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  • Profile photo of TerrywTerryw
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    a casual worker would need 3 to 12 months in the job to be considered. If LMI is involved some lenders won’t consider casual works as the sole borrower.

     

    You might be able to change to part timmme to help qualify for the loan

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://structuring.com.au/
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    Profile photo of TerrywTerryw
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    A deposit is only one aspect to consider, income is the other main one. As a general rule of thumb you can borrow about 6 to 7 times your annual gross salary.

    But watch out if the work is casual as it will be much harder to qualify

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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    Profile photo of TerrywTerryw
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    Sounds like it might be on revenue account or partially capital and partially revenue.

     

    If you can get it on capital account you could potentially renovate, live in the first house for 3 months and sell it CGT free.

     

    If you just want to reno and sell it would probably be on revenue account which might have a similar outcome anyway. Don’t forget to get advice on the GST aspects.

     

    as for cost base you would need to apportion between the 2 factoring in both the land and the house.

    see s 112-25 ITAA97 and s 112-30ITAA97

     

    Don’t forget the deductibility of interest too.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://structuring.com.au/
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    Profile photo of TerrywTerryw
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    Structuring like this is legal advice so you will need a lawyer. They would need to consider the child support legislation – which I have never looked at, but I would imagine there would be provisions in there to count the income of trusts and companies which you control, even if not named as controlling.

     

    One way to structure it might be to divert income to the new spouse who buys as trustee of a discretionary trust which you are an unnamed beneficiary of. You not take an income or distribution from the trust until all the children are over the child support age.

    But this has consequences which you need legal advice on – tax, family law (what if split from new spouse), asset protection, land tax, borrowing ability etc.

     

    Proper advice on this sort of thing would cost you a few thousand I imagine.

    • This reply was modified 4 months, 2 weeks ago by Profile photo of Terryw Terryw.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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    Profile photo of TerrywTerryw
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    The legislation still has an example involving someone moving overseas

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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    Profile photo of TerrywTerryw
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    i haven’t examined the recent changes. But I think the 6 year rule might still be able to be used if the property is sold when the taxpayer is a resident again.

     

    seek tax advice.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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    Profile photo of TerrywTerryw
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    Got an offset account to save into instead of paying extra off the loan?

    You might need to go fulltime if you want to borrow further.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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    Profile photo of TerrywTerryw
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    Depends on the wording in the lease.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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    Profile photo of TerrywTerryw
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    First thing to do is to look at the land tax act and the definition of principal residence and see if you have a choice. You probably don’t. It will be a question of fact, not the ability to select. See if there is a definition – which will probably be the one which is the ‘main’ place with all of your belongings.

    If there is a choice possible, you would want to choose the one with the highest land value, so you should find out what the land value of each is worth.

    Don’t forget to consider the CGT aspects too.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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    Profile photo of TerrywTerryw
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    Have a read of your loan agreement and see if you have contracted to inform them.
    Even if you have the penalty for breaching this would likely amount to nothing.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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    Profile photo of TerrywTerryw
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    Everyone would pay tax! (Restaurants would go out of business)

    Actually not everyone – some will barter. Bartering might even make a bit of a come back.

    Yesterday or the day before CBA network was down, but all you would have to do, as a consumer, is to use another card from another bank. It would be harder for shops and those taking money though.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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    Profile photo of TerrywTerryw
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    I think many would be interested. It is not just the cost of LMI that stops people, but the LMI company rejecting the loan for a variety of reasons.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://structuring.com.au/
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    Profile photo of TerrywTerryw
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    You would need specific legal advice, as what is suitable for one person may not be suitable for another. What works in QLD property may be too costly for NSW property for example. structuring loans will depend on who the legal ownership, serviceability, security value, other assets, interest rates etc.

    If you have any specific questions ask away, I specialise in structuring.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://structuring.com.au/
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    Profile photo of TerrywTerryw
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    yes
    why not

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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    Profile photo of TerrywTerryw
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    whats your question?

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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    Profile photo of TerrywTerryw
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    This won’t be welcome under residential lending.
    Most lenders will not lend for more than 2 on title. Some will, but if they think you will be running a short term rental business they will not include potential rent.
    You will need to consult a broker.

    Will you be buying for $200k or $300k or $450k?
    better speak to a lawyer too, especially if you are planning on buying for less than market value.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://structuring.com.au/
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    Profile photo of TerrywTerryw
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    You would need a written lease with an inspection report and incorporate this into the contract of sale

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://structuring.com.au/
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    Profile photo of TerrywTerryw
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    first get permission from the mortgagee – they won’t give it.
    Then speak to your conveyancing lawyer about whether a contract is needed, enter contracts and sign transfer and settle.
    Duty will be payable on the value transferred.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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    Profile photo of TerrywTerryw
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    see https://www.propertyinvesting.com/topic/5055830-title/#post-5055833

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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    Profile photo of TerrywTerryw
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    any change in title will require a release of the mortgage. This means the loan will need to be paid out or a new loan applied for.

    Stamp duty will apply on the value transferred, unless there is an exemption. none available for pensioners as far as I know but depending on the circumstances you might be able to argue a trust relationship.

    Going off title will effect the pension.

    Seek legal advice.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://structuring.com.au/
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