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  • Profile photo of CSRACSRA
    Participant
    @csra
    Join Date: 2011
    Post Count: 3
    May 26, 2011 - 4:26 am

    We're with CBA and have the wealth package with a re-draw facility and an off-set account.  This was the standard set-up 5 years ago, so are you sure you don't already have an off-set account, they call it a MISA??

    Having money in the re-draw or off-set, makes no difference to the interest rates, there no extra fees for having money in both, one, or swapping it around.  Though in the MISA, there is a minimum transaction limit of $500 for withdrawals and deposits which can be frustrating at times.

    Good luck!!

    Profile photo of CSRACSRA
    Participant
    @csra
    Join Date: 2011
    Post Count: 3
    May 21, 2011 - 7:09 am

    As mentioned above ,,, take great care in the set-up ie: company, trust, partnership etc

    We used a trust, which is administered by a partnership, and found we could not split the mortgage 1/2  an 1/2.  So we have one mortgage which both partners are guareentors for. 

    This is now a problem and hinders our finance options, as in the banks eyes, each partners owes the full amount. 

    My story is a great one  of how not to do it!!!  :-)   and it was all under the advise of our accountant (who is no longer our accountant) and our banker who did not know that the complication regarding the trust and being unable to split the mortgage.

    Please talk to everyone you can, and maybe two of each, before you buy anything.  I wouldn't wish our situation on anyone!

    Profile photo of CSRACSRA
    Participant
    @csra
    Join Date: 2011
    Post Count: 3
    May 18, 2011 - 10:51 am

    Don't do it … we are currently in a property dispute with a partner we thought we could trust, money changes everything.

    If you really want to do it, make sure you have a partnership agreement in place, talk to your lawyer, prior to any purchase.  Make sure your agreement has an exit strategy, how to calculate cost and distribute profit. Who will be doing the administration, will they be compensated etc.   What/how the property is to be utilised ie: rental etc  (our partners moved into the property without our consent and won't move out or pay rent).  Also make sure you have a dispute process and steps for a sale should one partner want out and the other not be in a position to purchase them out.  Also consider if one partner wants out, should you purchase/sell the share at market value, or an agreed cost for the first 5 years.

    Oh and also if the partner or you are married, make sure divorce settlements are covered and death of either partner

    Good luck, this is something I will never be doing again … I'd rather not invest.

    I'm sure there is more, this is just of the top of my head.   Talk to your lawyer, accountant and make sure you are absolutely certain you have covered as many bases as you can, to protect yourself and your partner, if one of you cannot afford to cover costs etc

Viewing 3 posts - 1 through 3 (of 3 total)