Serviced apartments are hard to sell, and it is harder to get finance for (that’s why only 70% LVR).

Terryw
terryw@froggy.com.au

hi Soma

I made a posting a few months ago about my situation.

The tenant was behind about 1.5 months. He knew he was on the way out, he lost his job, had no money etc etc. In the end, he just left one night – never to be seen again. I now have the debt collectors chasing him.

I wouldn’t wait too long. After being 2 weeks behind, ask them to…[Read more]

Hi Michael

It is my understanding that a discretionary trust cannot distribute a loss-whether income or capital. The loss must be retained in the trust and can only be offset by future gains/income. I think you may be thinking of a unit trust or a hybrid unit/discretionary trust?

ksheather and 4walls

I think a foreign company or trust wouldn’t…[Read more]

walkernick

I am a broker, but not in the office at the moment, so will try to dig out the info for you on Tues.

There are 2 different insurers-each with different rates, and then it differs whether it is onwer occup or investment. It is also a sliding scale-as the LVR goes up so does the percentage. And, some banks even mark up what they are…[Read more]

Using a trust gets around this problem.

Another problem with buying in both names is loans. You can probably borrow more overall by buying in one name only.

Maybe 2 separate trusts would be best. One wtih one partner as the trustee one with the other.

Terryw
terryw@froggy.com.au

APIM

I wasn’t talking about capitalising interest. it is kind of hard to exlain, especially on a forum like this. So I will try to give an example.

A)You have a LOC, balance Nil
A home loan, Balance of say $100,000
C) IP loan, IO balance of $100,000.
D) a 100% offset account linked to the home loan with $10,000 in it.

All rent and other income…[Read more]

Yes, I use a PM for all of my wraps/lease options.

Terryw
terryw@froggy.com.au

I think many accountants don’t understand investing. Definetly a trust is the way to go if you are going to buy a few properties. I did it for the tax savings-asset protection is just a bonus.

Also buying your PPOR in a trust is, maybe, not such a good idea. Initially you may be able to claim a loss (against other trust income), but as you will…[Read more]

Yep. you probably don’t have much choice. Wide bay capricorn would probably be your only choice.
I can find out if you would like.

terry@discoverhomeloans.com.au

Sooshie

I just stumbled accross a document entitled “Development, Building and Subdivision Guide-Rules and Regulations” issued by the City of Lake Macquarie. It can be found at:
http://www.lakemac.com.au/business/pdf/development.pdf

Most councils would probably have some similar documents available either on hteir web site or a physical…[Read more]

Don’t think of it as one property market. there are many different markets eg country/city, luxury property/cheap stuff, Sydney/Melbourne etc. Even within cities there are different suburbs that behave differently.

Terryw
terryw@froggy.com.au

MattK

How small actually? if it is over 40sqm, then that is not too bad, but if it is under, then there is only a small number of lenders that are willing to llok at it.

Thanks for the referral Michael.

Terryw
terryw@froggy.com.au

I have a client that has purchased land in a similar situation to you.

he signed the contract about a year ago and it has now doubled in value and he is due to settle. Not a bad return.

BTW, He has decided to keep them wanted to borrow more than he paid based on current value. No lender would touch it, so we have found a private funder so he can…[Read more]

My company uses “Red Square” for property records and sales data. I think it is only about $60 per month. It is pretty good, with searches possible on people’s names or on addresses or even on postcodes.

However it only covers NSW data at the moment.
Web address:
http://www.eac.com.au/propdata.asp

Terryw
terryw@froggy.com.au

Hurricane

What about this:
1) home loan
2) Ip loan
3) LOC sucurred on home

Use 3 to borrow money to pay for all expenses relating to Ip except interest payments on 2. Eg rates, insurance etc. All future deposits can also come out of this account. This method should help in reducing the home loan balance faster than normal and increase your tax…[Read more]

Don’t beleive anything a bank worker tells you! If they new about investing, they wouldn’t be working in banks. I love it when they recomend you use one of their ‘financial planners’.

My parents were advised by a bank person that they should get a PI loan on their investment property, and that they should have the loan term of 15 years instead of…[Read more]

I think the Govt did abolish negative gearing once in 1987 os thereabouts. it caused rents to skyrocket as investors pulled out.

If the were to disallow negative gearing, they would only disallow the loss from a property to be offset against other income. So if you just did positive stuff, it wouldn’t affect you. Maybe they should disallow…[Read more]

Shralper

Sounds like a good plan. You can always refiance the land later on if you decide to keep it.

I have also heard of people buying property using their LOC, waiting a month or so and then getting finance on the property at a value higher than the purchase price by claiming they had made improvements etc. One guy said he got $16,000 extra…[Read more]

Nessie

This topic has been covered before!

(This is a joke)

Terryw
terryw@froggy.com.au

I beleive what Sooshie says in regard to Vic is correct, but have heard this has changed recently.

I haven’t tried it in NSW, but one of my clients was advised by a solicitor that it would be ok if the nominee was your trust/company or a relative.

Terryw
terryw@froggy.com.au