Sorry Jaffa, I can't understand what you are saying.

Adverse possession is when someone occupies land they don't own. If they have done this for a minimum period of time and certain conditions are met, they can then make a claim for ownership. In NSW i think the minimum period is 10 (or 12?) years.

Maybe you are saying you placed a deposit on a property which had someone living on it without the owners knowledge? You placed a deposit and couldn't settle because of this and they will not give the deposit back???

Is your own home paid off? if not a 100% offset account may be better.

The interest on the loan for the land and other costs should be able to be claimed against income if your intention was to rent or sell.

Most companies would be reliable.

You just have to read the fine print! They don't pay out for what is not covered.

see the same post with answers here
https://www.propertyinvesting.com/forums/getting-technical/finance/4328579

Hi Media

You are the second person this week that I have seen confused by LOCS!

A LOC is a loan in which you can deposit and withdraw funds up to a certain limit – thats it!

The LOC will have a set limit. The limit is a monetary amount, not a percentage of the LVR. So the LVR won't increase as your property values increase. You will need to apply for an increase and will need to re-qualify for the loan proving income etc.

You may be able to pull out $100,000 by increasing the limit on the LOC. It will be tax free because you are just borrowing money. The way you put it sounds like you don't really understand this – sorry if I have misread you, but there is nothing 'magical' about it. You are just borrowing more money.

Can be good as you can, maybe, negative gear and save tax. And you can still be able to keep your original home CGT free.

Don't worry too much. It is just a delay of 1 day. Penalty interest is around 10 to 15% pa – but you will only be charged, if at all, the day's interest. So if it is a $500,000 purchase, 10% is $50,000. divide this by 365 = $136.

But also remember since your loan will be settling one day later you will be saving interest there too. eg. $400,000 at 5% = $20,000. daily rate is $55.

Net cost $81 per day.

As a guide you can borrow about 5 times your annual income. So you will come up a bit short I am afraid.

Boarders cannot be taken into account for income, but if you were to rent the place out and stay with parents, then you may get over the line.