ahhh. Figured as much but yeah, figured I’d ask anyway (it’s never safe to assume when you don’t know much lol)

I’m in a similar situation however there is a current mortgage on my parents place.

In your case you’ve got a totally separate loan (making it a heapload easier to manage), however in mine I think I will have to re-extend the current loan with either my mom or my dad.

if you don’t mind me asking Wayne, before purchasing the stake was the house paid off entirely or was there a current mortgage on the property?

hrmmm. Does this include the interest from the loan?

Ah ok cool. That’s surprised me (being allowed to have the 2 accounts treated differently) but I’m happy that it can be done.

“I think St G is one of the few banks that will allow different names of sub accounts on their portfolio product.”

What exactly does that mean? Each account under our own names I suppose.

Awesome. Thanks for this guys, I’ve printed out the replies and given em to my Parents to read through and decipher on their own (it all makes sense to me now, but I don’t want to “force” any views onto them).

I now have a new question here.

Assuming that we can’t get 2 separate loans, but can get the 1 loan with 2 accounts, what kind of…[Read more]

Originally posted by elkam:
Hope this has not confused you even more. [biggrin]
Elka

lol, only the tiniest bit. In your example I am taking out my own loan of 100k to pay out my dad. Will the banks allow me to do that?

After talking with my Mortgage Broker, I was under the impression that lenders would only allow one loan on the…[Read more]

Originally posted by Terryw:
say its worth $500,000.

Just think of it as a sale of the property and then repurchasing it.

Assuming they will split it evenly, that means your dad’s share is worth $250,000, less his share of the loan of $50,000 = $200,000.

Same with your mum.

Now your dad will gift you this $100,000 of his $200,000 and you buy…[Read more]

Ah ok cool thanks. Clears up a few things.

The reason I ask is in response to a question I asked a while back about my parents house but I will post again since the situation has changed.

Mom and Dad both own the family home with a 100k loan currently owing. They’re getting divorced and have to figure out how to split the home. Mom wishes to…[Read more]

Originally posted by AmandaBS:
Hi Guys,

Well it has been a few years since I practiced in Tax Accounting but I do recall the 6 year exemption rule that applies to your PPOR as outlined above. I also thought that a taxpayer was required to make an election in his/her tax return about the exemption so please call you Accountant to verify.

I was…[Read more]

hmmm. I wonder than as a first I.P if it would be viable to purchase it as a PPoR and “convert” it to an IP for 6 year intervals?

Especially at the beginning of your investment career when you will be dealing with 1 or 2 properties, why not use this as a failsafe in case/when you choose to sell your first property.

Of course this is on the…[Read more]

Thanks for your patience and answer LA. I tried to search through the threads but the search never loaded.

I’ll double check with my Accountant, though I’m pretty sure that TerryW is correct when he states you can move in after 5 years and continue to rent it out afterwards for 5.9years

A little thing in your example LA is that you’re no longer…[Read more]

Sorry, I posted this in a hurry for work and realized how much info I left out too late.

The block is 2000sqm which a little above the average block size.

There are a fair amount of Land Developments going on at Forrest Beach

When I purchased my plan was either to Divide the block at some later date or build a few townhouses/units on it.

I…[Read more]

Originally posted by elkam:
Hello CJWentworth

Maybe I’m wrong but from your original post I get the idea that you and your brothers and sister are now living with your father in the house as the carer and not your mother.

The only reason I am asking is that if this is the case I am not sure if GMH454s’ plan will work as it changes the dynamics…[Read more]

sorry guys I’ve been getting used to this forum and wasn’t able to find this post lol. I’ve read the comments and will reply asap

awesome thanks guys. I see I haven’t placed as much importance in Post Settlement Support as I should, nor considered the need for future borrowing.