Janine

Maybe you could buy property thru your own super fund?

Terryw
terryw@froggy.com.au

Broken Hill was the 9th fastest growing subsurb last year. (according to The Australian, June 7, 2003)

The median price in this suburb jumped from $39,000 in Dec 2002 to $52,000 in Mar 2003. A 33.33% gain.

This probably confirms Rie’s opinion that it has been discovered by out of twon investors.

Terryw
terryw@froggy.com.au

Caz

A few years ago I sold a negatively geared property to use the proceeds for wraps. I now regret that as I would have made more money by hanging onto that property.

Once you sell a property you lose any future capital gain. Think what it will be worth in 10 years time. And think of hte costs – CGT, Real Estate agents fees, legals etc.

There…[Read more]

Steve

I recently was surfing another forum and there was a post recommending your Wealth Guardian product. But somehow the web address had been censored out. Even your name was censored to Steve xxxxx. Isn’t that funny?

Terryw
terryw@froggy.com.au

I know how you feel.

If you are going to do it, plan carefully. Some banks require payslips no more than 2 months old, a letter would help (including wage, time there, stating you are full time and not on any probabtion etc). You will be getting your group certificate soon,so that should be ok. But when you fill in the application you will have…[Read more]

Stuart

And we both gave the same answer!

Terryw
terryw@froggy.com.au

They will go on the 8K. But with certain banks there are certain things you can add back such as depreciation on equipment, some interest etc. non recurring expenses may also be disregarded.

You can always go low doc. Generally around 80% LVR max.

Terryw
terry@discoverhomeloans.com.au

TJ

I think the rule is different if you rent out part of your house while lving in it. You lose the CGT exemption completely. I think.

Terryw
terryw@froggy.com.au

hi Stuart

I must disagree with you on this one.

Section 118.145 of the Income Tax Assessments Act 1997 (http://www.austlii.edu.au/au/legis/cth/consol_act/itaa1997240/s118.145.html) allows you to be temporarily absent from your main residence for up to 6 years, and to still claim it as you main residence. You cannot have more than 1 main…[Read more]

Little Bee

Check with your accountant (I am not one), but there is a provision in the Income Tax Assesment Act that allows you to live away from your PPOR for a period of 6 years and to still claim it as your PPOR and claim a full CGT exemption.

I don’t have the section of the act handy, but can dig it up for you.

And you can move back in for a…[Read more]

I beleive the ATO determines a purchase to occur on the exchange of contracts. Not sure about the Office of State Revenue (or whatever it is called). So this would probably be deemed a purchase and you would not be entitled to the FHOG (unless you will live in this one?).

Terryw
terryw@froggy.com.au

Hi Fullout

You do have some equity. You could go to 95% of the value of both properties if your serviceability would allow it, and you are willing to pay LMI.

Terryw
terryw@froggy.com.au

Boothy

You can’t increase your loan and claim the interest. But you could sell the home. So why not sell it to yourself – or an entity contrlled by yourself. And then the money you get from the sale is the proceeds of the sale of your PPOR and you can do what ever you want with it-put it into your new home etc. No capital gains tax as your PPOR…[Read more]

Excellent idea.

If you ever sell your new PPOR CGT will only apply for the period it was rented out.

Terryw
terryw@froggy.com.au

Hi Boothy

Since your current home is paid off, any finance you get on this property won’t be tax deductible. It is just like inceasing your loan balance. It depends on what the funds are used for. If you get a loan on your ex PPOR and use that to buy a new PPOR, then the interest won’t be claimable. But if it is used for deposits on investment…[Read more]

The trouble is, banks do not like you onselling something htey have a mortgage over via an installment contract.

Also banks will generally only go on what they consider market rent. This is generally calculated about 5% of the purchase price per year. You can argue that you will be getting more, but have to have some good reasons.

However, for…[Read more]

Can you get out of the contract?

I had a unit off the plan in Melbourne, prices hadn’t gone up like i expected and i probably paid too much for it in the first place. The construction had gone over the sunset clause, so I just cancelled the contract. I was just up for the price of the deposit bond, and some conveyancing costs.

Terryw
terryw@froggy.com.au

Another potential problem is that someone will no doubt want to pull out at some stage. people’s circumstances change. Not such a big problem, other can buy them out. You just have to plan up front, need to work out a way to determine the price the remianing people will pay. It could be done on a market valuation, or the average of 3 valuations…[Read more]

Boothy

Are you planning, or is there any chance you will come back to live in your house in Sydney?

Terryw
terryw@froggy.com.au

Sounds good, but may eat into your serviceability. If there are more than one person ont title each may be deemed to be responsible for the whole repayments for this loan when applying for future loans.

Does that make sense?
eg if 5 people on title and loan, with min repayments $1000/month. Each person’s share is only $200, but if they others…[Read more]