Interesting Jaxon. I haven’t seen it done that way before.

But then they would be acting for the seller.

A buyers agent is paid by the buyer to find them a property to buy.

Advice is not to look at land tax in isolation. No point buying somewhere with low growth only to avoid land tax.

That is irrelevant.

It is where the properties are that is important.

No, buyers agent fees are a capital expense and not deductible.

Yes I would charge $550. The solicitor has to go through the agreements paragraph by paragraph and explain to the client so as to cover themselves. There are a few cases where the solicitor ended up in trouble over these.

Depends on the state the properties are located in.

In NSW joint owners are assessed on a single owner for land tax and then given a credit for properties they own on their own.

e.g. $500,000 worth of land held by 2 people jointly is subject to land tax.
$250,000 held each isn’t.
$500,000 joint with X owning another house with $200,000 worth of…[Read more]

Paying interest in advance means you need to fix your loan for 1 year.

That is really a personal choice. keep in mind you can only use up to 90% of the value, not the equity so you may have less useable equity than you thought. I have clients that have taken loans up to 90% repeatedly and done well out of it, but keep in mind the property bubble could burst and you don’t want to be over exposed.

I would prefer this approach rather than having to constantly apply for various discounts with bank, which seem to be given as standard policy anyway. So why not just build the discount in from the start.

Ironlady – vetting of a deed by the bank should take just 1 day. Some ask for various documents which have been missed or maybe for amendments to the SMSF deed etc which could cause further delays, but it shouldn’t really take that long.

Richard is right I just got someone a 0% discount at ME Bank. ie they don’t give discounts. Even on a $2mil loan unfortunately.

SMSF loans do tend to take longer than non smsf loans (not that there is any reason for this!). You could try asking how long, but they may not really know the answer.

Your options may be to exchange now subject to finance, wait, or find another buyer.

Focus on the rate not the discount. ING and Heritage are low at the moment for variable. ME Bank for fixed.

Hope the SMSF is not lending money to a family trust. They are probably just confused.

yes, if it is rented out.

Is it the product that you are on?

The company as trustee can apply for an increase to get access.

It is not really relevant whether the purchaser is an SMSF trustee or not. Some rules apply for all – if there is no written contract then there is no contract. Ask the agent why haven’t they signed a contract or paid the deposit and ask your solicitor to chase them up too. You can then consider if you should withdraw you offer, – maybe put a…[Read more]

Scotty,T the 6 year rule only applies to absences. if you are living there and renting part you are not absent, so s118-145 cannot apply. s118-192 covers earning income from your property and the CGT results.

You could apply the 6 year absence rule to only 1 property at any one time. But where you have lived in both properties as the main residence you could choose which property to count as the main residence for the 6 year rule. You cannot claim it for the room rentals so these will cause CGT to apply.

In your specific situation you could apply it…[Read more]