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  • Profile photo of PaulaJSPaulaJS
    Member
    @paulajs
    Join Date: 2004
    Post Count: 5
    April 12, 2004 - 2:58 am

    Hi there all you financial wizards…

    Would love some advice..here’s our situation..
    Good income working as contractor for same employer (past 2.5yrs)approx $62000pa gross at the moment but with increase coming now every 6mths. Erratic savings history, $15000 in bank, car loan @100pw, no other debt…Except.. due to utter stupidity and not having either a budget or any self control(spending at will) will owe approx $15000 in tax this year.

    Do we a; pay tax outright and start saving all over again for deposit on IP, b; go for lo doc loan to buy IP now(with deposit) & pay tax in installments?
    Also, employer has offered to put on as a payg employee with car & fuel but less net cash in hand would this option be better?

    I know this is alot to ask so even anything general would help[smiling] We need a good accountant in Melb(SE)!!

    Thanks in advance[smiling]

    Profile photo of Mortgage HunterMortgage Hunter
    Participant
    @mortgage-hunter
    Join Date: 2003
    Post Count: 3,781
    April 12, 2004 - 3:22 am

    Keep in mind that most banks require a 6 month savings history.

    If you pay out the ATO in one hit you will need to start this over.

    Cheers,

    Simon Macks
    Mortgage Broker
    http://www.mortgagehunter.com.au
    0425 228 985

    Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.

    Profile photo of FFCommFFComm
    Member
    @ffcomm
    Join Date: 2004
    Post Count: 627
    April 12, 2004 - 2:45 pm

    You could pay the ATo over 6 months and the banks would see this as the ability to pay off a mortgage (i.e. the see this a bit like savings), though make sure you go through a mortgage broker.

    I would also get the book “Money Secrets Of The Rich” by John Burley, I could give you more advice but it is totally irrelevant if you don’t control your spending and buy the book. After the book then we can help you further.

    Rgds.
    Lucifer_au

    Profile photo of redwingredwing
    Participant
    @redwing
    Join Date: 2003
    Post Count: 2,733
    April 12, 2004 - 9:54 pm

    Was going to post some advice re Savings..

    but on reflection with the advice you need to be a disciplined Saver.. get your savings and Spendings under control first… Agree, pay ATO off in installments.. You have a good income, utilise it..

    REDWING
    Income is your Greates Asset !

    “Money is a currency, like electricity and it requires momentum to make it Effective”

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