And imagine all the points you would receive in Gross’ example.

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Look at this recent QLD case:
Pryke & Ors v. Commissioner of State Revenue [2006] QSC 226 (23 August 2006)
http://www.austlii.edu.au/au/cases/qld/QSC/2006/226.html

The Act states:
DUTIES ACT 2001 – SECT 152
152 Exemption–to correct error in previous dutiable transaction

Transfer duty is not imposed on a dutiable transaction to correct an error in a previous dutiable transaction about the same property if–

(a) no additional consideration is paid or payable; and

(b) the beneficial interests in the property change only to the extent necessary to correct the error.

Are you in QLD?
And Are you the sole shareholder?

If so, you may be able to do it?? Better talk to your lawyer.

Different states probably have similar provisions.

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I was just looking at a loan contract for a friend. He is buying a $75,000 car. In 5 years of having the loan he would have paid a total of $91,000 in for it, including interest, and by then it will only be worth $25,000.

We were working it out that he would be paying about $15,000 pa in repayments, plus it would be dropping in value by around $20,000 pa, plus insurance, petrol, tyres etc etc. probably cost him $50,000 pa all up!

I’ve got the oldest and cheapest car I can afford, and am happy with it as it gets me from A to B.

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Why can’t you gear up? Is it because of the location? That would be the quickest option.

And I am not sure what you mean above??? Deductibility does not depend on the security, but what the funds are used for.

It is not a complex situation, but a simple one. There are a few lenders out that that will let you go over 80% slightly. If you haven’t tried them, then that is a possible solution.

Another solution is to gear one up high, and keep the others at 80% to reduce the LMI.

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Homeside may also consider slightly over with no LMI.

A cheaper way to go with your existing lender may be to gear up to 80% on everything, and then go over 80% on the new purchase, that way you are only paying LMI on the smaller loan (not total loans) and your loans would be not cross collateralised. You could also possibly challenge a valuation as coming in low??

But you haven’t got much time left either.

You may also have problems with valuations coming in lower with a new lender too.

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Hi Grant

yes good point, they just Card B would just make a payment into Card A, regardless of the balance outstanding. So you wait for this to happen, and then make the withdrawal.

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Hi Grant

Why are you paying above market value for this property?

I would be inclined to suggest you not buy it – mainly for the reasons above.

But you also have to consider the opportunity cost. If you keep this one, it may mean you miss out on others – possibly more profitable sub divisions etc.

You will also have this hanging over your head for 2 more years. Worrying if it has dropped or not, worrying if you will be able to get a loan or not.

Things change, and the Low Docs or mortgae insurers may put out a policy restricting loans for these sorts of properties in that area.

I am not a fan of off the plan as this all happened to me. I signed up, the market crashed, and I worried about it for 2 years, and only was able to get out because of the contract sunset clause.

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Hi

What is short selling?

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Why doesn’t she move out of hte retirement place back into the home for a short period, and then move back again? The 2 years should start again.

Give Centrelink a call and talk to their financial advisors there.

Also seek out a professional knowledgeable in this area.

I don’t think selling the house now will solve the problem as she will then have $1.5mil which will take her over the limit. Gifting money will not help as the rules only allow gifting a certain amount each year – anything over this is still assessed as being in her hands.

And, at the end of the day, how much is the pension worth? Maybe $10,000 pa?? Maybe it is not worth worrying about trying to qualify. She can always get a reverse mortgage to cover any income shortfalls. Hopefully the growth of the property will be faster than she can spend it.

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You just need to refine the strategy a bit. Get 2 credit cards.
Get a cash withdrawal from card A for $10,000. Transfer the balance of this card to card B – chose one with a 6 month interest free period for balance transfers. Now you have $10,000 interest free for 6 months. You may have to pay a few days interest on card A before the transfer kicks in.

The $10,000 can then be deposited in your 100% offset account secuared against your home loan.

But, in 6 months you may only be saving $350 in interest! ($10,000 x 7%pa). Is it worth it? You must also take into account the fees on the credit cards.

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