. They are about stricter on interest tho. Some will include the income from interest in term deposits, others will not include it at all. If included it would be added to income.

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

Peter

Just going from memory, I beleive Bluestone will lend up to $2mil per security at 80% LVR- even on a low doc.

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

Pisces, That wouldn’t work, because the moment you enter into a contract with the new purchaser is when it is considered a sale, not the date of settlement. It is the same as when you purchase, ie date of exchange of contracts.

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