Hi Chris

Thsi happens to most people sooner or later. Some banks are more lenient than others (Westpac is pretty good). Not all use the same figures when calculating. eg some add margins on the interest rates (a buffer), others assume PI loans, others assume higher monthly expenses etc. So shopping around helps.

Some people also get around this by using low docs or no docs. Do you have much of a deposit/equity?

Terryw
Discover Home Loans
North Sydney
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I remember hearing a dispute years ago about a Qantas Pilot who lived in the country and also had some sort of business at home. He was claiming travel from his home and the airport in Sydney (where he clocked on). his arguement was that he home was also a work place. And I think the ATO allowed it!

Terryw
Discover Home Loans
North Sydney
[email protected]

So do I!

Terryw
Discover Home Loans
North Sydney
[email protected]

I got that one too.

I think these people search the net (all auotmated) looking for email address. They probably got mine from here. Thats why some people use a ‘at’ instead of @ or ‘dot’ instead of . in their email addresses. I have a spamm stopper, but this one must have gotten thru.

Terryw
Discover Home Loans
North Sydney
[email protected]

Westan

Yep, they get the funds for the cheaper loans elsewhere. It is the Asset lend loans that are their own products.

Terryw
Discover Home Loans
North Sydney
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Crashy, I would say discretionary trust is the best structure. it allows for maximin flexibility and offers asset protection that a company doesn’t.

eg, say you owned some shares in a company and made $18,000. you could only distribute this in accordance with the shareholding, but with a trust you could disribute $6000 each to yor 3 cousins who are uni students and don;t have any other income and pay no tax.

And if you were sued, your shares in that company could be at risk whereas assets held in the trust wouldn’t.

if you had a business, you could run it thru a company, but the shares could be held by the trust. that way all profit could be diverted tot he trust.

Losses can’t be distributed from a trust, but I don’t think a company can do this either? They are carried forward though. One good idea is if you have a capital loss, set up a new trust and then any capital gains can be discounted 50% (if held more than 1 yr) and this gain can then be distrubted to the old trust. This minimised the CGT payable.

Trusts are also cheap to setup and are not regulated by ASIC, and running costs are minimal.

Terryw
Discover Home Loans
North Sydney
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yes. But you may be able to claim more deductions.

Terryw
Discover Home Loans
North Sydney
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Good point taxman. I agree-you can have the best of both worlds.

Luckyone. I just posted about this in another question. There is a Tax Determination available at http://law.ato.gov.au/atolaw/view.htm?docid=TXD/TD959/NAT/ATO/00001 (TD 95/9).
It appears a you must live in the property first before you can claim it as your PPOR and then have up to 6 years where you can rent it out, and still claim it as your PPOR. I beleive you can still claim interest etc on the property even though you will not pay any CGT.

Terryw
Discover Home Loans
North Sydney
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I mentioned this to a real estate agent friend of mine in NSW. He was of the opinion that no licencing would be necessary to act as a spotter or a buyers agent. It is best to check with the Dept of Fair Trading to be sure. Just ring them up.

Terryw
Discover Home Loans
North Sydney
[email protected]

I am not an accountant, but I beleive a time period is not stated in legislation and you should be able to claim a house as your PPOR if you live in it for just one day. But you can only have one PPOR per family (or 2 for a short period to allow moving). You can also be absent from your PPOR for a period of up to 6 years, rent it out and pay no CGT. Check this with a GOOD accountant.

Terryw
Discover Home Loans
North Sydney
[email protected]