Still no cuts with RHG???

Pos, you must be paying way over market rate at the moment. On the pro packs you should be able to get the standard 0.7% discounts, but you may get more depending on overall loan size. Just got one of my clients 1% off with a major bank for a loan size of around $2mil.

So how much are your exit fees going to be and when do the drop off?

Oh, and one potential problem is that many lenders have restricitons on refinancing loans that were originally low doc.

3% is the rough figure for a 97% LVR loan.

Sounds good. Just get some advice on the structure. eg it may be best to use a discretionary trust as it can save you tax, protect your assets and be flexible in helping with finanace.

Also consider asking the vendor to pay your stamp duty on the land. This may help with you forking out less cash.

As for the loan, you should be able to get 80% of the value of the land and 80% of the value of the fixed price building contract.

if the renos were done to improve the house that you are going to be making rental income out of, then the interest should be deductible.

That is unusual about the age discrimination. CBA used to try that too. Just go to another lender and probably better to use a broker.

Depends on how you are going to do it.

If you are keeping the company and transferring the shares to a DT or a UT then you will need to do the paperwork for this. ASIC will need to be notified and the relevant transfer form filled in. There may be CGT issues and stamp duty payable. Stamp duty on share transfers was supposed to be abolished on 01 Jan this year, but I think they have kept it going from memory.

If your company is selling the business to another entity, then you will be changing title. So you will need some sort of deed of sale. There is a standard contract of sale out there for the sale of a business (in NSW anyway). Again there may be stamp duty issues as goodwill is dutiable property. This won't be abolished till 2011.

There is lots to consider ifn doing all this such as existing leases, mortgages, charges etc over the existing company or its equipment. Licences etc.

Another option may be to sell up the new entity and gradually start the cross over by doing new business in this entity.

While reading this I just received a sms from a Sydney based lender who can lend 90% LVR for first  home owners with paid defaults and judgments with rates from 6.17%.

So there are still lenders out there who can do these sorts of loan with slightly higher rates.

Hi Angela

I just looked up the stamp duty issue.

Looks like units in a unit trust are dutiable property under s11 of the Duties Act 1997 (NSW)
http://www.austlii.edu.au/au/legis/nsw/consol_act/da199793/s11.html

As for the positive gearing issues, what if you bought a $450,000 property that rented for $450 pw. repayments would equal rent approx. You would still have slight loss due to other costs, but if rates drop again or if your rent increases after 12 months your property would be positively geared. And this income could go to the lowest income earner if you use a DT

If you buy in your husbands name you may save $1000 in tax in year 1 and then start having to pay tax at 46% in year 2.

1) only against the capital gains when you sell

2) it depends if you have PI or IO loan. If PI then the monthly repayments are usually the same, just more comes off the principle with money in the offset. If IO then you are going to be paying less each month.

it is just because you have guaranteed someone else's debt. It is a terrible idea to guarantee someone else's loan, but your trust or company won't get a loan without a guarantee.