Forum Replies Created
Congratulations. Great achievement to get rid of your bad debt. You may still have problems for a while because of the default, buy just keep saving for the deposit and your achievements will help you get a loan
Nobody can give you any accurate advice without knowing the exact wording of the contract or any separate deed you have signed. What advice did your solicitor give you when you purchased the property?
Tell your friend not to be worried. He's only likely to be caught out if there are any of the following:
Rental bond
Electricty/gas/phone accounts for that address in his tenants' names or elsewhere in his name
Electoral records as above
RTA records as above
Tax returns showing his address/his tenants' addresses
Bank records give another address
His employer's records give another address
His insurance shows it is an investment propertyA tenant/friend/exgirlfriend/work colleague blows the whistle
or the OSR does a spot check
Is your tax agent confused because you did not get any income in year ending June 2009 from the property (tell him to look at Steele's case) or because you mixed the redraw with other funds
Your problem is you are not able to meet your financial commitments, you have defaulted on your mortgages, and you need to have something to show your bank why they shouldn't take action. Whatver the borrowing environment was six months, 1 yaer or 3 years ago, the world has changed. Three years ago I was happy to go to my banks talk about finance and excvahnge contracts while I was waiting for a formal loan offer. Today no way. Earlier this year I was refinancing, my broker told me approved subject to valuation. The valuation was fine and then that bank kept wanting more details. In the end I went with another bank. Both banks had exactly the same information.
If you think your business model is so sound get some furniture cheap or with no money down and try it as some posters suggested on Somersoft if you are determined to do this.
But at the moment as your bank would see it you have chosen not to give priority to paying your mortgage, and if my reading is correct have not paid anything off for 5 months, soon to be 6. Until you start making payments whatever equity you have is being eroded rapidly.
If your plan is so good then get it endorsed by an accountant and present a proper business plan to your bank, but if you think the bank is going to lend you more you are dreaming. What did you tell the bank three months ago, was it that things had turned around and you would meet the August and September payments? If so, you have no credibility – why should they believe you that things will be different
Take the documentation you have and go and see a solicitor.
Jan Somers and Margaret Lomas are worth reading too.
Well, 4 identical posts – is that a record?
The losses are applied firstly to exempt income such as FTB and then you carry forward the rest against future taxable income.
From a tax point of view maybe eg your husband might only show enough of his half share of the deductions to wipe out his share of the rent. You could then show your share to a maximum amount of your share of the rent plus your income
eg Hubby Rent Share $5000
Actual deductions $10000, but just claims $5000You Wages $20000
Rent Share $5000
Claim actual deductions $7500, pay tax on $17500 and Centrelink assesses you as having income of $20000Hi Tony,
Ideally you want to look at maximising deductible debt and minimising non deductible.
First consider whether your current property is going to be a good investment in the future. You're grossing about 4.2% based on the current value. Are rents going to increase or values increase? Is the house going to need work?
If you sell your IP it will be free of CGT and you will have say $320K ($180K after selling plus $140K) from your offset. This will mean you will have to borrow between $280-$480 plus purchasing costs.
If you buy in Qld without selling you will be borrowing between $460-$660 plus purchasing costs.
There's not much point putting the Vic house in your wife's name if her income is going to be minimal for a few years as any negative gearing advantages from depreciation etc would be better for you.
As the house is in Victoria you may be able to have your wife transfer her half of the house to you free of stamop duty. In Effect she will get $225K less $125K payout mortgage, so $100K in the hand. You will owe $225 plus $125 (half existing mortgage), a total of $350 where interest will be deductible. This is about 78% LVR on the VIC house.
You will then have your wife's $100 plus the offset $140 to put to a new house and your non-deductible borrowings will be between $360-$560 plus purchasing costs.
So ideally your first step is to consider whether your existing house is a good investment. If it is then a transfer to you would increase your tax deductible interest. If it is not, then sell, buy your PPOR and then start investing again
Unless either of you is over 55, you are unlikely to be able to access super for hardship. If one of you is over 55 a transition to retiirement pension might assist
i'm sorry you're in this situation. You need to be realistic on values. Look at what else is on the market and what places are selling for. Can you rent yours as permanent. Can you move back to where you came from and get employment there again? Potentially you have $300K of equity, unless you are able to come up with a realistic proposal to the bank, that is at risk.
You need to talk to your accountant or someone and get some objective advice.
If I were in your position I would put both properties on the market as if you can get one sold you can then keep the other and build back up from that.
I would think a 5 to 10 minute walk is close to transport. A 10 minute drive might be close if the transport is an airport, but not for train or bus
If you want a rough rule of thumb I would say the transaction costs of buying and selling a property are about 10%. So, if you bought for $160, you'd need to sell for $176 to come out in front. This is assuming you haven't spent any money on the property and that you are breaking even on holding costs. This is normally the reason why property is not generally a shortterm investment.
You do not give enough information for anyone to give you any advice that would be worth paying attention to eg how much do you owe on the mortgage, expected rent, what your income is, is anything going to affect your income eg children, how much you are proposing to borrow for a second IP etc etc
It's not surprising. Where we are i would say prices have dropped 10% in the past year. Friends purchased recently a property they had looked at 2 years ago, which had had extra work done on it over the 2 years and only paid $5K more than the sale price 2 years ago.
It seems to me that either you always intended to develop or that at some stage you have changed your intention. In this isntance Capital gains tax would not apply and you would be taxed as ordinary income. If your intention has changed you need advice on how to have maximised your capital gain. You may also have some GST issues.
In NSW provided neither of you have owned a property before yous hould be eligible for stamp duty exemptions
If it was your partner's Dad's PPOR until he died then the value will start at the value at the date of death. If your partner was living in it and had no other PPOR that period of ownership will also be exempt from CGT. After that period the answers will depend on whether your partner had another PPOR during the next 6 years at any time. In any event if your partner has not been getting any income from the property holding costs such as rates, repairs and insurance will form part of his cost base reducing any CGT further.
Another aspect to consider is some lenders want principal and interest repaid over say 10 years. This can have a detrimental impact on your cashflow
